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. 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.
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.
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.
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.
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.
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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