Personal accessories sales growth slowed in 2022, due to a high inflation environment, continuing COVID-19 restrictions in China, and the impact of the war in Ukraine. Asia Pacific remains the largest contributor to the global spending on personal accessories, while Latin America is the fastest growing region. A challenging macro environment, changing consumer habits, digital transformation, stricter regulations on sustainability and a growing resale segment are expected to shape the industry.
This report comes in PPT.
A high inflation environment, the war in Ukraine, a slowdown in the Chinese economy, continued supply chain issues and decreasing consumer confidence will make 2023 another challenging year for the personal accessories industry. Pricing discipline and a focus on pivoting towards the high-income consumer segment are some ways brands are beating the slowdown.
Gen Z and Gen Alpha will account for 45% of the global population by 2030 and will be the largest target segment for personal accessories brands. Brands are being challenged to meet them where they are in order to win their emotional loyalty. Unexpected brand collaborations and the use of technology to tailor personalised rewards and incentives can help address this impending demographic shift.
From AI-driven personalisation tools, to virtual sampling, to the metaverse, brands need to keep pace with the technological transformations that are underway. Digitalisation provides endless ample opportunities, especially in digital wellness, but there are also threats, like intellectual property infringements within the fast-evolving NFT space and the murky ethics of AI.
As a reaction to “greenwashing”, brands are being challenged to provide evidence of their green credentials. Another strategy has been partnering with resale platforms as a way to lower consumers’ footprint. While most popular in the luxury segment, mass brands are also joining the resale bandwagon as personal accessories players prioritise their sustainable commitments.
Personal Accessories refers to a diversified group of personal products including Bags & Luggage, Jewellery, Watches and Writing instruments.See All of Our Definitions
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