Mckinsey Has Released The Trend Of Global Garment Industry In 2019.

From production, purchase, sale to platform role, brand positioning and industry environment, a text read 2019 garment industry.

Recently, McKinsey and BoF Business of Fashion, a management consultancy, jointly released the 2019 fashion retail trend report.

The report covers the optimistic trend of the luxury market in the United States, the difficulties in the middle end market in Europe, automation, AI innovation, consumer trust and other key points.

These key trends will be interpreted one by one.

First of all, we must admit that the problems of Global trade, tariff war and other related problems will bring uncertainty to the global economic development in 2019, and the clothing industry is also exposed to the risk of the global economy.

Since the financial crisis, the annual growth rate of the global economy has averaged over 2.5%.

However, the rise in interest rates in the US financial sector has increased the turnover cost of retailers and consumers, and the tightening of European monetary policy has also led to a slowdown in economic growth to some extent.

Executives surveyed by State of Fashion report (42% of respondents) said that the industry situation in 2019 would deteriorate further.

McKinsey said that the potential changes in the economic cycle are causing concerns in the industry. With the rising cost of industry, the strategic focus of future industries may be more focused on flexible and efficient productivity.

As India's market share continues to expand, McKinsey points out that India will become the centre of Garment Retailing in 2019.

From 2018 to 2022, India's economic growth rate is 8%, and the middle class's economic growth rate is 19.4%, which is higher than that of China, Mexico and Brazil.

The report points out that the fast growing middle class and the increasingly powerful manufacturing industry have gradually made India the center of the clothing retailing industry.

Whether it is shopping demand or supply of goods, the India market will become an industry center worthy of attention.

The report points out that the impact of Sino US trade war on the supply chain and clothing trade will reshape the apparel retailing industry.

For most Chinese apparel sellers and manufacturers, how to maintain their market competitiveness under tariff barriers has become a difficult market in the future.

But at the same time, McKinsey points out that market growth in the developing countries of the southern hemisphere may also bring new opportunities for the industry.

It is understood that the trade volume of these southern hemisphere countries will increase from 25% to 30% (to 2030).

Some experts say that with the surge in trade between emerging economies in the world, the axis of clothing trade will produce subtle changes. This trend will lead the sellers or manufacturers of clothing industry to reconsider pricing strategies and procurement channels.

In 2019, the demand of global consumers for fashion products will be further upgraded to be interesting, readily available, sustainable and reasonably priced, so more and more consumers are turning to clothing rental and second-hand clothing.

Experts point out that with the continuous development of second-hand, leasing and other business models, brand exclusive sales may no longer become consumers' shopping path.

The report points out that the younger generation, including the Z generation and the millennial generation, will become the main force of clothing retailing.

Take us market data for example, the millennial generation and the Z generation represent a consumer market of $350 billion.

So the shopping idea of this crowd is very important.

It is understood that 90% of the younger generation believes that the brand's sense of social responsibility and the environment-friendly attributes of commodities are very important.

In addition, this shopping main force increasingly relies on their shopping habits, and attaches importance to the compatibility of commodities and brands with their own values.

So for brands, this is a great opportunity.

Brand can more public events happen, pass the brand value and voice, and promote consumers' emotions and identity, thereby increasing sales.

The report suggests that brands should give priority to brand related hot topics.

Besides, brands and businesses should be aware that not all the brand values advocated will be generally welcomed or supported, and some value orientation may cause certain risks. Therefore, the brand must ensure the unity of business behavior and brand value and avoid being labeled as "hypocritical".

Speed has gradually become the industry standard, especially for online retailing.

In addition to the one-stop service such as quick delivery and distribution, Amazon, an e-commerce giant, is increasingly trying to speed up the shopping process, such as integrating shopping functions in social media ports, visual recognition and shopping.

From technology to service, timely and fast shopping experience is becoming a new consumption index.

As consumers begin to seek greater pparency, the ongoing data leakage of clothing companies exacerbates people's distrust of clothing brands and retailers, and brands and retailers will need to deal with this distrust.

In 2019, consumers will have greater demand for commodity pparency and consumer trust has become an important proposition.

To do this, sellers must improve the pparency of their products, and disclose basic information such as materials, pportation, taxes and fees.

McKinsey said in a report that the clothing retailing industry must accept this fact and that the current consumption value chain needs complete pparency.

In view of the need to regain this trust, fashion industry participants can not fail to review their long-term practices in the whole industry.

Many experts believe that "subversion" will become the focus of the industry in 2019, and 79% of the top executives surveyed will rank it as one of the five major trends that affect the industry.

Externally, social media momentum and technological development have generated a large number of emerging brands and business models, and these roles are challenging the traditional industry.

In this field, the existing competitors have always been satisfied with the status quo.

At the same time, in order to compete and maintain relevance among young consumers, more and more traditional brands are subverting to catch up with the new trend, trying to build their brand new products and business models.

McKinsey believes that as the online retailing industry grows, single sales can no longer meet the fierce competition. Brands and businesses need to work in "emotion", "trust" and "curatorial".

In the future, the online retail industry will need to achieve new revenue generation through value-added services and technological innovation.

This is especially important for the platform. Whether it is through mergers and acquisitions or internal R & D, diversified ecosystems will enhance the leading edge of those "pure enterprises" that rely solely on the retail margins and existing products.

McKinsey points out that as the market matures and competition intensifies, the growth of user profit has gradually become saturated. The development of new direction will become an important topic of retail platform.

The next stage of the development of online retail platform is patented technology and knowledge, so as to diversify business models to enrich products for consumers and brands.

In 2019, fashion design and fashion change are no longer a long process. Brands and businesses need to use technology to speed up the frequency of product line changes.

This trend also has higher requirements for order production cycle and shipment volume.

However, McKinsey said in the report that automated data tools will help companies adopt flexible order production cycles and respond to market trends and consumer needs faster.

The result of this trend may be the increase in responsive production, the backlog of inventory and the importance of small batch production cycles.