The year 2020 brought massive change to everyone’s personal and professional lives - the question was more about continuing business activities than earning profits.
Of all the sectors, one that outgrew all expectations and flourished even in uncertain times is the fashion industry. Retail went digital coming up with alternatives to adhere to the pandemic protocols and meet the dynamically shifting customer preferences. Where the first quarter of 2020 witnessed a sharp decline in sales, the following indicated promising figures. Much of this is attributed to the fact that the industry has continuously evolved, adapting to the changing times.
Keeping this as the core, we highlight the top five fashion trends to keep an eye on in 2021 and beyond.
Top 5 trends to rule the fashion industry in 2021 and beyond
The go-online or go-home mindset
Survey results predict that the global market value of the eCommerce industry is expected to cross $1.0 trillion in the next five years. With the current market valued at $759.5 billion, the industry would grow at a CAGR of 7.18%. That is to say, the online fashion economy is booming with success and the only way to cash on this growth is by going online. Considering the need to avoid social gatherings or practice distancing, customers are more likely to purchase online, than visit a store.
Personalization is underrated
Long gone are the days when customizing email campaigns meant adding the name in the subject line. The next-gen buyers are proactive and convincing them to make a purchase is tough. Probably this is the reason why modern-day retailers are investing their time and efforts in hyper-personalization. The advancement in technology has given marketers the ease to dig deeper into customer preferences and render products/solutions that are relevant to the targeted buyers. Remember that competition has only doubled. It is not your idea but the execution of the same that differentiates you from your competitors.
Sustainability is the new normal
The covid-19 crisis has had a significant impact on the fashion industry, not just in terms of selling but also production. Customers now prioritise products that are sustainable and manufactured in an eco-friendly fashion. Multiple surveys conducted show that 88% of the customers prefer brands that operate in a socio-friendly manner. Cost is no longer the driving factor as buyers are more focused on quality, leading to the growth of something that we refer to as a conscious future. For fashion startups and early age entrepreneurs, now is the time to revise their strategies and invest in manufacturing products that do no or minimal harm to the environment.
Another trend that has surged during the pandemic is the concept of digital or contactless payments. True that the trend has been in the industry for a long, it is only that the endemic accelerated the adoption, pushing it in everyday transactions. Gartner predicts that the payment system wouldn’t be the same post-pandemic as it was before. This is a clear indication of the fact that people are now more likely to opt for cashless transactions, even if given the chance to make in-person payments. Platforms such as Apple Pay, Google pay along with party payment portals make it easier for customers to buy products, thereby becoming the preferred mode of payment.
Omni-channel presence: the key to online marketing
Last but the most important trend to live through the pandemic is the idea of omnichannel marketing. With alterations in the fashion industry or to say, the rise of e-commerce business, the definition of marketing has also changed. Like buying, the mode of marketing is also digital. What’s fascinating is that businesses now need to create oni-channel marketing strategies to follow their customers where they hang out the most. Sticking to a single-channel will limit the exposure, compromising sales and overall profits. Hence, the need to create a presence across multiple channels to attract target customers, and close deals.
Coping with the post-pandemic trends could be tough when you are still in the funding stage. While you work to refine your strategies and adopt the ongoing trends, The Startup Club invites you to the International Fashion and Luxury Investment Forum on June 23 to pitch your ideas, attract investors, and raise funds for your startup.
Come and see your vision turn to reality!