Z 40 Ucm 72 Esade Fashion Is Bigger Size Sheltered to Compete #04 in Mature #08 Markets
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FASHION 2018 By MDS www.themds.com Sponsored by Desigual DRIVERS www.desigual.com DESIGUAL MACROECONOMIC EDITORIAL BACKGROUND ANTICIPATING THE THE LAST FUTURE IN TIMES YEAR OF OPTIMISM OF CHANGE FOR GLOBAL ECONOMY 6 8 MODAES.ES THE TEN GLOBAL EDITORIAL FASHION DRIVERS NEXT STOP: TRENDS THE UNKNOWN THAT TRANSFORM THE FASHION SECTOR 7 16 6 DATA METHODOLOGY 104 UNCERTAINTY: COMMERCIAL MIX FASHION‘S NEW BETWEEN #03 NORMAL #07 EXPERIENCE AND ‘CLICK’ INTERVIEW INTERVIEW RAFAEL MYRO LLUÍS MARTÍNEZ 40 UCM 72 ESADE FASHION IS BIGGER SIZE SHELTERED TO COMPETE #04 IN MATURE #08 MARKETS INTERVIEW INTERVIEW RAQUEL INSA MARCUS ALEXANDER 48 UB 80 LONDON BUSINESS SCHOOL CHIEF CLIENT NEW MATERIALS START-UPS OFFICER: TO LEAD THE WANTED, #01 OMNICHANNEL‘S #05 ‘ECO’ WAVE #09 REASON: BATON INNOVATION INTERVIEW INTERVIEW INTERVIEW FRÉDÉRIC GODART ENRIC CARRERA MICHAËL BIKARD 24 HEC PARIS 56 INTERTEX 88 LONDON BUSINESS SCHOOL LOGISTICS: FASHION‘S CAKE: FROM INDUSTRY NEW HUBS SMALLER AND 4.0 TO BLOCKCHAIN: #02 TO GAIN SPEED #06 LESS PROFITABLE #10 FUTURE COMES TO FASHION INTERVIEW INTERVIEW INTERVIEW JAUME HUGAS STEFANIA SAVIOLO JAVIER SAN MARTÍN 32 ESADE 64 UNIVERSITÁ BOCCONI 96 EAE 7 Desigual ANTICIPATING THE FUTURE David IN TIMES OF CHANGE Meire In times of change for the fashion industry, and more innovative and agile ways to work companies are making the effort to be more are some of the things the sector is aiming for. flexible, agile and capable of anticipating the Moreover, the relationship between company future. Uncertainty marks today the rhythm and consumer continues to be one of the top of a sector that keeps on changing and forces challenges to address. New consumers, more companies from the fashion industry to adapt connected to each other and sensitised by the to new times and new ways of consumption. day, are the ones that establish the patrons Ahead of a highly challenging context, companies to which companies must adapt. Consumers are forced to reconsider their structures, logistics continue to win decision-making power in a and even their trademark attributions in order to time where the fashion cake is becoming sma- answer the market’s demands efficiently. There ller and less profitable, but in any case, they are several current movements that characterise must continue to be surprised, attracted and industry today and which are joined by disruptive connected to the sector. technologies and the e-commerce wave. New Now more than ever, companies need to think geographic expansion strategies, new perso- about the things that will make them act with nalities leading the business, new materials agility, immediacy and success in the future. • 8 Modaes.es NEXT STOP: THE UNKNOWN In Southeast Asia, scaffolds are made of bamboo. shrinking and that, as everything suggests, will It requires a complex technique, within the reach become less profitable. of a few professionals only, although the material, In 2017, the sector’s main operators started to adjust flexible but resistant, is the most appropriate one (often against the clock) their structures into this new to withstand the typhoons that strike some of the background. Less stores and diverse trade formats; continent’s countries frequently. The titans of fas- new materials to be less dependent on cotton and hion distribution are now facing their own typhoon, polyester; Industry 4.0 and new logistics structures and only those counting with strong structures that to answer the demands of new consumers quickly; know how to adapt fast will manage to get through new directive profiles to manage omnichannel this period in which the only certain thing is that integration, and corporative operations to earn long-term plans are no longer of use. size and competitiveness. No one knows for certain The sector has to address a double transformation: how long it will take until the next crisis arrives, in on one hand, the first symptoms of consumption’s the same way that no one ventures to guess how deceleration and the threat of a new global reces- stores will be in the future. The important part, as sion waiting around the corner. On the other, its the president of the International Monetary Fund own revolution, marked by digitalisation, speed, (IMF) Christine Lagarde always says, is to repair the sustainability and changes in consumption habits. roof on time, and that when next uncertain period It is all evolving into a new context in which fashion comes, it finds a sector with solid structures that giants must also learn to compete in a cake that is will stand strong through constant changes. • 9 INTERNATIONAL BACKGROUND OF THE FASHION INDUSTRY Macroeconomic background in THE LAST YEAR OF OPTIMISM 2017 FOR GLOBAL ECONOMY that black swamps such as the election of Donald Trump and Brexit had less Trump and Brexit caused, 2017 was a year of tran- quillity.Those threats were not met and markets scored records despite upheavals. impact than the expected, The situation was good, but both the IMF and WTO underlined in their reports that the world GDP grew and trade was facing risks which could put in danger these rising cycles. Both organisms highlighted that scored records recession left wounds which were not completely healed, and the IMF alludes threats such as the risk of an escalating trade war, unprecedent levels of public and private debt, volatility of financial markets and geopolitical fragility. In the long-term, continues the organism, the “Pleasant as it may be to bask in the warmth of “global economic momentum is under pressure recovery… The time to repair the roof is when from a slow erosion/weakening of trust in insti- the sun is shining.” With these words, president tutions—and trust, of course, is the lifeblood of John F. Kennedy addressed the Congress of the any economy.” United States in 1962, approximately a year after the country had left behind a recession. Kennedy called on to take advantage from the expansive ESCALATING TRADE WAR cycles they were going through so that they could One of the consequences of this loss of trust in face economy’s structural problems and they did global economy is the perception that globalisation not lay back when everything was going fine. rewards are not equitably distributed. Parties and But that quote, one of the favourites of the In- politicians have materialised this feeling, with ternational Monetary Fund’s (IMF) president, populist speeches and protectionist measures. Christine Lagarde, also entails another warning: At the top of this trend is Donald Trump, who the sun will not shine forever. In 2017, the ma- made of protectionism one of his trademarks croeconomic indicators were still buoyant, and during the race for the White House. The New predictions improved in every revision. It was the Yorker magnate was sworn the 20th of January last optimistic year for global economy, before 2017 leaving markets and part of the population deceleration knocked on the door again in 2018. fearful of the impact which the radical measures The time to repair the roof is running out. proposed during his campaign would have, like The world’s Gross Domestic Product (GDP) grew retiring the country from international organisms a 3.7% in 2017, above the 3.2% from the previous or building a wall between the United States and year, and global trade recovered its boost with a Mexico. rise of the 4.7%, contrasting with the 1.8% of the But in any case, perhaps the promise thatTrump former year, according to data from the World has put more effort into accomplishing is the Trade Organisation (WTO). Thus, exchange of change in trade relationships among its main goods grew at its best rate since 2011 and became international partners.The republican considers again the motor of global economy. that China and Mexico are “taking advantage” of If 2016 was marked by the uncertainty and fear the United States, and that agreements such as 12 EVOLUTION OF GDP AND GLOBAL TRADE GDP After the setback Interannual variation, in percentage. *Prediction Trade in 2016, trade has become again the motor of global 15 economy after scoring records of growth in 2017. However, the 10 predictions for future years foresee that both 5 the world’s GDP and trade will decelerate. 0 5 10 15 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019* Source: IMF the North American FreeTrade Agreement (NAF- expansionist monetary policies of the last few TA) are ruinous for the North American country. years.The first one to take a step was the United Trump found a good rival on the other side of States Federal Reserve, which started rising in- the Pacific, in China, from where Xi Jinping sys- terest rates for the first time in ten years. tematically answered to this threat. The result In 2016 and 2017, the US central bank continued has been an escalation of reproaches and an to have a restrictive policy, supporting it in the increase in tariff rates, peaking in 2018 with a strength of the labour market, with an unem- trade battle de facto. ployment rate of barely 4.1%, the smallest one The conflict’s starting signal dates from April 2017, in seventeen years, and the country’s economic whenTrump urged the country’sTrade Department growth.