World Market for Personal Accessories

Delivery

This report comes in PPT.

Key findings

A challenging macro environment will test the industry’s resilience over the forecast period

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. In the largest markets, flexibility and agility will be key over the forecast period. Shifting attention to other regions for new pockets of growth, or as production or distribution hubs, is something companies and brands should consider in the short-to-mid term.

Consumption patterns and preferences are evolving as Gen Z and Gen Alpha become the biggest cohort

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. These generations’ values and preferences are significantly different to those of their predecessors, and brands are being challenged to adapt their products, distribution, marketing and ways to engage with their consumers accordingly.

Digitalisation provides endless opportunities for fashion brands

The share of sales through e-commerce reached 19% in 2022, signalling how technology continues to reshape fashion. From AI-driven personalisation tools, to virtual sampling, to omnichannel digital experience, to web3, to virtual fashion shows, to the metaverse, companies and brands are being pushed to embark on a digital transformation in order to keep up with fast changing consumer needs and wants.

Tightened regulations will demand evidence-backed sustainability claims

With the fashion industry being accused of “greenwashing”, companies and brands are challenged to transparently prove the results of their sustainability efforts. Rigorous measurement of their environmental footprint and emissions generated, reduction of energy/water consumption, reduction of waste, fair trade, alongside certifications from official organisations are vital to gain consumers’ trust and to comply with stricter regulations.

Resale continues to grow but overconsumption among younger consumers challenges its sustainable purpose

The concept of resale or the second-hand market is not new, but in the past it was limited to thrift and vintage stores, or to low-income consumer segments in developing countries. Since the entrance of online resale platforms, mainly focused on the luxury segment, this perception has changed and this market continues to thrive. However, critics think it is fuelling overconsumption, thus defeating its sustainable claims.