Personal accessories brands must comply with regulations while effectively communicating sustainability initiatives and making sustainable products affordable and accessible, according to a report released by market research firm Euromonitor International Ltd.
Fatima Linares, Insight Manager of Fashion Americas at Euromonitor International, said challenges such as geopolitical issues, cost-of-living crises and slow recovery in China, pose obstacles for the personal accessories industry in 2024 even after posting stronger growth last year.
“Despite these challenges, the industry is expected to be shaped by macro trends including sustainability regulations, digital transformation, and shifting consumer habits,” she said in a report published by the Department of Trade and Industry-Export Marketing Bureau.
Linares said governments are increasingly pushing for sustainable business models, with regulations expected in the United States and European Union.
Consumer pessimism regarding their impact on the environment poses challenges, including concerns about high prices and unclear labeling, she said.
As their digital transformation journey continues, the report said both direct-to-customer brands and traditional retailers invested in online channels, underscoring digital presence alongside offline offerings.
“Artificial intelligence, particularly generative AI, is expected to reshape the industry, with professionals highlighting its impact on various aspects of the business, from design to predicting trends,” it said.
The report also cited emerging consumer trends which brands must also adapt, such as value hacking, sustainability concerns and the influence of new technologies on purchasing behaviors.
“Navigating these trends will be crucial for the industry to thrive in 2024 and beyond, requiring agile responses and innovative strategies to meet evolving consumer demands,” it added.
