When consumers can afford less and less

[muniyaakter]

The challenges now are inflation – which has seen a 22% increase in clothing prices in Europe – and the war in Ukraine which, according to 58% of fashion executives, will weaken the fashion market (McKinsey, State of Fashion 2023).

To meet these challenges, major brands are streamlining and renegotiating energy and raw material supply agreements, moving to nearshoring (moving production closer to national markets) and evaluating strategic partnerships with suppliers.

Rising spending, rising energy prices, political uncertainty. It slovenia consumer mobile number list all means one thing: consumers are becoming more cautious about spending in most regions.

Europeans, in particular, will make the biggest cuts in spending on clothing, footwear, accessories and jewellery.

A McKinsey Consumer Pulse Survey shows that 37% of consumers plan to cut back on second-hand spending and 74% say they will downsize in the coming year.

Those who will want to spend the least will be the young people:

More than 75% of young Americans, ages 18 to 40, said they will be more careful with their spending, compared to 64% of people ages 41 to 58 and 53% of people ages 59 to 77.

From every crisis, however, comes an opportunity.

Off-price channels (such as outlets) are expected to account for up to 12% of fashion industry revenues by 2025, as is resale of pre-owned pieces , which will grow 11 times faster than traditional sales channels.

We will talk about this better in the chapter “ Coordinates to follow ”.

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