The fashion industry encompass many different smaller and more niche industries. Often people think of it as just retail/online stores, design houses and brands, and fashion magazines. However, there are other craftspeople and industries in the manufacturing of clothes. Most obviously, there are those that make and sell fabric and notions, but there are also flower makers, embroiders, seamstresses/tailors, and many others. When it comes to fashion shows and fashion marketing there are models, stylists, hair stylists, make-up artists, model agents, photographers, and a host of other non-fashion business that all make up a larger fashion eco-system. So while you can research the industry as aw hole, it is also helpful to research the companies themselves.
Like a lot of industries particularly those that are consumer focused, change happens fast and constantly and increasingly, the change is happening faster. The industry and the consumer is constantly evolving. Fashion retailing is no longer just large fashion houses, fashion magazines, and retail stores/catalogs but evolved first with TV channels that sold many goods including fashion, and then with the Internet and online retailing. The industry is also impacted by large economic trends like inflation, economic slowdowns, and hiring issues.
The rise of the internet has impacted all parts of the fashion industry, not just the selling end of the industry. It has a role in supply chains, advertising, communications, brand awareness, blurred the line between business and consumer, etc. Social media channels have not just become important to the selling of fashion but also as part of forecasting and determining trends. Social media sites like Instagram and TikTok are playing an increasing role in fashion particularly when it comes to identifying and spreading trends and hot items of the moment. Social media also speeds up the hot / not cycle and gave life to the microtrend. Bloggers and other influencers may help sell products, but can also be used by "Fashion Forecasters" looking for what's next by looking at Instagram, other social media channels, and street-style blogs. Social media companies like Pinterest through their Pinterest Predicts report, are also using their internal access to understand the trends as they are manifesting within the platform.
Below are just a few of the discussions to be aware of. Searching for articles in full-text databases and on the Internet for reports as well as articles is a good way to understanding the new trends in the industry.
These are just a few of the more obvious concepts to consider when looking at the industry. That have been included because they illustrate the idea that there are parts of the fashion industry that need to be researched in small pieces as part of a bigger picture. However, there are other trends to research and some long running trends can morph.
Traditionally clothes were sold in retail bricks-and-mortar boutiques and large department stores. This evolved into catalogs, television/cable stations, and now online though websites. Some brands are even selling directly from social media sites like Instagram using them as both advertisement and storefront. Many retailers particularly department stores and independent boutiques, source material from well-known brands and manufacturers. However, there are large wholesalers like the Istanbul Fashion Center and many wholesale clothing website
The late 20th century saw the rise of the internet as a major player in the selling of fashion. Many stores created websites to sell items online while large fashion houses created websites as a way to show consumers their product and as a way to sell directly to consumers. Newer, smaller brands have used websites to raise their profile and as a way to sell to consumers or boutiques. There is also an increasing number of web only brands, External and highly specialized single product stores and sites like those selling only shoes, resale web sites, etc. Brands can sell directly to consumers and smaller brands can spread their reach and better compete.
There are also benefits for consumers buying online. One advantages are the increased options because they are seeing new brands but they also will often see expanded size option availability that may not be available in physical stores. Consumers are also able to personalize, customize, and see an increased range of items beyond just the narrow range sold in stores with limited space.
COVID-19 changed the entire shopping experience for the short-term to make things safer and easier as well as make customers comfortable with shopping. After pandemic specific considerations were no longer necessary, the industry came back, but retail and online shopping had changed.
After COVID-19 and a less stable post-pandemic economy, people became more cautious with their money and shifted what clothing was in demand. Also, the longer term trend of moving away from more formal office attire to business casual had already begun and the pandemic brought more work from home. This resulted in lower sales for traditional office wear which seriously affected some brands with a concurrent rise in athleisure, casual, and more all purpose clothing.
While the concept of fast fashion has developed over decades particularly with the advances brought on by the Industrial Revolution, today "Fast Fashion" is a term used to describe those retailers that quickly move what they see on the catwalk to the point of sale in order to capture current fashion trends, as opposed to waiting for it to filter down via the traditional fashion cycle. This model covers the entire lifecycle from design to creation, and marketing of fashion. Some brands in this market like H&M and Zara have a strong bricks-and-mortar presence while others like Shein, Asos, Boohoo, Fashion Nova are mostly online only and can benefit by shipping directly to consumers. International companies like Shein are also able to take advantage of de minimis exemptions on import duties, though proposed rules changes were announced by the Biden Administration in September 2024 that seeks to change the exemptions particularly on textile and apparel imports from China.
But the industry life-cycle has sped up even faster and there are now ultra-fast fashion featuring brands like Shein have begun to dominate the fashion ecosystem. They are able to capitalize on trends that are changing faster and faster as well as viral sensations, but whose business practices bring concerns about sustainability and ethical practices. The speed of the fashion cycle sped up so much that for a time see now, buy now was being discussed. This was the idea that what comes down the runway will be in the store counted as days not months. Talk of that seems to have died down. Additionally, some retailers like Zara have discarded the season cycle of introducing new merchandise, introducing new items more frequently throughout the year.
This sector of fashion has risen to become a large part of overall fashion retailing, and so can be researched as an independent topic within the larger fashion industry. To really look at this sector, you will also want to research the individual companies that make and sell, to get a fuller picture.
Related to fast fashion as well as the desire for more ethical business practices generally is the trend towards ethical fashion and sustainable shopping. This has led to the rise of environmentally concerned initiatives like the Clean Clothes Campaign, the Fashion Pact External debuted by French president Emmanuel Macron in 2019, Fibershed (in California), the New Standard Institute, the NRDC's Clean by Design, and others.
There are a few rising topics in the sustainability discussion within the fashion industry. The first is the rise of organic brands. The second is sustainable consumption and low waste with the related interest in second hand fashion -- thrift stores, clothes consignment websites and stores, and re-purposing. One emerging problem related to sustainability and ethics is the practice of greenwashing which is conveying a false impression or providing misleading information about how a company's products are more environmentally sound. Luxury brands are also exploring sustainable options. Experimentation with plant-based options to replace leather and even dipping their toes into resale an related endeavors like Coachtopia, Valentino Vintage, and Chloe Vertical.
Part of the sustainability discussion is the resale market. The internet has also added to the robust resale market with large sites like Poshmark, Fashionphile, theRealReal, and Vestiaire Collective as well as smaller retailers that have both an in person and online presence. There are even specialty resale site like Rebag.
The industry is increasingly interested in data. internet retailers are using the data they have collected to better understand customers - who they are, what they are buying, emerging trends, etc. That data is also essential for the customization and personalization that consumers want. The data gathering has also been a boon for the types of customers that traditionally may have been ignored or customers interested in niche products.
For example, those who need plus size fashions and other nontraditional sizes have traditionally had limited options in the retail environment when what was sold was controlled by those who had specific ideas of who their consumer was and were limited by the size of the stores themselves. Internet sites like ModCloth, StichFix, Gwynnie Bee, Avenue, and others have been able to expand their selections beyond just the traditional sizes. The popularity of some niche websites has meant that a few have even decided to move from being an exclusively online to opening physical retail stores.
Another area that is growing but is still niche are Unisex Brands that are gender neutral. This would appeal to those customers that are non- binary or even those that just prefer clothing that is not target to a particular gender. Information is a bit harder to find, so this is a topic where articles in trade literature and other news sources, combined with other sources is going to be necessary.
There are also subsectors of fashion with their own ecosystem of information. One of these is sneakers which is large enough of a subsector that there regular tracking of sales trends. There is a thriving online presence with sites like StockX where people can buy and sell sneakers as well as other apparel. There are also local Sneaker Cons (conventions) that were vendors and attendees can buy, sell, and trade. Companies like Nike have even created apps that are part retail part community. Like other fashion brands and sectors, sneaker sales fluctuate. For the sneaker market, it spiked during the pandemic but 2024 has seen the decline of the market.
The growth of luxury fashion grew along with the increase in aspirational luxury consumers. While there have always been department stores with luxury brands, individual luxury brand stores, and consignment stores that were focused on luxury brands, the internet has changed and broadened the market. With the advent of the internet, social media, and the changing economy, there has also been a rise in the profile of brands that are not the traditional luxury brands. These are the brands whose products are more expensive and exclusive, but without the extreme exclusivity and price. Some of these brands have also partnered with more fast fashion brands like H&M or created their own diffusion or bridge lines to sell a out stores. These are lines that are given a name that connects to the exclusive brand name or signature line, but is sold at a much lower price point.
Luxury brands make a large percentage of their profits on accessories most particularly bags and shoes and many brands sell the full rage of products. Additionally, brands have begun to produce collections beyond the traditional spring and fall collections. Now there is resort and pre-season collections as well as capsule collections, celebrity brand ambassadors, and collaborations with other brands like the Versace and Fendi collaboration Fendace, as a way to put out more product.
There are many independent luxury brands, but many of the luxury brands are part of larger conglomerates focusing on the luxury market and the consolidation is likely to continue. The three biggest names in luxury fashion include the following.
While the luxury market was slower to move online with many consumers preferring the in-store experience people are increasingly purchasing luxury fashion items over the internet because of its convenience and accessibility. Sites like Net-a-Porter, Luisaviaroma, and FarFetch have grown their sales and LVMH launched 24S.com as a platform to sell all company brands outside of individual sites. There are even sites like Rent the Runway that allow consumers to rent the expensive styles the see on the runway.
The rising prices of luxury product post-pandemic has meant that many luxury consumers may have shifted their spending. The pre-loved/resale and the fashion houses markets is interwoven and changes in pricing from the brands may have helped the secondary market though even they may feel the changes in consumer spending. There has always been a resale market for luxury fashion but the internet has brought that to a national and international level with sites like Fashionphile, theRealReal, Vestiaire Collective, and Rebag. Some luxury brands have also gotten into the pre-loved market as seen by Chloe and their Chloe Vertical project in 2023. A more general slowdown in spending on luxury has had other impacts including many brands pulling out of sites like Farfetch, and longtime ecommerce sites like Matches Fashion shutting down. But the luxury market is also expanding, and is now seeing a rise of new brands like The Row moving into the luxury market.
Consumers are also demanding more than just the ability to buy products; they want an experience and the attention they feel premium brands should deliver. This is illustrated in special brand events and the opening of LV Dream in Paris. This is a ticketed project which is billed as as "cultural destination" with shopping, café, chocolate shop, art exhibit, and gift shop selling Louis Vuitton products. They are also experimenting with pop up stores and experiences like the Prada Caffè in London. The brands find that their relationship with customers is changing, Millennial consumers were just the beginning. The rise of Gen Z and then Gen Alpha consumers who are comfortable online and who spend a lot of their time and attention interacting online on social media apps like TikTok means a change in traditional patterns.
With the growth of online retailing, developers of bricks and mortar shopping environments have increasingly used Entertainment-Based Retailing as a means to attract shoppers and offer an experience not available for online shoppers. There are elements of both traditional malls (and power centers) along with “lifestyle” centers that have both dominant/large anchor tenants side by side with smaller specialty retailers and other entertainment and dining options in a more town-like setting that can be referred to as power towns. Despite that, traditional malls still struggle and many have closed. Many brands that had physical stores have moved on-line as a way to continue in business, but many still operate physical stores though the web site often offer additional products and extended size ranges.
The turnaround in seasonal collections and the sheer number of items that need to be moved, when brands bring their items to retail, it can be the case that items do not spend much time on the sales floor before being discounted. Consumers know products are discounted and often wait to purchase what they want. In the end, many items never sell at full price and larger retailers wanted to continue to sell a product all be it for a much lower price point. Off-price stores like TJ Maxx/TK Maxx, Marshalls, etc. take in inventory from many stores whereas stores in outlet malls are often tied to the larger store brands (sometimes referred to as factory store).
Outlet malls began in the 1970's but became increasingly popular. The stores in these malls stock material that is overstock, closeout, returned, factory seconds, or lower-quality versions manufactured specifically for outlets and are sold at a reduced price. Mall brands and even luxury brands have increasingly made this part of the strategy. This part of retail has been dominated by two major players Tanger and Simon Property Group. Over time more and more stores and outlet malls opened. Now even luxury brands are getting into the outlet market. Many brands do have outlet stores, but they have often clustered in more luxury focused outlet malls like Bicester Village in England and Woodbury Common from Simon Premium Outlets in New York. Outlet malls have not been immune to the troubled retail environment post-COVID. Many outlet malls have moved to an indoor/outdoor model (sometimes seen as street retail or lifestyle). By this there can be some covered areas but there are parts that are open air and can be used for outdoor seating, food, and entertainment much more like what mall "inventor" Victor Gruen envisioned.
There are a few other notable retail trends of note. One is the concepts store that sells a carefully curated selection of products connected to a theme. These brands are interested in connecting with people though the discovery and experience and has been particularly associated with brands that have strong identities including several in the luxury market. Another trend is the showroom. This is where retail stores act more as a showroom for their products and less as a way to sell items in the store.
Technology impacts the industry from the fabrics that are developed, to the way fashion is sold. This can be as simple as selling online - not all luxury brands do - or setting up platforms for multiple plans like LVMH's 24S.com. Beyond websites, many online fashion stores have even developed their own apps. Others with an interest in fashion have also moved into the area including those who want to make is easier for those interested in fashion - particularly luxury fashion - to find what they are looking for sites like Karma (formerly Shoptagger) and SourceWhere.
Technology has also made it possible for individual boutiques to connect and sell using avenues like FarFetch beyond what they could have with a brick-and-mortar store alone. There is even now Tagwalk a fashion search engine that allows anyone interested in fashion to search to fashion shows, designers, accessories, and trends. The online retail brands can even use their systems to develop their own industry reports and companies have risen to mine social media for data and insight on fashion as well as offering insight into the industry. For example, the Lyst Index looks at social media searches for top brands and hot products, The RealReal produces a resale report looking at the luxury second hand market, and Rebag produces the "Clair Report."
Beyond that, fashion is trying on other technologies. The industry explored virtual fashion but with the advent of the Metaverse, augmented reality (AR), virtual reality (VR), and AI, fashion brands are experimenting. Luxury brands have tried virtual fashion shows like the Metaverse Fashion Week and the AI Fashion Week, offer customers the opportunity to virtually "try on" the clothes, and some technologies are being utilized to enhance in-store experiences. AI in particular has pushed boundaries and given rise to AI models and agencies devoted to AI models.
Some brands have taken a more untraditional route to appeal to consumers. For their February 2024 show, the Italian brand Diesel set up livestream cameras across from their Milan headquarters and runway show venue to give people behind-the-scenes access. They broadcast on their website and social media channels and viewers could see the showspace, studio, casting room and atelier (see their YouTube channel for the recordings). This allowed views to see the fashion before it walked down the runway, as well as giving people an understanding on what needs to happen to put on a runway fashion show.
The fashion press has also adopted technology. Vogue has gone past the print magazine and now produces Vogue Business and Vogue Runway which are online publications with more niche focuses and different publication schedules. They have also created an app that to use when the runway seasons arrive.
Getting the word out is a long way saying marketing, and marketing has been an integral part of the fashion industry since the beginning though it may not always be as obvious as it is for other products.
Traditionally, fashion magazines like Vogue, Glamour, and Cosmopolitan where the way women saw what was going down the runways and what would be considered fashionable. With the rise of TV and tabloid magazines, people also looked at what celebrities wore to big TV award shows and what they were wearing in pictures featured in gossip magazines. Eventually, fashion houses and celebrities worked even more closely together either by just being invited sit at fashion shows, given clothes to wear to the shows and other big events, and featured in advertisements, but also signing deals and even designing the clothes themselves. Fashion magazines also embraced celebrities, by featuring them on the covers and in advertisements.
While the partnership of fashion houses, celebrities, and fashion magazines is still alive and well, the 21st century and in particular the internet, has also changed how clothes and brands are marketed. Fashion houses and clothing retailers now:
Increasingly, social media is being observed by those analyzing the industry and is being used to evaluate the brands success, industry trends, etc. For example, some analysts are looking at engagement during and about fashion shows to understand and possibly offer insight, into the success of a brand. This insight would be of use to fashion marketers looking to understand their brand's place in the industry and the success of their marketing and brand.
