The article throws light on the factors that will play a big role in change of pricing for the fashion industry in the upcoming year.

The fashion industry is one of the most fluctuating industries. Due to many factors, it showed a lot of disruptions in the current year among which price remains the main factor. Price changed in 2021 and it may change further in 2022 as taxes are set to increase by 3 per cent.

According to The Business of Fashion and McKinsey and Co, the combined effect of the supply chain issue at all ports and overland transportation delays owing to a shortage of enough drivers, will cause fashion executives to hike fashion garment costs by 3 per cent next year. This hasn't stopped 15 per cent of the CEOs questioned from stating that they will raise clothing prices by more than 10 per cent.

Inflationary pressures can be triggered by a combination of resource shortages, transportation delays, and increased shipping prices, according to the paper. More than 220 fashion executives and professionals were polled for the study. The study makes no mention of the likelihood that fashion products would arrive too late to sell during the Christmas season. To attract customers, stores may have to discount new arrivals. This may make it easier to keep pricing in check.

Another thing to think about is the increase in sales of recycled clothing. Recycled clothing is predicted to become commonplace in 2022, despite the fact that it presently accounts for less than 10 per cent of the worldwide textile industry (according to Textile Exchange). Customers will be encouraged to boldly flaunt garment labels as part of a new trend known as "social commerce."

Recovery has been uneven

Recovery from Covid-19-related economic impacts will be unequal across consumer markets and sourcing areas, with nations with strong healthcare systems and economic resilience outperforming. Approximately 5.5 billion vaccination doses were delivered globally by September 2021, with high- and upper-middle-income nations accounting for over 80 per cent of those doses. As a result, fashion brands with a global presence will need to make precise investment decisions and analyse local circumstances on a frequent basis to reduce risk.

Wardrobe reboot

Consumer demand for loungewear and sportswear is dwindling after two years of attention on these categories as more people return to work and formal events are reintroduced to social calendars. In some regions, so-called "revenge purchasing" is gaining traction, requiring firms to depend more on data-driven product creation to capitalise on new shopping patterns. Fashion firms may guarantee that their assortments align with changing customer lifestyles by modifying their inventory mix.

Mindset in the metaverse

As the internet world grows more integrated into daily life, fashion leaders may take advantage of this new frontier by pushing the boundaries of what is possible online. Part of the allure of these virtual worlds is the opportunity to interact with others and form communities, with some users even hosting "digital campfires" where they may converse, tell stories, and co-create. Brands should look at the possibilities of non-fungible tokens (NFTs), gaming, and virtual fashion if they want to find value in this declared metaverse.

Luxuries at home

Prior to the pandemic, international customers accounted for 30-40 per cent of luxury purchases. However, with foreign tourism not likely to completely rebound until 2023-2024, consumers and companies alike are moving their luxury buying to the local market. Consumer excitement for shopping locally and online, notably in Asia and the United States, boosted sales at luxury's top companies like LVMH, Kering, and Richemont, defying forecasts. Luxury businesses should interact more closely with domestic consumers, rebalance their worldwide retail footprints, and invest in local e-commerce platforms to exploit this shift in buying patterns.

If the projections from the research come true next year, 2022 may be the year that the industry has been waiting for. As less money is spent on vacation, spending is shifting locally, which might lead to many businesses rethinking and upgrading their retail presence.

Discount and premium clothes, according to the research, would outperform in the following year. After two years of wearing loungewear exclusively, you may understand the impulse to update your wardrobe. As a result, many brands are expected to experience considerable growth as our purchasing hunger grows.

Global manufacturing conditions, on the other hand, remain complicated: logistical bottlenecks, production delays, high shipping costs, and material shortages. As a result, the end-user will pay more. Finally, it is particularly encouraging that the epidemic has had little effect on the fashion industry's major megatrends.

About the author: Aaliya Deeba is the founder of Ideebs London, a Couture Label.