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Ai new models and how this impacted not always in a good way to the day life also with social media. People are having a bad influence.

Blockchain

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upclying and Kintsugi repair

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The rise of upcycling, repair culture in sustainable fashion - Simpol.ph

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The fashion industry is heading for a reality check. By the end of 2024, self- regulation of sustainability may no longer be an option. Many new rules around the world are set to mandate action on everything from textiles production and chemicals use to recycling and waste.

While some industry progress is evident, the pace of transformation falls short of what is needed to prepare for impending regulations. Across the industry, the polluting use of fossil fuels continues to dominate production while circular business models are still in their infancy. If progress continue at the current pace, clothing and footwear consumption is expected to increase by over 60 percent, from 62 million tonnes in 2022 to 102 million tonnes in 2023.

With the industry struggling to move forward, regulators are stepping in. Leading the charge is the EU as it pursues a vision for a climate-neutral, circular economy, with growth decoupled from the consumption of finite resources. The EU's textiles vision is encapsulated in its Strategy for Sustainable and Circular Textiles, passed in June 2023, which envisages an industry defined by products made with respect for the environment and social rights. As many as 16 pieces of legislation are currently under discussion, with the first coming to force in 2024. The window for brands to prepare to comply is narrowing quickly.

The Heat is On

With fashion responsible for significant emissions, pollution and waste, regulators are set to require companies to both fix their own operations and force higher standards in their supply chains. The regulations apply across key areas of activity, impacting consumers and companies within and outside the EU.

Product design: Up to 80 percent of a product's environmental impact is determined in the design phase and is baked into materials and dyes. The EU's flagship Ecodesign for Sustainable Products Regulation (ESPR), set to come into full effect by 2025, sets minimum design standards for all individual products sold within the EU. This includes requirements around recyclability, durability, reusability, repairability and use of hazardous substances. Digital product passports that collect and share this information with consumers are expected to become required by law.

Marketing: Greenwashing is high on consumer and regulatory agendas, with the claims of many companies seen as vague or misleading. The new EU Green Claims Directive curbs greenwashing by requiring sustainability-related declarations and statements to be specific, backed by evidence, verified by independent bodies and communicated clearly. France has already taken the first step, requiring large companies to put carbon labels on all clothing sold in the country.

Waste management: Less than 1 percent of fashion textiles are recycled and a truckload of products are sent to landfill or incinerated somewhere in the world every second. An amendment to the Waste Framework Directive is calling for Extended Producer Responsibility, which already exists in France, and which requires companies to finance the collection, sorting and recycling of textile waste. Fees are expected to vary based on production output and pollution levels caused, a principle known as "eco-modulation." All EU countries will be required to launch textile collection programmes by 2025 and the destruction of unsold goods is expected to be banned.

Reporting: Despite huge volumes of corporate environment, social and governance (ESG) disclosure, companies still struggle to secure sufficient data and performance metrics or define economic activities that can be considered sustainable. A lack of comparability across brands inhibits effective decision making among investors and consumers. The upcoming Corporate Sustainability Reporting Directive (CSRD) requires companies to report on ESG activities via a standardised framework. Meanwhile, the Corporate Sustainability Due Diligence Directive mandates environmental and human rights diligence and action plans across the value chain.

Notably, the requirement for standardised, comprehensive public disclosures has become a lightning rod of debate in the fashion industry, with some executives concerned about the amount of data and analysis required. At a recent conference, the head of sustainability at Puma said that the brand had been publishing reports for 20 years but was "nowhere near being able to fulfil the requirements of CSRD."

The impact of the EU's new rules are expected to extend beyond the region's borders, especially into Asia, where 70 percent of the EU's textiles are manufactured. In addition, lawmakers in other regions are progressing their own initiatives. In the US, the New York Fashion Sustainability and Social Accountability Act plans to hold major brands accountable for ESG impacts and supply-chain traceability. In the UK, the Green Claims Code aims to stem greenwashing, while China has committed to peaking carbon emissions before 2030 and become carbon neutral by 2060.

As the regulatory landscape evolves, the year ahead presents an opportunity for fashion executives to revamp their business models. But this will likely require a holistic approach rather than targeting select parts of the value chain.

Traceability: Achieving full supply-chain visibility across all tiers of manufacturing will be a critical enabler for regulatory compliance. However, many brands currently have limited visibility over their suppliers at best, and therefore lack reliable and standardised data to make meaningful progress. Advances in blockchain and other technologies may enable more transparent and efficient monitoring. Adidas, for example, has achieved material traceability at scale by using TrusTrace's digital traceability platform, which is also used by companies including Renfro Brands and Brooks Running.

Sourcing and production: As upstream supply-chain activities account for the majority of carbon emissions in apparel, there may be a sharper focus on decarbonising material and garment production. In the production process, main decarbonisation levers include energy efficiency and energy transition initiatives. As brands shift to more sustainable materials, they may look for new suppliers or join strategic alliances. Kering, for example, has established supplier-focused sourcing standards and created the Material Innovation Lab dedicated to the sourcing of sustainable materials and fabrics, while Hermès has partnered with start-up MycoWorks' to secure access to its engineered mycelium.

Design: New requirements for circularity are expected to shake up the design process. For example, a focus on longevity and durability may demand fresh attention to details such as stitching and seams. Equally, materials that cannot be separated in recycling may need to be avoided, meaning designers may need to think more creatively about design choices. Design libraries may increasingly support material selection, while 3D sampling may reduce use of resources. Packaging design is also impacted, with new rules emerging around composition of labels and tags and elimination of single-use plastics.

End-of-life waste: To minimise production and waste, new business models are coming to the fore. Resale continues to grow through brand partnerships with secondhand marketplaces, such as The RealReal or Vestiaire Collective. In-house programmes offering resale, rental and repair are gaining traction as well. There is also an opportunity to accelerate closed-loop recycling. Stockholm-based Renewcell is ramping up the world's first at-scale fibre-to-fibre recycling factory. In partnership with global brands like H&M, Inditex and Levi's, Renewcell plans in 2024 to reach full capacity of 120,000 tonnes, or the equivalent to 600 million T-shirts. Fully embedding these new materials into supply chains remains a challenge, however - Renewcell recently cited slower-than-expected sales of its cellulosic pulp to fibre producers.
This article first appeared in The State of Fashion 2024, an in-depth report on the global fashion industry, co-published by BoF and McKinsey & Company.

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The Year Ahead: What to Expect as New Sustainability Rules Roll In

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The State of Fashion 2024′s essential guide to incoming sustainability regulation reveals how and why retailers, brands and manufacturers need to revamp business models to align to a shifting regulatory landscape.

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In light of the Q1 GDP growth, we have revised our growth estimate for this year to reflect it. We expect GDP to grow in the range of 6.5% to 6.8% primarily due to festive spending in the coming months followed by higher government spending before the upcoming national elections mid-next year. We believe GDP growth will be over 6.5% next year as geopolitical uncertainties subside, and the global economy bounces back on a stronger growth path.

Navigating geopolitical uncertainties and the slowdown in the global economy, undoubtedly, will not be easy. India will have to rely on its own domestic demand to firepower its growth, specifically, private consumption and investment spending. What works in India's favor on the private consumption front is the size of its consumer base, the rising income, and the aspirations of its young population, which is the largest in the world. As for investments, with the size and scale of operations it has to offer to global companies, the availability of skill and talent, and technology and innovation capabilities, India continues to be an attractive investment destination.

The spotlight, in this outlook, is on India's micro, small, or medium enterprises (MSMEs). These, we believe, will be key in generating income, capabilities, capacities, and ecosystems needed for sustained growth in consumption and investment that is broad-based and comes from all sections of the economy. The MSME sector will also drive innovation and new opportunities in a cost-effective manner. It will drive job creation and entrepreneurship, especially for women in rural India. In short, the sector will help India reap the potential benefits of its demographic dividend and the expansion of the middle-income class.

The good news is that the past two quarters have seen an uptick in the MSME sector. Out of the shadow of the pandemic, the steady revival of this sector will likely help India achieve broad-based growth at the grassroots levels, which is needed to ensure sustained economic activity.

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India is gaining attention on the global stage for its achievements in both space exploration and economic growth. However, to reach its ambitious goals, the country must boost its domestic demand by empowering its micro, small, and medium Enterprises (MSMEs), especially in the face of ongoing global uncertainties.

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All the people in these days really want something special, more unique, they want to have some personalisation because the expirinece can be elevated and luxury.

Product personalisation

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-wearables technology

-Wellness and wellbeing

-outdoors (oka,on,Salomon)

-inclusivity different types body, reached,gender, disabilities, accessibility, age inclusivity, mature models

-gender inclusivity in fashion industry

_arts collaboration sport

-

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Environmental impact

What is clear is that the fashion industry has a significant impact on the environment. Greenhouse gases, water usage, and plastic waste are all concerns linked to the industry. It is estimated that 1.27 billion metric tons of carbon dioxide equivalents will be produced through the manufacturing and retail of apparel in the year 2030, if there is no major change in the way the industry operates. The manufacturing process produces the most greenhouse gases of all. Furthermore, the synthetic fiber, polyester, accounts for more than half of the fibers used in textile production. Polyester is not biodegradable and releases toxic microfibers into the environment. Worldwide consumption of apparel has been forecast to continue increasing over the coming years, meaning these problems will only be exacerbated.

Fashion companies

As consumers become more aware of the importance of sustainability and increasingly consider it a key factor in their purchasing decisions, apparel companies are increasingly making an effort to reduce their environmental impact. One significant metric is a company's carbon footprint. There are numerous methods which fashion businesses are employing to cut down emissions, some of the most common are using more sustainable materials, using sustainable packaging, and moving production closer to their markets. However, there are barriers to companies' attempts to improve consumers' perception of their sustainability. In a survey of fashion executives, a lack of standards to assess sustainability ranked as the leading challenge. The cost of sustainable materials followed in second place, a cost which is often passed down to consumers.

Circular fashion

One method that many propose to increase the sustainability of the fashion industry, is the adoption of more circular business programs, generally split into the categories of resale, rental, repair, and recycling. Platforms such as ThredUp and Poshmark offer the chance for consumers to buy and sell second-hand clothes. Whilst this does help to reduce waste, there are practical limitations to circular fashion's sustainable impact. Other methods need to be employed in conjunction with circularity. One such option would be to buy fewer clothes, as many consumers intend to do, to reduce consumption. Another idea is to develop new biomaterials with a much lesser environmental impact.

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Discover all statistics and data on Sustainable fashion worldwide now on statista.com!

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Gucci during the Milan fashion week won a price for the denim project with Candiani denim.

Also bottega they use mushrooms leather and also the printed the denim instead to use many litres of water to be more sustainable.

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1. consumption the consumer confidence is the top risk and appetite to spent

2.  geopolitical instability and economic volatility
will impact the fashion landscape in the 2024

3.  Economic volatility

4. Inflation

5. Supply chain disruptions

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Fashion industry growth is expected to remain low, but increase slightly from 2024 

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Fashion industry growth is expected to remain low, but increase slightly from 2024 

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The macroeconomic climate will continue to challenge growth across regions 

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The macroeconomic climate will continue to challenge growth across regions 

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EUROPE

non luxury growth drivers

GDP growth is expected to slightly increase to 1.2

personal savings rates are high thanks to the economic uncertainty and geopolitical concerns

apetite to spend is incrementing slightly

recovery across the continent will be mixed

luxury growth drivers

domestic luxury demand is expected to be low

Foreign arrivals to Europe are expected to grow by 8%, expected to drive the market growth.

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USA

non luxury growth drivers

GDP is expected to growth slow to 2.2 % in 2025

consumer purchaising power is rising , personal rate savings rate went down pre-pandemic levels at 6%.

luxury growth drivers

aspirational middle and upper class costumers have more money to sonar on luxury, because inflation is declining.

the growing ultra high net individual population is also creating demand 8% in 2023 and expected 5% from 2023 through 2028.

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CHINA

non luxury growth drivers

china is experiencing a structural slowdown.

in august 2024, consumer confidence fell above the 2022 record lows.

Luxury growth drivers

domestic growth is expected to pick up slightly in late 2025 rise of new wealth centres.

domestic growth will remain lower historical level for a rebound in international travels.

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Volume rather than price to drive modest growth in 2025

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Volume rather than price to drive modest growth in 2025

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compare to 2024, the number of managers expected to increase prices dropped 17%

consumers are tired of price increases

nearly 2/3 of executives expect volume growth in 2025

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50% go-to-market strategy, mainly through assortment, fulfilment methods, and pricing.

65% also want to change their assortments to offer a choice of options at different price points in order to appeal to a wide variety of customers and increase their market share.

reduced focus on cost improvement

Sustainability takes a back seat

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Global trade is changing as large economies source from nations with more political alignment and diversify

this will accelerate in 2025 in the fashion industry due to rising costs changing sustainability goals and trade regulations.

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Since 2015, supply interruptions and trade obstacles have increased fivefold, and in 2023, there will likely be about 3,000 new trade restrictions.

US apparel and textile imports are diversifying away from china, down 6% between 2023/2019.

Foreign direct investment in nearshoring areas for clothing manufacture has grown by 8% in the EU and 20% in the US during the past five years.

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Global economies are diversifying sources and reduce the geopolitical distance of trade flows

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Global economies are diversifying sources and reduce the geopolitical distance of trade flows

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rising a sourcing code, tariff, sustainability target may accelerate sourcing diversification 

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rising a sourcing code, tariff, sustainability target may accelerate sourcing diversification 

# data[].attributes.body
Increasing labour cost in China, in country as Vietnam is half compared to china.

165% increase in Asia-to-US shipping costs between Dec. 2023 and Feb. 2024 due to logistics disruptions

shipping prices across trades routes in the Middle East increase 5X from December to February 2024.

EU imposed import duties on goods under €150 ($164) from China, impacting an estimated 2.3 billion items annually

Southeast asian countries restricts Chinese imports with upper 200% tariffs on imported textiles.

The US considering to exclude China imports from its de minimis import rule, where goods valued at less than $800 are duty free.

Pakistan has half the emissions factor in fabric production than China due to a lower share of coal-based energy production

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Fashion brands will look to Asia growth market 

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Fashion brands will look to Asia growth market 

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India has the greatest proportion of clothing items that failed to satisfy quality criteria in 2023.

The Indian government has made around $2.5 billion in improvements to Quality Control Orders and Production-Linked Incentives, while foreign investment has tripled since 2019.

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Renewed interest in nearshoring is leading to increased capacity and improved capabilities

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Renewed interest in nearshoring is leading to increased capacity and improved capabilities

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The share of imports to Europe and US from near shoring countries has remained flat since 2019. This is due to local suppliers' limited manufacturing capacity and capabilities, with lower labour productivity, meaning total landed cost remains higher than other regions this likely to change because capacity and capability building thought investment and government incentives.

cost competitiveness trough an increase in productivity (central america) and speed to te market.

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Latin America: a key nearshoring hub for the US, as Turkey for Europe

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Latin America: a key nearshoring hub for the US, as Turkey for Europe

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65% of fashion companies increased members since 2023, especially Mexico up to 40%

Mexico shipping cost: Mexico-US shipping costs around $5,000 for a single container vs $18,000 from taking 5-10 days vs 60 days from China

the value of apparel and textile exports from Guatemala to the us has increased 10% from 2020 to 2023 while manufacturing costs around 5 to 10 more than in Vietnam. Shippings time are around X3 faster.

Over the previous 20 years, Turkey's proportion of the world's textile manufacturing has doubled.

It surpassed Vietnam in 2023 with a 6% share of textile and clothing exports to Europe.

advantages include increased supply chain traceability

reduced order-to-fulfilment times from 150 to 170 days in Asia-Pacific to under 50 days in Turkey, with an average of 7 days in transit.

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China: the growth in China is extremely difficult due to the country's economic slowdown, shifting consumer preferences, and the resurgence of international tourism.

India will be a focus , particularly for the high street market

Japan luxury's boom is expected to continue in 2025

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As China’s sizeable GDP growth slows, so will its fashion market’s growth

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As China’s sizeable GDP growth slows, so will its fashion market’s growth

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China's economy is now worth $18 trillion

2025, the IMF projects China’s economy will grow by 4.5%, outpacing global GDP growth of around 3%

the average growth is around 7% annually from 2013 to 2019

The IMF is forecasting GDP growth to fall to 3.3% by 2029 due slower productivity growth and due to ageing customers.

apparel sales growth only 1.3% in the first half of 2024

consumer confidence and residential property transactions have neared all-time lows.

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Non Luxury segment

market leaders as Uniqlo have cited challenges in China uch as lower consumer appetite and a need for more localised products.

with an emphasis on localisation and a strong correlation with quality, international sports and outdoor businesses are still thriving.

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Luxury segment consumer shiftings are driving a slowdown

China's luxury growth slowed to an estimated negative 3% from 12% in 2023, despite brand like Prada Group and Hermès posting double-digit growth in Asia in 2024.

The demand for "quieter" and more reasonably priced goods is being driven by China's recent consumer and governmental condemnation of wealth flaunting, or "luxury shame."

Chinese luxury spending abroad is projected to increase form 12 to 17% . spending by Chinese shoppers in may 2024 was still below 2019 levels.

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India is poised to become a key fashion market due to a strong mid-market and potential for luxury

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India is poised to become a key fashion market due to a strong mid-market and potential for luxury

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India is expected to become the fourth-largest economy in 2025, growing 7% yearly.

Non-luxury: Strong growth is fuelled by the middle class and digitisation

There are 430 million of people. in India's middle class. It is expected to reach1 billion by 2050, mainly from tier-two and -three cities.

Indian fashion consumers are really trend focused. is country's large share of young consumers, digitation is accelerating the shift. People under 35 make up 66%of India’s population. (808 million people)

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Luxury High growth is fuelled by demographic and structural tailwinds:

India’s population of ultra-high-net-worth individuals (UHNWI), with over $30 million in assets, is expected to grow 50% from 2023 to 2028

Aspirational customers, who make up about half of global luxury sales, are expected to grow from 60 million in 2023 to 100 million in 2027

October 2023, international purchases over INR 700,000 ($8,400) are taxed at 20%, encouraging domestic spending

New luxury malls are increasing luxury real estate in tier one cities. (Jio World Plaza and Galeries Lafayette)

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To succeed in India consider its unique obstacles and nuances

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To succeed in India consider its unique obstacles and nuances

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Nearshoring reduce capacity in capability

shift in manufacturing in asia

Nearshoring close to the market, close we’re you operate

By 2030 usa europe we’re aspectd an inncrese of the nearshoring more link to the supply chain

Turchy’s share global texile production has doubled over the past two decades.

Chin’a decelaration, it’s still growing but not like the grow that china is used to have

to global to location, the transition economic factors, geopolitical

can touch to friendshoaring link to consumer preferences

brand that are sifting again

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Key considerations for fashion brands entering India

Infrastructure challenges

High-quality retail real estate remains limited, impacting physical expansion, especially for luxury brands. Last-mile delivery also remains challenging, requiring international companies to make significant investments to offer seamless customer experiences.

Local consumer dynamics

Indian culture strongly influences fashion, which varies by location. Indian buyers spend more on jewels (44% vs 13% global average) and less on clothes (40% vs 52%). As local fast fashion competitors gain traction, local brands that specialise in traditional wear tend to dominate the garment market. Nine of the top twenty clothing labels in 2023 were domestic.

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Money worship: workship many influencers , luxury is for the family, the logo people there showoffing , they want to show how rich I'm, the local contribute, luxury for common people you're just like , it's not common acceptable.

Common prosperity is a government slogan, they promote social equality and government,

Luxury shame, people are new looking to quite luxury and to more affordable fashion

post the crisis of 2008 rich people in USA and Europe, have the sense of guilty, more discrete of option ,

Celine by Phil, the quite luxury

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is expecting to grow between 8 and 12% in 2025v

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In the state of fashion 2025 the most common sentiment among fashion leaders for 2025 was “uncertainty”

Nearshoring, now the industry is shifting,

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Consumer behaviour

There are some differences between the different generations:

Gen X and baby boomers:
1. Search engines (57%)
2. Consumer reviews (41%)
3. Social networks (39%)
Gen Z and millennials:
1. Social networks (51%)
2. Search engines (48%)
3. Consumer reviews (36%)

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The reinvention of fashion discovery

Product discovery

Choice paralysis  is negatively impacting costumer experince

74% of customers report walking away form online purchases due to the value

50% of fashion executives see product discovery as the
key use case for generative AI in 2025
• 82% of customers want AI to assist in reducing the time
they spend researching what to buy
• The latest AI model of GPT-4o from OpenAI is 15 to 20%
more accurate than its predecessors

Accenture report the empowered consumer

Differentr startegies , regeratiove AI is palying a big role

Most of the retailers they incresed the AI powered search tools

• Growing customer demand for AI-powered shopping experiences
• Increased competitiveness in quality and cost - Google, Meta and OpenAI
• Greater accuracy of AI tools
• Emerging commercial success stories

shopping assistant

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in 2025 will drive 48 of incremental growth in global spending

in china

in us

this generation is wealthier, we aspect in 2025 the generation of 50 to increase

the silver generation spends more in fashion

Understanding to silver generation

not trend driven

Functionallity come first

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influencers

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Fashion customers are looking to spend less and spend smarter

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Fashion customers consistently adopt cost-conscious shopping
behaviours, with 64% of US shoppers trading down
• Over 70% of customers plan to purchase from outlets or off-price
retailers in the next 12 months, even if their discretionary budget
increases
• Nearly one in three US adults say they intentionally bought a dupe of
a premium or luxury product. Half say they bought it for cost savings,
while 17% would continue to purchase dupes even if they could
afford the original item

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rise of dupe market, resale and off price

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Nearshoring

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World business and commerce are changing in ways that have nothing to do with the US president’s tariff threats

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60 Years of Nearshoring: A Historical Exploration of US Production Shifting to Mexico | Baker Institute

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What’s behind the rise of U.S. manufacturers “nearshoring” to Mexico? In this report, fellow David A. Gantz explores the historical drivers fueling this trend and the reasons why Mexico may struggle to attract foreign investment in the near future.

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The US is aiming to reduce its reliance on Chinese manufacturing and support domestic industry. The nascent circular fashion sector may prove an unlikely beneficiary.

A new trade bill that aims to boost economic ties between the US and countries in Latin America includes billions of dollars of incentives for companies involved in circular fashion, from resale platforms to textile waste sorting facilities and recyclers.

The Americas Trade and Investment Act, or Americas Act, seeks to encourage the reshoring and near-shoring of manufacturing supply chains with a heavy footprint in China. It also aims to close a tax loophole that allows e-commerce giants like Shein and Temu to ship millions of packages to the US each year without paying any duty.

Among the measures the bill contains are more than $14 billion in federal incentives for businesses involved in the circular fashion space. The idea is to support an entirely new industry in America focused on textile recycling, Senator Bill Cassidy said in an emailed comment.

If passed the bill would "give a shot in the arm" to the circular fashion economy, said Rachel Kibbe, CEO of consulting and advocacy firm Circular Services Group and executive director of trade lobby group American Circular Textiles. "It's the first bipartisan bill to contemplate fashion and the first time in history [textile] circularity has been contemplated at all at a federal level," she said.

The proposed legislation includes a 15 percent tax reduction for businesses involved in collection, reusing, renting, repairing, sorting, processing or recycling textiles, as well as $10 billion in loans and $3 billion in grants to support manufacturing and reuse and recycling programmes. Another $1 billion has been earmarked for research and development.

Though it has support in both major US political parties, getting any bill passed is a long and complicated process, especially in a fraught election year. Now that it's been introduced, the proposed legislation will be sent to the finance committee for further consideration.
Learn more: Is This the Year New York Regulates Fashion? Two landmark bills taking aim at the industry's environmental and social impact - the New York Fashion Act and the Fashion Workers Act - are back on the US state's legislative agenda.

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A New US Trade Bill Aims to Incentivise Fashion Nearshoring, Circularity

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The Americas Act earmarks billions of dollars to support businesses involved in resale, waste sorting and recycling as part of a wider move to reduce America's reliance on Chinese manufacturing.

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Fashion Wakes Up to the 'Silver Generation' Opportunity

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The fashion industry has typically focused on youth. But with shoppers over 50 representing a growing share of global spend, smart brands are showcasing their inter-generational appeal, according to the BoF-McKinsey State of Fashion 2025.

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the human side of sales

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Speed to market and sustainability: The rise of nearshoring in Central America - Just Style

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As Hansae signs a flurry of deals in the region to boost manufacturing and improve sourcing, this trend isn’t showing any signs of slowing.

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Flavours and CPGs for the Silver Generation - Einar Willumsen

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Understanding the older generations is likely to become a key driver for FMCG brands in the future.

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“Silver Tsunami”: Challenges and Opportunities of an Aging Population

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The term silver tsunami refers to the profound social and economic changes being caused by the aging of the U.S. population.

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https://www.forbes.com/sites/garydrenik/2023/03/23/why-nearshoring-is-closer-than-ever-how-mexico-is-becoming-the-next-big-thing-in-global-markets/

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Nearshoring drives demand in US-Mexico industrial real estate and infrastructure markets | Macquarie Group

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Industries such as semiconductors are leveraging US policy incentives and lower costs in Mexico to regionalise North American supply chains, creating potential opportunities for private real estate investors.

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Up until the early 2020s, global trade revolved around the relationship between the US and China. In recent years, geopolitical tensions and market shifts, coupled with a change in sourcing economics, have caused a shift in this dynamic, resulting in a "multi-polar" structure where more countries participate in global trade.

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How Fashion Is Shaking Up Its Global Sourcing Strategies

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Rising costs, evolving trade policies and shifting political winds are pushing brands to diversify their sourcing in Asia and laying the foundations for more manufacturing closer to home, as detailed in the BoF-McKinsey State of Fashion 2025.

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Nearshoring in logistics: What it is | AR Racking UK

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Nearshoring is a method of outsourcing business services that involves subcontracting to companies in foreign countries.

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In today's fast-paced digital landscape, connecting with your target audience is a task that demands versatility and innovation. The concept of "Multigenerational Marketing" is a crucial strategy in this pursuit. This approach ensures that your message resonates across different age groups, making it more effective and, dare I say, hip! So, what's all the buzz about generational marketing, and why should you be doing it? Let's dive right in and explore this fascinating marketing trend.

What Is Multigenerational Marketing?

Multigenerational marketing is all about crafting marketing campaigns that appeal to diverse age groups. From Baby Boomers who remember rotary phones to Gen Z'ers who can't imagine life without smartphones, each generation has its unique preferences, values, and communication styles. The goal of multigenerational marketing is to bridge these generational gaps and create content that speaks to everyone, from the Greatest Generation to Generation Alpha.

Why Should You Do Multigenerational Marketing?

Now, you might be wondering why you should bother with this whole generational marketing thing. Well, let me drop some knowledge on you. Each generation possesses distinct purchasing power and influences the market differently. By tailoring your marketing efforts to various age groups, you can tap into these varied demographics effectively.

Think about it - while Millennials might be scouring social media for the latest trends, Baby Boomers could be reading emails or watching television. If you're not catering to all these preferences, you're leaving money on the table! It's all about maximizing your reach and ROI, my friend.

Ideal Platforms for Multigenerational Marketing

Now, you've grasped the "why," but what about the "where"? Which platforms are ideal for executing your multigenerational marketing strategies?

Social Media:

Platforms like Facebook, Instagram, and TikTok can help you reach a broad spectrum of age groups. Baby Boomers might prefer Facebook, while Gen Z is all about TikTok's short videos.

Email Marketing:

A tried-and-true method for reaching older generations, who appreciate direct communication through email.

YouTube:

A video platform that appeals to nearly everyone, from Gen X to Gen Z.

Websites:

Well-designed, user-friendly websites can cater to all age groups by offering a seamless browsing experience.

Choosing the right platforms depends on your target demographics, so don't be afraid to mix and match!

Tips to Curate Great Content for Multigenerational Marketing

Now, onto the fun part - creating content that resonates with different age groups. Here are some tips to keep in your marketing toolbox:

Research Each Generation:

Understand the values, interests, and communication preferences of each generation. This will help you create content that connects on a personal level.

Use Visuals Wisely:

BVisual content, such as images and videos, is universally appealing. But, remember to adapt your imagery to suit different generations.

Diversify Your Content:

Offer a mix of blog posts, videos, infographics, and more to cater to various learning styles.

Stay Current:

Keep up with the latest trends and technologies to stay relevant to all age groups.

Conclusion

In the grand finale, let's talk about why BrightBrain excels in multigenerational marketing. They understand that diversity is key to success in the modern marketplace. With their creative and data-driven approach, they've mastered the art of connecting with different age groups. Whether it's through social media, email marketing, or innovative campaigns, BrightBrain ensures that their messages are heard by everyone, from boomers to the tech-savvy Gen Z. So, if you want your marketing to be as vibrant and effective as a rainbow, follow BrightBrain's example and embrace multigenerational marketing.

In a world of generational differences, multigenerational marketing is your golden ticket to success. Tailoring your content and strategies to different age groups might sound like a handful, but the results are worth it. By being flexible, staying up-to-date, and taking a cue from industry leaders like BrightBrain, you can conquer the world of generational marketing, one click at a time!

Bright Brain is a Digital Marketing and Advertising Agency with a focus on building digital solutions for Branding and Increased Sales efficiency. Our expertise includes Digital Advertising, Campaign must-have Engine Optimization, Search Engine Marketing, Social Media Marketing, Web Development, and Online Branding. Our Google Partnership brings a unique opportunity to work with the internal team at Google, adding even more value to our team & clients.

Suhail Bajaj is the CEO of BrightBrain Marketing Technologies LLP that has now grown into a full-fledged digital marketing agency with 55+ employees and clients from 7+ countries - all under his supervision. Graduated with an MBA from the esteemed Cass Business School, he brilliantly puts his learnings into practice, helping brands meet their business goals and succeed in a digital-first world.

Suhail Bajaj

Let Us Help You Be Found Easily.

© 2025 BrightBrain Marketing Technologies LLP | All Rights Reserved.

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Multigenerational Marketing: Reaching Different Age Groups

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Dive into multigenerational marketing strategies by BrightBrain. Reach diverse consumers across channels with expert insights for targeted campaigns. Read more!

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Gen Z is driving change in the multigenerational workforce

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For the first time ever, five generations are working side-by-side, including Gen Z. These multigenerational workforces will be central to the future of work.

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Analysis: Trump’s tariffs threaten to escalate a trade war. China wants to talk, but it’s ready to fight | CNN Business

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As Donald Trump’s April 2 “Liberation Day” for announcing “reciprocal” tariffs on America’s trading partners approaches, the question in Beijing is whether this will be the moment when its nascent trade war with the US really escalates.

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Navigating Nearshoring: An Evolution in Resilient Manufacturing

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By shortening supply chains, optimizing resource utilization and reducing waste,
nearshoring enhances economic resilience and embodies a shift towards a mor…

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90% of companies see nearshoring as key way of safeguarding supply chains

Nearshoring and reshoring remain enduring trends for participants of the latest Inverto Nearshoring Study.

Eastern Europe is viewed as a key region for nearshoring activities.

Geopolitical tensions now a major consideration for companies restructuring their supply chains.

LONDON- The results of the Inverto Nearshoring Study reveal a resounding consensus among participants, over 90 percent of who see nearshoring and reshoring as key ways of safeguarding their supply chains.

The study conducted by supply chain experts Inverto, part of Boston Consulting Group, show that companies see the relocation of orders to neighboring countries as the most suitable restructuring option to increase efficiency, improve flexibility, and shorten delivery times.

Two thirds of the companies surveyed plan to restructure their supply chains in the next 5 years. Notably, 67% of industrial companies intend to increase regionalization, with plans to relocate procurement capacities to more politically stable areas. 42% of all companies surveyed rate regionalization as the primary approach to restructuring their supply chain.

Eastern Europe, a major nearshoring hub

Eastern European countries are seen as the most common option. 57% of the companies surveyed already source goods from the region, while 32% plan to relocate their activities to Eastern Europe in the coming years. In contrast, only 9% of companies plan to relocate to Western Europe.

91% of the study participants state that they take geopolitical tensions into account in their decision-making - and only 11% were optimistic that politics alone can solve global tensions.

While geopolitical tensions remain a major motivation for nearshoring, production costs were also rated as a strong or very strong influence for 82% of companies restructuring their supply chains.

Reconsidering procurement strategy and geographical focus

"Nearshoring can unlock potential in three dimensions - increasing resilience, accelerating lead times, and making progress in sustainability," explains Sushank Agarwal, Managing Director at Inverto.

"In order to capture the full spectrum of opportunities, companies should rethink their sourcing strategy and expand their geographical scope when evaluating nearshoring potential," advises Agarwal.

To do this, companies should first create transparency throughout their entire supply chain. This foundational step enables a comprehensive "total cost of ownership" analysis, identifying primary products suitable for nearshoring and friendshoring, as well as determining the most viable supply regions.

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Nearshoring as key way of safeguarding supply chains

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A study by Inverto, reveals that 90% of companies consider nearshoring crucial for enhancing efficiency, flexibility, and reducing delivery times.

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How nearshoring is reshaping Central Europe’s economy

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Nearshoring has evolved from an appealing notion to a strategic imperative for many international firms, propelled by supply-chain disruptions, shifting cost calculations, and geopolitical uncertainties.

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Embracing Nearshore and Sustainability: A Business Model Responsible with the Environment

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Today’s businesses are tasked with a critical balancing act: achieving growth while preserving the environment. Introducing ’nearshore and sustainability - a

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Nearshoring and Reshoring | Sustainable Freight Network

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Currently, the manufacturing and construction sector is the third highest source of greenhouse gas emissions.

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Global supply chains, once a source of efficiency, have become a wellspring of risk. Rising costs, unpredictable disruptions, and geopolitical shifts have prompted most companies to rethink their sourcing and manufacturing network strategies. Eighty percent of chief operating officers plan to increase their use of onshoring or nearshoring in the next three years, up from 63% in 2022, according to a recent Bain survey of senior executives.

Ensuring supply continuity is the No. 1 reason for changing a company's supply base location, followed by lower labor costs (see Figure 1). More than two-thirds of companies are investing in supply chains closer to home, either through split-shoring, onshoring, or nearshoring (see Figure 2).

Supply continuity remains the No. 1 reason for changing the supply base location

Most companies combine onshoring, nearshoring, and offshoring to balance resilience and costs

Leadership teams are betting on nearshoring to enhance resilience, reduce dependence on distant suppliers, and improve operational agility. Moving production closer to customers also enhances flexibility, shortens lead times, and reduces transportation costs. Our analysis shows companies that get nearshoring right can increase gross margins by up to 30%. But it's no easy fix. Only 2% of respondents report having fully implemented an onshoring or nearshoring strategy, according to the survey.

Nearshoring challenges

When moving supply chains closer to home, companies face three significant barriers: cost and complexity, data and visibility gaps, and regulatory hurdles.

A shift to nearshoring or onshoring entails significant upfront and ongoing costs. Operations teams must evaluate their existing infrastructure, assess potential new sites, and navigate operational disruptions. Many firms struggle to balance the increased labor costs in nearshore locations with the savings from lower transportation outlays. Split-shoring strategies, which balance cost and resilience benefits, are often the optimal solution but are challenging to get right.

Leading manufacturers think about finding the right solution for the business-or right-shoring-as opposed to 100% nearshoring or offshoring. They consider the diverse needs of the end consumer and customers across regions, in addition to weighing the return on the required investments over the useful life of assets. Manufacturers also must evaluate their ecosystem of suppliers with similar rigor. Otherwise, a move closer to customer demand could just mean long and expensive inbound shipments from suppliers end up replacing long and expensive outbound shipments to customers. Our research shows the most common strategy today is split-shoring, or combining nearshoring and offshoring strategies to balance resilience and cost challenges.

The lack of end-to-end visibility in supply chains is another challenge in bringing production closer to key markets. While many companies have improved traceability for Tier-1 suppliers, most face significant gaps in tracking Tier-3 suppliers and beyond. Without comprehensive visibility, companies face increased risk of disruptions, inefficiencies, and compliance failures. Scaling traceability solutions from pilot projects to fully integrated systems remains an ongoing struggle for most organizations.

Differences in the regulatory landscape from country to country add further complexity to nearshoring efforts. Variations in labor laws, tax policies, and trade agreements require companies to undertake rigorous due diligence before making changes to avoid unforeseen costs. Even the best companies can struggle in new environments. For example, Taiwan Semiconductor Manufacturing Company (TSMC) has successfully built many semiconductor fabs in Taiwan but has faced higher costs and longer timelines in Arizona due to differences in permitting and labor standards.

Compliance challenges can also delay the transition process and erode the expected benefits of nearshoring. This is particularly true for industries with stringent safety, environmental, or consumer protection standards.

Leveraging technology in nearshoring

To overcome these obstacles, companies are harnessing advanced technologies. Digital tools, artificial intelligence, and predictive analytics can help accelerate the implementation of nearshoring initiatives and enhance ongoing supply chain resilience.

AI-based tools, for example, simulate scenarios to identify cost-effective nearshoring paths. These solutions enable businesses to optimize their supplier networks, monitor performance, and mitigate risks associated with the transition to nearshoring. Automated procurement systems and integrated planning tools improve efficiency while reducing manual effort.

Leading companies use a variety of digital tools to manage their ongoing operations, such as IoT-enabled tracking systems to increase transparency across supply chain tiers. Other tools such as Resilinc assess visibility and risk monitoring in the supplier tiers. These technologies minimize disruptions while ensuring compliance with regulatory requirements. Bain's survey highlights a key shift from traceability pilot projects to full-scale initiatives, a trend that is likely to continue as these technologies mature.

Predictive analytics and AI tools can map out compliance requirements for specific regions, identifying potential risks and suggesting corrective measures. Partnerships with local entities and industry coalitions can provide invaluable insights into navigating region-specific regulations.

A roadmap for success

Leaders adopt a comprehensive approach to rethinking global supply chains to obtain the full benefits of nearshoring.

Strategic evaluation. Three preliminary steps can help lay the foundation for a smart nearshoring plan. They include assessing the needs of key customers and the supplier ecosystem, identifying nearshore locations, and weighing cost-benefit trade-offs. A comprehensive strategic evaluation should go beyond financial metrics and include geopolitical stability, workforce availability, and infrastructure readiness. This evaluation must also consider benefits such as customer willingness to pay for local products, improved service levels, and reduced carbon footprint from nearshore production. These factors will help leadership teams develop a right-shoring approach for the business that balances the benefits of nearshoring, onshoring, and offshoring.

Digital and technology integration. Companies that invest in digital tools achieve greater supply chain agility and efficiency. AI, digital tools, and IoT strengthen supply chain capabilities, particularly in supplier monitoring and inventory management.

Cross-functional collaboration. Successful nearshoring efforts depend on close cooperation across business functions. Manufacturing, supply chain, procurement, and strategy teams need to align on goals and execution. R&D and sales teams are also important to ensure product design matches local capabilities and marketing can emphasize the benefits of nearshore production.

Building resilient networks. Strong supplier relationships, workforce investments, and industry collaborations create ecosystems capable of weathering disruptions. Supplier ecosystem management is a critical approach to ensure the industry works together to improve resiliency while balancing the cost of shifting suppliers to new geographies.

Nearshoring is becoming a core element of supply chain strategy. Bringing production closer to home as part of a comprehensive right-shoring strategy allows companies to strengthen their supply chains while positioning themselves for long-term success in an increasingly volatile world.

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Most companies want to bring production closer to home, but rerouting supply chains is complicated.

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Real-Time Analytics in Smart Retail – Empowering Instant Data-Driven Decisions

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Retailers who adopt real-time analytics can anticipate customer needs accurately, respond quick to market changes, and streamline their operations.

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Ethical clothing choices: upcycling, repairing and second-hand | Ethical Consumer

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In 2017, waste charity WRAP found that the most significant opportunity to reduce carbon, water and waste in the fashion industry was to increase the active life of our clothes.
Upcycling, repairing, swapping, renting, lending and buying second-hand offer huge amounts of untapped potential, both in…

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Making something new from something existing is ‘in’: This is upcycling

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Rvdk Ronald Van Der Kemp Haute Couture Fall Winter 2023 (crop) Credits: Launchmetrics Spotlight Which fashion designers are upcycling? How b

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Upcycling: why is it becoming essential in fashion?

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In the fashion industry, upcycling means making new products starting from pre- or post-consumer waste.

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Julie Pelipas isn't just building a fashion brand.

The stylist and former fashion director of Vogue Ukraine has ambitions far beyond the typical influencer-turned-fashion founder. Her three-year-old brand Bettter's subversively chic collections of vintage mens' suits reworked for women have already won the eye of the fashion establishment - and a coveted spot on the list of finalists for this year's LVMH Prize.

But it's the tech-powered tailoring underpinning the brand's ability to transform unloved old clothes into desirable fashion that sits at the core of what Pelipas is trying to do.

Her ultimate goal is to prove out a scalable upcycling solution for the huge volumes of waste generated by fashion's relentless churn that bigger brands can harness.

Millions of tonnes of clothes end up in landfills or incinerators every year, and yet the industry keeps producing more. Turning old garments back into new ones is tricky and expensive because instead of the blank canvas offered by a roll of fabric, it requires designers to grapple with materials that aren't a uniform shape and size and have already been cut and sewn for a specific purpose. That's why even though upcycling is hardly a new concept, it's mostly been limited to small-scale capsule collections.

"My husband makes jokes, 'Julie, if you'd launch just a regular brand, you would be so successful,'" said Pelipas. But that was never on the agenda. "This particular concept was in my mind when I decided to launch... it's not going to be like a small batch of one offs, pieces of patchwork or whatever, it's going to be an industrial problem-solving technology."

Tech-Powered Upcycling

The concept for Bettter had been gnawing at Pelipas for years, hovering in her head during splashy fashion shows and conversations with burnt-out designers. There was so much pressure, so much excess, so much waste in the industry, she observed.

"We just keep producing these tonnes of clothes and it's as if we don't see that issue at all," said Pelipas. "When you see how to solve it, when you see the formula, it's just stuck in your brain and it's just ridiculous not to do this."

While plenty of young designers have leaned into the increasingly fashionable concept of upcycling, mostly this has meant turning to leftover deadstock fabric rolls. This comes with sourcing headaches, but it also enables designers to get hold of top quality fabrics at a discount and claim a nice green halo for their labels.

Remaking old clothes is much harder. Though brands like Marine Serre, Ahluwalia and Connor Ives have gained acclaim for collections crafted from repurposed vintage clothing, it's a bespoke approach that's difficult to scale.

Reworking tailored pieces is trickiest of all because of the meticulous technical nature of the work needed to structure garments for the human form. That's the problem Pelipas is going after.

"[Julie] isn't just creating collections, she's creating a system. It's completely different from everybody else," said Julie Gilhart, chief development officer of brand incubator Tomorrow Ltd. and president of Tomorrow Consulting. "There's a sophistication level to it that I don't think is comparable to other things."

Bettter is powered by a series of tailoring algorithms designed to take the complexity out of reconstruction. It took years to develop, taking apart suits seam by seam and using digital design and fit software to map virtual patterns and required adjustments. Now that data forms a continuously improving digital backbone that allows the company to quickly calculate how to adjust men's suits to fit women's bodies without losing their original shape and proportions.

"We try to replicate [the design] process in the most efficient and the most precise way, so that in the end you have the perfect product in production that will take you no more than a few hours," explained Pelipas.

From Covid to Conflict

Bettter was built in extraordinary circumstances.

The brand launched in August of 2020 as the world grappled with the Covid-19 pandemic. It was actually good timing, says Pelipas. Enforced isolation created space for the Bettter team to figure out how to make the business model work and develop its tailoring algorithms.

People stuck at home were also spending plenty of time scrolling the internet and shopping. With nearly 250,000 Instagram followers of her own, Pelipas had a neat pre-existing platform to launch her first collections. Produced in small volumes, they sold out almost instantaneously.

By early 2022, Pelipas felt the company was on solid footing. She'd built an R&D and production facility in Kyiv with backing from a handful of angel investors and was considering raising more money to fund expansion, while exploring wholesale and brand partnerships.

Then her world fell apart.

Days after Russia invaded Ukraine, Pelipas was juggling her Paris Fashion Week schedule with efforts to raise awareness of the crisis, support creatives still on the ground in Ukraine and figuring out how to evacuate her team.

Over the last year, she's had to start from scratch multiple times over. The production team initially moved to Portugal, but asked to return home after a few months. Back in Kyiv, they worked under constant threat of air raids. Pelipas lived in fear of a phone call telling her someone had been hurt. When the bombing increased and a warehouse filled with Bettter's clothes nearly burned down, she drew a line and asked if the team would move again. Bettter now runs production from Portugal and R&D from London, though Pelipas hopes one day to return the company's operations to Ukraine.

"It was just a nightmare, to be honest," Pelipas said. "I lost my hair, I lost my health, my time with my kids." She wasn't sure whether to continue with the business. For almost a year, the company was in survival mode. Things held together only through a mix of adrenaline and determination, fuelled by her belief that she was doing something that mattered.

A Concept with Currency

This year, Bettter is once again poised for growth.

As an LVMH Prize finalist, the brand is solidly on the radar of the fashion establishment. Pelipas is exploring wholesale partnerships and planning to open her own retail space in 2024. She's also moving on ambitions to build Bettter into a platform that partners with other brands to upcycle their deadstock.

It's an unconventional business model, but it's bang on trend. A generation of buzzy young brands selling upcycled products have made retailers more receptive to the concept. And though consumers remain driven more by price and aesthetics than ethics, they may linger longer over a product with a responsible story.

"It's so timely and fashion is about timing," said Gilhart. "You can have the best ideas, but if it's not the right timing it doesn't have currency."

Meanwhile, regulations and economics are pushing brands to explore new ways to manage excess inventory, making them more open to the unconventional ways of working and developing collections Pelipas says Bettter's technology opens up. The financial fluctuations of the last few years mean many companies have been stuck with warehouses of unsold clothes and policy makers are pushing to ensure they're disposed of responsibly. Last week, European Union governments agreed the bloc should ban the destruction of unsold clothes.

Though Bettter is still a fledgling brand, Pelipas says it's on track to cross into profitability in 2024. The company has signed a partnership to upcycle deadstock for a major luxury player and is planning to raise at least $1 million this year to invest in its tech platform.

"I'm not a person who is there to gain success or status or earn huge money," said Pelipas. "The initial impulse is to really change the system."

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholder's documentation guaranteeing BoF's complete editorial independence.

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Can Julie Pelipas Make Upcycling Work at Scale?

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The former Vogue Ukraine fashion director and LVMH Prize finalist's upcycled tailoring label Bettter aims to become a platform that helps big brands give deadstock garments new life.

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What is upcycling and why does it matter?

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Originally a solution to the growing problem of waste, upcycling has become a creative, economical and fun way to live more sustainably.

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Part 1: How did we get here?

Part 2: Why is a rethink of the Mexican economy necessary?

Part 3: What could a rethink of the Mexican economy look like?

The purpose of this three-part series is to reflect on the emerging trends of trade protectionism (tariffs), AI and robotics, consider the potential impacts on Mexico and foster a discussion on possible solutions. Please share your thoughts in the comments section and let's have an inspiring and engaging discussion and debate.

Part 1: How did we get here?

Until recently, the world has operated under the premise that increased international trade and globalization would "raise all boats" and increase living standards for all who participated.

Since the end of World War II, this has been the dominant thinking of how to grow the global economy and bring about better integration. The model was to bring in more trading partners, sell more to each other, grow the market, increase standards of living for all and help ensure peace through the interconnectedness created by trade.

One by one, more countries were brought into the mix: first the countries of Western Europe, then Eastern Europe, Japan, Korea, Taiwan, the countries of Southeast Asia, China and of course, Mexico. Mexico was somewhat late to the party, being a relatively closed economy until the North American Free Trade Agreement (NAFTA) was signed with the United States and Canada in 1992. This agreement ushered in a wave of tariff-free trade agreements signed between Mexico that now include a total of 13 agreements covering 50 countries.

Mexico's role in the free trade world was a natural and logical one - its lower cost of labor and geographic proximity to the United States made it a perfect co-production partner for manufacturing goods. When NAFTA was first signed, many in the U.S. feared that manufacturing jobs would move to Mexico to the detriment of American workers (the infamous "giant sucking sound" coined by Ross Perot).

Indeed, many new manufacturing jobs were created in Mexico, but it was China's entry into the World Trade Organization (WTO) that ultimately had the biggest impact on U.S. workers and communities. Millions of jobs and countless factories went away as the production of many goods was moved to China.

The Mexican manufacturing boom

Early in my career, the first company I worked for was part of this trend. Originally with manufacturing located only in Wisconsin, in the early 1990's the company bought a plant in central Mexico expecting to send manufacturing work there. Although some work was ultimately moved there, far more was sent to China. This was despite the fact that many of the end customers were actually in Mexico. It was cheaper to produce in China and ship to Mexico than to produce locally in Mexico.

Mexican manufacturing over time became increasingly competitive in certain market segments, and up until the COVID-19 pandemic, a "new normal" was settling in with China, Mexico and the U.S. all focused on the products that they could most competitively produce.

Of course, as we all know, the pandemic changed everything.

Supply chains broke down and companies everywhere began to question their manufacturing footprints. Words like nearshoring and friendshoring joined our vernacular, and Mexico seemed extremely well positioned to be a major beneficiary of the new manufacturing and production trends taking shape around the world.

Things changed quickly.

In 2023, Mexico, for the first time in over 20 years, became the leading supplier of goods to the United States. Mexico was clearly taking manufacturing market share from China and companies from around the globe were increasing production and reinvesting profits into their Mexican operations. In 2024, the country further increased its share of exports to the U.S., with products from Mexico representing over 16% and China falling below 14%.

As 2024 ended and Mexico closed the year with a record amount of Foreign Direct Investment (FDI), most people were feeling pretty good about how the country was positioned going forward.

Is nearshoring going to end before it really begins?

Granted, the "new" component of FDI was concerningly low, but most people chalked that up to the uncertainty of the year given that there were presidential elections in both Mexico and the United States. Newly elected President Sheinbaum seemed to be far more "business friendly" than her predecessor, the inflation rate was coming down, the peso was stabilizing and both the global and Mexican economies seemed on firm footing.

But things changed quickly.

Trump's election win brought about a sudden wave of uncertainty and attention to Mexico. Most of the initial demands from the United States were that Mexico control migration, crack down on the cartels, stop the flow of fentanyl and accept deportees. All important issues, but none that initially seemed to be a risk to economic momentum.

Few people expected that Trump would really attempt to undo the free trade agreement he proudly signed with Canada and Mexico during his first term as president. His initial threats of tariffs were directly linked to wanting to see more progress from Mexico on these non-economic issues. And to many people on both sides of the border, the argument seemed fair: "Mexico, help us clean up the issues that are causing problems in the U.S., and we will keep our free trade agreement intact."

That being said, in just the past few weeks, the narrative from the United States on tariffs changed.

Trump's tariff discourse takes a turn

Despite some initial quick and tangible progress from Mexico on the very issues that Trump initially emphasized, Trump has refocused the "need for tariffs" for economic reasons. Trump began to question the need for any manufacturing at all to take place outside of the United States. He continued to lament the lost jobs and broken communities caused by moving work abroad, and insisted that the focus needed to be on bringing these jobs back to the U.S.

And so here we are today. The most common argument against all of this is that the U.S. doesn't have enough labor, nor the energy generation capacity, to be able to bring back a significant amount of jobs.

A logical concern is that moving work back to the higher-paid U.S. workforce and higher-cost manufacturing environment will cause significant inflation. But what if that is too overly simplistic or perhaps even an outdated explanation? What if companies could and do move significant work back, the workforce and energy production are found, and inflation is kept in check?

Let's even completely forget about tariffs for a moment. Although it might sound like science fiction, consider the impact that increased robotics could have on the manufacturing workforce of the future. Consider what rapidly improving AI and factory "digital twins" could do to improve manufacturing efficiencies. Consider for a moment that we might just be on the brink of a new industrial revolution not seen in decades.

And then consider what this could all mean for Mexico and for what a rethink of the Mexican economy could look like. Part 2 will be published tomorrow in MND.

Thanks for reading.

Travis Bembenek is the CEO of Mexico News Daily a nd has been living, working or playing in Mexico for nearly 30 years.

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In the wake of Trump's tariff chaos, Mexico's economy needs a rethink: A perspective from our CEO, Part 1

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How can Mexico's economy best prepare for the emerging global trends in trade protectionism, AI and robotics?

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Speed to market and sustainability: The rise of nearshoring in Central America - Just Style

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As Hansae signs a flurry of deals in the region to boost manufacturing and improve sourcing, this trend isn’t showing any signs of slowing.

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The Problem:

Demand for clothing globally is continuing to increase quickly, particularly in growing consumer economies in Asia and Africa. By 2030 global apparel consumption is projected to rise by 63%, from today's 62 million tons to 102 million tons, equivalent to more than 500 billion additional T-shirts. By 2050 this figure is likely to be even greater with total clothing sales predicted to reach 160 million tons - almost three times today's amount.

Worldwide, clothing utilisation rates have dropped significantly. The average number of times a garment is worn before it ceases to be used has decreased by 36% compared to 15 years ago. A survey of 20 countries showed that consumers now wear less than 50% of items in their wardrobe. The average American in 2019 bought 68 new pieces of clothing. In 1980 this figure was 12. Half of these items are now worn 3 times or less. This is unsustainable.

According to the World Bank, the fashion industry currently accounts for 8% of global greenhouse gas emissions, and 20% of industrial water pollution. Greenhouse gas emissions from textiles production in 2015 totalled 1.2 billion tonnes of CO2, which adds up to more than the total of all international flights and maritime shipping combined.v If the industry continues on its current path, by 2050, it could use more than 26% of the carbon budget associated with a 2°C pathway. That is over a quarter of the world's carbon budget taken up by the fashion industry alone. Something has to change.

Climate change is already impacting communities in climate vulnerable countries, and workers in low income areas of these countries are the first to suffer the consequences. In 2019/20, production hubs in Indonesia experienced severe flooding, seeing urban slum housing areas where factory workers live washed away, while workers in production hubs in India experienced severe drought. In Karnataka state - a major garment producing hub which includes Bengaluru, 80% of districts were hit by drought and crop failure in 2019. A government think tank report said that 21 Indian cities, including Bengaluru, are expected to run out of groundwater by 2020, and 40% of India's population will have no access to drinking water by 2030. This will impact India's garment workers significantly.

Climate change is also driving migration. Migrant workers are vulnerable to exploitation as they lack social support networks and immediate family structures which often provide child care and distribute risk, compounding the problems caused by poverty pay and forced overtime.

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Fast fashion and the business model at its heart is the wider cause of both the environmental and social crisis in the industry. Ever cheaper and faster production is driving a regulatory climate that causes environmental and social damage to accelerate.

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Textile Exchange’s annual Materials Market Report shows further growth in the overall production of new materials, including fossil-based synthetic fibers - Textile Exchange

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Textile Exchange has released the 10th edition of its annual Materials Market Report – the leading source for global fiber and materials production volumes for the last decade – and […]

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Upcycled by Miu Miu is a special collection of vintage dresses reworked and transformed by Miu Miu, carefully sourced from vintage clothing stores and markets worldwide.

The project was launched in December 2020 with a selection of 80 vintage dresses, reinterpreted using Miu Miu's aesthetic codes.

In April 2021, Miu Miu unveiled the new collaboration with Levi's® dedicated to vintage denim.

In September 2022, has been launched a limited edition of leather jackets, specially created and shown on the runway for the F/W 2022 season.

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Upcycled by Miu Miu is a special collection of vintage dresses reworked and transformed by Miu Miu, carefully sourced from vintage clothing stores and markets worldwide. The project was launched in December 2020 with a selection of 80 vintage dresses, reinterpreted using Miu Miu's aesthetic codes.

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Upcycling between circular economy and uniqueness

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Upcycling is an innovative economic strategy that consists of making clothes and accessories from discarded materials.

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What Is Upcycling The Next Step In Sustainable Fashion | Recovo

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Upcycling: why is it becoming essential in fashion?

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In the fashion industry, upcycling means making new products starting from pre- or post-consumer waste.

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Making something new from something existing is ‘in’: This is upcycling

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Rvdk Ronald Van Der Kemp Haute Couture Fall Winter 2023 (crop) Credits: Launchmetrics Spotlight Which fashion designers are upcycling? How b

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Your Clothes Deserve Better: Why We Need A Repair Revolution

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Before mass production, we focused on quality and craftsmanship. Today we’re addicted to novelty and disposability.

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Generational Marketing: Is It The Next Big Marketing Hack?

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Generational marketing is the next big step in hyper-personalization and customer retention for a marketer. Read on and find out how.

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16 Challenges Of Marketing To Multigenerational Audiences

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For many marketers, the challenge lies in delivering messages that resonate across age groups without sacrificing relevance or authenticity.

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TikTok engages multigenerational shoppers with discovery and culture-informed creativity

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TikTok's rapid growth as a top entertainment platform has been driven by consumer discovery, multigenerational appeal and culture-informed creativity.

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Effective marketing strategies attract and engage the right person with the right message at the right time. This is especially true when marketing to people of different generations -- known as generational marketing.

With any type of marketing, the target audience is often a defined group within the total addressable market. And within those groups are subsets of these buyer personas.

For example, if a company offers a platform to connect school districts with quality substitute teachers, the target market is school administrators around the country. But within that market are several personas with different backgrounds and experiences. Some administrators may be well into their lengthy careers, whereas others are coming into these roles fresh out of college with a degree in educational administration. And the way businesses market to each of these personas matters, as each group uses different tools in their home and work lives.

When considering that the target market can span multiple generations, marketing teams are becoming savvier about how they develop campaigns for these different audiences.

What is generational marketing?

Generational marketing is when the target audience is segmented and targeted by generation, which is determined by the year in which they were born.

Despite commonalities across generations, each also has its own set of beliefs, preferences and shared experiences that influence the ways they think and act -- especially when it comes to making purchase decisions or how they interact with brands. Technological developments over time, financial stability and educational exposure all influence how these generations approach interactions.

The six main generations are the following:

1. Silent Generation

2. baby boomers

3. Generation X

4. millennials

5. Generation Z

6. Generation Alpha

Each generation has different attitudes, and it is their mindset that defines who they are as individuals and consumers. Some groups respond well to technology and innovation. Others prefer their comfort zone with products and services they desire to remain the same, with little change in the offerings or industries.

A generational marketing strategy should not be a company's sole approach to segmenting an audience. More traditional customer segmentation factors, such as geography, income, interests and behaviors, are still key attributes to successful persona-based targeting.

Generational breakdown

Generational marketing strategies were born when marketers realized that each age group responded to different messages on different channels. Each generation uses social media differently, and some have more brand loyalty than others.

Attempting to target all generations at once can result in ineffective marketing. The messaging may be too broad and may not resonate, removing the personalized experience that most people seek from a brand. Different messaging that meets the users where they are -- meaning the channels with which they engage -- is more likely to net better results.

While this approach is a more effective method, it is necessary to understand how to target each generation effectively.

Silent Generation

Years born: Before 1945

Characteristics: The Silent Generation is the oldest generation to market to. This audience is looking for products and services that make life easier. They are loyal to the businesses with which they spend money, and they value stability in that way. They also want respect and value relationships with those they do business with.

Marketing strategies: TV, print, radio and direct mail, such as postcards, newsletters and fliers.

Most responsive to: Simple, straightforward content and imagery that relates to the age group. This generation values family, community and respect.

Baby boomers

Years born: 1946-1964

Characteristics: Baby boomers grew up in a post-war time of economic growth. Given their age and time in the workforce, they have the most purchasing power and discretionary income. Baby boomers have lived much of their lives without modern technology but have embraced it with the use of social media, mobile devices and online shopping. They are motivated by good deals and can be loyal to brands from which they buy.

Marketing strategies: Traditional advertising, such as print, radio and TV; loyalty programs that drive toward in-store purchases and in-person interactions; and social media as an entry point into brand or product research and easy online shopping.

Most responsive to: Customer service and simplistic and easy-to-understand content.

Generation X

Years born: 1965-1976

Characteristics: Gen X is the smallest generation and grew up in a recession period. They are cautious with money and are more skeptical of brands. This generation is hesitant about change and innovation, preferring to stick with what they know. Gen Xers respond well to nostalgia and word of mouth and reviews from other users. They have also had modern technology for a good part of their lives.

Marketing strategies: Traditional advertising; loyalty programs; word of mouth, email and social marketing; and incentives, such as discounts, freebies and coupons.

Most responsive to: Honest and clear messaging, clear paths to purchasing, email marketing campaigns, customer service, offers and social media.

Millennials

Years born: 1977-1995

Characteristics: Millennials -- also known as Generation Y -- were the first generation to grow up with modern technology. It is the largest generation in history, so brands must market to a wider audience to build a large customer base. Millennials place importance on authentic brand messaging and seek out brands that support social and environmental causes. This generation relies on user-generated content and the value of word-of-mouth advertising. They prefer brands that offer lower prices rather than price drops from offers and deals.

Marketing strategies: Multichannel, user-generated content, influencer marketing, social media marketing and content marketing.

Most responsive to: Brands that support causes, social media marketing, reviews, honest brands, price-to-value ratio and digital marketing.

Generation Z

Years born: 1996-2012

Characteristics: Gen Z is the most diverse generation and the most tech-savvy. While many in this generation are still young, they hold a large amount of spending power. Gen Z values financial stability because of the stress they experience surrounding personal debt. They rely heavily on reviews and recommendations through social media more than other generations and engage with brands who use social selling techniques. Gen Zers are also less likely to sign up for loyalty programs, despite looking for ways to save money.

Marketing strategies: Influencer marketing, reviews, videos, TikTok, Instagram, Snapchat, YouTube, mobile interactions, and social selling and advertising.

Most responsive to: Testimonial and influencer marketing, short videos, social and economic causes, and apps on smartphones.
Learn more here about how to market to Gen Z.
Generation Alpha

Years born: 2013-present

Characteristics: This is the youngest generation - and the next generation of consumers. The majority of Gen Alphas own a tablet, and they are influenced by social media. They also influence the purchasing habits of their parents - especially when it comes to food and drink.

Marketing strategies: At this point in time, marketers must consider the parents' values and target Gen Alphas through social media and video marketing.

Bonus microgenerations: xennials and zillennials

With such a range of years that these generations cover, sometimes, a group of people are caught right in the middle. There is not a definitive line about where someone should fit, so a microgeneration is created.

Xennials

People born in the early millennial or late Gen X time frames make up the microgeneration of xennials. This group grew up with technology but did not have social media in their childhood and teen years. They were also more mature and aware of what was happening post-9/11 than most millennials who were barely teens at that point.

Years born: 1977-1985

Characteristics: Xennials value time as a luxury. Many are in jobs that require long hours, so mobile and easy-to-navigate customer experiences are key. They are not digital natives but adapted to technological advances and embrace the use of technology in their purchasing decisions. They can also be skeptical of the motivations or values of established industries, so transparency is appreciated.

Marketing strategies: Digital and traditional marketing; social advertising; subscription plans; revive or reintroduce old products or relate to old products; keep content relevant and up to date.

Most responsive to: Transparency, nostalgia, easy paths to purchase, subscription models, home delivery of big-ticket items, health and self-care.

Zillennials

People born in the early Gen Z or late millennial time frames make up the zillennial microgeneration.

Years born: 1993-1998

Characteristics: Zilliennials are frugal, have a strong work ethic but also want a better work-life balance than older generations. They were also raised to be practical and want to do meaningful work. An interesting fact about zillennials is they were alive when 9/11 happened but not old enough to know what was happening or details about it.

Marketing strategies: Social media marketing, Instagram, Snapchat, TikTok, Twitter, text messages, short videos.

Most responsive to: Transparency, sustainable brands and special promotions.

Commonalities between generations

Despite the differences between generations, brands can take advantage of the commonalities of each generation. While companies may not use the same channels or messaging, the strategies can follow similar approaches.

For example, honesty and integrity are characteristics that consumers look for from brands across all generations. Being straightforward with messaging and offers results in a stronger relationship with the market.

Each generation also prefers personalized communications and experiences from brands with which they have relationships. There is a strong desire for one-to-one acknowledgement from advertisers. While not every channel appeals to each generation, email has been one that every group expects communications from.
Learn more here about how to create a multichannel marketing strategy.

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Generational marketing explained: Everything you need to know

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Generational marketing is the practice of segmenting and targeting audiences by age group. Learn more here.

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Ernie TedeschiDirector of Economics, The Budget Lab at Yale

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The macroeconomic impacts of shifting consumer mindsets

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Yale Economist Ernie Tedeschi shares five key areas of focus from NIQ’s Midyear Consumer Outlook.

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How to Acquire Customers Across Different Generations | Feefo

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Discover how to acquire customers across different generations. Understand generational marketing strategies and adapt your customer acquisition approach.

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How to Craft Marketing Campaigns That Reach Multiple Generations | Entrepreneur

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Learn how to craft a marketing strategy that resonates with audiences spanning Boomers to Gen Z and beyond.

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multi-generational marketing: a must for any brand

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If you’re a CMO or senior marketing executive, there’s a good chance you’re a part of the baby boomer or Gen X cohorts. And you’ve been marketing to them - in essence, yourself - for years. For that very reason, we won’t spend much time analyzing them here. Been there, done that. But yo

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Recycling in Fashion: Can It Solve Its Environmental Problems? | Sustainable Fashion Blog| Project Cece

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18.6 million tonnes of clothes are sent to landfills EVERY YEAR. Surely, recycling in fashion is the obvious solution, right? Mmh, not exactly. Here’s why.

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UPLIFT - Upcycling Bio Plastics of food and drinks packaging

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THE DIFFERENCES BETWEEN UPCYCLING VS RECYCLING - UPLIFT - Upcycling Bio Plastics of food and drinks packaging

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Upcycling and recycling are both important practices that can contribute to the sustainability of our planet, but these concepts don’t have the same meaning. Understanding the difference between the two concepts and how they can be used together can help […]