How Bags Design Software Helps Brands to Sail Business During Uncertainties?
The fashion and the luxury industry still seem to be embarking on the recovery path as even after two years of global disruption, they are again hoping to stand on their feet. Accessory companies are adapting new consumer policies, and the recent digital technological advancement is providing a nexus for growth, despite the industry facing significant challenges and supply chain disruptions, patchy demand, and persistent pressure on the bottom line. As the majority of brands and retailers struggle to turn a profit, growth will be a key priority in the year ahead. Handbag design software is a stepping stone for fashion companies. It enables them to expedite their recovery in the market by offering relevant and robust customization solutions and digital features. Its latest business solutions help fashion and luxury brands and retailers to capitalize on the recent market developments and tap on the latest change in consumer behavior so that accessories houses are never left behind.
Bags Design Software Offers Robust Business Solutions to Recover Looses
A report by McKinsey states that the fashion industry had reportedly registered a decline in its revenue in 2019–20 because the earnings before EBITA margins declined by 3.4 percentage points to 6.8 per cent. As the pandemic continued to run its course, performance inequalities have become a headache over the past couple of years. According to McKinsey Global fashion Index (MGFI), 69 companies were value destroyers in 2020 in comparison to 61 per cent in 2019 and 28 per cent in 2011. Indeed, nobody has a crystal ball to predict the future of the retail market; however, by understanding the current market trends and data available, we can certainly head in the right direction. This article will explore some of the top trends that are making their way among consumers and within the leading retail brands, along with the tips that will help them explore more possibilities for growth in the industry.
Without any further ado, let us explore various trends driving business growth in the fashion sector:
1. Growing Demands for Extravagant and Self-Expression Accessory Items
In the post-pandemic era, consumer behavior and style choices have drastically changed as they have become more technologically resilient. Buyers are willing to adopt more digital experiences as well as an unapologetic approach to style and jewelry as a medium to express themselves. In fact, the mobile-tech giant Honor celebrated its new smartphone launch by commissioning the WGSNN to explore the trends shaping the fashion and technology industry, and it found that consumers are hungry for products and experiences that bring extravagance to the everyday. Buyers are looking for ways to rewrite the mantra of how they want to live their lives to a brighter future and escape the ordinary moments that depressed them. Buyers are looking for rewriting the mantra of how they want their lives to be after the pandemic is over and seek captivating moments that uplift, augment, and reignite their optimism for the future. This shift can be termed “everyday extravagance”, with consumers choosing statement dressing as a way of self-expression online and offline, which they then share via social media apps.
Fashion is essentially a medium that allows buyers to express themselves. Its content on social media is gaining more attention, with smartphones playing a central role in helping people express their lifestyles, value, and statuses. Both creators and viewers are ready to embrace a new no-filter way of displaying their style and emotions, assisted by advancements in smartphone camera technology. Today everyone is free and empowered to become an influencer or a creator on their own and share their stories with the rest of the world and stand out from the crowd.
Additionally, these days people are again moving to monograms and giving a nob to 90’s nostalgia. According to WGSN, monogram looks are on the rise in fashion as they bring about a renewed, unapologetic approach. It serves the purpose best in helping buyers express their ideas, fashion styles and elevate their fashion identities through bold statement looks. Many leading brands, such as Dior and Fendi, have relaunched their iconic monograms in response to the “logomania” trend which took over the industry. However, now the 90’s fashion is witnessing reinventing in fashion with the introduction of cross-brand collaborations, including Versace, Fendi, Gucci, North Face and Balenciaga. The partnership between North Face and Balenciaga is highly talked about and the most recognizable monogram in the world. Several leading brands have relied on monograms to take their logo and image to the next level and create greater engagement with consumers who crave new ways to express themselves. Similarly, our bag design software online helps accessories brands and retailers to let their buyers express themselves more freely with the customization features. It also allows brands to empower their customers and use monograms on their handbags, backpacks, purses, and many more things to flaunt their fashion style.
2. Rising Trend of In-Store Shopping
Even the rising demand for online shopping along with digital features has failed to dent the popularity of brick-and-mortar retail. Numerous brands and retailers are willing to master in-store experiences alongside user experience, which would turn out to be the pinnacle of future success. According to Helen Dickinson, chief executive of the British Retail Consortium, the pandemic has driven major changes in consumer behavior and how they shop despite online shopping becoming the main revenue streamer. This change in shopping pattern also triggered the transformation of stores and high streets’ roles, and they have found a new way to draw in customers. Meanwhile, many retailers have invested hugely in expanding their online capacity and digital connectivity for their customers. In hibernation during the pandemic, experiential retail is gradually making its way back with the rising trend of pop-ups, shows, and entertainment. Likewise, the integration of online and offline retail will continue because every time a buyer browses an online store and buys from a physical store or vice versa, these processes will bring the two different models on the same platform. They will knit it together.
Moreover, prolonged lockdowns and immense hospitalization during the pandemic have left shoppers craving shopping experiences and visiting offline stores. They want to touch products and have more physical experiences, which acts as an anchor to merge physical and digital business models as technology rewrites the retail landscape. According to McKinsey, the UK leads in online shopping, with 20 per cent of UK consumers shopping entirely or mostly online. In a report called Rebooting Retail, McKinsey proposes “the retail experience of the future will be propelled by physical technology and advanced analytics to meet changing consumer expectations, whilst allowing retailers to reset the operating model and economics.”
3. Booming Social Media Shopping
Social media plays a huge role in defining and uplifting a fashion brand. Many fashion companies invest heavily in their social media strategies and gain traction from buyers. With a sound strategy — that can often include paid ads — you can successfully funnel social media users towards your website to purchase clothes. Fashion brands and retailers go hand-in-hand with lifestyle and become culturally driven products in many ways. Meshing social media with fashion and its content serves as an effective way for buyers to find products within a social context. Yet, there are additional reasons why brands consider using a solid social media strategy to expand their business. According to Accenture, global social commerce is going to grow three times as fast as traditional eCommerce, from 492 billion to 1.2 trillion US dollars by 2025.
Today, 10 per cent of all eCommerce spending is done on social commerce, and in the next few years, it is expected to reach 17 per cent. According to Accenture, the growth of social commerce is driven by its excessive use by Gen Z and Millennials, who are avid social media users and account for almost 62 per cent of global social commerce spending by 2025. The report further notes that the top social commerce category globally is expected to be clothing in 2025, 18 per cent of all social commerce by that date, followed by consumer electronics with 13 per cent, and home décor with 7 per cent. The beauty and personal care category, which may appear smaller in terms of social commerce sales, is anticipated to gain a quick ground on eCommerce and capture more than 40 per cent of digital spend on average for this category in key markets by 2025. Accenture also adds that consumers in developing countries are more likely to use social commerce and do so often. Eight out of ten social media users in China use social commerce to make purchases for a given category, while the majority of social media users in the UK and US have yet to make a purchase via the channel. The report also states that shoppers from China, Brazil, and India care more about features that help them discover and evaluate potential purchases, while those in the UK and US place more importance on pricing and discounts.
Furthermore, stores that primarily serve a younger customer base are swiftly turning their stores into social media destinations in order to drive word-of-mouth marketing. For instance, Glossier’s Seattle is one of the most Instagrammable stores and a tourist destination due to its unique store design incorporates elements like mossy hills and mushrooms.
4. Rising Demand for Content Creators
The pandemic has been a wake call for many leading accessories brands and retailers who didn’t pay much heed to connect directly with customers. These days communicating with buyers across various platforms is a must as it helps them know about your brand and its values. Also, engaging with others and screens became the gateway to do everything from communicating, learning, shopping, working, and staying entertained. This has helped brands and retailers entwin digital and physical worlds, with buyers placing more value on creating digital assets as an expression of who they are as a person and consuming it with unboxing and style videos. It is crucial to note that tech-savvy buyers view brand loyalty as the most critical key in discovering new products or following trends. They don’t want to waste their time looking at products from other brands which they are unaware of, and in these situations, communicating and engaging with customers is a must because now brands have control over buyers’ behavior and can easily lure them in via live streaming events, hosting community services and aligning with content creators who may not necessarily be your loyal consumers. This e-traction among buyers has become the new source of truth, with content creators offering real-life advice and perspectives.
According to TechCrunch-App Annie Report estimates that consumers spent almost 6.78 billion US dollars in social apps in 2021, and it is anticipated to grow to 17.2 billion US dollars annually by 2025.
The bottom line of the piece is that as we have entered 2022, the fashion industry will face a complex mix of challenges and opportunities, and a little misstep may cause the immediate downfall of any brand or retailer. The top management must make decisions to manage the demands put for by customers, and they must be met digitally and sustainably. In the past couple of years, experiences show that customers are resilient and that economies will recover if fashion houses carefully analyze every situation, demand, customer behavior, and the planet. The handbag design software by iDesigniBuy offers the latest business solutions to fashion and accessory brands and retailers to align their business models with the latest trends and swiftly recover their losses. It helps brands and retailers to unlock growth, align with changing customer needs, and focus intently on the bottom line.