The State of Fashion 2018 Summary

The Business of Fashion and McKinsey & Company have teamed up to give us an inside look as to what the fashion industry will look like in 2018. As the retail industry learns how to deal with the many challenges it is facing, this industry must learn how to adapt to a new market, take advantage of digitization and new technology and learn how to collaborate with online platforms. However, I believe the biggest shift in the retail industry for 2018 is the sense of optimism that the industry leaders have for the upcoming year. 

The Growth of the East

The most prominent retail trend to take over 2018 is the overwhelming increase of Asia's representation in the fashion industry. Besides the projection of the region to account for 40% of apparel and shoe sales in 2018 and reaching $1.4 trillion by 2020, Asia is also a hub for technology and fashion innovation. According to The State of Fashion, Asia now owns two-thirds of the 45 e-commerce platforms and "is one of the world's most active digital investment and start-up investments (The State of Fashion, 22). With this information in mind, it is important for the fashion industry to start paying more attention to this region instead of just the U.S and Europe. It is pointed out in the report that because the fashion capitals are located on the west side of the world, there will always be a pressure to focus more on the West, however for the sake of the industry's growth, a change in focus must occur soon. 

Digitization and Technology

There is no doubt that we are moving into a highly digitized society, and fashion is no exception to this trend. The State of Fashion report found that 55% of shoppers' buying decisions are based on online reviews and 74% of decisions are based on social media and influencers. This new type of shopping is actually leading to a decrease in brand loyalty because it is so easy to compare products online. Consumers are also doing much of their shopping on their phones, which is pushing brands to create user friendly apps that allow consumers to place orders on their mobile devices. A great example of a company who has mastered this is ASOS. Also, because Asia is the leader of technology use, the ability for fashion brands to create useable apps will also help them penetrate the Eastern market. 

Online Platforms

If you shop online, you know that online platforms are all the rage right now. They are the internet's department store. As of right now 55% of consumers in the United States go to Amazon first when searching for products (The State of Fashion, 47). This number is a good indicator of how consumers are looking for their products; through online platforms like Amazon, FarFetch and Net a Porter. This shopping strategy is based on the ability to shop a wide of variety of products and brands all on one website. This upcoming trend is forcing brands to start collaborating with online platforms in order to get more exposure to consumers. Unfortunately for fashion brands, this means giving up control of their brand and also the presentation of their products. However, if brands want to stay relevant and noticed, the sacrifice of full autonomy must be made.   

2018's Number One Trend

The State of Fashion report has dubbed personalization to be the #1 trend of 2018. Millennials are constantly searching for ways to be unique individuals. By being able to personalize their luxury handbag, that handbag is now not just a bag, it is their bag. The expectation is for fashion brands to start offering individualized products by creating customized items, making personalized recommendations and convince consumers that their brand is more authentic than the others. 

The Sense of Optimism

As an incoming professional in the fashion industry, I was extremely pleased to hear how optimistic the retail leaders are for 2018. It is predicted that retail sales will triple from 1.5% to somewhere between 3.5% and 4.5% between 2016 and 2018. Industry leaders are committed to focusing on what they can control and learning how to adapt with the factors that they have no control of. It is important to be nimble and versatile in this industry and it looks like the retail industry is learning how to maneuver today's challenges and industry disrupters. 

The State of Fashion 2018 Report: https://cdn.businessoffashion.com/reports/The_State_of_Fashion_2018_v2.pdf