World Market for Personal Accessories

Delivery

This report comes in PPT.

Key Findings

Uncertainty is the only constant in a post-pandemic world, signalling a challenging scenario ahead

Inflation and interest rates rises are set to ease, but the cost of living crisis, slow recovery in China and increasing geopolitical issues will push personal accessories brands to navigate in uncharted waters once again. Tensions in the Red Sea in early 2024 will test supply chains once more, further pressuring fashion players to develop strategies that allow them to respond quickly to changing scenarios.

Stricter sustainability regulations in Europe and the US call brands to action and stop greenwashing

After years of loud debate around sustainable fashion, but little concrete action aside from pacts and voluntary initiatives and agreements, we are now starting to see governments seeking to change business models and consumers’ habits in the years to come. Europe and the US lead these initiatives, and companies operating in these regions must make the needed changes across their value chains.

As e-commerce growth stabilises, in-store shopping is bouncing back, suggesting channel shifts will continue over the forecast

After a robust rise during the pandemic, the growth of personal accessories sales through e-commerce has been slowing down. The main reasons for selecting one channel over the other are becoming less relevant for consumers around the globe, highlighting the importance of developing unique and seamless experiences in both channels allowing consumers to discover, compare, purchase and engage with their brands wherever they want.

The industry continues its digital transformation journey, shifting attention to generative AI

2023 was a breakout year for generative AI, and brands are keen to embrace this technology. Opportunities lie in understanding consumer behaviour, design, improved marketing strategies and inventory management, and enhanced customer services. Personal accessories have started to incorporate this technology, mainly focusing on their interaction with consumers, but the impact of generative AI has only started to be seen.

Beyond generational differences, new consumer trends are emerging, shaping the consumer of the future and challenging brands to adapt

With Gen Z’s purchasing power and influence set to increase, adapting to their demands will be key to maintain growth. The industry also needs to understand trends shaping the consumer of the future. These consumers are value hackers, and fight against greenwashing, while favouring circularity. Technology influences their purchasing decisions, and they value brands that fit into their lifestyles and help them with their overall wellbeing.