Happy to see my colleague Jeff Lindquist sharing insights on the challenges facing the beauty industry with The Business of Fashion last week! As Jeff highlighted, inflation and evolving consumer expectations are reshaping the landscape, requiring brands to innovate thoughtfully. The "normalization" concept reflects a leveling off in growth as consumers hit their spending limits, even in resilient categories like beauty. To stay competitive, brands must focus on product and marketing innovation while remaining sensitive to evolving consumer expectations. Read the full article here: http://spr.ly/6043s26jL
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Did you catch the latest The Business of Fashion report? Word is, 2025 is about to hit the fashion industry with one chaotic cocktail of economic shifts, evolving shopper habits, and sustainability pressures. Translation? It’s not going to be smooth sailing. Brands that go into next year without a marketing strategy? They're setting themselves up for a wild ride. Here’s why a rock-solid marketing strategy is officially non-negotiable: 1️⃣ Hyper-Local Flex - Your customers are not the same in Miami vs. Milan, okay? Strategies dialed in for specific markets = clutch. 2️⃣ Look-at-Me Level Brand Building - People are drowning in options. Brands that can give customers a vibe tailored just for them? Golden ticket. 3️⃣ Tapping New Crowds - It’s not just Gen Z and Millennials anymore. The 50+ crowd (aka Silver Genzies) is here and ready to shop if you know how to reach them. 4️⃣ IRL Engagement is Back - Turns out people are ready to shop in-store again, but they want an experience, not just racks on racks. Make it count. 2025 is not for the faint of heart (or the unprepared). Without a proactive plan, brands will be chasing change instead of thriving through it. What’s your game plan for what’s coming? Let’s talk. 👇 Read the BoF article here: https://lnkd.in/eMcNCUBh #MarketingStrategy #Fashion #Beauty #Lifestyle #BOF
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As 2025 approaches, we’re sharing the top 25 brands that are set to reshape key industries next year. From biofermentation in beauty to accessible fashion, these innovators are tapping into the growing demand for personalisation and localism in exciting new ways 🧑💻 Whether you're planning, forecasting, or just staying ahead, these brands are redefining the future. Curious to know who’s leading the charge? Download our report now to discover the brands poised to make waves in 2025 https://hubs.li/Q02T1S5T0 #Innovation #FutureTrends #ExpertOutlook2025 #Personalisation #Localism #BrandStrategy
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We're not in an economic recession, however, perceived value and consumer discretionary spending has changed in 2024, and unfortunately, it looks like it will continue into 2025. Looking at the fashion industry, as a leading indicator of all consumer products, we're seeing that luxury fashion used to lead the charge for growth, but 2024 it has been the fast fashion/price-value category that has increased for the first time since 2010. We see that Amazon posted their second highest quarterly results in Q3, and are growing at 11%, far faster than the rest of the industry. In a world where people are more and more price conscious, brands are adapting their product and price mix, and are having to double down more than ever on value. From my experience, fighting on price will never lead to longterm win, so that leaves turning your attention to your product and brand position. More than ever the winners are going to have to develop a truly outstanding difference and actually meets the needs of their audience. From personal experience with @betterbasicsco, I know that the values of your culture, social and environmental impact are not enough. The product itself has to drive deep functional and/or emotional purpose, and I believe in today's world, it's all about delivering game-changing outcomes for peoples' lives. Things that are very tangible, like improving time/efficiencies/convenience, or making me look/feel healthier, stronger, more beautiful. More than ever technology + innovation needs to be deeply rooted in your offering. Further than aligning your brand + product, you need to tie that to a culture and experience that is mind-blowing. Above + beyond customer experience that really listens to their needs and makes their shopping and product use better. Consumer brand companies are going to have to take a hard look at their vision and values, and quickly adapt their product line so it is truly rooted in their customers' needs, and meets their business goals. Lean supply chain, healthy margins, and efficient inventory replenishment are all critical to being able to survive 2025. As outlined in the below McKinsey & Company article, "Leaders who move quickly to identify the bright spots, whether they are geographic, demographic, or technological, will be primed for success, but only if they’re able to evolve" -
The State of Fashion 2025: Challenges at every turn
mckinsey.com
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Brands are facing a tough landscape in the midst of a strained global economy and unstable geo-political affairs. The Fashion Industry is already one of the most volatile and constantly changing industries, making it difficult for brands to overcome challenges arising in supply chains, product relevance, and declining consumer interest. The case for more holistic strategies in brand development is clear, as every compartment of a brand is interlinked, and every structure is only as strong as its weakest link. With the fashion industry going through seismic shifts and under increasing scrutiny, traditional strategy structures might not be enough anymore.
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📈 The Fashion Industry's Stormy 2025 Outlook 1️⃣ The global fashion market is facing economic uncertainty, consumer shifts, and dynamic challenges. 2️⃣ Inflation sensitivity is affecting consumers, alongside rising low-cost "dupes." 3️⃣ Geographical revenue drivers are shifting, with Europe benefiting from tourism and the US from high-net-worth resilience. 4️⃣ Brands must adapt to target burgeoning markets in Asia and the over-50 age demographic. 5️⃣ Physical retail is bouncing back post-pandemic; attention to enhancing in-store experiences is crucial. 6️⃣ Stock values have slumped since pandemic highs; new product discovery paths in e-commerce are vital. 7️⃣ Supply chains need to prioritize agility, aligning with geopolitical changes. 8️⃣ Sustainability remains essential despite short-term priorities; it's pivotal for long-term advantage. 9️⃣ Identifying "bright spots" in geography, demography, or technology is key to standing out. 🔟 Outdated strategies won't suffice; innovation is needed for differentiation and growth.
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🔮 Fashion's Future in 2025: Beyond Digital Transformation In 2025, the fashion industry's winning formula won't be about aggressive expansion or pure digital plays. The next frontier? Thoughtful expansion with cultural authenticity. Key predictions: • Digital supply chains will become mandatory to navigate geopolitical uncertainties • Success will depend on geographic diversification beyond China • Cultural authenticity will trump pure digital strategies What fascinates me is how luxury powerhouses like Hermès and LVMH are already showing us this path—maintaining their essence while expanding thoughtfully. Even Nike's recent challenges prove that digital-only strategies aren't enough. What's your take—can fashion brands balance global reach while maintaining local cultural relevance? Check out our complete Future Readiness analysis for deeper insights: https://lnkd.in/eCFecnWc #BigIdeas2025 #FashionIndustry #FutureOfRetail #IMDImpact
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An excellent example of how future readiness can be quantified. I believe the methodology behind the future readiness indicator (@Howard Yu, thanks for making it public!) is applicable to any company looking to start with self-analysis. One potential challenge is using equal weights for all factors. While it works for financial data, it might be less accurate for areas like 'Early results of innovation,' which are quantified by metrics like 'press count on [innovative keyword],' which may not correlate with actual innovations. As with most index metrics, the greatest value comes from tracking them year over year. Learn more about the methodology: https://lnkd.in/dFWXaWXw
LEGO® Professor @ IMD Business School | Thinkers50 Strategy Award Winner | Director, Center for Future Readiness
🔮 Fashion's Future in 2025: Beyond Digital Transformation In 2025, the fashion industry's winning formula won't be about aggressive expansion or pure digital plays. The next frontier? Thoughtful expansion with cultural authenticity. Key predictions: • Digital supply chains will become mandatory to navigate geopolitical uncertainties • Success will depend on geographic diversification beyond China • Cultural authenticity will trump pure digital strategies What fascinates me is how luxury powerhouses like Hermès and LVMH are already showing us this path—maintaining their essence while expanding thoughtfully. Even Nike's recent challenges prove that digital-only strategies aren't enough. What's your take—can fashion brands balance global reach while maintaining local cultural relevance? Check out our complete Future Readiness analysis for deeper insights: https://lnkd.in/eCFecnWc #BigIdeas2025 #FashionIndustry #FutureOfRetail #IMDImpact
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Large brands can afford to experiment and fail. Small, emerging brands are willing to make big bets in the hope that they’ll pay off. But mid-size fashion retailers have less resources and more to lose. This is a difficult position to be in. So what should mid-size fashion retailers do? Should they be more bold and take bigger risks? Or is this approach putting them in a vulnerable position on the market? I believe that to win as a mid-size fashion retailer, you don’t need to be making big bets. Instead, you need to be better than your competitors at execution. This is not as exciting as betting everything on a single strategy to turn around the company trajectory. But it doesn’t mean that it doesn’t work. If anything, at KIVALUE we’ve seen incremental changes work better than a complete strategy overhaul. That’s because incremental changes are easier to de-risk and cost less than big bets. Agree? #FashionRetail #Growth #Consulting
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The demand for #sustainability in #fashion is driving innovation in materials and #marketing strategies. Leaders in #management must embrace #innovation to stay ahead in today's fast-paced #business environment. Continual #personaldevelopment is key to staying relevant in the ever-evolving fields of #technology and #business. #Fashion brands are increasingly turning to #digitalmarketing to expand their reach and engage with global audiences. Understanding #culture and #strategy is vital for anyone looking to succeed in #international #business. Amazing 😊 Passion ✨ Happiness ❤️
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The State of Fashion 2025: Navigating a Year of Uncertainty and Opportunity The latest report by McKinsey & Company and The Business of Fashion Insights reveals a challenging yet opportunity-filled 2025 for the fashion industry. As we brace for a year marked by economic volatility, shifting consumer values, and evolving trade dynamics, brands must adapt with agility and innovation. Here are some of the key themes set to shape the industry: 1️⃣ Silver Spenders Rising: Over-50 customers are emerging as a powerful demographic, bringing new growth potential for brands willing to engage beyond the youth market. 2️⃣ Shift to Value: With macroeconomic pressures persisting, shoppers prioritize value. Off-price, resale, and brands delivering clear ROI on quality are primed for growth. 3️⃣ The Human Side of Sales: Differentiating the in-store experience will be crucial. Well-trained staff can bridge the gap, creating memorable connections that drive loyalty. 4️⃣ Sustainability Reimagined: Though sustainability is losing priority for some executives, the climate crisis demands action. Collective efforts will drive progress and reward brands that approach sustainability with a long-term view. 5️⃣ Localized Growth Strategies: As demand cools in China, brands are pivoting to other Asian markets like India and Japan, focusing on region-specific approaches. The report underscores that the "old playbook" is no longer enough. Fashion leaders must innovate, adapt, and remain responsive to navigate this complex landscape. 📈 You can explore the full report at https://lnkd.in/eTEbRBpC to understand how to grow in 2025 amidst these challenges. Let’s steer the industry forward by embracing change and focusing on what truly matters to our evolving audience. #StateOfFashion2025 #FashionIndustry #Innovation #ConsumerTrends
The State of Fashion 2025: Challenges at Every Turn
businessoffashion.com
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