Cost Pressures Dominate Fashion Forum
At the February Première Vision Paris event, industry leaders discussed intensifying cost pressures and the need for skills training across the fashion value chain. In response to economic headwinds, brands and manufacturers are reportedly focusing more on craftsmanship and creative adaptability.
- The global fashion industry is projected to see low single-digit growth in 2026, with executives feeling more pessimistic about business conditions than in the previous year. This is influenced by sluggish economic growth, persistent inflation, and a notable drop in US consumer confidence. - US tariffs are a primary driver of cost pressures, significantly reshaping trade maps and pushing up costs across the value chain for apparel and leather goods. This has led brands to alter pricing, shift sourcing locations, and focus on operational efficiency to protect profit margins. - Beyond price, business negotiations are now heavily influenced by factors like a supplier's industrial reliability, delivery capability, and financial resilience, reflecting a market focused on stable partnerships for continuity. - A report from the Apparel Impact Institute indicates that rising carbon prices, increased raw-material costs, and more expensive energy could cause a 34% drop in profits and shave three percentage points off operating margins by the end of the decade if climate change is not addressed. - To address concerns over the loss of technical expertise, a new initiative called "Réseau d'Excellence Mode & Beauté des Entreprises du Patrimoine Vivant" was launched at the event to support craftsmanship and foster collaborative solutions. - The industry faces a significant skills gap, with a high demand for professionals proficient in AI, data analytics, and digital tools like 3D design software. Reports indicate that up to 40% of workers in developed economies may need to be reskilled as generative AI automates tasks. - The rise of Artificial Intelligence is seen as a business necessity to combat volatile input costs and supply chain disruptions. AI is already being integrated into customer service, logistics, and stock management, and generative AI shopping platform searches grew by 4,700% between 2024 and 2025. - Consumers are exhibiting more value-conscious behavior, with 80% indicating they wait for sales or shop around at different retailers. This has contributed to the growth of the resale market, which is forecast to grow up to three times faster than the firsthand market.
