Structure of the collection, development process of the product, supply, sustainability, and planning&logistics: these are the five pillars on which the Luxury industry will organize its relaunch. A recent study by Sistema Moda Italia explains the type of world awaiting us in the near future.
The five priorities for a profoundly changing industry
Great structural changes are about to affect the Luxury industry. New models that will be implemented as early as this year will show the first effects next year and will allow a re-launch of the market probably in 2023. This forecast is made from a study that Sistema Moda Italia (SMI) conducted among the CEOs of hundreds of companies in the Luxury sector, both Italian and French, whose overall revenue reaches 25 billion euro.
Among the most important news, the study indicates that the relationship between suppliers and brands will change significantly, with greater integration upstream and downstream: this both in the creative process and in the development of the product, both in the production planning and in their delivery. Flexibility will, therefore, become one of the cornerstones of the future model of Luxury business, whose seasonal characteristics will progressively tend to vanish.
Another important trend will concern the collections of the future. Many brands have, in fact, already started to downsize, proposing almost 30% of fewer references; the desire to go towards a greater simplification emerges from the study. The topic of sustainable development could not but be added to all this: consumers demand something concrete and companies must seriously respond on this aspect.
Sustainability factor: the virtuous example arrives from Finland
Already last year, we dealt with the relationship between Luxury and sustainability in our Magazine. Now, the topic is back in the foreground overwhelmingly, and not only because it is cited in the study by SMI. An innovation carried out in a green direction for the Fashion industry has been announced specifically during these recent weeks by Finland.
The Finnish textile sector will, in fact, open a hub, in the south of the country, dedicated to recycling: an entire city dedicated to the disposal of pre- and post-production waste, in collaboration with important groups like Adidas and H&M. In the meantime, innovative bio-based products deriving from patented technologies by local companies have been launched.
Marika Ollaranta, manager of the “Bio and Circular Finland” program by Business Finland states in this regard: “Finnish innovation offers solutions that cover the entire life cycle of a fabric. Governments, consumers and the industry itself are becoming aware of the challenges and opportunities for an industry very oriented to single-use, where it is necessary to work to create awareness and to change mentality and behavior”.
The word to consumers: “less is more” is the new trend
The ideas expressed by the commerce and investments manager of the Finnish company, nonetheless, already find wide consensus in the community of consumers. To support this thesis this time is the recent study by McKinsey, published during the most recent New York Fashion Week. A study that, as we are about to see, has many points in common with the one presented by SMI.
The study by the famous consulting company also identifies five rising trends: decrease in demand, substantial move to digital shopping, renewed attention to the values of the brands, lesser importance of travel retail and, above all, a new “less is more” mentality. Consumers, in fact, embrace a preference for more durable goods, of superior quality and products in a more sustainable manner. Fashion executives respond on their end by placing the reduction of inventory articles among the priorities. Sustainability in the sector is going beyond the impact of the industry on the environment, also embracing the themes associated with social justice and human rights.
A final consideration on the McKinsey study: among the “positive areas” to keep an eye on is the continuous interest in athleisure, which we wrote about just a few weeks ago.
It is once again a world of Fashion & Luxury in continuous evolution, where creativity and sustainability, production and logistics meet at this point in a lasting manner. It is, basically, once again a world that can be interpreted thanks to the technological solutions by Bizeta.
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