With summer just around the corner, the fashion industry is gearing up for the major European fashion fairs. Sales managers, agents, and distributors are under pressure to deliver the best and most complete offer to physical and online multi-brands. In this article, we will delve into the context of the latest campaign and discuss the sector’s expectations for the upcoming summer season.
Climate change has emerged as an important factor influencing commercial relations in the fashion industry. Though not the primary decision-making criterion for professionals, it has gained increasing significance. Market players in France and Italy have observed that climate change is also affecting buyers’ behavior. For example, specialists in winter accessories like gloves and scarves face challenges when they cannot predict whether they will be able to sell warm coats and cashmere jumpers due to milder seasons. However, down jackets have remained popular among retailers and buyers.
In response to climate change and the environmental concerns it raises, some brands have made the decision to forgo the development of product categories that require heavy resources for production, transport, and storage. Instead, they focus on statement pieces such as beautiful coats and accessories. These products still attract mid-range positioning stores as they are used for window displays and creating looks. On the other hand, shoppers in Milan have shown interest in purchasing coats, faux furs, jackets, and knitwear, especially if they are attractively priced.
The unpredictable weather patterns resulting from climate change may also be influencing buyers’ decisions when it comes to summer purchases. Lightweight products suitable for extended heatwaves and items that can withstand radical weather conditions are expected to perform well this season. Additionally, products that incorporate technical textiles with features like anti-UV, anti-odor, breathability, and waterproofing could gain popularity as long as they are reasonably priced.
Inflation and the overall economic situation have also impacted the fashion industry across Europe. Following the COVID-19 pandemic, the warm seasons breathed new life into the sector. However, in 2023, the context has changed. Buyers remain cautious and are maintaining a low profile, though not as fearful as they were during the height of the pandemic. The supply chain has undergone changes, with some brands moving their production to Europe due to transportation and raw material pressures. Consequently, the average price of items offered by most brands has increased. While some brands have accepted these increases and targeted a more affluent clientele, others are concerned that their customers may no longer be able to afford their products.
In this economic climate, it is crucial for fashion industry players to differentiate themselves from the competition. Adding an eco-responsible touch to products has become appealing to retailers looking to attract new customers. Another key factor for retailers is ensuring timely delivery to meet customer expectations.
The French market is particularly vulnerable due to economic tensions arising from prolonged protests against pension reform. This unfavorable context has affected consumer spending and the physical retail sector in many towns and cities. However, the slowdown last season did not exclusively impact French retailers. Despite increased sales compared to the previous season, buyers’ budgets remained stable. Italian boutiques, in particular, experienced sluggish sales.
On a positive note, the return of international buyers is expected to give a boost to the fashion industry. Buyers from the United States, the Middle East, Japan, and South Korea have returned to Europe’s fashion capitals, benefiting labels with export potential. The physical store experience remains pivotal in building distribution, and many buyers are now returning to physical stores, allowing them to interact firsthand with the product. Chinese buyers, in particular, are eagerly purchasing international labels again. According to a study by the Joor trade platform, Chinese retailers placed 33% more orders at the beginning of 2023 compared to the previous year. This surge in demand has particularly benefited European players, with a 61% increase in transaction volume.
As travel options become more accessible, Chinese professionals should be able to attend the upcoming fashion fairs and discover the Spring-Summer 2024 collections. This could potentially provide a much-needed boost to European brands. With climate change, inflation, and the return of international buyers shaping the industry’s expectations, the trade fairs and showrooms happening this summer are sure to be impactful events for the fashion industry.
Useful links:
1. The Myth of Ethical Fashion
2. Sustainable Fashion Brands to Know
