Click To Change Fashion!

Published on 03 Sep, 2015

Fashion industry Investment Research

The fashion landscape has shifted. Window shopping and mannequins are passé. Notification bars, display pictures and status updates are in vogue. Spring and fall collections at London, Milan, Paris and New York are no more restricted to the runways. Social Media has emerged as the new normal that now influences how fashion is being proliferated, perceived and consumed around the world. In the digital era, new age consumers make fashion statements on their profile pictures on platforms such as Facebook and share their opinions on the emerging trends on micro-blogging sites.

Statistically, American and European Union markets dominate the global fashion scenario with trades running into 3 Digit Billions and a staggering 68% market share in exported fashion. People are increasingly leveraging social media to boost their Social Presence, and in turn are utilizing the platform for what now is emerging as a new business line termed as ‘Personal Branding and Advocacy for individuals’.

Thanks to the confluence of Techno-Commerce, e-retailers now assist brands to penetrate into developing economies and tap potential customer base. With low resource costs and easy access to markets, the industry is fast absorbing a ‘flexible assembly line’ to meet the growing consumer demands. Remember the good old Dell days where you had made to order PC’s?

For example, once-diminished fashion trend ‘Western Outfit’ has found a newfound hold in the fashion scene at Asia, primarily in culturally conservative countries, where international brands no longer have to blend local fashion to suit the needs. In fact, local competitors are scrambling hard to adopt western styles in their designs to please the local market.

Another online sales strategy widely adopted is flash sales, with offers like Buy One Get One. These offers alter the typical buying patterns of consumers in addition to the quirky ad campaigns that help drive bulk buying mentality.

The innate need to customize is being well satiated by online shopping. A few known brands have partnered with tech companies to develop mobile and web platforms for customers to choose apparel, personalize it, accessorize virtually with interactive content, and try it online (Virtual Reality based applications that allow users to use their phones’ or computers’ camera to experience the merchandize).

Comparative studies show that spending patterns are changing rapidly to choice-based spending on branded clothing and fine dining. Tier 1 clothing brands, such as Nike, Reebok, A&F, Levis, Pepe and M&S, are now a household name globally.

For instance, in 2012 Prada’s brand value skyrocketed 63%, bringing it to $9.5 billion. That made Prada the fourth most valuable luxury brand in the world, and the number one riser in any category. Prada has multiple outlets in the east with websites that currently do not support online shopping functionality. They have partnered with a few e-retailers, albeit with offerings limited to accessories such as eyewear, belts and wallets etc.

Louis Vuitton’s (brand valued at USD 22,719 million) continued success can be attributed to consistently upholding its core values and remaining loyal to its travel-centric heritage. Louis Vuitton has significantly improved its digital presence—from charting its history on Facebook to launching an app that enables customers to share travel experiences. A great move indeed.