Top Global Retail, Fashion, and Luxury Industry Index 2023: The State of Brands' Digital Performance & Strategy
G & Co. is a retail consulting firm focused on strategy and digital transformation.
We go in depth on the retail, fashion, and luxury industry to explore and evaluate the digital performances and eCommerce strategy roadmaps of the most innovative brands in the fashion & apparel space. In our 2023 Industry Index we explore the top performing brands in the industry and how they maintain relevancy amount digitally savvy consumers.
Brand Success Through Innovation
While the past few years have changed the landscape of retail, from Covid-19 causing a boom in e-commerce to period of low economic activity influencing consumer discretionary purchases, consumer goods have continued to experience growth with emphasis on luxury goods. Brands are learning how to navigate the rapidly changing landscape of capitalizing on consumer preferences and working through volatile supply chain issues.
This report compiles the most significant trends that retailers can observe and learn from in order to stay ahead of the curve in the innovative future of business. While the past has taught us lessons on how to navigate a post-pandemic world, the future is full of innovation that needs to be addressed. To take advantage of this changing retail space, companies must aim to build a sustainable future that accounts for rapid developments to create the most value for consumers.
Global Outlook
In a period of rising geopolitical tensions, low points in the global economic cycle, and the continuing difficulties of the COVID-19 pandemic it is imperative that retailers look beyond just their consumers’ product offering preferences.
This all contributing to a depressed consumer outlook coupled with a lower purchasing power of low and middle-income consumers will ultimately lead to decreased demand in 2023 for goods deemed unnecessary as prices for necessities such as groceries and energy continue to increase so much so that 74% of US consumers report shopping from more lower-priced retailers than usual. Firms can still profit, however, by decreasing entry price points and building relationships with consumers that last through this low economic period.
The next year will display a growing gap between households of different income levels given that wealthy, higher-income consumers remain insulated from these price hikes. In fact, industry fashion forecasts predict that the luxury sector will still grow 5 to 10% in the coming year. This growth will be primarily attributed to increased luxury spending in the US and China.
Europe vs. Rest of World
The European market, conversely, is projected to have a GDP growth of less than 1% in 2023. Given the energy crisis associated with Russia’s invasion of Ukraine, even Germany is projected to face immense price costs.
Germany, the largest economy in the eurozone, is predicted to have a grocery price increase of 15% and triple the costs of energy. Currently, only 14% of European consumers are optimistic about Europe’s economic activity and this negative outlook will surely carry over into the better part of 2023.
It is important for companies to recognize that global strategies will require differentiation and a mass approach is less likely to cater to the needs of the global market more now than ever.
