The retail industry is seeing seismic shifts compounded with volatility and uncertainty in the global economy. Growth shifts are moving from the west to the south and east along with disruptive technology becoming mainstream. Consumers are now fully connected and in control. Here are 7 trends to watch in 2018 inspired by the BoF and McKinsey & Company’s The State of Fashion 2018 report.
1. Predictably unpredictable
Geopolitical turmoil, economic uncertainty and unpredictability are the new normal. Sports, Fashion and Lifestyle companies and leaders have to be constantly vigilant and nimble in order to adapt to an ever-changing environment. Their is a constant need to focus on putting the customer first, understand their needs and directing energy towards what is within their control to adapt and change. It's important to delight your customers, its no longer NOT an option to have the right product, in the right place at the right time with the right price tag.
2. Globalization reboot
Despite the rise of nationalism, globalisation will not stall. A new phase of globalisation characterised by the exponential growth of cross-border bandwidth, connectivity and digital data flows will alter the global playing field and give certain players a competitive edge. If cash was king, then Data is the prince.
3. Asian trailblazers
With two thirds of the world’s e-commerce unicorns, more than half of global online retail sales, and countless digital and tech innovations, Asia is no longer waiting for Western companies to step up. Asian players will assert their power and leadership even more through pioneering innovations and global-scale investment and expansion. China is no longer a copy cat, but a leader of innovation.
4. Getting personal
Personalisation and curation will become more important to the customer. As consumer values coalesce around authenticity and individuality, brands will value data even more to tailor recommendations, engage influencers and personalise experiences. The fashion companies that flourish will re-focus on their strengths. Innovation is also important in both the product and commerce channels, if you don't innovate, your business may no longer be relevant.
5. Platforms first
Consumers will increasingly look to online platforms as the first point of search, attracted by their convenience, relevance and breadth of offering. Whether mass, specialist or premium, platforms will continue to grow in scale and reach compelling fashion brands to find ways of engaging more with these powerful sales channels. The question for fashion brands is no longer “if” but “how” to collaborate with big online platforms.
6. Mobile obsessed
As consumers’ obsession with mobile grows, the end-to-end transaction will also move to mobile. With an overabundance of mobile payment solutions already available globally, consumers will expect sports, fashion and lifestyle companies to cater for increasingly convenient mobile transactions.
7. AI gets real
Leading innovators will reveal the possibilities of artificial intelligence across all parts of the fashion value chain, exploring new ways of creating value for those employed in the fashion industry. AI enhancements will go beyond the traditional areas of machine tasks into creative and customer interaction processes, blurring the line between technology and creativity. However the future is in "Voice" technology, look at how we use Siri, Hey Google and Alexa.
