50 Star US Inc.
The industry saw a more complete picture of how the epidemic had affected consumer behavior in 2023, and the concepts and ideals that had developed during the slowdown began to bear fruit. Artificial intelligence was presented as a powerful instrument, the effects of excessive fashion spending on climate change gained traction, and people's reluctance to return to the office endured despite their growing interest in trip experiences. In the consumer market, luxury brands improved the shopping experience in developed and developing nations' big cities, but retail sales began to decline following the post-pandemic surge. This year will witness the application and effects of such comprehensions and intelligence in the real world.
1. Lawsuits for sustainability will gain more traction: 2023 began with a great deal of optimism regarding US and European legislative efforts to curb the environmental damage caused by the pandemic, which was further exacerbated by the explosive growth of ultra-fast fashion brands like Shein. It finally received some legislative action; whereas Europe set the example, the US also made considerable progress. The fashion business can no longer disregard the environmental impact that is so evident in our daily lives. The impetus for government legislation in the US and Europe will pick up steam in 2024.
The hard reality is that societal perception may be influenced to support longer wear and reuse of fashion the sooner the world realizes that decreasing consumption is the only way to escape this. For customers to view fashion as less disposable and be prepared to pay a price that fairly accounts for the impact on the environment and labor costs, there needs to be an emotional connection established between the makers and the producers of the product. Stronger initiatives are required to change the culture that is merely encouraging consumption.
2. The fight to include brands in worker remuneration will continue: Bangladeshi garment workers' demands for more pay were clearly heard throughout the world. Although it was raised, it was still far short. Old money and common sense still won out when the brands realized they could get away with removing their brand from the ownership of the garment in relation to the worker's wage because they are aware that consumers' perceptions of workers' living conditions are still sufficiently insulated to allow them to place a higher priority on the price of clothing.
It's anyone's guess as to when the social impact of wages will become severe enough to affect the mentality of consumers worldwide, but in my opinion, in order for that to happen, workers must be more humanized to a larger segment of Western consumers through social initiatives that go far beyond activism for environmental and labor rights.
3. Artificial intelligence (AI) and augmented reality (AR) will be the most disruptive technologies: AI saw its breakthrough in 2023. This year, businesses will use technology to further their commercial goals. Frequently, this will involve enhancing the use of AI and ML to increase the effectiveness of decreasing human dependency—a resource that is already scarce in the wake of the epidemic. The design and creative departments will face challenges in managing copyright laws, but the benefits of artificial intelligence will outweigh their inability to fully utilize this technology. Larger fashion-forward enterprises will improve their retail experiences with augmented reality and augmented/virtual reality (Ref: Vogue Business).
4. Travel in and out of the office: In 2023, it was anticipated that employees would return to work and that their wardrobe needs would follow. However, the efforts of CEOs and other decision-makers to get workers back to work proved to be far less successful at the end of the year than expected. However, it is projected that worldwide travel will surpass 2019 for the first time in 2024. This implies there will be a greater demand for goods needed for travel, lodging, and outdoor activities.
5. Hyper-experiential retail is back and kicking in global capitals, but the future of retail is unclear: 2023 has seen a significant advancement in luxury brands' ability to create bespoke experiences with on-site craftspeople, VIP floors, carefully picked art on displays, and unique exotics rooms, as consumers have made their way back to physical retail outlets.
The largest premium brands in NYC, Gucci, relocated to a 15,000 square foot, five-story location. Top clientele accommodates overnight stay in Dior’s Paris flagship shop. The brand's largest store to date in Paris, YSL launched its palace-like location on Avenue des Champs-Élysées in December (source WWD). 2024 will see the continuation of this trend, despite some signs of softening.
Retail will remain unpredictable due to geopolitical issues. Even while the luxury market had a better picture in the first half of 2023 than the overall market, by the second half of the year, consumers' taste for fashion was waning overall, which resulted in sluggish sales and inconsistent results. According to CEOs surveyed for the Business of Fashion-McKinsey State of Fashion 2024 Executive Survey, executives in the fashion industry expect more challenges and are unsure about the year ahead. It is anticipated that the fashion industry as a whole will have retail sales increase of two to four percent annually in 2024.
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