The fashion industry no longer has a hole burning in its pocket.
Major fast-fashion brands and luxury houses alike are either topping, reaching, or nearing their pre-pandemic sales.
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Companies that have reported posting sales comparable to their pre-pandemic level in 2019 include Burberry, H&M, Inditex, LVMH, Prada, and SMCP.
Aside from players in the fashion industry, this will benefit customers who can look forward to more quality options in terms of products and how they consume these.
Consumer shifts forecast to take place include wardrobe reboots that involve reallocating wallet share to categories other than loungewear and sportswear. This is the result of increased demand for newness coinciding with more social freedoms outside the home due to the relaxation of pandemic restrictions.
“In many global regions, the business of fashion is set to pick up momentum in 2022, as consumers unleash pent-up buying power and dress to impress (where the pandemic allows),” read the State of Fashion 2022 report by consulting firm McKinsey & Company.
The firm said the fashion industry can return to growth this year as changing category landscapes, new digital frontiers, and advances in sustainability all present opportunities.
“After nearly two years of disruption, the global fashion industry is once again finding its feet,” read the report, which added that companies are adapting to new consumer priorities.
“Still, the industry faces significant challenges amid supply-chain disruption, patchy demand, and persistent pressure on the bottom line. With the majority of companies struggling to turn a profit, growth will be a key priority in the year ahead.”
Although growth is seen for the fashion industry, uneven recovery from COVID-19-related economic shocks is expected across consumer markets and sourcing regions. Usually, countries with strong healthcare systems and economic resilience thrived better.
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