Fashion industry: Main trends and related investment potential

Whereas in the past, fashion trends were set by designers at their own shows, today the opposite is true – customers themselves determine what they expect from fashion. Fast fashion is increasingly becoming the target of criticism, as people expect sustainability, quality and a perfect shopping experience across channels. If they want to survive, and better yet prosper, both major and small fashion-industry players must respond accordingly. And those brands that have long played a role in shaping current trends or are quick to adopt them represent interesting investment potential.

The fashion market in the Czech Republic and Slovakia

If we look at the Czech market, customers are starting to focus more on higher-quality and sustainable clothing. Though price is still important to Czechs, surveys show that 27% of Czechs plan to buy sustainable fashion in the coming months and so far in 2020, the price-comparison platform Glami has registered a ten-fold year-on-year increase in the number of clicks on products labelled as sustainable. In addition to that, fashion holds the largest share (29%) in e-commerce overall.

Online fashion shopping also has the largest share in e-commerce (approximately 37%) in Slovakia, where price is currently the most important factor in the decision-making process. However, the number of customers who prefer high-quality products despite the higher price continues to grow, with 76% of Slovaks willing to pay more for sustainable fashion.

Digitalisation

Unlike in the case of traditional industry, here we are referring to the digitalisation of shopping. The online-shopping trend, which is driven primarily by the younger generation, has been bolstered by the Covid-19 pandemic. McKinsey estimates that in 2021, the digital segment in the European fashion industry will grow by up to 30% compared to 2019. Together with the desire for great service, the manner in which a brand handles the overall shopping experience will be important. It is possible to capture the customer’s attention in the online environment, especially on mobile devices, only if a brand differentiates itself through its product range, community and first-class service during purchase and delivery.