In a volatile environment shaped by geopolitical tensions, climate change and economic uncertainty, consumers are ever more discerning in their spending, and the apparel and footwear industry is poised for slow growth to 2030.To stay ahead and build resilience, fashion players need to innovate to serve consumers’ growing appetite for wellness, understand the new value equation and the shift towards experientialism and prioritise technological and sustainable investments that deliver clear econom
Delivery
This report comes in PPT.
Key findings
Economic volatility and impact of tariffs
Escalating geopolitical uncertainty and uncertainty around Trump policies and tariffs have a significant impact on the fashion market, globally, while various governments are taking industrial measures to protect their economic interests. All this fuels the need for fashion players to diversify supply chains and export markets.
Price sensitivity and intentional consumption
Uncertainty and income polarisation continue to temper consumer spending. The value equation goes beyond product features and extends to the overall shopping experience and intangible benefits. Hence fashion players need to evolve beyond the product-centric business model and offer customers more short- and long-term incentives to demonstrate their value.
Wellness and longevity: Fashion’s new frontier
Consumers are still willing to spend on wellness and longevity. This, combined with the growing acceptance of AI and tech in their daily life to achieve their health goals, creates an opportunity for fashion players to venture into the health-conscious lifestyles market, adding new revenue streams and elevating their brand value.
Sustainability reframed
Today, amid the current uncertainty and geopolitical risks, sustainability is less driven by government mandates and becoming a strategic business imperative that aims to support high margins and drive cultural influence. Companies need to prioritise investments in sustainability programmes that will deliver return on investment and compliance with future ESG regulations.
AI and the shift to experientialism
As customers increasingly embrace AI and go seamlessly online and offline for their purchases, fashion brands need to innovate to create more emotional connections and foster deeper loyalty. Capturing occasions, running community-driven events and launching culturally- relevant collaborations are now becoming priorities for fashion businesses.
Scope
Our expert’s view of apparel and footwear
Key findings
Macro and climate forces continue to impact the outlook for fashion
Global sales experience subdued growth, amidst market uncertainty
Top five trends in apparel and footwear
Top five trends uncovered
Despite more resilience than expected in 2025, the global outlook remains fragile
As downside risks still dominate, market players seek to diversify their operations
ASICS to increase production from 30% to 40% in India, amidst regulatory changes
Shein is diversifying its export markets and regionalising its production hubs
Market players pursue geographic diversification to mitigate their risk
Technology and price sensitivity fuel a rise in more intentional and rational consumption
Consumers increasingly prioritise a broad range of benefits when assessing value
Inditex Group is rolling out its budget Gen Z concept Lefties across Europe
H&M opens its first Beverly Hills store as it continues to elevate its shopping experience
Fashion players need to offer customers clear short- and long-term incentives
Holistic wellness and longevity are becoming a spending priority, across all age groups
Tech-driven wellness permeates fashion and leads to the exploration of new territories
Nike debuts “ neuroscience-based” footwear and taps into the mind-body connection
ASICS walking shoes leverage the belief that good health is achieved through movement
The pursuit of holistic wellness and technology opens new horizons in fashion
Amid volatility and geopolitical risks, is sustainability being pushed aside?
The industry shifts its approach to sustainability from cost centre to profit driver
Ralph Lauren brings resale in-house, taking back control of its heritage and brand value
Puma has boosted its profit margins through massive water-efficiency programmes
Sustainability as a business case to add new revenue streams and improve margins
Digital transformations and AI are redefining shopping behaviours and strategies
The new retail playbook is about emotions, cultural relevance and capturing occasions
During Ramadan 2025, Lacoste Indonesia deployed AI-powered marketing assets
Nike reinterprets the sacred ritual of Cantonese soup-making through the lens of sports
Creating emotional connections becomes key to foster deeper brand loyalty
Top five trends in apparel and footwear: Future implications
Top five trends in apparel and footwear: Action to build resilience and unlock growth
Apparel and Footwear
Apparel is the aggregation of clothing and footwear. This dataset covers retail sales of apparel through both store-based retailers and non-store retailers. Excludes black market sales (i.e. untaxed, generated within informal retailing)and duty free sales (travel retail). Items must be new when sold to the consumer; second-hand/used items are excluded. Antique and/or vintage clothing and footwear is also excluded.
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