Global Recession Opportunities for the Fashion Industry
How Fashion and Sportswear Brands Can Grow Market Share
Wholesale account manager reviewing the product assortments, purchase budget and open-to-buy with a retail buyer in an economic downturn.
We have to give credit to the fashion and lifestyle markets (many brands and many retailers alike), including many of our clients. We've survived the challenging economic environment while pursuing our most important goals. With recession possible in many geographies as consumer spending habits decline, the realities of multiple years of constrained supply chain and resources are catching up.
It's tempting to adopt a defensive stance to weather the uncertainty. While we may cut costs, reduce purchases, manage high inflation, monitor customers shopping trends, amongst other factors, we should refrain from leading with this strategy. Ensuring operating profit is a good business foundation - and this applies to values-first or a sustainable fashion brand, too (which we all should be by now!): a sustainable business is one that can continue operating.
But today's challenge is to persist in looking for growth opportunities and successes - to be offensive once you have a solid defence. And for those that do, whether they be a small or large brand, recessions present a unique opportunity to grow market share.
Our 2023 Playbook for the fashion and sports apparel industry
Our theme for the year is helping clients ensure sustainable business practices that support their offensive strategy. And the key to that market share growth mentioned before? It lies in the implementation of the year's theme: solid businesses, even with lower budgets, while leading with an offensive strategy.
Four-point 2023 recession plan for apparel:
Even when sales and budgets are down, ensure what you are putting forward to your customer is solid—product assortments, experiences, marketing, etc.
Nurture your consumer and drive customer loyalty, especially in a recession. Downturns are temporary - and there is growth (bigger budgets, discretionary consumer spending, etc.) on the other side.
Relentlessly look for the opportunity every day because it is there: a new product, repeat product, inventory opportunity, or an opportunity to drive brand affinity. Maintain close partnerships with your supply chain. Collaborate.
Continue to pursue your long-term vision. Market share and business longevity are not short-term plays. Continue to evaluate and re-evaluate which long-term strategies will continue to be relevant and how you can pursue them in times of constraint.
The key challenge for fashion brands is to use an impending recession to strengthen market position.
This recession won’t last long and neither will consumer habits
Recessions are temporary, and the fashion brands that can weather the economic downturns and emerge stronger are often the ones that take advantage of the opportunities that arise during economic turmoil. Maintaining a balance between safeguarding your business and staying open to new opportunities is key to success.
Don't let the opportunities get lost in the recession noise. Well-managed companies can emerge stronger with more share than their peer brands.
How are you tackling the upcoming year with all its challenges?
We're curious - how are you tackling the upcoming year with all its challenges? Do you know someone (a brand, a leader, a colleague) who is doing it well? How will you approach your product assortment, loyalty programs and marketing budgets? Are you partnering differently with someone in your supply chain?
The Wholesale Playbook is designed to be your roadmap for the season, giving you actionable learning and insight that is relevant to what is happening in your business right now. The format allows you to make real progress in six months to establishing and growing your presence at your retail accounts.
What you’ll achieve:
Protect, nurture and find opportunity even in a recession.
Execute your Monthly Wholesale Playbook.
Grow your market share.
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