I was assigned the consumer apparel industry. I found the top 2 business models to be Alternative commerce models and Customized Apparel.
The alternative business models could take as much as 9 percent share by 2023, 10-30 percent share by 2030, and significantly higher percentages after 2030. This business model allows consumers to rent clothing or buy used clothing, for formal occasions or everyday use. Renting clothes and having clothing box subscriptions, such as Stitch Fix, are gaining popularity. Internet shopping in general has increased greatly over the past few years and since Covid. With more consumers at home or on their phones and computers, browsing social media, companies have tuned into that business opportunity and started producing ads and clickable shopping links to their products for ease of purchase. Retailers will need to invest less in inventory, and markdowns from clearance sales will decrease, creating a larger profit margin for businesses; Having inventory in store requires a lot of up front costs.
The second business model is Customized Apparel. Fully customizable apparel could claim 10 to 30 percent of market share by 2030. Many consumers today have some ability to customize apparel to their own liking such as, basic forms of customization like monograms and custom tailoring in the luxury men’s suiting market, which has been available for a long time, just with a higher price tag. More sophisticated forms, such as personalized recommendations based on past shopping behavior, or crowdsourcing of new personalized styles, are newer. Today’s technology has enabled consumers to modify every aspect of each article of clothing—including trim, sizing, materials, and even fundamental design. With today’s advances in technology and ease of accessibility, the future of the fashion industry is about to reach new levels and is exploring new ways to reach consumers.
Staying on top of trends and what the consumers are looking at and how is opening new doors for companies and allowing newcomers to join in the competitive industries unlike any way before. – Laura