Profit
“Profit” is the pillar of all industries. If there is no profit, there will be no perfect economic system, and human social security will only stay in the era of barter. In the fashion industry, it makes sense that designers benefit from their creativity and labor.
A record 69 percent of companies were value destroyers in 2020, according to the latest reading of the McKinsey Global Fashion Index (MGFI), compared with 61 percent in 2019 and just 28 percent in 2011. About 7 percent of companies left the market entirely, either due to financial distress or because they were bought by rivals. （McKinsey’s Retail Practice， 2022）
We kick off our ten key themes for this year by taking the temperature of the global economy and analyzing the complex impacts of the pandemic as it continues its unpredictable progress. Amid these challenging dynamics, the imperative for brands will be to secure their recovery. At the same time, they must adapt to evolving consumer demand and ensure they take the opportunities offered by new digital frontiers. As sustainability becomes a more urgent concern, brands need to ramp up their efforts to reflect customer values in their assortments, supply chains, and ways of working. Finally, amid rising competition for talent—particularly tech talent—brands need to find new ways to attract the best and brightest, with cybersecurity likely to be near the top of the agenda
A big trend is that fashion brands are investing in new digital applications, and they use this to protect systems and customer information. Some fashion brands are grabbing market share of web traffic. Those fashion companies with a good market share win the attention of young people and make more profits. Amid intense competition, cybertalent will be at a premium. And more broadly, all-time-high vacancy rates mean brands must find novel ways to attract and retain employees—as other industries compete hard on salaries, sustainability, and job security. Authenticity and employee well-being will be more important than ever.
The metaverse is not quite here yet, but it has already blended in the digital strategy of retail brands. Many names in the fashion and luxury retail sector have geared up for the envisioned virtual and immersive future, releasing virtual clothing, dropping NFTs, and minting their presence in the gaming world. Gaming, in particular, has been key in the soft launch into the experiential, digital and immersive experiences that metaverse promises. This picture is about the things you do in the metaverse but never in real life(show below).
(Statista, 2022)
References：
AnitaBalchandani. (2022) In 2022, the fashion industry can return to growth as changing category landscapes, new digital frontiers, and advances in sustainability continue to present opportunities. Available at: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion
Tugba Sabanoglu. (2022)Fashion in the metaverse – Statistics & Facts. Available at:
https://www.statista.com/topics/9013/fashion-retail-in-the-metaverse/#dossierKeyfigures
(Accessed Jun 1, 2022)