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What you should know about The State of Fashion 2022 (BoF & McKinsey)

In this report you will learn:

– How global fashion will regain grip after 2 years of disruption

– Supply chain flux and disruption

– 10 themes that will define the industry the coming year

We prepared a summary for you to quickly understand the most important topics addressed, and is something to keep track of and discuss with your teams.

Here is a short summary of each of the 10 themes;

Uneven recovery

Globally, there has been an uneven recovery across consumer markets and sourcing areas, with some countries recovering faster than others. This is dependent on the country’s healthcare systems and economic resiliency. Within the fashion industry, businesses have been impacted by covid outbreaks in manufacturers, which disrupt supply demands. 

Logistics gridlock

The fashion industry is reliant on a complex network of global supply chains that are under unprecedented strain and disruption. Shipping costs and product shortages will force businesses to rethink their sourcing strategies. The report goes into further depth regarding these problems, as well as the likelihood of them continuing in 2022.

Domestic luxuries

With international tourism not likely to completely recover until 2023, luxury purchases must be moved to domestic consumers. Pre-covid, consumers in transit or overseas accounted for 30-40% of luxury purchases. The report explains how luxury brands should interact with their domestic consumers more, rebalance their worldwide retail footprints and duty-free networks, and invest in clienteling for local e-commerce channels (BoF, 2021). 

Wardrobe reboot

Activewear and loungewear sales are beginning to fall as more people return to the workplace. In 2020, nightwear, activewear, and underwear sales increased by more than 100%. Because of this, clothing brands will need to focus more on data-driven product development, altering inventory mix accordingly to guarantee assortments resonate with customers adjusting to new lifestyles.

Metaverse mindset

The metaverse is a virtual world that incorporates elements of social networking, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrency. Fashion executives are learning to interact with high-value younger generations as consumers spend more time online and in the metaverse. This will open up new opportunities for creativity, community development, and business.

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Social shopping

Social commerce, often known as social shopping, is an approach to utilise technology to replicate the physical interactions that people have in stores. By establishing a seamless shopping experience from discovery to checkout, brands are increasingly developing and applying this sort of technology into their customers’ buying experiences. Balenciaga is an example of a brand that has implemented this approach. They launched an online video game titled Afterworld: The Age of Tomorrow for their autumn 2021 collection. According to the report, brands should continue to focus on customised in-app purchase journeys and test opportunities in technologies such as live-streaming and augmented reality (BoF, 2021).

Circular textiles

Implementing a closed-loop recycling system, which allows the fashion industry to cut both virgin material production and textile waste, is one of the most critical factors it can use to lessen its environmental effect. The report goes into depth on how fashion companies need to incorporate this factor into the design process of their products.

One of our key services at RethinkRebels is assisting fashion brands in developing circular designs and business models. We have demonstrated results in circular design projects (with our own base of circular fashion designers), product-as-a-service models (rental/lease), implementing technology to improve transparency and optimise processes (QR/blockchain/AI, etc.), and developing a circular business strategy for your specific needs. If this is something you and your brand are interested in, book a call today!

Product passports

Product passports are a tool for fashion companies to add unique identifiers and other digital information to their items; they link to information such as authenticity, transparency, and sustainability, which benefits both customers and partners. Companies will benefit from these ‘product passports’ as well, since they may help combat counterfeiting, differentiate themselves, and generate loyalty by increasing customer trust.

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Smit & Zoon Product Passport

Cyber resilience

Because cyber attacks are becoming more widespread, fashion executives need to establish resilience against these threats now more than ever. With more consumers purchasing online, fashion businesses are now responsible for their customers’ personal data. The report goes into further depth on why these businesses should invest more in digital security as a strategic imperative.

Talent crunch

“Fashion companies face a talent deficit in the year ahead” (BoF, 2021). Businesses are failing to recruit and retain people, particularly in digital, creative, and commercial sectors, despite all-time high vacancy rates. They must update their talent strategy to meet the demands of a more flexible, diverse, and digitised workplace.

Would you like to read* the full article? Click on the link below: 


*You will need to have an account with BOF to access this report.

Questions about this topic? Write them down in our comments below. Did you like this? Perhaps you will like our previous article ‘How is the Textile Industry Impacted by the Coronavirus?’ Do you see mistakes? Let us know! Do you want to stay informed? Sign up for our Newsletter or social via Facebook and Instagram.

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