The success of fast fashion
Kseniia Galenytska, senior analyst at Euromonitor comments, “With the ability to instantly adopt catwalk fashion and provide trend-led clothing for an affordable price, fast fashion retailers have been among the bigger value gainers in the last few years. The success of fast fashion has been near universal, thanks to efficient supply chains and economies of scale that have allowed fast fashion brands to market design-led offerings at very low price points. One of the most successful fast fashion brands over 2012-2017 in absolute value growth terms was H&M, which grew by $4.8 billion according to Euromonitor International provisional estimates as it expanded aggressively beyond its core market in Western Europe.
"However, as fast fashion becomes widely available, it is erasing identity and true personal style is becoming obsolete. Millennials are becoming disillusioned and eager to recapture their own personal style, seeking unique and individually tailored products that reflect their own values rather than following a homogeneous style. Brands in the fashion industry are already offering personalised products to consumers and are currently looking for ways to deliver personalised solutions quickly and on a larger scale.”
The convenience of shopping from home, advances in secure payments, flexible returns policies and rapidly improving delivery options will continue to sustain growth in internet retailing. Particularly in China and most developed markets, the digital evolution will be one of the most influential channels shaping local apparel and footwear markets. Globally, internet retailing is forecasted to account for 20% of apparel and footwear sales in 2021.
The importance of internet retailing goes beyond that of simply shopping online, however, it is also an important research and communication channel. According to Euromonitor International’s Lifestyle survey from 2016, 43% of consumers surveyed in 20 major countries around the world stated they researched and compared apparel products online, compared to 48% in store. As such, online engagement and communication with consumers plays an important role in forming companies’ brand strategies. Social media channels present themselves as an opportunity to market brands and easily communicate with its consumers.
Galenytska continues, “Personalisation will remain a key trend within the fashion industry for years to come. However, brands really need to work hard to bring personalised products into the mainstream by reaching the scale, speed of production and delivery that fast fashion retailers provide. With Adidas selling personalised sweaters through its 'Knit for you' pop up store for $215 however, brands still need to reduce the production costs to achieve true disruption.”
