Fashion

Industries : Fashion

These are just some of the ways in which the world will look very different for apparel companies in 2020 than it does today.

Today, tech is transforming fashion at a faster pace than ever.From robots that sew and cut fabric, to AI algorithms that predict style trends, to VR mirrors in dressing rooms, technology is automating, personalizing, and speeding up every aspect of fashion.

Knowledge from the AI system is then served back to human designers, who can use it to make informed design decisions for their next collection.

Stitch Fix is already at the forefront of AI-driven fashion with its “Hybrid Design” garments, which are created by algorithms that identify trends and styles missing from the Stitch Fix inventory and suggest new designs — based on combinations of consumers’ favoritecolors, patterns, and textiles — for human designers’ approval

Indian economy, one of the fastest growing economies of the world, is witnessing major shifts in consumer preferences. Increasing disposable income, brand awareness and increasing tech-savvy millennial population are the driving factors of corporatized retail within the country. Overall, Indian retail scenario has shown sustainable long-term growth compared to other developing economies.

The Indian retail market was worth Rs 41,66,500 crore (US $641 billion) in 2016 and is expected to reach Rs 1,02,50,500 crore (US $1,576 billion) by 2026, growing at a Compound Annual Growth Rate (CAGR) of 10 per cent. It is envisaged that the current fashion retail market worth Rs 2,97,091 crore (US $46 billion) will grow at a promising CAGR of 9.7 per cent to reach Rs 7,48,398 crore (US $115 billion) by 2026.

Indian apparel industry which is the second largest contributor in the retail industry after food and grocery is seeing some major shifts. Entry of international brands, changes in preferences from non-branded to branded, the fast growing economy, large young consuming population in the country has made India a highly lucrative market. India has the world’s largest youth population, which is becoming fashion conscious owing to mass media and social media penetration. This has opened unprecedented retail market opportunities. The promising growth rate of 9.7 per cent makes the Indian fashion industry prominent in the retail sector. With a GDP growth rate of 7 per cent, India has an edge over developed markets of the US, Europe and Japan which are expected to grow at a rate of 2-3 per cent. Favourable trade policies and increased penetration of organised retail among other factors contribute in making Indian fashion industry attractive for investors.

Today, however, additional dynamics are stirring the pot. Apparel consumers not only want to see a level of freshness in their products, but also in the entire shopping experience. As is the case across many industries, shoppers increasingly want brands to speak to them with the same level of relevance, whether they are on an iPad or browsing in a store.

Few industries require companies to stay as nimble and on their toes as the global apparel business. At a baseline level, there is the fast-moving nature of fashion, which requires companies to jump on trends right away, never taking the fast follower approach. That alone gives the apparel business a unique set of challenges.

The apparel business also hosts some of the world’s most rapidly growing companies. A number of smaller entrants, both online and offline, are growing at the speed of light, quickly bringing their banner to global scale.

The size of the global apparel business is growing and is expected to generate double digit growth between now and 2020. Much of this growth is coming from developing markets, notably from the exploding buying power among Asian consumers, who are migrating into the middle class and starting to view clothes as an extension and expression of their new lifestyle. These consumers are also increasingly travelling – and shopping – abroad. By 2020, foreign spending of Asian-Pacific residents outside of their home countries will triple, totalling $600 billion. In the luxury goods segment, 75 percent of all sales will be from Chinese consumers, with more than half of that being spent outside of China.

 

By 2020, a quarter of global wealth will be concentrated in just 60 mega-cities, some of which will be larger than countries. Already today, a large share of the fastest-growing cities lies outside Europe and North America, primarily in China and India. The future impact of these trends will be even more dramatic in the apparel business than in most others. Emerging markets in Asia and South America currently account for roughly one-third of global revenues for women's apparel. Over the coming 20 years, this share will grow to over half.

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