How Will Global Fashion Be Affected in 2022?
6 December 2021
Author: Jasmine Waters
The effects of the COVID-19 aftermath still largely remain to be seen. What we do know is that some countries are in a much better position to recoup than others, thanks to a variety of determining factors. A recent report by McKinsey & Company assessed the impact of global fashion within this framework, predicting where we’re most likely to see success and continued struggles. What should we expect to see in the new year, and where is the most effected?
How can we determine who is faring better?
The four key areas being assessed when looking at fashion’s road to recovery are a resilience of both health and economy, as well as strong digital economies and suitable government support. In many cases, those brands that operate globally will need to tailor future strategies depending on how countries fare in each area. Those that lack an overall supply of COVID-19 vaccines are more likely to be exposed to ongoing humanitarian crises, with only 20% of 5.5 billion vaccine doses going to lower income countries. Combined with this, a robust digital infrastructure for home working is all but essential moving forward, meaning those that rely more on manual labour are also in the firing line. We’ve already seen lots of disruption with a fashion context, as countries like Vietnam, Ethiopia and India have faced factory closures and increased job insecurity, having a huge knock-on effect to the global supply chain.
What are we likely to see happen?
For countries left without fiscal support and in high levels of debt will need companies to consider strategies to support growth in those places. For fashion, the new year is expecting to see a huge wave of growth. Thanks to the continued unpredictability of the pandemic, the growth rate will look extremely different globally. Although there’s an increased sense of optimism amongst customers, spending spikes are still most likely to be seen in UK and US markets. Lower income countries are much less likely to see the recovery to pre-pandemic sales that will be seen in the Western and Chinese markets.
The global picture will probably vary massively across different consumer markets, disrupting supply chains based on geographical problems with labour and distribution. Brands operating internationally will need to develop strategies that accommodate growth in some places and delayed recovery in others. Market-specific strategies will be crucial to developing in 2022, reflecting the varying conditions in key commerce areas.
Image source: Getty images