As 2024 draws to a close, we reflect on the key developments that have significantly impacted the fashion industry in the past 12 months and what they tell us for the year(s) to come.
Marketplaces reshuffle
Marketplaces that appeared to dominate the industry in 2021-2022, during the surge in e-commerce sales of fashion and luxury post-pandemic, have felt the strain of high inflation and reduced demand, leading to some opportunistic acquisitions in 2024. For example, MatchesFashion was acquired by Frasers Group, which also owns Sports Direct and Flannels, as part of its ongoing “elevation strategy”. Another notable acquisition this year was that of the marketplace, Farfetch, by Coupang, the South Korean e-commerce giant. More recently, Zalando acquired AboutYou as it aims to build a leading position in the e-commerce B2B market in Europe – another sign that marketplaces’ business model will need to keep evolving to remain relevant in a very fast-moving market environment.
The Paris Olympics were the first Olympic Games to feature an equal number of female and male athletes, creating opportunities for sportswear brands to appeal to female sports fans and athletes through sponsorships, product launches, and event activations. The major success and substantial social media following of star athletes like US gymnast Simone Biles and Japanese skateboarder Coco Yoshizawa indicate the huge potential for female athletes as brand ambassadors in beauty, fashion, luxury and other sectors in the years to come. Brands like Mielle Organics and Glossier are already tapping WNBA players and college athletes like Angel Reese, while Hollywood icon Zendaya represents On AG alongside Roger Federer. In future, as female consumers are increasingly interested in longevity, wellness and technology to help them achieve their health goals, the lines between sports, fashion, and women's health will further blur.
Fashion companies appear to be deprioritising sustainability in 2024, according to the Euromonitor Voice of the Industry Survey, 2024, as attention shifted to more pressing geopolitical risks and their potential impact on supply chains.
Finally, in the current economic climate, where consumers seek value, the demand for quality, durability, and reparability has grown in importance as a value-driven option. In this context, fashion labels should pursue the efforts we have seen in recent years and continue to position themselves as more responsible, demonstrating their commitment to reducing their environmental impact and improve their social practices. This approach would add value to their brand and products in the near future which would be a strategic advantage, as volume sales are under threat with not only the changing regulation, but also as a natural consequence of the depletion of natural resources, and increasing volatility in commodity prices linked to climate change.
Today, 26% of global consumers state they would rather repair existing items than buy new ones
Source: Euromonitor International's Voice of the Consumer: Lifestyles Survey, fielded January to February 2024 (n=17,757)
The return of the Victoria’s Secret show in Shanghai, China
The return of the Victoria’s Secret Fashion Show in China in October 2024 marked its return since its cancellation in 2019. The event was streamed on Amazon Live, Prime Video, and the company’s official social media accounts, including Instagram, YouTube, and TikTok.
Victoria’s Secret has undergone significant transformation in recent years, driven by the body-positive movement in the aftermath of the #MeToo movement. This shift has benefited new lingerie brands such as Rihanna’s Savage x Fenty and Kim Kardashian’s Skims, but the return of the Victoria’s Secret Fashion Show signifies the brand’s renaissance as a more inclusive brand and highlights the appeal of Y2K nostalgia among consumers. Indeed, the catwalk featured models of various ages, diverse ethnicities, body sizes and shapes, aligning with the brand’s rebranding efforts, including the VS Collective and the Victoria’s Secret Global Fund for Women’s Cancers, which are designed to support women of all ages and backgrounds. Victoria’s Secret’s pursuit of DEI indicates how diversity and inclusion have become crucial for fashion brands to resonate with female consumers, going forward.