The fashion industry has undergone rapid and unpredictable changes in recent years. According to the “2022 Fashion Environment Report” by McKinsey in collaboration with BOF, the global fashion market experienced a 20% decline in output value between 2019 and 2020, with 7% of fashion companies exiting the market.
For consumers, the pandemic led to fewer outings, prompting major brands and designers to pivot toward designs that combine home and athletic wear. Garments now feature looser cuts and prioritize comfort-focused materials. This shift has also driven fashion brands to strengthen their ties with domestic consumers while expanding remote and online e-commerce services.
Beyond these adjustments in design and consumer behavior, the fashion industry is undergoing three major paradigm shifts:
- The Shift to Sustainable Fashion: Environmental consciousness has become a critical factor, with brands investing in eco-friendly materials and ethical production practices.
- The Emergence of Virtual Fashion: Digitalization and the rise of the metaverse have introduced virtual fashion as a growing trend, blending technology and creativity to reshape the industry’s future.
- The Rise of Individualism: Modern consumers increasingly value self-expression, leading brands to focus on customization and personalization in their offerings.
These transformations are not only reshaping fashion trends but also redefining the industry’s approach to innovation, consumer engagement, and sustainability.
- Sustainable Fashion: A Growing Consensus in the Industry
Sustainable fashion has become one of the most significant topics in recent years, driven by growing concerns about climate change, pollution, and the waste generated by fast fashion. Surveys indicate that over 75% of consumers, particularly millennials, are willing to purchase sustainable products, pushing the fashion industry to prioritize sustainability in its product development. Research further shows that increased awareness of sustainability issues encourages consumers to adopt more responsible consumption behaviors, creating a positive correlation between awareness and action.
Source: 第一财经
To address these demands, the industry has embraced innovative approaches, such as using recycled materials like plastic bottles, fishing nets, old clothes, and coffee grounds. Major brands are setting ambitious goals to redefine their production methods. H&M, for instance, has pledged to use only recycled fabrics by 2030, while Levi’s has introduced decomposable clothing lines that significantly reduce water usage. Adidas has made strides with its Futurecraft.Loop sneaker series, composed entirely of recyclable materials.
The development of new eco-friendly materials is also transforming the industry. In the United States, Bolt Threads has created a leather-like fabric from mushroom-derived proteins, offering a sustainable alternative to traditional leather. Japanese designer Yuima Nakazato utilizes 3D printing technology to reduce manufacturing waste and produces garments that can be reassembled and restyled, extending their lifecycle while adding a layer of creativity to repeated wear. These innovations aim to reduce waste and promote industrial circularity by improving manufacturing processes.
While digitalization and sustainable practices represent enormous opportunities for the post-pandemic fashion industry, challenges remain. The intricate division of labor in the fashion supply chain makes it difficult to ensure that all stakeholders are genuinely committed to sustainable development. Moving forward, the industry must overcome these hurdles to fully embrace sustainability, ensuring that progress is substantive and not merely superficial. By achieving this, the fashion sector can lead a global movement toward more responsible and eco-conscious practices.
- The Metaverse and Virtual Technology is Flourishing in Fashion
Fashion admirers have likely observed a growing trend as major luxury brands, such as Louis Vuitton, Burberry, and Balenciaga, have increasingly embraced online virtual games to attract the attention of a new generation of consumers. The metaverse has significantly diversified the landscape of digital goods, with NFTs, digital fashion, and virtual gaming experiences rapidly gaining traction. For example, Ralph Lauren collaborated with the social platform Zepeto to offer exclusive products for users to dress their virtual avatars. Gucci has engaged with platforms like Roblox, Pokémon Go, and Animal Crossing, while Balenciaga joined forces with Fortnite to release purchasable virtual clothing for gamers.
This emerging trend is even reshaping our consumption habits. Technology has amplified the role of online virtual networks within the fashion industry, with augmented reality (AR) and virtual reality (VR) applications seeing a global annual growth rate of 138.7% in retail. One of the major challenges for online shopping, the difficulty of trying on clothes, has become an area where technology can offer solutions, providing consumers with better virtual fitting experiences.
In the future, the influence of metaverse digital technology will expand into more industries, helping businesses reduce costs, improve efficiency, and optimize production processes in a sustainable manner.
Source：IBS Research
For instance, TG3D Studio offers consumers the ability to virtually try on clothes through their app’s digital avatars, enhancing online shopping experiences. German startup Fit Analytics uses artificial intelligence to analyze customer data and provide clothing pairing suggestions. Nike has enabled users to scan their foot size with smartphones, making it easier to purchase shoes both online and in physical stores.
Moreover, the integration of 3D scanning technology and AR e-commerce has lowered the barriers to custom clothing. Gap, for example, closed its physical stores in the UK and introduced AR and VR technology to offer virtual fitting services, allowing customers to try on clothes from the comfort of their homes. This convergence of virtual technologies is setting the stage for a more immersive, efficient, and personalized fashion shopping experience.
- The Age of Individualism in Branding
In the past, fashion week runways were typically reserved for celebrities, editors, stylists, buyers, and other industry professionals. Today, however, a new group is taking center stage alongside the runway: fashion KOLs, or key opinion leaders.
The rise of social media has drastically altered how the fashion industry promotes itself and engages with the media. For brands, KOLs wield significant influence, with their large followings giving them substantial power. These influencers have become both celebrities and media moguls in their own right, and in many cases, a fashion influencer with millions of followers can have more impact than a traditional fashion magazine.
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In response to this shift, luxury fashion brands are increasingly focused on developing and managing their own media channels. In today’s landscape, brands must think of themselves as media entities capable of engaging directly with their consumer base. This direct line of communication with their audience, particularly Generation Z, is paramount. To connect with this demographic, fashion brands are hiring creative directors who break from traditional molds, opting for those with distinctive, sometimes unconventional styles.
Louis Vuitton exemplifies this trend, having appointed Virgil Abloh, founder of streetwear brand Off-White, and more recently, Pharrell Williams, as its men’s creative director. These appointments signal a strategic pivot toward capturing the attention of younger, more diverse consumers, prioritizing creative vision over formal fashion training.
Similarly, when Daniel Lee took over as Burberry’s creative director, he made a bold statement by clearing the brand’s social media content and introducing a new logo that overturned the visual direction set by former designer Riccardo Tisci. This move sparked significant conversation and offered a fresh perspective on the brand’s identity.
The fashion industry remains one of the largest globally, and key trends such as sustainable fashion, the metaverse, and individualism continue to evolve. One thing, however, will always remain constant: the necessity of continuous learning to keep up with the fast-paced transformations shaping the future of fashion.
