Ten Key Words To Understand The Story Of The Fashion Industry In The Past Year

2021 does not bring much good news to the fashion industry.

Repeated global epidemics, frequent occurrence of new crown mutants, hindered international exchanges, and deteriorating political environment have brought multiple challenges. Affected by the epidemic, the global economy fluctuated higher, inflation increased, the global financial market suffered severe shocks, and Hong Kong stocks continued to decline. Large scale restructuring of industries, such as real estate, Internet and education, has led to unsatisfactory employment and consumption.

Instability has become the norm, but beyond the norm, new trends are emerging. The first to bear the brunt is the meta universe. Although the industry is skeptical about the meta universe and some critics think it is just a bubble, the fashion industry is anxious that it will fall behind again before the tide of the times. After experiencing the loss of failing to catch up with the tide of e-commerce, the brands all plunge into the world of meta universe this time.

Key words 1: the meta universe behind NFT

2021 is the first year of "gambling" NFT and meta universe in fashion industry. Before Gucci became the first luxury brand to set foot in NFT, then Karl Lagerfeld's "instant" seconds. Now, Adidas, a sports brand, is on the train, with a limited number of 30000 NFT products on sale.

In addition, brands like Balmain, Gucci and coach have released NFT products, while luxury brand Gucci has launched Gucci garden Virtual Exhibition on the same universe platform.

For example, Balenciaga and OTB are more deeply deployed. The former plans to launch the meta universe department, while the OTB group has set up a new company to develop the meta universe project.

Key word 2: second hand business

　　 The second-hand luxury market is ushering in a good opportunity for rapid development. Resale platforms such as vestaiere collective and the real real have become the hearts of investors. Kaiyun Group acquired 5% shares and board seats of vestaire collective. Gucci, another luxury brand of the group, has long-term cooperation with the real estate.

Prada also mentioned in an interview with Reuters earlier this month that it was about to start a second-hand market business. According to Bain Consulting's statistics, by 2021, the size of the second-hand luxury market will be estimated at 33 billion euros, which is 65% higher than that in 2017, but the first-hand luxury market will only grow by 12%.

Key words 3: China market

Over the past year, the Chinese market has continued to support the global luxury industry and become a major force. In fact, China is also becoming the largest market for luxury goods. According to the "2021 China luxury market digital trend insight report" released by Tencent advertising and Boston Consulting Company, luxury brands in mainland China are expected to record a growth of 25% in 2021, and young people born in the 90s will become the main consumer force.

Euromonitor forecasts that China will surpass the United States to become the world's first in five years, and China's luxury market share in the Asia Pacific region will account for more than a third of sales.

Key words 4: Sustainable Development

Sustainable fashion is still the most critical and important agenda in the industry in 2021. Not only do many luxury groups go further in this area, but also Shanghai Fashion Week has launched it as an official itinerary for several consecutive times.

Key words 5: management change

2021 is also a year of great changes in the organizational structure of major brands and enterprises. For example, INDITEX group, a fast fashion giant, appointed new group president and chairman, Oscar Garcia maceira and Marta Ortega. Similarly, Burberry, a British luxury brand, has replaced its CEO, and the group has hired Jonathan akeroyd, who worked at Versace.

After Burberry, Salvatore ferrag amo and Versace replaced their chief executives. After Marco gobberti left Burberry, he joined Salvatore as its new CEO, while Versace transferred Cedric wilmotte as its interim CEO after losing Jonathan from Michael kors, who is also part of Capri holdings.

Key words 6: Xinjiang cotton

In March this year, BCI did not use Xinjiang cotton, and many international fashion brands cooperated with BCI, which eventually led to a large-scale consumer boycott. Anta, Li Ning and Hongxing Erke are all stars in this incident.

Key word 7: cross industry

Cross border industries continue to appear on the fashion stage, which has become an effective means for brands to achieve marketing goals. Among them, the co branding of Gucci and Balenciaga is undoubtedly one of the most surprising co branding cooperation this year. In addition, the co branding of Gucci and the outdoor brand the north face has also made the industry aware that luxury goods are competing for a new frontier for young customers.

Key words 8: Hainan tax exemption

Since the implementation of the strategy of tax-free island in Hainan, the tax-free market in Hainan Island has been booming. During the Spring Festival in 2021, 9 duty-free shops on the island sold a total of 1.14 million duty-free items, setting a new sales record, with a sales amount of nearly 1 billion yuan.

Not only that, but the luxury industry is seeing this huge opportunity. Before cross-border tourism could not be fully restored, brands began to build a new "paradise" in Hainan. DFS, a duty-free shop group under LVMH, had previously announced that it would build a huge beauty shop in Guanlan Lake duty-free City, Haikou, Hainan.

Key words 9: Live E-commerce

In 2021, live e-commerce presents two unexpected development trends. On the one hand, the market scale of live e-commerce continues to grow. According to AI media consulting, the market size of live e-commerce in 2021 is expected to exceed 1.2 trillion yuan.

But at the same time, the head anchor, represented by Weiya, was restrained. She was eventually fined 1.3 billion yuan for tax evasion, and her live room and social media accounts were all banned.

Key words 10: brand going abroad

Peter Hessler, a journalist with the new Yorker, once described the news that Chinese sellers on Amazon were not affected during the epidemic, but still benefited from it. Many people saw the tenacity of China's cross-border e-commerce under special circumstances. While Chinese fashion brands such as sheen are leading the new fast fashion boom, and the beauty brand huaxizi also proves the various possibilities of Chinese brands going abroad.