Competitor Strategies in Apparel and Footwear

Delivery

This report comes in PPT.

Key Findings

A shadow lies over recovery

While global sales of apparel and footwear bounced back quicker than previously expected, the war in Ukraine, all time high inflation and China’s strict COVID policies have further disrupted the global economy, forcing market players to reassess their priorities and operating procedures – from which markets to expand, to distribution channels and where to produce.

Diversifying retail markets

Strict COVID-19 policies and the “guochao” trend in China (Chinese consumers increasingly embracing domestic brands), combined with the poor economic outlook and political instability in Europe, have led international fashion players to diversify their retail markets in a bid to drive their global growth.

Rethinking supply chains

Already heavily disrupted by the global pandemic, supply chains are now challenged by the current market volatility. This is reshaping the global production landscape, as market players invest in AI and automation, vertical integration and diversification of suppliers to mitigate their risks and predict demand.

Investing in DEI and sustainability

Following the pandemic and Black Lives Matter (BLM) protests, social justice and climate change have come to the fore for a growing number of consumers and fashion players need to reprioritise their ESG and DEI commitments as part of their core values, all the more since regulation in that regard is evolving, for example the EU Green Deal.

Banking on brand experiences and personalisation

Consumers increasingly demand a personal and seamless experience from the brands they buy, and the option to engage with them on or offline as and when it suits them best. Hence companies continue to invest in their omnichannel transformation, from digitally-enhanced stores to NFTs, as they need to achieve greater efficiency, improve the customer experience and stay relevant for new generations.