Global Clothing Retail Snapshot
THE GLOBAL FASHION RETAIL SECTOR IS EXPECTED TO GROW 4.0% IN 2018
The global economy is expected to continue growing at a moderate pace. According to the International Monetary Fund’s World Economic Output from July 2018, world output is expected to grow 3.9% in both 2018 and 2019. While the rate of growth in advanced economies may have peaked and could be reaching a plateau, emerging economies continue to grow at an accelerated pace, particularly those in emerging and developing Asia, which will reach 6.5% growth in 2019.
This disparity can also be seen in the fashion industry, where growth is beginning to be driven by emerging-market countries across Asia-Pacific, Latin America and other regions and not from Europe and North America. In 2018, fashion retail in Asia-Pacific emerging markets is expected to grow at 7.0% in contrast to the 2.5% forecasted in Mature Europe economies, while the global industry is expected to grow 4.0%. Besides the regional shift, the fashion industry is also facing many changes in its business model. Consumers have begun to interact with the industry through digital, their expectations of experiences have increased, and they have given more and more importance to convenience, price, quality, newness, and a personal touch.
The global fashion industry continues to shift through a phase of digital adoption of consumers, resulting in rapid growth of online sales of apparel and footwear. As more users become digital, the environment will favour companies that prioritise digital-first models and e-commerce.