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COVID-19

"People are spending more time at home, giving them time to clear out their wardrobes"

(Chen, 2020)

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NEW YORK, United States - For her best friend's wedding in Miami earlier in March, Brooklyn-based magazine editor Margaret Abrams chose to rent her bridesmaid dress and a few other outfits from popular platform Rent the Runway.

Abrams, who is 30, now finds herself stuck in Florida, waiting for the spread of the novel coronavirus to stop so that she can head back to New York City. Luckily, she's from the area, so she is quarantined in her parents' home. While she's there, she'd like to pause her Rent the Runway subscription. But in order to do so, she must first go to a UPS office to drop off her rented items - something that she doesn't plan on doing out of safety concerns.

She has yet to reach out to Rent the Runway. "I guess I'll have to," Abrams said. "Although it would've been nice if they automatically [froze] accounts because no one is going outside these days."

(A Rent the Runway spokesperson told BoF that UPS can schedule at-home pickups.)

Across the country in Los Angeles, Gaby Loguercio is facing a similar customer service dilemma with luxury consignment platform The RealReal, from which she bought a white gown that she said turned out to be completely different from its description online. Normally, she would return the piece at The RealReal's West Hollywood store, but because of the virus, the 26-year-old marketing freelancer has no choice but to pay $12 to mail it back - a fee that The RealReal declined to waive.

Surely, Rent the Runway and The RealReal are not the only retailers to confront a deluge of customer service inquiries in recent days as retailers and consumers alike grapple with the effects of Covid-19. The entire apparel sector is disrupted severely: Retail sales dipped more than 30 percent in the second week of March compared to the same period last year, according to research firm Cowen. But rental and resale services, once primed to be the future of retail, may now be uniquely and disproportionately impacted by the ongoing crisis, industry sources say.

Shoppers that use rental and resale services may have less disposable income than those who purchase luxury fashion at retail.

On the rental side, demand for workwear and occasionwear is quickly drying up as conferences, weddings and other events are being canceled across the board. (, an evening wear rental service, saw its new rentals dip more than 90 percent last week, according to founder Silje Lübbe.) Resellers like The RealReal and Vestiaire Collective, meanwhile, may see supply affected as well as demand as consignment appointments with sellers are being cancelled and stores remain closed. The RealReal told customers Monday evening that consignment processing times may be delayed by up to four weeks, and while processed items are still for sale on the site, shipping may be delayed as well.

Vestiaire Collective has seen an increase in product deposits, according to chief executive Max Bittner. "People are spending more time at home, giving them time to clear out their wardrobes," he said in an email statement. "On the sales side, orders were initially decreasing but again as more people are spending time at home, we're seeing increased engagement on our app." The Paris-based company, nonetheless, has closed its New York warehouse over the weekend, per Governor Andrew Cuomo's executive order for all non-essential workers to stay home.

Shoppers that use rental and resale services, additionally, may have less disposable income than those who purchase luxury fashion at retail, according to Neil Saunders, managing director of GlobalData Retail. This means that they are likely to cut non-essential purchases out of their spending habits if they feel a squeeze on their wallets.

"I don't see any scenario where [rental and resale] wouldn't be worse off than the rest of retail," said Sucharita Kodali, a retail analyst at Forrester. "The last thing people want right now is pre-owned merch - even if viruses don't survive on fabrics beyond a few hours...people want to minimise any risk."

So far, medical experts are not entirely sure how long the coronavirus can survive on soft surfaces. Transmitted through respiratory droplets, certain exposed surfaces could be infectious for hours and even days - according to Harvard Medical School's Coronavirus resource centre, the virus can survive on plastic for up to three days and on cardboard for 24 hours.

Rent the Runway, meanwhile, said its cleaning process after each rental "are designed to kill viruses such as the common cold and flu," as stated on its website's FAQ section. "Based on current guidance, we have no reason to believe that our processes are ineffective against COVID-19."

You can keep things going for a few weeks and ruin your company or you can rip off the bandaid and hopefully still have jobs for people when everything is over.

The New York City-based rental service - the largest of its kind - also told BoF last week that it has yet to see members pause and cancel the service en masse. But some of its competitors have said the opposite. Armoire, a Seattle-based rental startup, saw such a significant number of cancellations starting two weeks ago that Founder and Chief Executive Ambika Singh cut her pay to $1 to save cash. Now, she's asking her staff for voluntary salary cuts as well in exchange for equity in the company.

Soon after she closed its stores, Nova Octo's Lübbe said she began reducing staffing.

"We immediately decided to cut costs because the whole thing just went into a halt," she said. "You can keep things going for a few weeks and ruin your company or you can rip off the bandaid and hopefully still have jobs for people when everything is over."

Singh said since last week, cancellations began to stabilise. "We saw a lot of cancellations around the events evaporating but we're seeing a second group of customers with intent around 'let me now embrace that this is my new life' and 'let me build a routine that works for me,'" she said.

Customers, indeed, are sticking around. Online shopping overall may see a boost by work-from-home habits. According to retail customer service platform Hero, e-commerce purchases made between the hours of 9am and 6pm jumped 52 percent in the second week of March compared to the same period last year. Some rental users, in fact, are embracing dressing up at home rather than for the office.

Like Abrams, 39-year-old Miriam Shwartz from the Boston, Mass. area had rented a couple of dresses for her stepdaughter's wedding two weekends ago. The wedding didn't happen, but she's keeping the dresses for a few days and hanging on to her Rent the Runway subscription as well.

"I'd rather keep the money with Rent the Runway and keep their people working," she said. "I thought about wearing one of my gowns on my Zoom calls."
We're tracking the latest on the coronavirus outbreak and its impact on the global fashion business. Visit our live blog for everything you need to know. Related Articles: Everyone Is Launching Rental Services. Is There Enough Demand? Peer-to-Peer Rental Start-Ups Take on Rent the Runway Is Resale Actually Good for the Planet?

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Rental and Resale Were Supposed to Be the Future. Could Coronavirus Change That?

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NEW YORK, United States - For her best friend's wedding in Miami earlier in March, Brooklyn-based magazine editor Margaret Abrams chose to rent her bridesmaid dress and a few other outfits from popular platform Rent the Runway.

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COVID-19

"DEPOP says US sales are up 150% from the same time last year in mid-April, and have doubled in the UK

Resale sites are coming out big winners as the pandemic plunges the economy into a deep recession

They will have their pick of inventory, as brands look to shift clothes that went unsold during lockdowns

Soaring unemployment is good for the secondhand market too: analysts predict the newly jobless will turn to resale to clean out their closets for extra cash

Resale sites also add a feeling of community to the equation

This crisis will completely change shopping behaviours, and when every dollar counts, resale will be far more attractive

Many brands offload their inventory to resale sites"

(Lieber, 2020)

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NEW YORK, United States - Louis Shapero was a casual user of the resale platform before the pandemic. But with retail shut down across Europe and North America, his once-sleepy online storefront is suddenly buzzing.

The 22-year-old British university student says he's handled dozens of sales for Stone Island sweatshirts, Van X Supreme sneakers and other streetwear items in the last three weeks, more than he logged in the previous six months. He's doing some shopping as well on the platform, which targets Gen Z with its Instagram-like feed of used clothes and accessories.

Shapero isn't the only Depop seller who's red hot right now. The platform says US sales are up 150 percent from the same time last year in mid-April, and have doubled in the UK. At Poshmark, a rival resale site where sellers tend to list low-price fashion from brands like Anthropologie and Kate Spade, the third week of April was the company's best ever in terms of sales.

Resale sites are coming out big winners as the pandemic plunges the economy into a deep recession. They will have their pick of inventory, as brands look to shift clothes that went unsold during lockdowns. Soaring unemployment is good for the secondhand market too: analysts predict the newly jobless will turn to sites like Thredup and to clean out their closets for extra cash. And consumers, stuck at home and worried about their finances, may have stopped buying new clothes, but they're still hunting for bargains online.

"We aren't going out drinking or clubbing but still have leisure time," said Shapero. "People are now just spending money on clothes instead of going out."

People are now just spending money on clothes instead of going out.

Shoppers aren't quite as eager to splurge on used luxury goods, even at a discount. The RealReal, which sells $700 Louis Vuitton bags and $350 Prada pumps, saw sales plunge 40 percent the week of April 8, according to data compiled by Earnest Research, which monitors consumer spending habits. The company's stock is down 22 percent since late February.

Some expect secondhand luxury to take off as well, particularly if a deep recession forces even wealthy consumers to watch their spending. Vestiaire Collective, a luxury reseller with a mostly European clientele, saw sales jump 20 percent in late April, and Rebag sold more handbags in late April than it did over Black Friday. At StockX, which sells sneakers that can cost thousands of dollars, sales were up 75 percent the week of April 15 compared with last year, according to Earnest, though the average price of sneakers sold decreased.

"[Resale sites] are better off than retail, and they are way better off than department stores," said Sonia Lapinsky, a managing director in AlixPartners' retail practice. "This crisis will completely change shopping behaviours, and when every dollar counts, resale will be far more attractive."
New Opportunities
Before the pandemic hit, the resale market was on track to double from $24 billion in 2019 to $51 billion by 2024, according to a report from Thredup and GlobalData, a retail analytics firm.

This growth may very well accelerate. The 2008 financial crisis paved the way for "flash sale" sites like Gilt and Rue La La, where the pairing of discounts and a ticking clock proved irresistible to shoppers. Resale sites, with their ever-changing assortment, offer that same combination, said Chris Ventry, vice president of business solutions firm SSA & Company and a former Gilt Groupe executive.

Resale sites also add a feeling of community to the equation. Platforms like Poshmark and Depop allow buyers and sellers to comment on each other's listings and send direct messages (though Depop has also struggled with predatory messaging aimed at younger users). Fans have created Facebook groups to talk about their secondhand finds, while sneaker resale drama fills forums on Reddit.

This crisis will completely change shopping behaviors, and when every dollar counts, resale will be far more attractive.

"These shopping platforms are social networks," said Andrea Szasz, principal at global consulting firm Kearney. "Flash sale sites hooked consumers with scarcity and newness, but the needs of consumers today is that sense of community in the digital world."

On April 29, Poshmark added a short video feature similar to Instagram Stories. The platform moved up the launch from later this year in response to the platform's surging activity.

In the luxury market, a recession could steer fashion back toward a more muted aesthetic, analysts say. Shoppers could end up selling the ostentatious and logo-heavy items they purchased in better times.

Sasha Skoda, head of women's merchandising at The RealReal said searches for classic jewellery, such as Cartier earrings and gold necklaces, are up 40 percent and 72 percent, respectively, over the last month, as "people gravitate toward classic investment pieces."

Sales for investment watches like the Patek Philippe Nautilus and Rolex Daytona are up on the watch resale site Chrono24, said chief executive Tim Stracke.
Resale and the Excess Inventory Problem
Many brands offload their inventory to resale sites, whether it's luxury labels at The RealReal or Adidas dropping product on StockX. , Abercrombie & Fitch, Madewell and J.C. Penney have partnered with Thredup too. Still, they often see resale as competing with new clothing in their own stores.

That attitude seems to be shifting out of necessity, with entire spring collections gathering dust in warehouses and stores. Poshmark's Chandra said his company is in discussions with large brands about creating wholesale lines that would be sold by professional Poshmark sellers.

Depop Chief Operating Officer Dominic Rose said Depop is building a wholesale platform for brands to sell on the site too. Come mid-May, brands can start selling directly to Depop sellers.
New Challenges
As masks and social distancing become ingrained habits, consumers might become warier of allowing used clothing to be shipped to their homes.

"As the crisis goes on, concerns will be about what people touched, and this could create social resistance towards used products," said Szasz.

Peer-to-peer platforms like Poshmark have a dedicated landing page that addresses sanitary concerns during the coronavirus pandemic, pointing them to the Centers for Disease Control and Prevention's guidance, which says it's safe to receive packages.

Consignment sites, which store and ship sellers' items, can sanitise products directly, a potential selling point to customers. But they risk having to shut down warehouses if workers are exposed to the coronavirus. The RealReal had to close storefronts where sellers could have items appraised in person, and cited "limited warehouse operations" as a problem in the first quarter. Thredup is about a month behind in processing inventory due to low staffing at its warehouses, said chief executive James Reinhart.

Both consignment and peer-to-peer sites also need reliable shipping methods, which have become harder to secure with hundreds of millions of people shopping more online while under lockdown.

"This specific health crisis has brought vulnerabilities in the system," said Poshmark's Chandra. "We're keeping an eye on logistics."

Some resale start-ups operate at a loss, and could struggle to take advantage of the flood of merchandise hitting the market. Warehouses and appraisers are expensive, and margins on used goods are thin. StockX laid off over 100 employees earlier in April and is shifting "from a growth-focused mentality to one rooted in operational efficiency."

"Many don't have the working capital to make that kind of product acquisition," Ventry said.

Resale sites also aren't the only ones offering deep discounts. Fashion brands and retailers are increasingly resorting to sales, and the deals will only get better if the economy worsens further. More brands are launching resale on their own, including Patagonia, Eileen Fisher and .

"The competitive advantage resale has will be less when we come out of this," Ventry said. "If everything is on sale, customers will surely go to retail first."
Editor's note: This article was revised on 30 April, 2020 to reflect that searches for Cartier earrings and gold necklaces are up on The RealReal, not sales. We're tracking the latest on the coronavirus outbreak and its impact on the global fashion business. Visit our live blog for everything you need to know. Related Articles: Rental and Resale Were Supposed to Be the Future. Could Coronavirus Change That? As a Global Recession Looms, Quiet Luxury Returns Peer-to-Peer Rental Start-Ups Take on Rent the Runway

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NEW YORK, United States - Louis Shapero was a casual user of the resale platform before the pandemic. But with retail shut down across Europe and North America, his once-sleepy online storefront is suddenly buzzing.

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COVID-19

"The trend is recession-resilient: thriving in any economic climate due to environmental and affordability appeal

2008 recession: nearly two-thirds of US resale store respondents reported an increase in sales, by an average 31 percent"

(Winmarkfranchises.com, 2020)

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

From overtaking fast fashion to capturing the wallet share of an increasingly economical and environmentally conscious consumer, the future of the growing resale industry is strong and sustainable in more ways than one.

Here are some key demographic and marketplace trends that will continue to drive the future success of the resale industry:
1. Sustainability Sparks Demand
The impressive growth experienced by the resale industry can be largely attributed to changing consumer demographics. Specifically, millennials and Generation Z comprise the majority of the buyer cohort today, and their purchase decisions and preferences are fairly distinct from their generational predecessors.

These consumers are more environmentally conscious than previous generations, and the vast majority cite sustainability as a top shopping priority. Although they're also very budget-conscious, three out of four millennials and Gen Z members say they'd be willing to pay extra for sustainable products.

Unlike traditional retailers, key resale industry players appeal to both sides of fiscally constrained, environmentally conscious consumers. Not only do resale stores offer significant cost savings on a variety of brand-name retail products, but they also help consumers take an active role in saving the environment while saving money. Conversely, the traditional fashion industry is one of the largest polluters in the world, second only to crude oil.

As consumers continue to prioritize cost and environmental impact savings, resale stores will continue to pick up where traditional retail has left off.
2. Recession-Resilient Concepts Dominate the Marketplace
Similarly, resale stores' environmental and affordability appeal also positions the industry to thrive in any economic climate - an increasingly important point moving into the new year, as economists continue to predict a potential recession in 2020.

During the 2008 recession, nearly two-thirds of U.S. resale store respondents reported an increase in sales, by an average 31 percent, according to data from the National Association of Resale & Thrift Shops (NARTS).

When times are tough, consumers increasingly turn toward resale stores, looking for easy ways to spend and earn money more efficiently. The resale segment's unique business model, value proposition and essential inventory make it the ideal solution for cost-conscious consumers in any economy.
3. Changing Digital Landscape Opens a Window of Opportunity
The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles.

For example, the resale ecommerce (or re-commerce) hybrid answers a strong demand for a bricks-and-clicks business model. Consumers are more inclined toward omnichannel brand experiences, creating a growing need for businesses to carve out a presence and be wherever their customers are.

Younger consumers also expect to have the power and autonomy to choose how they interact with brands, both online and in person. This represents a key opportunity for resale industry growth and innovation, as resale businesses complement existing brick-and-mortar stores with a broader digital reach.

To learn more about the future of the resale industry, download our eBook.

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3 Trends Driving the Future of the Resale Industry

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

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COVID-19

"Increase seller activity

People have more time on their hands at home"

(Liu, 2020)

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Is Coronavirus increasing online luxury shopping?

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Vestiaire Collective CEO Max Bittner says he has seen an increase in seller activity since the coronavirus took hold, as shoppers find sustainable shopping solutions online

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Downsizing

"Young consumers tend to live in smaller apartments and homes

Don’t have the closet space to store lots of belongings"

(Barr, 2019)

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For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

But in recent years, there's been a shift in how people are considering what they wear for special (and even not so special) occasions. No longer do fashionistas want - or need - to pay high prices for things that might end up gathering dust in the closet after that one special night. They instead want a more convenient shopping experience, a more affordable lifestyle, greater variety, and the option to consume more conscientiously. So, they're embracing the era of "new to you" when it comes to a wide range of products, including fashion, high-end sneakers, and toys. In fact, according to retail analytics firm GlobalData, the resale market has grown 21 times faster than the retail market since 2016. And according to the 2019 PwC Holiday Outlook report, 36 percent of the younger U.S. consumers who were surveyed are planning to shop for resale items, for themselves or for gifts, this holiday season. This trend extends beyond the holiday season and circles the globe. Research by data provider QuestMobile shows that 38 million Chinese shoppers used online resale platforms in 2017, up from 1.5 million in 2014.

For retailers, it makes sense to meet consumers where they are. Many companies - following in the footsteps of the now 10-year-old Rent the Runway - have already shifted from thinking of product sales as a one-time transaction to adopting models based on rental, reuse, and monthly subscriptions. In a sometimes struggling retail industry, embracing these new markets offers companies, particularly legacy brands and brick-and-mortar retailers, an opportunity to reinvent themselves and breathe new life into their business model.

Shoppers are shaking up what buying means

The customer has always been king. But now customers are helping reimagine the kingdom. For one thing, social media means consumers are influenced more quickly by more factors and trends than ever before, and those consumers, in turn, have a microphone they can use to wield influence 24/7. Customers increasingly want an improved experience - not just the latest product. Powering much of this shift is technology, which lets consumers curate their own experience and factor in all of the things they care about.

In a sometimes struggling retail industry, embracing these new markets offers companies an opportunity to reinvent themselves and breathe new life into their business model.

Sustainability. According to the PwC Outlook report, 75 percent of U.S. consumers now have sustainability in mind when shopping. And a global report by PwC shows that number is even higher in international markets. But the fashion industry leaves a surprisingly large carbon footprint, according to a study (pdf) by the Ellen MacArthur Foundation. The study also shows that textile waste has doubled since the beginning of the century, as consumers are buying more clothing - but discarding it more quickly than they used to. Downsizing is another consumer pattern that's related to sustainability. Young consumers, according to Business Insider, tend to live in smaller apartments and homes, and don't have the closet space to store lots of belongings. This helps to explain popularity of Marie Kondo, the global champion of decluttering, who has sold millions of copies of her 2014 book, The Life-Changing Magic of Tidying Up, and in 2019 introduced a popular Netflix series in which she helps families bring minimalism and order to their domestic chaos.

Convenience. Consumers are used to having pretty much everything delivered, down to a tall nonfat cappuccino before they leave for work. Renting fashion or other goods is just part of the same "delight me" delivery experience. And some reuse companies, such as thredUP, even have subscription models that let a consumer get a goodie box of used clothes every month, for far less than the cost of brand-new clothes.

Affordability. According to Statista, price is the most important factor for online shoppers - it's cited by 80 percent of the company's survey respondents. To get an idea of the way renting or reusing affects a shopper's bottom line, consider these comparisons. Someone wanting to put together the perfect designer look for a special evening can rent a silver and tulle Marchesa dress for four days for US$105 at Rent the Runway. The same dress retails for $695. Visiting villageluxe to rent a stunning pair of Christian Louboutin heels to go with the dress will cost $63 for a week, versus $735 to purchase. And a coveted Hermès Evelyne III PM shoulder bag to finish off the look would require an investment of almost $3,000 retail, but rents at Bag Borrow or Steal for $325 for a month.

Variety. In 2019, many people, especially younger ones, are opting for experiences over accumulating things, according to . Having two cars in the garage, a suburban house, and a closet full of designer clothes has lost some of its appeal. Yet consumers still want the latest looks or to try new products - just without the commitment and high price tags of buying. If you don't know whether you'll like camping, why should you spend a small fortune on tents and gear? It's much more practical to rent the equipment and take it for a spin, and then decide if you love it - and the experience - enough to buy it.

Companies are getting in the game

Retailers, including traditional brick-and-mortar companies, are listening to consumers and reacting.

Macy's, facing dipping sales, has announced a partnership with thredUP to sell used clothing, and also has announced it wants to get into the subscription-box market.

Banana Republic has debuted Style Passport, an $85/month service that sends subscribers three pieces at a time, from skinny corduroy pants to dressy overcoats. When they're done with the clothes, they send them back and get a fresh box.

YCloset, backed in part by the Chinese Internet giant Alibaba, rents clothing, shoes, and accessories, mostly to young women who live in China's bigger cities. It carries mostly midrange outfits and also has a monthly subscription model. Other popular Asian sites include MSParis, Starluxe, Yeechoo, Yiqidai (for jewelry), and Dou Bao Bao (for luxury handbags).

The Mode, based in Dubai, touts its focus on sustainability and offers a wide variety of current fashions for rent.

Flyrobe, based in India, rents all sorts of outfits, from traditional wedding attire and saris to Western looks.

Eileen Fisher, creator of high-end garments in classic styles and fabrics, takes the reuse concept a step further. In addition to its Eileen Fisher Renew program, through which customers can return used clothing for resale, the company will also take back damaged garments. That program, Eileen Fisher Resewn, will even take in torn or stained pieces and re-dye them or make them into new pieces, like a patchwork cashmere sweater.

REI makes it possible to try new outdoor adventures without much commitment. A novice backpacker doesn't need to figure out what they might require for a four-night excursion. REI has created kits for nearly every kind of adventure. The prepacked backpacking kit, for example, includes pretty much everything a couple would need, including the tent, sleeping bags, and headlamps, priced per night used.

Legos no longer have to end up jumbled in growing, unused piles in kids' toy bins. There are several subscription companies, with names like Brickbox and Brick Loot, that let parents sign up for a monthly box of the toy bricks, which they mail back in exchange for a new box. The monthly rates range from about $15 to $40.

This trend seems to have no real downside. Consumers can get quality - and quantity - of fashion, equipment, toys, and more without accumulating too much stuff or paying retail price tags. And retailers can broaden their business models to appeal to those consumers, and potentially reinvent themselves as environmentally conscious and forward thinking - burnishing their brand and gaining customer loyalty as they go.

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The newest shopping trend isn't new at all

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For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

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Geographic

"Largest market for resale is Europe and the US"

(Liu, 2020)

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Is Coronavirus increasing online luxury shopping?

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Vestiaire Collective CEO Max Bittner says he has seen an increase in seller activity since the coronavirus took hold, as shoppers find sustainable shopping solutions online

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The Instagram Generation

"Influencers/celebrities/fashion gurus have revamped the rep of secondhand"

(Frengler, 2019)

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The Instagram Generation

"Generational shift in regard to attitudes towards ownership

Rental and pre-owned will increase as consumers regularly update looks for social media

Instagram’s popularity on the rise, consumers are interested in constantly sporting new styles

More than half (56%) of consumers want to see new styles from retailers every time they visit"

(Pallien, 2019)

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The Instagram Generation

"Secondhand Suits The Instagram Generation

Social media means consumers are influenced more quickly by more factors and trends than ever before, and those consumers, have a microphone they can use to influence 24/7

Trends shift faster – styles go out of fashion faster"

(Barr, 2019)

# data[].attributes.attachment_link.readable_text
For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

But in recent years, there's been a shift in how people are considering what they wear for special (and even not so special) occasions. No longer do fashionistas want - or need - to pay high prices for things that might end up gathering dust in the closet after that one special night. They instead want a more convenient shopping experience, a more affordable lifestyle, greater variety, and the option to consume more conscientiously. So, they're embracing the era of "new to you" when it comes to a wide range of products, including fashion, high-end sneakers, and toys. In fact, according to retail analytics firm GlobalData, the resale market has grown 21 times faster than the retail market since 2016. And according to the 2019 PwC Holiday Outlook report, 36 percent of the younger U.S. consumers who were surveyed are planning to shop for resale items, for themselves or for gifts, this holiday season. This trend extends beyond the holiday season and circles the globe. Research by data provider QuestMobile shows that 38 million Chinese shoppers used online resale platforms in 2017, up from 1.5 million in 2014.

For retailers, it makes sense to meet consumers where they are. Many companies - following in the footsteps of the now 10-year-old Rent the Runway - have already shifted from thinking of product sales as a one-time transaction to adopting models based on rental, reuse, and monthly subscriptions. In a sometimes struggling retail industry, embracing these new markets offers companies, particularly legacy brands and brick-and-mortar retailers, an opportunity to reinvent themselves and breathe new life into their business model.

Shoppers are shaking up what buying means

The customer has always been king. But now customers are helping reimagine the kingdom. For one thing, social media means consumers are influenced more quickly by more factors and trends than ever before, and those consumers, in turn, have a microphone they can use to wield influence 24/7. Customers increasingly want an improved experience - not just the latest product. Powering much of this shift is technology, which lets consumers curate their own experience and factor in all of the things they care about.

In a sometimes struggling retail industry, embracing these new markets offers companies an opportunity to reinvent themselves and breathe new life into their business model.

Sustainability. According to the PwC Outlook report, 75 percent of U.S. consumers now have sustainability in mind when shopping. And a global report by PwC shows that number is even higher in international markets. But the fashion industry leaves a surprisingly large carbon footprint, according to a study (pdf) by the Ellen MacArthur Foundation. The study also shows that textile waste has doubled since the beginning of the century, as consumers are buying more clothing - but discarding it more quickly than they used to. Downsizing is another consumer pattern that's related to sustainability. Young consumers, according to Business Insider, tend to live in smaller apartments and homes, and don't have the closet space to store lots of belongings. This helps to explain popularity of Marie Kondo, the global champion of decluttering, who has sold millions of copies of her 2014 book, The Life-Changing Magic of Tidying Up, and in 2019 introduced a popular Netflix series in which she helps families bring minimalism and order to their domestic chaos.

Convenience. Consumers are used to having pretty much everything delivered, down to a tall nonfat cappuccino before they leave for work. Renting fashion or other goods is just part of the same "delight me" delivery experience. And some reuse companies, such as thredUP, even have subscription models that let a consumer get a goodie box of used clothes every month, for far less than the cost of brand-new clothes.

Affordability. According to Statista, price is the most important factor for online shoppers - it's cited by 80 percent of the company's survey respondents. To get an idea of the way renting or reusing affects a shopper's bottom line, consider these comparisons. Someone wanting to put together the perfect designer look for a special evening can rent a silver and tulle Marchesa dress for four days for US$105 at Rent the Runway. The same dress retails for $695. Visiting villageluxe to rent a stunning pair of Christian Louboutin heels to go with the dress will cost $63 for a week, versus $735 to purchase. And a coveted Hermès Evelyne III PM shoulder bag to finish off the look would require an investment of almost $3,000 retail, but rents at Bag Borrow or Steal for $325 for a month.

Variety. In 2019, many people, especially younger ones, are opting for experiences over accumulating things, according to . Having two cars in the garage, a suburban house, and a closet full of designer clothes has lost some of its appeal. Yet consumers still want the latest looks or to try new products - just without the commitment and high price tags of buying. If you don't know whether you'll like camping, why should you spend a small fortune on tents and gear? It's much more practical to rent the equipment and take it for a spin, and then decide if you love it - and the experience - enough to buy it.

Companies are getting in the game

Retailers, including traditional brick-and-mortar companies, are listening to consumers and reacting.

Macy's, facing dipping sales, has announced a partnership with thredUP to sell used clothing, and also has announced it wants to get into the subscription-box market.

Banana Republic has debuted Style Passport, an $85/month service that sends subscribers three pieces at a time, from skinny corduroy pants to dressy overcoats. When they're done with the clothes, they send them back and get a fresh box.

YCloset, backed in part by the Chinese Internet giant Alibaba, rents clothing, shoes, and accessories, mostly to young women who live in China's bigger cities. It carries mostly midrange outfits and also has a monthly subscription model. Other popular Asian sites include MSParis, Starluxe, Yeechoo, Yiqidai (for jewelry), and Dou Bao Bao (for luxury handbags).

The Mode, based in Dubai, touts its focus on sustainability and offers a wide variety of current fashions for rent.

Flyrobe, based in India, rents all sorts of outfits, from traditional wedding attire and saris to Western looks.

Eileen Fisher, creator of high-end garments in classic styles and fabrics, takes the reuse concept a step further. In addition to its Eileen Fisher Renew program, through which customers can return used clothing for resale, the company will also take back damaged garments. That program, Eileen Fisher Resewn, will even take in torn or stained pieces and re-dye them or make them into new pieces, like a patchwork cashmere sweater.

REI makes it possible to try new outdoor adventures without much commitment. A novice backpacker doesn't need to figure out what they might require for a four-night excursion. REI has created kits for nearly every kind of adventure. The prepacked backpacking kit, for example, includes pretty much everything a couple would need, including the tent, sleeping bags, and headlamps, priced per night used.

Legos no longer have to end up jumbled in growing, unused piles in kids' toy bins. There are several subscription companies, with names like Brickbox and Brick Loot, that let parents sign up for a monthly box of the toy bricks, which they mail back in exchange for a new box. The monthly rates range from about $15 to $40.

This trend seems to have no real downside. Consumers can get quality - and quantity - of fashion, equipment, toys, and more without accumulating too much stuff or paying retail price tags. And retailers can broaden their business models to appeal to those consumers, and potentially reinvent themselves as environmentally conscious and forward thinking - burnishing their brand and gaining customer loyalty as they go.

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The newest shopping trend isn't new at all

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For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

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Gender

"Gender gap when it comes to the buying and selling on peer-to-peer recommerce platforms

Men's sneakers, rare ready-to-wear and archival designer pieces are often priced well above retail

While similar womenswear, whether luxury ready-to-wear and leather goods or more contemporary offerings, isn't tagged with the same mark-up

Hype and scarcity play a big part in determining not only the price of secondhand goods

Men are more likely to [hold out for more] because they're selling clothes to buy something else

There isn't a tangible difference between how men and women behave from a reselling standpoint

Womenswear is gradually adopting the drop and scarcity model used in streetwear"

(Richardson, 2019)

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Age

"Millennials are showing 37% growth in resale shopping, between 2017 and 2019

Gen Zers grew 46% during the same time period"

(Pallien, 2019)

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Age

"Growth largely attributed to changing consumer demographics

"Millennials and Generation Z comprise the majority of the buyer cohort today

Their purchase decisions and preferences are distinct from generational predecessors"

(Winmarkfranchises.com, 2020)

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

From overtaking fast fashion to capturing the wallet share of an increasingly economical and environmentally conscious consumer, the future of the growing resale industry is strong and sustainable in more ways than one.

Here are some key demographic and marketplace trends that will continue to drive the future success of the resale industry:
1. Sustainability Sparks Demand
The impressive growth experienced by the resale industry can be largely attributed to changing consumer demographics. Specifically, millennials and Generation Z comprise the majority of the buyer cohort today, and their purchase decisions and preferences are fairly distinct from their generational predecessors.

These consumers are more environmentally conscious than previous generations, and the vast majority cite sustainability as a top shopping priority. Although they're also very budget-conscious, three out of four millennials and Gen Z members say they'd be willing to pay extra for sustainable products.

Unlike traditional retailers, key resale industry players appeal to both sides of fiscally constrained, environmentally conscious consumers. Not only do resale stores offer significant cost savings on a variety of brand-name retail products, but they also help consumers take an active role in saving the environment while saving money. Conversely, the traditional fashion industry is one of the largest polluters in the world, second only to crude oil.

As consumers continue to prioritize cost and environmental impact savings, resale stores will continue to pick up where traditional retail has left off.
2. Recession-Resilient Concepts Dominate the Marketplace
Similarly, resale stores' environmental and affordability appeal also positions the industry to thrive in any economic climate - an increasingly important point moving into the new year, as economists continue to predict a potential recession in 2020.

During the 2008 recession, nearly two-thirds of U.S. resale store respondents reported an increase in sales, by an average 31 percent, according to data from the National Association of Resale & Thrift Shops (NARTS).

When times are tough, consumers increasingly turn toward resale stores, looking for easy ways to spend and earn money more efficiently. The resale segment's unique business model, value proposition and essential inventory make it the ideal solution for cost-conscious consumers in any economy.
3. Changing Digital Landscape Opens a Window of Opportunity
The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles.

For example, the resale ecommerce (or re-commerce) hybrid answers a strong demand for a bricks-and-clicks business model. Consumers are more inclined toward omnichannel brand experiences, creating a growing need for businesses to carve out a presence and be wherever their customers are.

Younger consumers also expect to have the power and autonomy to choose how they interact with brands, both online and in person. This represents a key opportunity for resale industry growth and innovation, as resale businesses complement existing brick-and-mortar stores with a broader digital reach.

To learn more about the future of the resale industry, download our eBook.

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3 Trends Driving the Future of the Resale Industry

# data[].attributes.attachment_link.description
The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

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"In the 1950s, Americans spent 10% of their income on clothes

In 1993 with the passage of the North American Free Trade Agreement, it became much, much easier to import clothing

Labor, that limiting factor, was at least 10 or 20 times cheaper in other places - fast-fashion"

(Greenwood, 2018)

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is the Holy Grail of sustainable fashion.
So how close are we?

A funny thing started to happen about 15 years ago. Maybe you noticed it only when you went to take a new shirt out of its maiden voyage in the washer and discovered the hem had unraveled. Or maybe the lifetime of your jeans began to shorten perceptibly. First, you found yourself at the store for a replacement pair, a bit sooner than you might have expected. Then you were there again less than a year later. Then you're there with the new pair ripped across the knees, less than 2 months after you bought them, embarrassed but also confused. Are you imagining it, or was this different before?

I remember acutely the moment in 2010 when I put on a pair of what looked like black brogues and discovered they were nothing but a kind of vinyl sac with a rubber pad for a sole. They aren't shoes, I realized with a chill, looking around the sleek glass box of a Manhattan store. They just look like them. And no wonder. For $20 you can't buy shoes, not really. You're buying a facsimile designed to get you out the door and back again in a couple of weeks, when brogues are out of style and ballet flats are in. You aren't imagining it: clothes have changed, and what has happened is a whodunit where the stakes are very, very high.

In the 1950s, Americans spent a whopping ten percent of their income on clothes. These garments were relatively expensive, compared to what we expect now, but they also lasted longer. When people had to choose a new skirt or suit for the office, they might not be able to afford another one for quite some time. In fact, as journalist Elizabeth Cline wrote in her 2012 book Overdressed: The Shockingly High Cost of Cheap Fashion, for much of the twentieth century, many people often did not buy clothes more than a few times a year. Even until relatively recently-as late as the 1980s-new clothes were usually occasional purchases. Labor has always been the most expensive part of clothing, and an irreducible one at that: It is actually impossible to mechanize a seamstress, beyond giving her a sewing machine. "Because clothing is so labor-intensive, the price of labor directly affects the retail price of clothes," says Cline, who has continued to cover the social and environmental impact of modern fashion.

However, in 1993 came a turning point. With the passage of the North American Free Trade Agreement (NAFTA), it became much, much easier to import clothing. Over the next ten or so years, a quota system that had limited the number of imported items entering the US was abolished. Very swiftly, US-based textile mills and factories went out of business. Around the world, similar events happened in developed countries with free-trade agreements. Labor, that limiting factor, was at least ten or 20 times cheaper in other places. Companies that didn't move their operations out of the US could not compete. Not long afterward, one of the most successful business models of this century took advantage of this change to shoulder its way to the front of the pack: it is now called "fast fashion."

Fast-fashion companies such as Zara and H&M make their money by shortening the time between trends and encouraging customers to buy inexpensive clothes that, in many cases, appear to be made to last no longer than the lifetime of the fad. Currently, H&M alone makes between 550 and 600 million items of clothing a year. And thanks to the fact that most clothes today are made by people working for low wages, developed-world consumers have never spent so little on their wardrobes. It might surprise you to learn that Americans now buy at least one item of clothing a week.

Run this clock forward over the years, however, and you start to see a problem (beyond the humanitarian one-companies continue to use factories like the one in which more than 1,000 workers died in a building collapse in Bangladesh in 2013). Already, says Cline, "global clothing consumption has doubled in the past 15 years." The industry, driven by fast fashion, has steadily become one of the most serious polluters in the world. Clothing manufacture was never exactly tidy, what with toxic dyes, copious amounts of water needed for growing fiber and processing fabrics, and waste from factories. But in 2015, carbon emissions from clothes surpassed those emitted from all international flights and all maritime shipping combined. Cotton, for example, uses more pesticides than any other crop-and organic cotton takes up more land and much more water than conventionally grown cotton. At the same time, clothes are worn for less time than they ever have been previously. Every year, 12.7 million tons of textiles enter American landfills; in 2015 in the UK, 300,000 tons of clothes went in, about ten pounds per person. Giving old clothes to charity isn't the charitable act you might think it is-many of the clothes made today are of such poor quality that they cannot be sold again.

You might not think of yourself as the kind of person who cares much about clothes. I know I didn't. As someone who has always felt like a brain inconveniently hampered by a body, I can't say I ever thought much about them-except to wonder why, as an averagely shaped human being, I found it so hard to find things that fit. But even if you don't spend much time thinking about fashion, this concerns you.

Clothing is a thorny industry to get your mind around, because it's agriculture, mining, light industry, fun, necessity, and luxury all rolled into one. The fibers that go into a shirt usually begin as something grown in a field, such as cotton, or something extracted from the earth, such as polyester. They must be processed at mills to make thread, then fabric; they are dyed along the way, using petrochemicals, and are treated with other substances. The cut fabric is pieced together at sewing machines; trims and buttons, each with their own industrial footprint, make their appearance; and the final product may be treated again to give it a certain texture or quality. There's a lot going on here.

One angle on saving ourselves from our clothes comes from economizing in the mills and factories. On this front, one of the most striking efforts has come from Clean by Design, a program run by the Natural Resources Defense Council. Mills in China that make fabrics for brands in the US and elsewhere commit to picking what Linda Greer, senior scientist in the NRDC's health program, calls the "low-hanging fruit" of sustainability.

Dyeing a single ton of fabric can take 200 tons of water and enormous quantities of energy. Mills that join the Clean by Design program commit to insulating pipes; using waste heat to heat water; installing meters to monitor electricity, steam, and water usage; and other measures drawn from a list of ten basic best practices to bring down their impact as well as their operating cost. Many of the improvements have a quick return on investment, usually recouping costs within a year. The changes seem very straightforward and simple, but they're miles ahead of where these mills were before. Out of an estimated 15,000 in China, about 150 mills have gone the Clean by Design process, and an additional 60 or so in Italy have joined as well. Between 2014 and 2017, the project prevented the use of 70 million tons of water and 90,000 tons of coal. Clean By Design is now transitioning from the NRDC to the Sustainable Apparel Coalition, an industry-funded group, in order to accelerate the process of converting mills.

Furthermore, in an effort to create more transparency, the NRDC and the Institute of Public and Environmental Affairs released in January of this year a map where consumers can check the pollution records of suppliers for Gap, Target, New Balance, Esprit, PUMA, and Inditex (the parent company of Zara). Brands provide the identities of their suppliers-factories, mills, and so on-and the map reports the facilities' numbers, collected by automatic sensors, in real time. In practice, the maps are difficult to use and the readouts can be glitchy-but it's a start to bringing in accountability. Greer and colleagues have also begun designing science-based targets for the fashion industry in order to control carbon emissions; she expects to release blueprints this summer.

Another opportunity to save resources comes when the fabric has been made and all the pieces come together. To highlight this, Redress, a Hong Kong NGO focused on reducing waste in fashion, runs an annual competition in which 30 or so emerging designers produce collections using waste from the clothing-making process. Although consumers never see that waste, it can be substantial: the leftover fabric from millions of little black dresses and trendy spring tops grows into mountains of garbage. At the same time, designers learn from industry insiders how to make sustainable design choices-choosing a mill that minimizes its environmental impact, for example, and selecting a fabric that can be recycled when the clothing has reached the end of its life. Designers have control over roughly 80 percent of the environmental impact of clothing manufacturing, says Redress founder Christina Dean, in that they can make decisions that influence a garment's entire lifetime.

Still, efficiency-though important-will not solve the problem of clothing in the garbage. The most efficient and environmentally friendly process, if it runs 24 hours a day making objects that go nearly immediately into the landfill, is not sustainable.

Several years ago, Tasha Lewis, a professor of fiber sciences at Cornell University, found herself in Haiti surrounded by first-world cast-offs. Some were donations that came in as aid, while others came in through the extensive second-hand-clothes market-whereby the discards of the developed world are shipped hundreds or thousands of miles to be sold in the developing world. Increasingly, these used clothes cannot find even a second-hand market, thanks to differing tastes or poor quality. The energy that goes into making finished garments is so significant, however, that even if they avoid the landfill by becoming rags, it's a wasted opportunity. And so Lewis, her students, and the founders of a Toronto clothing start-up called Local Buttons picked through those cast-offs, sifting out the climatically inappropriate wool suits and the sizes and styles unlikely to sell in Haiti-and made new clothes out of them.

As they worked, using software to snapshot the pieces of old garments and then carefully designing new bodices, skirt panels, and other items out of that footprint, they discovered numerous signs of the manufacturers' lack of foresight about a garment's life cycle. For instance, Lewis had hoped to avoid having to take apart every single seam by hand, instead using a solvent to dissolve the threads efficiently. But the threads are often blended-meaning they include both polyester and cotton. "So we can't make a solvent to dissolve the thread and not destroy the garment," Lewis says. Designing clothes so they are easy to take apart and reassemble isn't on the industry's radar screen.

Nor is recycling much on people's minds yet, though there are rumbles of change. Five years ago, H&M began to accept returns of used clothing, which are recycled at a plant in Wolfen, Germany, owned by a company called I:CO. On average, 14 tons a day arrive at the plant and are sorted both by machine and by hand. Some clothes are sent for resale, potentially to the developing world; others are broken down into their component fibers to be used again. This is not quite the panacea it might seem, again because of that foresight issue: while 100 percent polyester garments are relatively easy to render back into reusable material, cotton-polyester blends currently are essentially unrecyclable-the Styrofoam of the clothing world-since the fibers cannot be separated from each other. Cotton fibers on their own are fairly easily recycled, as they can be turned into new denim, much as recycled paper can become new paper. But even then, they must be mixed with new, virgin-cotton fiber to be usable because after recycling, the fibers are much shorter. H&M's line of jeans made from recycled cotton consists of 20 percent recycled, 80 percent virgin material. (A representative of H&M did not respond with a number when asked what percentage of the clothing sold each year was collected for recycling and re-use. "In general, 36 percent of all the products in H&M's assortment are made of more sustainable or recycled materials," she wrote instead.)

Lewis wonders how different things would be if a company had a legal responsibility to plan for the end of its product's lifetime. "If you had to take it back, how would you design it?" she asks.

Turning away from virgin fibers altogether, or at least finding a source for them that doesn't involve such immense squandering of natural resources, might be accelerated if companies bore that responsibility. There are glimmerings of solutions to this problem in laboratories, from finding ways to recycle cotton-poly blends-a focus of the UK-based company Worn Again, which is working with H&M-to developing alternate sources of starting material. "The lab invention needs to scale up," says Dean, "so we can just keep churning the same fabric through, which we can do with polyester."

Lewis recounts a recent trip to New York, where she met scientists working on fibers spun from food waste. Even though such projects are in the comparatively early stages of development, many have moved past the whimsical phase of stunts and art projects. One company in the San Francisco Bay Area, Mango Materials, has been working for eight years on commercializing a process in which bacteria convert methane into a biodegradable plastic; last summer, the company found a way to spin the substance into polyester-like fibers that can be used in clothes.

These methane-munching bacteria, which naturally make a plastic polymer to use in their own cell walls, are given methane that otherwise would be considered waste. One of the company's current methane providers is a Bay Area wastewater-treatment facility, says company founder Molly Morse. Although Mango Materials has focused mainly on using the plastic they extract from the bacteria for making biodegradable packaging-the polymers will break down when exposed to heat, acid, or soil bacteria-Morse says that from the beginning, the interest from textile companies has been intense. When the company happened on a method for generating fibers and brought it to clothing makers, it was met with great excitement. Such clothes could degrade naturally in a landfill but could also be recycled to produce new fibers. Morse hopes that within the next year or two, a small number of garments made this way will be released, to gauge the public's response.

But these solutions are still coming up to scale. Turning back to the question of whether this is enough, the answer is still no. If we're going to save ourselves, the problem of volume-the sheer, immense, improbable volume of clothes pouring out of factories every single day of every single year-needs to be met head-on.

"The solution right now that the industry really doesn't want to talk about is reducing consumption," Dean says. "And consumers don't really want to talk about it."

Kate Fletcher, a professor of sustainability, fashion, and design at the University of the Arts in London, posted a manifesto of sorts on her blog last fall. In it, she spoke against the idea that simply consuming smarter, rather than consuming radically less, could ever be the solution to the problem of fashion. "There have been some really impressive gains in terms of efficiency delivery within the sector over the last decade," she said on the phone recently. "I would say, hand on heart, that every single garment produced now is better in pure resource-efficiency terms today than it was a decade ago." But the volume, she says, is "outstripping any benefits" gained from improvements in efficiency.

"Essentially," says Fletcher, "everything is getting worse, not better." Measures to rein in waste are useful, she says, "but all they are is a transitional strategy while we figure out what is the better thing to do."

Even if companies don't want to slow down-if there is nothing forcing them to slow down-we as consumers must. To start with, on the most basic level, we must stop throwing away clothes, churning through disposable dresses and pants that are worn only once. And that's hard to do if we don't-let's be honest-particularly care about them.

"As we've consumed so much," reflects Dean, "we've lost the emotional attachment of clothes. And from a sustainability perspective, that's what people want to bring back."

Historically, I have a bad relationship with clothes. After many years in New York City, Switzerland, and other bastions of the well dressed, I moved to China, to a city at the pulsing heart of the world's textile industry. When I began frequenting a street-market stall-where I dug through enormous heaps of ludicrously ugly garments while the proprietress, a thin woman from Sichuan Province, hollered, "You're too fat! They're all too small for you!"-it didn't really feel like much of a departure from normal. If anything, it was refreshingly honest. The shop where I tried on those laughable excuses for shoes years ago, when fast fashion was younger and more innocent, didn't have the guts to say what was on its mind. It was hard to imagine love entering into the picture.

Elizabeth Cline feels, however, that when done right, owning clothes does involve a great deal of emotion. "What does it mean to create a functioning wardrobe you can get a lot of use out of?" she asks. This is a vastly important question for the future of sustainable fashion. Rather than focusing solely on buying clothes made ethically or with less waste, we should focus on transforming what we have into things that we actually want to wear for years into the future.

Repairing clothes that develop holes or lose buttons is a simple first step to take. Numerous studies have found that even very simple mending skills have fallen out of practice, and that many people today could not sew on a button or darn a sock. These skills are worth learning, not just because it's satisfying to bring a beloved sweater back out of retirement, but because they can increase the number of times clothing is worn before being discarded. Presently, many items are worn only seven to ten times before being tossed, and the average person keeps clothing for half as long as they did 15 years ago. Companies such as Patagonia, who ask you to have a jacket repaired for free rather than throwing it away, are on the right track, says Cline. Even if only a portion of our belongings gets this treatment, from professionals or from ourselves, it would make a difference.

For people who truly love fashion, joining a rental service-Rent the Runway and Le Tote are two well-known options-that mails you things fitted to your taste and that you send back when you're through, can be a way to keep the thrill of the new. And of course, shopping at second-hand stores is an important part of the solution. (There are even subscription boxes filled with stylist-selected secondhand clothes, such as thredUP Goody Boxes.) Cline says that in the years since she wrote her book, she's stopped buying new clothes entirely. "I watched a global sustainable fashion movement emerge since the book came out," she says. "I think that we can trust consumers to care about the fashion issue. People in their everyday lives do have a lot of power."

Along those lines, getting a garment custom-made sounds like insanity to most of us, the kind of conspicuous consumption that's totally out of reach. But many of us, though not all, do in fact shell out for high-end or hand-made products: a top-of-the-line laptop, local eggs, a good mattress. Why not, in light of the devastation wreaked by heedless production of a sub-par product, clothes? The idea is to build a garment that fits you like a glove and that you purchase instead of impulse-buying ten lesser ones. Cline says that if a new custom garment seems improbable right now, consider asking a local seamstress or tailor how much it would cost to alter a find from a thrift store so that it fits you well. It may be surprisingly inexpensive.

Reining in consumption by buying better quality and keeping it for longer can cost more money upfront. But unlike buying organic food, say, it is within the reach of almost anyone with a mind for a good deal and the patience to repair. Organic milk will be consumed just as quickly as conventional milk, but it's not an option for everyone: many budgets cannot accommodate a more expensive product that lasts exactly as long as a cheaper one. Clothes, however, last a very, very, long time, even though many people forget that. If you a buy good-quality wool skirt at a thrift store for five dollars, you could pass it on to your granddaughter.

Doing clothes right takes planning, some resources, and some ingenuity, and it isn't always simple. Still, it can be worth it. After two years of making do with the handful of clothes I'd brought from the US-ironically, many of them made in China or Bangladesh-I had run out of options. I did mend things. But holes opened up next to them as the cheap fabric unraveled. It was stupid: I needed to look like a reasonable human being, and my clothes-to which I had always paid little or no attention-were getting in the way.

Riding a wave of irritation, I went into the fabric market across the street from my home. I found a stall selling a striking brocade unlike anything I had ever seen, a rich blue woven with a scene of mountains above a lake. I bought three meters of it. I took it to a woman who made me first a dress, then a coat. It was more affordable than it would have been in the US, but still more than I had ever spent on any item of clothing before. And it wasn't nearly as easy as buying something off the rack. There were arguments with the tailor, a last-minute restructuring of the coat collar, time ticking away.

But the coat! I described it to Cline: how for the first time in my life, a coat fit my shoulders as well as my waist. It also-and this was something that shocked me-covered my wrists. I had gotten so used to half-exposed wrists and to thinking of myself as someone who crept around in a shapeless down sack, that wearing this new thing was a revelation. I can throw it on with no preparation and look not just reasonable, but actually good. It feels like something I could keep for a long, long time.

There was a pause on the other end of the line. "So you do love clothes," she said, and a smile crept into her voice. "That's the lesson of the story."

_______________________

Veronique Greenwood's work has appeared in the Atlantic, the New York Times Magazine, Scientific American, and Discover.

Cover image: ©fStop Images GmbH/Alamy

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is the Holy Grail of sustainable fashion. So how close are we? A funny thing started to happen about 15 years ago. Maybe you noticed it only when you went to take a new shirt out of its maiden voyage in the washer and discovered the hem had unraveled.

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"Initially the resale market was dominated by a fragmentation of independent boutiques

Then the rise of social media, e-commerce, mobile apps and personalised digital platforms opened up the market by providing large, organised inventories tapping into a global network of sellers"

(Goldring, 2020)

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We've come a ways since Jennifer Hudson's character Louise rented luxe handbags from Bag Borrow or Steal in the 2008 Sex and the City movie. Now it's not just about renting for affordable brag cred, it's about usage, ownership and contribution to a sustainable circular economy.

Sustainable fashion is increasingly becoming a "thing", and not just at grassroots level. Hollywood star Jane Fonda has recently re-worn dresses from several years ago on the red carpet. At this year's Oscars, actress Saoirse Ronan wore a sustainable Gucci dress made from fabric surplus.

The consumer sustainability trend - combined with the affordability that resale provides - has seen luxury resale become big business - US$36 billion by 2021, according to management consulting firm BCG, and 9 per cent of the total personal luxury goods market.

Department store Nordstrom's See You Tomorrow resale store launch on January 31 is the latest in a spate of physical store openings for luxury resale: the physical store expression of what started online.

Tapping into a global market
Initially the luxury resale market was dominated by a fragmentation of independent physical consignment boutiques. Then the rise of social media, e-commerce, mobile apps and personalised digital platforms opened up the market by providing large, organised inventories tapping into a global network of sellers. This brought brands like Gucci, Hermès and Chanel to a new set of consumers.

Early online entrants included France-based Vestiaire Collective, established in 2009 (now operating in a dozen countries and in Australia since 2018); TheRealReal, established in 2011; and Poshmark, also established 2011.

It has since become something of a crowded market. A January 2020 Harper's Bazaar UK article lists what it considers the top luxury and designer resale sites. Included along with the above are HEWI (Hardly Ever Worn It) London, Videdressing, Designer Exchange, Edit Second Hand, Bagista and Rewind Vintage.

A 2019 blog on multimerch.com lists no fewer than 96 fashion resale sites, the luxury and designer listings which include what are by now some of the usual suspects plus Depop, Mosh Posh, Rebelle, Tradesy, Bag Borrow or Steal, Carnet de Mode, Collector Square, Couture USA and Australian operator Blue Spinach. Additional Australian operators include Luxe.It.Fwd, Revoir, Modsie and Hock Your Frocks.

Commissions are widely varied, ranging from 10 to 60 per cent of the sell price, as are payment terms, with some of the faster ones being within two days of receipt of goods from the seller. Some operators provide a "white glove" concierge or VIP service where they go to the seller's residence, assess and authenticate the goods on the spot and provide an estimate.

Going omnichannel
According to a BCG/Vestiaire study, digital platforms currently account for 25 per cent of second-hand luxury sales globally. Given how much Generation Z and millennials love experiential environments, and how quickly they are embracing secondhand goods (at 2.5 times the rate of everybody else, according to Thredup), a raft of luxury resale physical stores have launched in the past two years. Some are the online players moving into the

physical space themselves, and some combine the smarts of the online tech resale players with the retail experience of established physical chains.

Going their own way, TheRealReal opened its first permanent store in New York in 2017, as well as pop-ups in San Francisco and Las Vegas. It now includes physical locations in Los Angeles and a second in New York.

The US's Rebag has a network of nine stores across New York, California and Miami. "Rebag bars" in-store allow for instant product authentication and valuation, 60-minute payments to sellers, and the Rebag Infinity program provides 70 per cent store credit for every previously purchased bag exchanged for a new Rebag handbag within six months. Rebag's medium-term plans are to expand to 30 physical stores, both standalone and in malls.

Designer Exchange, established in 2013, claims to be the first to offer instant cash payment and exchange on designer items. It has four stores in the UK and one in Madrid.

Xupes opened its first physical store in London's Royal Stock Exchange last year. The store spans two floors, with the ground floor devoted to appointments and consultations. It has also opened a retail store in Amsterdam and a pop-up concession in Dutch department store De Bijenkorf's.

Which brings us to online players leveraging established retailers (and the reverse), a synergistic relationship which sees both the department store and online provider generate more traffic.

Neiman Marcus acquired a minority stake in Fashionphile in mid-2019, not long after Nordstrom inked a partnership with Rent the Runway. In early 2019 Macy's announced a partnership with Thredup and has gone on to launch a resale shop-in-shop, with plans to pilot in a dozen stores. Thredup also has a similar relationship with retailer Stage Stores, which opened 12 stores in 2018 for a total of 45 stores.

Vestiaire experimented with pop-ups at Selfridges in late 2018 and a pop-up at Paris's Le Bon Marché in early 2019 before committing to a permanent space in Selfridges, launched in October 2019. The 40sqm space in the store's third-floor designer studio launched with 200 items including 10 rare vintage pieces from Versace, Paco Rabanne and Maison Margiela. Vestiaire Collective products are labelled as "pre-loved" to differentiate them from Selfridges' current luxury inventory. Shoppers can also sell through a dedicated resale point in the store, which acts as the physical incarnation of Vestiaire's Concierge Service.

And now Nordstrom's See You Tomorrow ranges products previously bought by consumers but now returned or resold to Nordstrom. It appears to be running independent of specific online luxury resale entities.

Who's buying luxury resale?
While luxury resale is an opportunity for Gen Zs and millennials to enter a luxury brand and upgrade over time, according to Thredup 13 per cent of those buying luxury resale are already millionaires. This is a fact some brands have been slow to recognise, preferring to remain exclusive by focusing on narrowly defined affluent consumers rather than proactively expanding their markets using a "cradle to grave" lens.

According to Vestiaire, while 52 per cent of consumers donate apparel items to charities, only 33 per cent resell and buy second-hand so there is still a job to be done in education and awareness.

Challenges and a likely trajectory
While longer-term players employ professionally trained product authenticators, the potential for fraud and fakes is still reasonably high, particularly on peer-to-peer selling sites. Chanel took TheRealReal to court with claims over selling fakes, despite its in-house authentication process.

Retailers selling resale may result in conflict with a retailer's traditional suppliers. However, resale may generate traffic in department stores, to the benefit of all brands. And reselling is going mainstream, with the likes of ASOS in the market. A number of players, including Poshmark, are extending into other categories such as home decor and manchester.

The established luxury brands can't ostrich forever. Momentum has built around resale; a 2019 report from the Business of Fashion and McKinsey State of Fashion indicates that rental and second-hand is one of the top fashion industry trends. Luxury brands are better off maintaining some control over and input into their marketing and retailing by looking at alternative avenues and partnerships than putting their heads in the sand and conceding control altogether. And it may expand their markets further. As the saying goes, "If you can't beat 'em, join 'em."
Norrelle has 20 years' experience in retail, category, channel and customer strategy, planning, research and marketing, working in and with global retailers, manufacturers, research and consulting houses. Contact Norrelle on 0411735190 or email norrellegoldring@hotmail.com

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Luxury resale comes of age - Inside Retail

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We've come a ways since Jennifer Hudson's character Louise rented luxe handbags from Bag Borrow or Steal in the 2008 Sex and the City movie. Now it's not just about renting for affordable brag cred, it's about usage, ownership and contribution to a sustainable circular economy.

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"1995 eBay and Craigslist emerged

Previously only found in vintage and thrift shops

Between 2009-2011: ThredUP, Depop, Poshmark and TheRealReal"

(Fernandez, 2020)

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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"Secondhand items were passed down between family members, community members and even from an employer to domestic employee - reputation for being for poor people

Boomers were the first generation to truly take advantage of being middle class

Buying or accepting hand-me-downs were often seen as a sign of financial hardship

Millennials introduced the world to the sharing economy"

(Stone, 2018)

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff.

Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years. Not only that, but as the fashion world moves toward a more sustainable model and Millennials' spending preferences force brands to be more accountable, thrifting is making the transition from being something a few outliers did to save money to being positioned as, wait for it... the next big fashion trend.

Yeah. There are some interesting things going on here. So, strap in.

The Verticals We're Covering

In general, reports about the resale industry will exclude pawn shops because they make their money on loan interest paid) and stores that sell used vehicles, boats, trailers, and mobile homes. Some reports exclude online resalers from their data. But for THIS two-part series, I want to focus specifically on the online and offline fashion resale industry (including accessories).

Still, it's worth noting that the resale of furniture and books are top performers as well. In fact, used furniture is one of the fastest-growing segments in the resale industry.

Let's start with some big takeaways.

Recommerce as an industry is expected to double in size over the next 5 years.

Frugal, value-conscious Millennials are actively erasing the stigma formerly associated with resale.

Resale enables consumers to upgrade the quality of their wardrobe for the same amount of money they would pay for fast fashion and off-priced / closeout apparel.

The circular fashion movement and the uptick in resale are fueled, at least in part, by the desire for more sustainability and consumer mindfulness .

Market Size/ Growth

Let's start with the big one - does this category make money? The answer is a resounding, "Uhhhh... Yeah."

According to First Research , there are around 20,000 used merchandise stores generating $17.5 billion in annual sales in communities across the U.S.

Here's where things get exciting - ThredUP reports the online and offline resale industry is worth $20 billion, and expected to double in size to $41 billion by 2022, fueled in large part by the younger shoppers who have taken up the habit of thrifting. Resale apparel represents 49 percent of that number.

Source: ThredUP 2018 Fashion Resale Report

And there are now more physical thrift shops than ever before. According to Ibis World, the geographical spread of thrift stores mirrors the spread of the population. So, for the 25.7 percent of the population living in the Southeast region of the U.S., they are living in a region that accounts for 27.8 percent of resale industry establishments

There are also more thrifters than ever before. Post-Great Recession, resale revenue increased more than (from 2008 to 2016). Coincident with that increase, department store sales declined by about 25 percent.

Whether the economy is up or down, resale store sales are consistently increasing, and the growing popularity of online resale marketplaces such as ThredUP, Poshmark, The RealReal, and Depop is enabling resale to grow more than 20 times faster than retail. 20 times!

Source: ThredUP's 2018 Fashion Resale Report 2018
Younger thrifters are redirecting their apparel spending from off-price stores like TJ Maxx and Burlington to thrift stores. ThredUP's 2016 Fashion Resale Report said 87 percent of thrifters had redirected a portion of their spending from off-price retailers the ones I mentioned to online and offline resale shops.

According to America's Research Group, 16 - 18 percent of Americans will shop at a thrift store during a given year. To put this in perspective, 12 - 15 percent will shop at consignment resale shops, 11.4 percent will shop in a factory outlet mall, 19.6 percent will hit the regular apparel stores, and 21.3 percent will shop at a major department store.

Don't expect to see any signs of slowing down, either. In the five-year period from 2017 to 2022, retail apparel is expected to experience annual growth of two percent, growing from $360 billion to $400 billion. On the flip side, the resale apparel is expected to grow from $20 billion to $41 billion, at a rate of 15 percent annually.

According to ThredUP, one in three women shopped secondhand last year. ThredUP also points out that 70 percent of its first-time customers are also first-time resale shoppers, which means the resale sector is consistently producing new customers, online and offline.

In 2012, of the items in a thrifter's closet were secondhand. By 2017, nearly 25 percent of the items in a thrifter's closet were secondhand. By 2022, that number could reach as high as 40 percent.

The Resale Game is Changing

Back in high school, I shopped resale stores in the Detroit area a couple times a month. My mom was a thrifter - books. That was her thing. She didn't wear jewelry. She shopped at Sears for her old school mom wardrobe. She bought all our furniture new with warranties, fancy protection plans and a literal briefcase packed with polishes, sprays and other potions to keep everything looking and smelling new. The only thing she ever bought from thrift stores was books. And lots of them.

I, on the other hand, had a thing for men's sportcoats and ties. Oh, and turquoise jewelry. I wouldn't dare buy my shoes resale back then with my grandpa's dark tales of athlete's foot so fresh in my mind. But I had more men's bell bottom jeans and sport coats than any urban girl could want (or not want... my friends thought I was peculiar). And vinyl records. I supplemented my record collection with used vinyl. Heck, in college during a trip to France to study architecture and art, I skipped Euro Disney to make a solo trek to the Louvre and make my return visit to a funky used record shop I spotted on a long walk on a cold, rainy day through the Marais District.

But that was then... when resale shops were limited to Salvation Army stores and dingy, church-run storefronts that were never that great about being open and operational during posted business hours.

Today, resale shops are looking more and more like the typical business - open daily during post business hours, extended holiday hours, sales and closeouts, plus special discounts for card holders, veterans and seniors...

My friend, the resale game is changing. So, let's talk about how we got here

On the heels of the Great Recession, low per capita disposable income sent discretionary spending to a grinding halt. Consumers who had become accustomed to shopping in department stores started looking for other ways to get the quality they wanted at a price that wouldn't break the budget, and shopping resale fit the bill.

When the recession first hit ten years ago, the youngest Millennials were in junior high school, likely watching their parents scramble to find a plan b that would help them recover financially. Their parents may have been among the one in ten Americans who were suddenly unemployed. There were fewer jobs then.

If they were older Millennials, those in their late 20s when the Great Recession hit, they may have lived in or around a neighborhood in which of their neighbors had homes that were suddenly worth less than what they owed on the house. Millennials learned a valuable lesson then, as did we all - it benefits us to be smart about our spending, and shopping for quality is usually the wiser choice.

Sustainability is big on the list of things Millennials are looking for from the products they buy and the brands they support, and sustainability has become a HUGE deal in the fashion world.

The circular economy - and specifically circular fashion - is a movement that is growing in popularity and practice. Based on the framework of the Ellen MacArthur Foundation, Dr. Anna Brismar defines circular fashion as:

Clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulate responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use.

The Make Fashion Circular Initiative, spearheaded by Burberry, Gap Inc, H&M, Nike, Stella McCartney and HSBC, is a call-to-arms of sorts for the fashion industry to design with sustainability in mind. The fashion industry ranks in the top five of the most polluting industries today. Inexpensive, trendy clothing makes it easy for people to throw out clothing items when they're done wearing them. Often clothes are tossed long before they wear out.

According to ThredUP, 70 percent of the average woman's wardrobe goes unworn, and the average clothing item gets five wears before it's discarded. In the United States, we ditch the equivalent of 80 pounds of clothing every year per woman, man and child. Only about 20 percent of used clothing gets sold secondhand.

Since the news came out in July of this year, Burberry has been working nonstop to make sure the public knows the company has since stopped the practice of burning merchandise and will, in partnership with Make Fashion Circular Initiative, work toward increasing efforts to reuse, recycle, donate and repair unsold merchandise.

A Short History Lesson on the Second Hand Industry By the middle of the 20th Century, Clothing manufacturers were producing clothes faster, pushing out new lines more frequently and driving down the price of clothing. The result - clothing became disposable. Whereas earlier generations would repurpose worn-out clothing for their kids or use it to make pillows or stuff furniture, mass-produced clothing items were cheap enough to be thrown away. Perfect timing, too. America's middle class was rapidly growing. No longer was it the haves and the have-nots, it was the more-than-enoughs, just-enoughs, and the not-enoughs. This created an opportunity for what author and historian Secondhand items were passed down between family members, community members and even from an employer to domestic employee. Churches started food pantries and "community closets" to provide for those in need, which is how the second hand industry originally earned a reputation for being for poor people. calls an alternative economy. clothing was being mass-produced and sold in department stores. President Roosevelt standardized women's clothing measurements to sort of help things along, and clothes - though mass produced - were made with inexpensive fabrics and put together with wide seams, making it possible for people to alter their own clothes at home if they fit a little too snugly or loosely.

Thrifting hasn't gone mainstream. It's been pushed into the spotlight. So, if thrifting isn't just for lower income people anymore, who is it for? Let's get into the nitty gritty of the demographics

Boomers were the first generation to truly take advantage of being middle class. So, buying or accepting hand-me-downs were often seen as a sign of financial hardship. For Boomers as a whole, about one in four shop resale.

Gen Xers were a rebellious lot, in part because many of them grew up middle class latchkey kids. They came of age at a time when jobs started going overseas. Enter Grunge, vintage fashions, Goth and a few other trends that dove head-first into hand-me-down culture.

Think Austin Powers, Beck, the popularity of college radio and everything that ever came out of Seattle during the 1990s. Today, Gen Xers and Boomers are neck and neck with their resale purchases. According to ThredUP, 25 percent of Gen Xers are resale shoppers.

Millennials watched the world come to an end, like three times. The first was during the market crash in 2000. The second was during the September 11th attacks in 2001. The third, was the second market crash in 2008. Community-minded Millennials have more access to opportunities than the previous two generations. The catch is they have fewer opportunities.

So, they place value on budgeting their resources. Millennials introduced the world to the sharing economy. Whereas Boomers and Gen Xers see owning a car or a home as a signal of successful adulting, Millennials aren't as beholden to the idea that those two possessions in particular are symbols of success.

They pinch pennies on the less important things to spend with a little more freedom on what they value most. For many Millennials, experiences (which translate very well on social media) trump physical possessions. Sixty-five percent of resale shoppers say they spend their secondhand savings on experiences with their friends and families.

That said, it makes sense that Millennials are the most likely generation to shop resale, with 30 percent of Millennials in search of that sweet spot where quality intersects price.

Gen Zers had the good fortune of growing up with protective, disenfranchised Gen X parents, and watching what the economy did to Millennial siblings. They're a practical bunch with a well-honed ability to see through bullsh*t. They aren't so much disloyal to brands as they are unimpressed by brands. And they, too, value quality, wherever they can find it.

According to CNBC, of 14 to 19 year-olds have used online resale platforms for clothes and furniture. It's pretty much an even spread between resalers and specialty retailers.

Surprise! Millionaires are on the list. According to ThredUP, 13 percent of the most active resale shoppers (defined by ThredUP as those who spent $10K or more on used items in the last two years) are millionaires. That makes sense, right? Millionaires - especially self-made millionaires - find ways to reduce their consumption costs while increasing their revenue

Across demographics, shopping resale is growing. Thrifting gives shoppers the chance to stay on top of trends and more frequently update their wardrobes for a fraction of the cost it would normally take to do so.

Plato's Closet has been around forever, it seems. What you may not know is it is one of five resale franchises licensed by Winmark, the largest player in the thrift, resale and consignment market.

According to its website, Winmark generated $1 billion in revenue and recycled 140 million items in 2017 in 1200 stores across the country. In addition to Plato's Closet, popular franchises also include Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round.

In the nonprofit area, Goodwill and Salvation Army are the biggest retailers of used items in the United States. Both organizations have systems in place for sorting, testing and selling donated items in physical retail locations.

In Europe, Oxfam is a network of 20 independent charitable organizations with stores in Belgium, France, Great Britain, Ireland, Spain and Germany, as well as stores in Australia and New Zealand.

In the burgeoning online space, ThredUP, The RealReal, Poshmark, Rebagg, Depop, Tradesy, Grailed, and Vestiaire Collective are among the most well-trafficked resale websites. I'm intentionally leaving out vast global marketplaces like eBay and Amazon to focus instead of these newer, more niched-down platforms.

The Big Wrap-Up: Thrifting Isn't Just for Lower Income People and Grandmas Anymore.

Recommerce is fast-becoming a major sector in retail apparel and set to double in size over the next three years. In fact, it's one of the smartest, easiest and trendiest ways to upgrade your wardrobe without having to increase your income.

As the fashion industry moves more toward becoming circular, buying second hand and finding creative ways to lengthen the life cycle of every piece of clothing will become the norm, which means there will be more and more [not the mention greater and greater] opportunities for legacy brands to partner with resalers... and potentially fulfill the prediction that resale is the new fast fashion.

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The Rise of Recommerce and Online Resale Sites - The Shelf

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff. Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years.

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"Second-hand clothing stores were once considered a fashion faux pas"

(Frengler, 2019)

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"Garments produced in the past were of a higher standard of quality, more practical and often handmade

Construction techniques and fabrics that composed these early garments are simply better than their modern counterparts

Higher quality because people owned less in the past compared to now

The 20th century introduced mass industrialisation (cheap materials/fast fashion)"

(Shuck, 2019)

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I've always considered the adage, "they used to make things better" to be a logical fallacy. When you look back at the last century in music, movies, books, cars, clothing, etc., yeah, it's all fantastic. But the products of the past that we're aware of today are only the ones good enough to last the test of time.

There was tons of filler and junk at all periods of history, we just have no reason to remember it. For every On the Waterfront or Bridge on the River Kwai there were twenty ham-fisted B movies that have been rightfully forgotten-turn on TCM at three in the morning to see what I mean.

However, the one area where the rule actually seems to hold true is vintage workwear. Old denim hunters like and Michael Harris regularly unearth 125+ year old jeans in wearable condition because the construction techniques and fabrics that composed these early garments are simply better than their modern counterparts.

So if we knew how to make it better then, why don't we make them better now? The answer is a combination of economic, geographic, and cultural differences between the America of today and the America of the late nineteenth and early twentieth-century.

Blue collar workers of the late nineteenth and early twentieth century often had only one outfit. A recent collaboration between Brit Eaton and(above)is based off of a recovered pair of pinstriped miner's jeans that served as both his work and dress pants.

When you only have one change of clothes and work manual labor, that outfit needs to be able to take some abuse. Miners considered clothing like another tool, as they usually bought their apparel in "Dry Goods" stores that stocked jeans alongside nails, pickaxes, and sacks of beans.

They sought pure utilitarian function, hence the smashing success of Levi Strauss and Jacob Davis's riveted clothing. Workers preferred Levi's apparel because the reinforced stress points wore harder and lasted longer than traditionally sewn work pants.

Americans were much more spread out as well, so a busted pair of pants could mean several days of travel and lost wages to replace them. It only made economic sense to buy the best and hardest wearing clothes available even if they cost significantly more.

Average Household Spend

Americans used to spend a lot more proportionally on their clothing than they do today. In the year 1900, the average household spent roughly 14% of their income on apparel, compare that to 4% in 2003.

A logical conclusion from those numbers is old clothing was more expensive, but that's not the case. In 1875, a pair of Levi'sjeans cost $1.12. That's about $23 when adjusted for inflation in 2014, and nearly three times cheaper than the $60 501s you'd find at JC Penney.

Clothes cost more in real dollars, but people today spend less proportionally on apparel because they have way more money to spend. American spending power increased roughly 6800% between 1900 and 2003. By a very rough estimation, those numbers mean modern Americans buy nearly seven times more clothing than they did a hundred years ago.

The majority of Americans have more than one outfit for every day of the week and most aren't doing anything as laborious as mining gold in it, so durability isn't nearly as high a priority. Instead of pure utility, the clothing glut allows shoppers to focus on trends, fit, and personal style.

And if the clothes of today fall apart, it's often cheaper and easier to replace than it is to repair, as 90% of the population lives within a half hour drive of a shopping mall.

Big brands have catered to these shopping habits. They now manufacture clothing based on the bottom line than on the paragon of quality. Most customers simply aren't bothered by cheaper, less durable garments.

But just because the high quality manufacturing ways of old are no longer commonplace doesn't mean they're lost. There are, of course, a vast array of small denim brands resurrecting the techniques of the past to make garments that are just as hardy as they were a century ago.

But in the churn and burn modern shopping cycle, quality and durability have become a luxury. The times have changed, and it would take a massive shakeup of the entire world's retail market and workforce to bring things back to the way they were.

Luckily, options beyond vintage clothing shops are still there for those who appreciate well-made goods. You just have to pay a little bit more and look a little harder to find them.

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I've always considered the adage, "they used to make things better" to be a logical fallacy. When you look back at the last century in music, movies, books, cars, clothing, etc., yeah, it's all fantastic. But the products of the past that we're aware of today are only the ones good enough to last the test of time.

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"Second-hand or thrift items will make up one-third of our wardrobes in 2027"

(Newbold, 2019)

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

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"There is increasing response to consumer demand for newer business models which tackle overconsumption, such as rental and resale"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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"Bags are the most popular pre-owned item to buy online, followed by jewellery and shoes

Searches are trend-led"

(Newbold, 2019)

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

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"Directly competing with retail shopping, as 72% of secondhand shoppers already shifted spend away from traditional retailers"

(Pallien, 2019)

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"Resale market is growing at a rate 21 times faster than traditional retail (increasing every year)

The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles"

(Winmarkfranchises.com, 2020)

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

From overtaking fast fashion to capturing the wallet share of an increasingly economical and environmentally conscious consumer, the future of the growing resale industry is strong and sustainable in more ways than one.

Here are some key demographic and marketplace trends that will continue to drive the future success of the resale industry:
1. Sustainability Sparks Demand
The impressive growth experienced by the resale industry can be largely attributed to changing consumer demographics. Specifically, millennials and Generation Z comprise the majority of the buyer cohort today, and their purchase decisions and preferences are fairly distinct from their generational predecessors.

These consumers are more environmentally conscious than previous generations, and the vast majority cite sustainability as a top shopping priority. Although they're also very budget-conscious, three out of four millennials and Gen Z members say they'd be willing to pay extra for sustainable products.

Unlike traditional retailers, key resale industry players appeal to both sides of fiscally constrained, environmentally conscious consumers. Not only do resale stores offer significant cost savings on a variety of brand-name retail products, but they also help consumers take an active role in saving the environment while saving money. Conversely, the traditional fashion industry is one of the largest polluters in the world, second only to crude oil.

As consumers continue to prioritize cost and environmental impact savings, resale stores will continue to pick up where traditional retail has left off.
2. Recession-Resilient Concepts Dominate the Marketplace
Similarly, resale stores' environmental and affordability appeal also positions the industry to thrive in any economic climate - an increasingly important point moving into the new year, as economists continue to predict a potential recession in 2020.

During the 2008 recession, nearly two-thirds of U.S. resale store respondents reported an increase in sales, by an average 31 percent, according to data from the National Association of Resale & Thrift Shops (NARTS).

When times are tough, consumers increasingly turn toward resale stores, looking for easy ways to spend and earn money more efficiently. The resale segment's unique business model, value proposition and essential inventory make it the ideal solution for cost-conscious consumers in any economy.
3. Changing Digital Landscape Opens a Window of Opportunity
The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles.

For example, the resale ecommerce (or re-commerce) hybrid answers a strong demand for a bricks-and-clicks business model. Consumers are more inclined toward omnichannel brand experiences, creating a growing need for businesses to carve out a presence and be wherever their customers are.

Younger consumers also expect to have the power and autonomy to choose how they interact with brands, both online and in person. This represents a key opportunity for resale industry growth and innovation, as resale businesses complement existing brick-and-mortar stores with a broader digital reach.

To learn more about the future of the resale industry, download our eBook.

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3 Trends Driving the Future of the Resale Industry

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

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"ThredUP, The RealReal, Poshmark, Rebagg, Depop, Tradesy, Grailed, and Vestiaire Collective are among the most well-trafficked resale websites

According to ThredUP, 13% of the most active resale shoppers are millionaires"

(Stone, 2018)

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff.

Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years. Not only that, but as the fashion world moves toward a more sustainable model and Millennials' spending preferences force brands to be more accountable, thrifting is making the transition from being something a few outliers did to save money to being positioned as, wait for it... the next big fashion trend.

Yeah. There are some interesting things going on here. So, strap in.

The Verticals We're Covering

In general, reports about the resale industry will exclude pawn shops because they make their money on loan interest paid) and stores that sell used vehicles, boats, trailers, and mobile homes. Some reports exclude online resalers from their data. But for THIS two-part series, I want to focus specifically on the online and offline fashion resale industry (including accessories).

Still, it's worth noting that the resale of furniture and books are top performers as well. In fact, used furniture is one of the fastest-growing segments in the resale industry.

Let's start with some big takeaways.

Recommerce as an industry is expected to double in size over the next 5 years.

Frugal, value-conscious Millennials are actively erasing the stigma formerly associated with resale.

Resale enables consumers to upgrade the quality of their wardrobe for the same amount of money they would pay for fast fashion and off-priced / closeout apparel.

The circular fashion movement and the uptick in resale are fueled, at least in part, by the desire for more sustainability and consumer mindfulness .

Market Size/ Growth

Let's start with the big one - does this category make money? The answer is a resounding, "Uhhhh... Yeah."

According to First Research , there are around 20,000 used merchandise stores generating $17.5 billion in annual sales in communities across the U.S.

Here's where things get exciting - ThredUP reports the online and offline resale industry is worth $20 billion, and expected to double in size to $41 billion by 2022, fueled in large part by the younger shoppers who have taken up the habit of thrifting. Resale apparel represents 49 percent of that number.

Source: ThredUP 2018 Fashion Resale Report

And there are now more physical thrift shops than ever before. According to Ibis World, the geographical spread of thrift stores mirrors the spread of the population. So, for the 25.7 percent of the population living in the Southeast region of the U.S., they are living in a region that accounts for 27.8 percent of resale industry establishments

There are also more thrifters than ever before. Post-Great Recession, resale revenue increased more than (from 2008 to 2016). Coincident with that increase, department store sales declined by about 25 percent.

Whether the economy is up or down, resale store sales are consistently increasing, and the growing popularity of online resale marketplaces such as ThredUP, Poshmark, The RealReal, and Depop is enabling resale to grow more than 20 times faster than retail. 20 times!

Source: ThredUP's 2018 Fashion Resale Report 2018
Younger thrifters are redirecting their apparel spending from off-price stores like TJ Maxx and Burlington to thrift stores. ThredUP's 2016 Fashion Resale Report said 87 percent of thrifters had redirected a portion of their spending from off-price retailers the ones I mentioned to online and offline resale shops.

According to America's Research Group, 16 - 18 percent of Americans will shop at a thrift store during a given year. To put this in perspective, 12 - 15 percent will shop at consignment resale shops, 11.4 percent will shop in a factory outlet mall, 19.6 percent will hit the regular apparel stores, and 21.3 percent will shop at a major department store.

Don't expect to see any signs of slowing down, either. In the five-year period from 2017 to 2022, retail apparel is expected to experience annual growth of two percent, growing from $360 billion to $400 billion. On the flip side, the resale apparel is expected to grow from $20 billion to $41 billion, at a rate of 15 percent annually.

According to ThredUP, one in three women shopped secondhand last year. ThredUP also points out that 70 percent of its first-time customers are also first-time resale shoppers, which means the resale sector is consistently producing new customers, online and offline.

In 2012, of the items in a thrifter's closet were secondhand. By 2017, nearly 25 percent of the items in a thrifter's closet were secondhand. By 2022, that number could reach as high as 40 percent.

The Resale Game is Changing

Back in high school, I shopped resale stores in the Detroit area a couple times a month. My mom was a thrifter - books. That was her thing. She didn't wear jewelry. She shopped at Sears for her old school mom wardrobe. She bought all our furniture new with warranties, fancy protection plans and a literal briefcase packed with polishes, sprays and other potions to keep everything looking and smelling new. The only thing she ever bought from thrift stores was books. And lots of them.

I, on the other hand, had a thing for men's sportcoats and ties. Oh, and turquoise jewelry. I wouldn't dare buy my shoes resale back then with my grandpa's dark tales of athlete's foot so fresh in my mind. But I had more men's bell bottom jeans and sport coats than any urban girl could want (or not want... my friends thought I was peculiar). And vinyl records. I supplemented my record collection with used vinyl. Heck, in college during a trip to France to study architecture and art, I skipped Euro Disney to make a solo trek to the Louvre and make my return visit to a funky used record shop I spotted on a long walk on a cold, rainy day through the Marais District.

But that was then... when resale shops were limited to Salvation Army stores and dingy, church-run storefronts that were never that great about being open and operational during posted business hours.

Today, resale shops are looking more and more like the typical business - open daily during post business hours, extended holiday hours, sales and closeouts, plus special discounts for card holders, veterans and seniors...

My friend, the resale game is changing. So, let's talk about how we got here

On the heels of the Great Recession, low per capita disposable income sent discretionary spending to a grinding halt. Consumers who had become accustomed to shopping in department stores started looking for other ways to get the quality they wanted at a price that wouldn't break the budget, and shopping resale fit the bill.

When the recession first hit ten years ago, the youngest Millennials were in junior high school, likely watching their parents scramble to find a plan b that would help them recover financially. Their parents may have been among the one in ten Americans who were suddenly unemployed. There were fewer jobs then.

If they were older Millennials, those in their late 20s when the Great Recession hit, they may have lived in or around a neighborhood in which of their neighbors had homes that were suddenly worth less than what they owed on the house. Millennials learned a valuable lesson then, as did we all - it benefits us to be smart about our spending, and shopping for quality is usually the wiser choice.

Sustainability is big on the list of things Millennials are looking for from the products they buy and the brands they support, and sustainability has become a HUGE deal in the fashion world.

The circular economy - and specifically circular fashion - is a movement that is growing in popularity and practice. Based on the framework of the Ellen MacArthur Foundation, Dr. Anna Brismar defines circular fashion as:

Clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulate responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use.

The Make Fashion Circular Initiative, spearheaded by Burberry, Gap Inc, H&M, Nike, Stella McCartney and HSBC, is a call-to-arms of sorts for the fashion industry to design with sustainability in mind. The fashion industry ranks in the top five of the most polluting industries today. Inexpensive, trendy clothing makes it easy for people to throw out clothing items when they're done wearing them. Often clothes are tossed long before they wear out.

According to ThredUP, 70 percent of the average woman's wardrobe goes unworn, and the average clothing item gets five wears before it's discarded. In the United States, we ditch the equivalent of 80 pounds of clothing every year per woman, man and child. Only about 20 percent of used clothing gets sold secondhand.

Since the news came out in July of this year, Burberry has been working nonstop to make sure the public knows the company has since stopped the practice of burning merchandise and will, in partnership with Make Fashion Circular Initiative, work toward increasing efforts to reuse, recycle, donate and repair unsold merchandise.

A Short History Lesson on the Second Hand Industry By the middle of the 20th Century, Clothing manufacturers were producing clothes faster, pushing out new lines more frequently and driving down the price of clothing. The result - clothing became disposable. Whereas earlier generations would repurpose worn-out clothing for their kids or use it to make pillows or stuff furniture, mass-produced clothing items were cheap enough to be thrown away. Perfect timing, too. America's middle class was rapidly growing. No longer was it the haves and the have-nots, it was the more-than-enoughs, just-enoughs, and the not-enoughs. This created an opportunity for what author and historian Secondhand items were passed down between family members, community members and even from an employer to domestic employee. Churches started food pantries and "community closets" to provide for those in need, which is how the second hand industry originally earned a reputation for being for poor people. calls an alternative economy. clothing was being mass-produced and sold in department stores. President Roosevelt standardized women's clothing measurements to sort of help things along, and clothes - though mass produced - were made with inexpensive fabrics and put together with wide seams, making it possible for people to alter their own clothes at home if they fit a little too snugly or loosely.

Thrifting hasn't gone mainstream. It's been pushed into the spotlight. So, if thrifting isn't just for lower income people anymore, who is it for? Let's get into the nitty gritty of the demographics

Boomers were the first generation to truly take advantage of being middle class. So, buying or accepting hand-me-downs were often seen as a sign of financial hardship. For Boomers as a whole, about one in four shop resale.

Gen Xers were a rebellious lot, in part because many of them grew up middle class latchkey kids. They came of age at a time when jobs started going overseas. Enter Grunge, vintage fashions, Goth and a few other trends that dove head-first into hand-me-down culture.

Think Austin Powers, Beck, the popularity of college radio and everything that ever came out of Seattle during the 1990s. Today, Gen Xers and Boomers are neck and neck with their resale purchases. According to ThredUP, 25 percent of Gen Xers are resale shoppers.

Millennials watched the world come to an end, like three times. The first was during the market crash in 2000. The second was during the September 11th attacks in 2001. The third, was the second market crash in 2008. Community-minded Millennials have more access to opportunities than the previous two generations. The catch is they have fewer opportunities.

So, they place value on budgeting their resources. Millennials introduced the world to the sharing economy. Whereas Boomers and Gen Xers see owning a car or a home as a signal of successful adulting, Millennials aren't as beholden to the idea that those two possessions in particular are symbols of success.

They pinch pennies on the less important things to spend with a little more freedom on what they value most. For many Millennials, experiences (which translate very well on social media) trump physical possessions. Sixty-five percent of resale shoppers say they spend their secondhand savings on experiences with their friends and families.

That said, it makes sense that Millennials are the most likely generation to shop resale, with 30 percent of Millennials in search of that sweet spot where quality intersects price.

Gen Zers had the good fortune of growing up with protective, disenfranchised Gen X parents, and watching what the economy did to Millennial siblings. They're a practical bunch with a well-honed ability to see through bullsh*t. They aren't so much disloyal to brands as they are unimpressed by brands. And they, too, value quality, wherever they can find it.

According to CNBC, of 14 to 19 year-olds have used online resale platforms for clothes and furniture. It's pretty much an even spread between resalers and specialty retailers.

Surprise! Millionaires are on the list. According to ThredUP, 13 percent of the most active resale shoppers (defined by ThredUP as those who spent $10K or more on used items in the last two years) are millionaires. That makes sense, right? Millionaires - especially self-made millionaires - find ways to reduce their consumption costs while increasing their revenue

Across demographics, shopping resale is growing. Thrifting gives shoppers the chance to stay on top of trends and more frequently update their wardrobes for a fraction of the cost it would normally take to do so.

Plato's Closet has been around forever, it seems. What you may not know is it is one of five resale franchises licensed by Winmark, the largest player in the thrift, resale and consignment market.

According to its website, Winmark generated $1 billion in revenue and recycled 140 million items in 2017 in 1200 stores across the country. In addition to Plato's Closet, popular franchises also include Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round.

In the nonprofit area, Goodwill and Salvation Army are the biggest retailers of used items in the United States. Both organizations have systems in place for sorting, testing and selling donated items in physical retail locations.

In Europe, Oxfam is a network of 20 independent charitable organizations with stores in Belgium, France, Great Britain, Ireland, Spain and Germany, as well as stores in Australia and New Zealand.

In the burgeoning online space, ThredUP, The RealReal, Poshmark, Rebagg, Depop, Tradesy, Grailed, and Vestiaire Collective are among the most well-trafficked resale websites. I'm intentionally leaving out vast global marketplaces like eBay and Amazon to focus instead of these newer, more niched-down platforms.

The Big Wrap-Up: Thrifting Isn't Just for Lower Income People and Grandmas Anymore.

Recommerce is fast-becoming a major sector in retail apparel and set to double in size over the next three years. In fact, it's one of the smartest, easiest and trendiest ways to upgrade your wardrobe without having to increase your income.

As the fashion industry moves more toward becoming circular, buying second hand and finding creative ways to lengthen the life cycle of every piece of clothing will become the norm, which means there will be more and more [not the mention greater and greater] opportunities for legacy brands to partner with resalers... and potentially fulfill the prediction that resale is the new fast fashion.

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The Rise of Recommerce and Online Resale Sites - The Shelf

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff. Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years.

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Ownership

"Panelists noted that the shift toward clothing rental and resale mirrors what’s been happening across industries: less outright purchasing and ownership, more limited-time experiences

Sharing-economy businesses such as Spotify, Netflix, Uber and Airbnb

Consumers are evolving and moving towards access models"

(Wharton, 2020)

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It used to be that you bought clothes, hung them in your closet and wore them a number of times (or didn't). Eventually they either got donated to a charity or thrown in the trash. But things are changing quickly, as fashion re-commerce - renting, reselling, thrifting - becomes a bigger part of the retail industry.

Rental is going strong, with Rent the Runway, the pioneer in this area, now 10 years old and profitable. The global online clothing rental market is expected to grow annually by over 10% for the next four years, according to MarketWatch. And the fashion resale market has been expanding a breathtaking 21 times faster than traditional retail over the past three years, Fortune reports. Millennials and Gen Zers, in particular, enjoy frequenting thrift and consignment stores, shredding the last remnants of social embarrassment about such places and remaking their image into trendy shopping destinations.

Re-commerce loomed large at the Baker Retailing Center CEO Summit, "Powering the Future of Retail in a Changing Environment." Major industry lights offered their take on the phenomenon, also discussing where it leaves traditional retailers.
Secondhand, but It's New to You
One notable resale business is thredUP, which bills itself as "the largest online consignment and thrift store." Founded in 2009 as a men's shirt-swapping company, thredUP is today a consumer resale marketplace touting representation of over 35,000 brands. Its CEO and co-founder, James Reinhart, delivered one of the conference keynotes.

Reinhart asserted that the total secondhand apparel market will double in five years, reaching $51 billion. One reason for this meteoric increase is a growing concern among the public - especially among younger people - about fashion's negative environmental impact. Right now, said Reinhart, the industry is a major polluter. "We're buying twice as much clothes and wearing them half as long," he noted, adding that the equivalent of one garbage truck of textiles is dumped in a landfill or incinerated every second.

Reinhart highlighted some factors in thredUP's success. The service is easy to use, he said. The company provides customers with prepaid bags to fill, picks the bags up from their doorstep, and then compensates them for items determined to be resalable. People can shop for used clothing on thredUP's website, the design of which Reinhart identified as another contributor to the business's popularity. He said it features high-quality attractive photos, clear information and sophisticated functionality so it resembles retail platforms rather than platforms selling items people are getting rid of.

"We're buying twice as much clothes and wearing them half as long." -James Reinhart

Moreover, thredUP's website displays new items every time a user hits refresh. Reinhart compared the appeal of this to today's habit of checking email or social media frequently (almost obsessively, for some of us) to see the latest messages and posts.

Should retailers feel threatened by the growth of secondhand? Reinhart noted that, in fact, thredUP has been forming partnerships with large retailers such as Macy's and J.C. Penney, and it is now operating over 100 store-in-store collaborations. According to Reinhart, having a resale option in traditional retail settings has been shown to boost overall sales: It spurs customers to spend 21% more and to visit 70% more frequently. He attributed the big increase in visit percentage to the fact that the secondhand collection is replenished every other week, whereas in traditional retail formats, new pieces arrive only about four to six times a year.

ThredUP has been attracting brands onto its platform as well, such as Reformation and Madewell. "Bringing brands and retailers along with consumers into this equation is how we're powering this next generation of resale," he said.

Reinhart cited a statistic that nearly nine in 10 retail executives say they want to get into the resale game by 2020. Discussions among traditional retailers at the conference tended to echo this sentiment. One C-level executive of a high-end luxury department store, when questioned, said he wouldn't rule out the possibility of incorporating rental or resale items as long as the fashion and quality were still there. If his customers wanted it, he said, the store would embrace it.
The Fashion Rental Business Is Looking Sharp
The same year thredUP was founded - 2009 - Jennifer Hyman and Jennifer Fleiss co-founded Rent the Runway, an online service that rents out designer clothes and accessories. Its launch was a major leap toward bringing the sharing economy into the fashion business. Today, the company's subscription base has crossed 11 million members.

In Hyman's fireside chat, she described what originally inspired the company's unique business model. It was actually a customer group long considered "department stores' worst customers": those who would buy an expensive outfit to wear to an event, keep the tags on it and return it. Hyman said it was a difficult behavior for retailers to stop, especially because this group included shoppers who often spent plenty of money elsewhere in the store. But she glimpsed in the behavior a new opportunity for supplying women with formal wear.

"We are really trying to build a living closet, a discovery platform that enables people to express themselves differently every day." -Jennifer Hyman

Designer brands have been very amenable to working with Rent the Runway, according to Hyman. "We've been very proud that ... we've had zero brands stop working with us," she said. She explained that a woman who goes out wearing a Rent the Runway piece spreads awareness and adoption of many designer names because customers enjoy sharing that they're renting these remarkable clothing items. Hyman noted that more than 90% of her customers come to the site via word of mouth, a percentage that has been accelerating year over year.

Hyman mentioned that Rent the Runway has expanded its business to include a subscription model in addition to short-term rental. The initiative was introduced in 2016, which was also the year the company announced profitability, according to Fast Company. Hyman explained that the decision was based on customer feedback: Many women wanted to rent not just for weddings or parties but to dress well at work five days a week.

"We are really trying to build a living closet, a discovery platform that enables people to express themselves differently every day," she said.
How Mainstream Will Rental and Resale Get?
Rent the Runway's success has inspired other entrepreneurs to get into apparel rental, and the industry is becoming a market worth billions, according to Baker Retailing Center experts. Analyzing this phenomenon was a panel of innovative industry players.

Panelists noted that the shift toward clothing rental and resale mirrors what's been happening across industries: less outright purchasing and ownership, more limited-time experiences. Sharing-economy businesses such as Spotify, Netflix, Uber and Airbnb come to mind. "Consumers are evolving and moving towards access models. We've seen this of course in music, entertainment, transportation and hospitality," said John Donoghue, a senior vice president for corporate development at CaaStle, a logistics platform for retail brands offering subscription rental.

"Consumers are evolving and moving towards access models. We've seen this of course in music, entertainment, transportation and hospitality." -John Donoghue

Another factor pushing consumers toward re-commerce is their increasing concern about reducing pollution, which thredUP's Reinhart had also cited. Jeffery Fowler, president for the Americas at the online luxury fashion retail platform Farfetch, sees a substantial upside opportunity in re-commerce. He referred to it as enabling companies to "do good and do good business." Fowler asserted that when shoppers know their clothes can have a second life instead of going directly into a landfill, they'll feel more comfortable buying and enjoying the attractive, fashionable items they want.

The industry's waste challenges were also discussed by other conference speakers. One pointed out that even though people have long donated used clothing to charities, some of it ends up being destroyed because of the sheer volume of donations. Consumers' growing awareness of this situation is pushing them toward fashion re-commerce options.

An executive of a top European luxury brand observed that today's customers demand environmental responsibility from the brands they shop. He said his firm has long been committed to sustainability, even to the extent that the CEO's annual salary is linked to achieving specific environmental measures.

The panel's moderator brought up the question of rental and secondhand when it comes to buying gifts. "Can I buy my wife a used handbag? Is that OK these days?" he asked.

The panelists agreed that re-commerce items have so far been considered a purchase for oneself rather than a gift. But they speculated about whether giving a rental subscription, for example, instead of new clothing, would increasingly become socially acceptable. If it does, that would be a milestone for consumer adoption toward re-commerce going mainstream.

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The Rise of Re-commerce: Why Everything Old Is New Again - Knowledge@Wharton

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It used to be that you bought clothes, hung them in your closet and wore them a number of times (or didn't). Eventually they either got donated to a charity or thrown in the trash. But things are changing quickly, as fashion re-commerce - renting, reselling, thrifting - becomes a bigger part of the retail industry.

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Ownership

"The perception of purchasing second-hand clothing and ownership has completely changed

People often purchase with the intention to resell

People now own the piece for a significantly reduced period"

(Newbold, 2019)

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

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Ownership

"The Closet of the Future

In fashion, the shift to new ownership models is driven by growing customer desire for variety, sustainability, and affordability

In 2019, we predict more consumers will see growing proportion of their wardrobes made up of pre-owned or rented products"

(Reinhart, 2019)

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Ownership

"Consumers are buying more clothing but discarding it more quickly than they used to

Retailers Adapt As Consumers No Longer Buy With the Intent to Keep

Today’s Consumer Shops With Intent to Resell

40% of consumers now consider the resale value of an item before buying it

That's nearly a 2X increase from 5 years ago"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Reduced Cost

"66% of consumers use resale channels to buy brands that they couldn’t pay full price

However it is not popular only because people could not afford retail prices like in the past"

(Newbold, 2019)

# data[].attributes.attachment_link.readable_text
Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

# data[].attributes.attachment_link.description
Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

# data[].attributes.body
Reduced Cost

"Millennials’ spending preferences force brands to be more accountable

Thrifting is making the transition from being something a few outliers did to save money to being positioned as, the next big fashion trend

Frugal, value-conscious Millennials are actively erasing the stigma formerly associated with resale

Resale enables consumers to upgrade the quality of their wardrobe for the same amount of money they would pay for fast fashion and off-priced/closeout apparel

The Great Recession: low per capita disposable income sent discretionary spending to a grinding halt

Consumers started looking for other ways to get the quality they wanted at a price that wouldn’t break the budget"

(Stone, 2018)

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff.

Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years. Not only that, but as the fashion world moves toward a more sustainable model and Millennials' spending preferences force brands to be more accountable, thrifting is making the transition from being something a few outliers did to save money to being positioned as, wait for it... the next big fashion trend.

Yeah. There are some interesting things going on here. So, strap in.

The Verticals We're Covering

In general, reports about the resale industry will exclude pawn shops because they make their money on loan interest paid) and stores that sell used vehicles, boats, trailers, and mobile homes. Some reports exclude online resalers from their data. But for THIS two-part series, I want to focus specifically on the online and offline fashion resale industry (including accessories).

Still, it's worth noting that the resale of furniture and books are top performers as well. In fact, used furniture is one of the fastest-growing segments in the resale industry.

Let's start with some big takeaways.

Recommerce as an industry is expected to double in size over the next 5 years.

Frugal, value-conscious Millennials are actively erasing the stigma formerly associated with resale.

Resale enables consumers to upgrade the quality of their wardrobe for the same amount of money they would pay for fast fashion and off-priced / closeout apparel.

The circular fashion movement and the uptick in resale are fueled, at least in part, by the desire for more sustainability and consumer mindfulness .

Market Size/ Growth

Let's start with the big one - does this category make money? The answer is a resounding, "Uhhhh... Yeah."

According to First Research , there are around 20,000 used merchandise stores generating $17.5 billion in annual sales in communities across the U.S.

Here's where things get exciting - ThredUP reports the online and offline resale industry is worth $20 billion, and expected to double in size to $41 billion by 2022, fueled in large part by the younger shoppers who have taken up the habit of thrifting. Resale apparel represents 49 percent of that number.

Source: ThredUP 2018 Fashion Resale Report

And there are now more physical thrift shops than ever before. According to Ibis World, the geographical spread of thrift stores mirrors the spread of the population. So, for the 25.7 percent of the population living in the Southeast region of the U.S., they are living in a region that accounts for 27.8 percent of resale industry establishments

There are also more thrifters than ever before. Post-Great Recession, resale revenue increased more than (from 2008 to 2016). Coincident with that increase, department store sales declined by about 25 percent.

Whether the economy is up or down, resale store sales are consistently increasing, and the growing popularity of online resale marketplaces such as ThredUP, Poshmark, The RealReal, and Depop is enabling resale to grow more than 20 times faster than retail. 20 times!

Source: ThredUP's 2018 Fashion Resale Report 2018
Younger thrifters are redirecting their apparel spending from off-price stores like TJ Maxx and Burlington to thrift stores. ThredUP's 2016 Fashion Resale Report said 87 percent of thrifters had redirected a portion of their spending from off-price retailers the ones I mentioned to online and offline resale shops.

According to America's Research Group, 16 - 18 percent of Americans will shop at a thrift store during a given year. To put this in perspective, 12 - 15 percent will shop at consignment resale shops, 11.4 percent will shop in a factory outlet mall, 19.6 percent will hit the regular apparel stores, and 21.3 percent will shop at a major department store.

Don't expect to see any signs of slowing down, either. In the five-year period from 2017 to 2022, retail apparel is expected to experience annual growth of two percent, growing from $360 billion to $400 billion. On the flip side, the resale apparel is expected to grow from $20 billion to $41 billion, at a rate of 15 percent annually.

According to ThredUP, one in three women shopped secondhand last year. ThredUP also points out that 70 percent of its first-time customers are also first-time resale shoppers, which means the resale sector is consistently producing new customers, online and offline.

In 2012, of the items in a thrifter's closet were secondhand. By 2017, nearly 25 percent of the items in a thrifter's closet were secondhand. By 2022, that number could reach as high as 40 percent.

The Resale Game is Changing

Back in high school, I shopped resale stores in the Detroit area a couple times a month. My mom was a thrifter - books. That was her thing. She didn't wear jewelry. She shopped at Sears for her old school mom wardrobe. She bought all our furniture new with warranties, fancy protection plans and a literal briefcase packed with polishes, sprays and other potions to keep everything looking and smelling new. The only thing she ever bought from thrift stores was books. And lots of them.

I, on the other hand, had a thing for men's sportcoats and ties. Oh, and turquoise jewelry. I wouldn't dare buy my shoes resale back then with my grandpa's dark tales of athlete's foot so fresh in my mind. But I had more men's bell bottom jeans and sport coats than any urban girl could want (or not want... my friends thought I was peculiar). And vinyl records. I supplemented my record collection with used vinyl. Heck, in college during a trip to France to study architecture and art, I skipped Euro Disney to make a solo trek to the Louvre and make my return visit to a funky used record shop I spotted on a long walk on a cold, rainy day through the Marais District.

But that was then... when resale shops were limited to Salvation Army stores and dingy, church-run storefronts that were never that great about being open and operational during posted business hours.

Today, resale shops are looking more and more like the typical business - open daily during post business hours, extended holiday hours, sales and closeouts, plus special discounts for card holders, veterans and seniors...

My friend, the resale game is changing. So, let's talk about how we got here

On the heels of the Great Recession, low per capita disposable income sent discretionary spending to a grinding halt. Consumers who had become accustomed to shopping in department stores started looking for other ways to get the quality they wanted at a price that wouldn't break the budget, and shopping resale fit the bill.

When the recession first hit ten years ago, the youngest Millennials were in junior high school, likely watching their parents scramble to find a plan b that would help them recover financially. Their parents may have been among the one in ten Americans who were suddenly unemployed. There were fewer jobs then.

If they were older Millennials, those in their late 20s when the Great Recession hit, they may have lived in or around a neighborhood in which of their neighbors had homes that were suddenly worth less than what they owed on the house. Millennials learned a valuable lesson then, as did we all - it benefits us to be smart about our spending, and shopping for quality is usually the wiser choice.

Sustainability is big on the list of things Millennials are looking for from the products they buy and the brands they support, and sustainability has become a HUGE deal in the fashion world.

The circular economy - and specifically circular fashion - is a movement that is growing in popularity and practice. Based on the framework of the Ellen MacArthur Foundation, Dr. Anna Brismar defines circular fashion as:

Clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulate responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use.

The Make Fashion Circular Initiative, spearheaded by Burberry, Gap Inc, H&M, Nike, Stella McCartney and HSBC, is a call-to-arms of sorts for the fashion industry to design with sustainability in mind. The fashion industry ranks in the top five of the most polluting industries today. Inexpensive, trendy clothing makes it easy for people to throw out clothing items when they're done wearing them. Often clothes are tossed long before they wear out.

According to ThredUP, 70 percent of the average woman's wardrobe goes unworn, and the average clothing item gets five wears before it's discarded. In the United States, we ditch the equivalent of 80 pounds of clothing every year per woman, man and child. Only about 20 percent of used clothing gets sold secondhand.

Since the news came out in July of this year, Burberry has been working nonstop to make sure the public knows the company has since stopped the practice of burning merchandise and will, in partnership with Make Fashion Circular Initiative, work toward increasing efforts to reuse, recycle, donate and repair unsold merchandise.

A Short History Lesson on the Second Hand Industry By the middle of the 20th Century, Clothing manufacturers were producing clothes faster, pushing out new lines more frequently and driving down the price of clothing. The result - clothing became disposable. Whereas earlier generations would repurpose worn-out clothing for their kids or use it to make pillows or stuff furniture, mass-produced clothing items were cheap enough to be thrown away. Perfect timing, too. America's middle class was rapidly growing. No longer was it the haves and the have-nots, it was the more-than-enoughs, just-enoughs, and the not-enoughs. This created an opportunity for what author and historian Secondhand items were passed down between family members, community members and even from an employer to domestic employee. Churches started food pantries and "community closets" to provide for those in need, which is how the second hand industry originally earned a reputation for being for poor people. calls an alternative economy. clothing was being mass-produced and sold in department stores. President Roosevelt standardized women's clothing measurements to sort of help things along, and clothes - though mass produced - were made with inexpensive fabrics and put together with wide seams, making it possible for people to alter their own clothes at home if they fit a little too snugly or loosely.

Thrifting hasn't gone mainstream. It's been pushed into the spotlight. So, if thrifting isn't just for lower income people anymore, who is it for? Let's get into the nitty gritty of the demographics

Boomers were the first generation to truly take advantage of being middle class. So, buying or accepting hand-me-downs were often seen as a sign of financial hardship. For Boomers as a whole, about one in four shop resale.

Gen Xers were a rebellious lot, in part because many of them grew up middle class latchkey kids. They came of age at a time when jobs started going overseas. Enter Grunge, vintage fashions, Goth and a few other trends that dove head-first into hand-me-down culture.

Think Austin Powers, Beck, the popularity of college radio and everything that ever came out of Seattle during the 1990s. Today, Gen Xers and Boomers are neck and neck with their resale purchases. According to ThredUP, 25 percent of Gen Xers are resale shoppers.

Millennials watched the world come to an end, like three times. The first was during the market crash in 2000. The second was during the September 11th attacks in 2001. The third, was the second market crash in 2008. Community-minded Millennials have more access to opportunities than the previous two generations. The catch is they have fewer opportunities.

So, they place value on budgeting their resources. Millennials introduced the world to the sharing economy. Whereas Boomers and Gen Xers see owning a car or a home as a signal of successful adulting, Millennials aren't as beholden to the idea that those two possessions in particular are symbols of success.

They pinch pennies on the less important things to spend with a little more freedom on what they value most. For many Millennials, experiences (which translate very well on social media) trump physical possessions. Sixty-five percent of resale shoppers say they spend their secondhand savings on experiences with their friends and families.

That said, it makes sense that Millennials are the most likely generation to shop resale, with 30 percent of Millennials in search of that sweet spot where quality intersects price.

Gen Zers had the good fortune of growing up with protective, disenfranchised Gen X parents, and watching what the economy did to Millennial siblings. They're a practical bunch with a well-honed ability to see through bullsh*t. They aren't so much disloyal to brands as they are unimpressed by brands. And they, too, value quality, wherever they can find it.

According to CNBC, of 14 to 19 year-olds have used online resale platforms for clothes and furniture. It's pretty much an even spread between resalers and specialty retailers.

Surprise! Millionaires are on the list. According to ThredUP, 13 percent of the most active resale shoppers (defined by ThredUP as those who spent $10K or more on used items in the last two years) are millionaires. That makes sense, right? Millionaires - especially self-made millionaires - find ways to reduce their consumption costs while increasing their revenue

Across demographics, shopping resale is growing. Thrifting gives shoppers the chance to stay on top of trends and more frequently update their wardrobes for a fraction of the cost it would normally take to do so.

Plato's Closet has been around forever, it seems. What you may not know is it is one of five resale franchises licensed by Winmark, the largest player in the thrift, resale and consignment market.

According to its website, Winmark generated $1 billion in revenue and recycled 140 million items in 2017 in 1200 stores across the country. In addition to Plato's Closet, popular franchises also include Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round.

In the nonprofit area, Goodwill and Salvation Army are the biggest retailers of used items in the United States. Both organizations have systems in place for sorting, testing and selling donated items in physical retail locations.

In Europe, Oxfam is a network of 20 independent charitable organizations with stores in Belgium, France, Great Britain, Ireland, Spain and Germany, as well as stores in Australia and New Zealand.

In the burgeoning online space, ThredUP, The RealReal, Poshmark, Rebagg, Depop, Tradesy, Grailed, and Vestiaire Collective are among the most well-trafficked resale websites. I'm intentionally leaving out vast global marketplaces like eBay and Amazon to focus instead of these newer, more niched-down platforms.

The Big Wrap-Up: Thrifting Isn't Just for Lower Income People and Grandmas Anymore.

Recommerce is fast-becoming a major sector in retail apparel and set to double in size over the next three years. In fact, it's one of the smartest, easiest and trendiest ways to upgrade your wardrobe without having to increase your income.

As the fashion industry moves more toward becoming circular, buying second hand and finding creative ways to lengthen the life cycle of every piece of clothing will become the norm, which means there will be more and more [not the mention greater and greater] opportunities for legacy brands to partner with resalers... and potentially fulfill the prediction that resale is the new fast fashion.

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The Rise of Recommerce and Online Resale Sites - The Shelf

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff. Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years.

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Reduced Cost

"Offer significant cost saving and allow consumers to play an active role in saving the environment

When times are tough, consumers turn toward resale, looking for easy ways to spend and earn money more efficiently - value proposition"

(Winmarkfranchises.com, 2020)

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

From overtaking fast fashion to capturing the wallet share of an increasingly economical and environmentally conscious consumer, the future of the growing resale industry is strong and sustainable in more ways than one.

Here are some key demographic and marketplace trends that will continue to drive the future success of the resale industry:
1. Sustainability Sparks Demand
The impressive growth experienced by the resale industry can be largely attributed to changing consumer demographics. Specifically, millennials and Generation Z comprise the majority of the buyer cohort today, and their purchase decisions and preferences are fairly distinct from their generational predecessors.

These consumers are more environmentally conscious than previous generations, and the vast majority cite sustainability as a top shopping priority. Although they're also very budget-conscious, three out of four millennials and Gen Z members say they'd be willing to pay extra for sustainable products.

Unlike traditional retailers, key resale industry players appeal to both sides of fiscally constrained, environmentally conscious consumers. Not only do resale stores offer significant cost savings on a variety of brand-name retail products, but they also help consumers take an active role in saving the environment while saving money. Conversely, the traditional fashion industry is one of the largest polluters in the world, second only to crude oil.

As consumers continue to prioritize cost and environmental impact savings, resale stores will continue to pick up where traditional retail has left off.
2. Recession-Resilient Concepts Dominate the Marketplace
Similarly, resale stores' environmental and affordability appeal also positions the industry to thrive in any economic climate - an increasingly important point moving into the new year, as economists continue to predict a potential recession in 2020.

During the 2008 recession, nearly two-thirds of U.S. resale store respondents reported an increase in sales, by an average 31 percent, according to data from the National Association of Resale & Thrift Shops (NARTS).

When times are tough, consumers increasingly turn toward resale stores, looking for easy ways to spend and earn money more efficiently. The resale segment's unique business model, value proposition and essential inventory make it the ideal solution for cost-conscious consumers in any economy.
3. Changing Digital Landscape Opens a Window of Opportunity
The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles.

For example, the resale ecommerce (or re-commerce) hybrid answers a strong demand for a bricks-and-clicks business model. Consumers are more inclined toward omnichannel brand experiences, creating a growing need for businesses to carve out a presence and be wherever their customers are.

Younger consumers also expect to have the power and autonomy to choose how they interact with brands, both online and in person. This represents a key opportunity for resale industry growth and innovation, as resale businesses complement existing brick-and-mortar stores with a broader digital reach.

To learn more about the future of the resale industry, download our eBook.

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3 Trends Driving the Future of the Resale Industry

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

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"As the market uniquely meets consumers’ preference for variety, value and sustainability, we expect the high growth to continue”

(Pallien, 2019)

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Individualism

"Growth of the individuality trend for younger consumers – buying something that is not on the market for everyone (rare and unique pieces)"

(Joyner, 2019)

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Individualism

"Rising consumer preferences for unique vintage pieces"

(Fernandez, 2020)

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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Growth of E-commerce

"Growing excitement around the fashion-tech unicorn (privately-held companies valued at more than $1 billion) phenomenon - StockX and Rent the Runway

There has been an additional group of brands valued upwards of half a billion dollars, including resale marketplace ThredUp"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Growth of E-commerce

"Initially the resale market was dominated by a fragmentation of independent boutiques

The rise of social media, e-commerce, mobile apps and personalised digital platforms opened up the market by providing large, organised inventories tapping into a global network of sellers

Now crowded market"

(Frengler, 2019)

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Growth of E-commerce

"Growth of e-commerce sales furthers demand for online resale market

Majority of resale purchases currently carried out online"

(Newbold, 2019)

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

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Growth of E-commerce

"Unlocking an Endless Supply Chain - making it easy to sell from home, attracting millions to participate in resale for the first time

Technology to Shop From Anywhere - Mobile apps and personalisation have made buying used clothes as easy as buying new

Convenience and trust has attracted a new generation of secondhand shoppers"

(Reinhart, 2019)

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Growth of E-commerce

"Online resellers are driving the growth of the pre-owned market well beyond what brick and mortar stores ever did before"

(Beauloye, 2020)

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This article is part of a series on the future of luxury resale. Discover the rest of the series:

Luxury Resale: How Blockchain Helps Fight Counterfeit And Improve Traceability

How Lifelong Value Drives First-Time Luxury Purchase

Top 10 Best Designer Resale Sites To Buy Secondhand Luxury Online

The pre-owned luxury goods market is growing and shows no signs of slowing down. Resale disruptors - especially online luxury consignment sites - are positioning themselves as conscious alternatives to fast fashion, tapping into affluent consumers' changing attitudes towards sustainability, luxury experience and the concept of ownership.

Luxury brands have traditionally shied away from the second-hand market. But they have to rethink this stance.

In this report, we will explore the key drivers behind the flourishing luxury resale sector and weigh how luxury brands might gain some value from this secondary market. From joint initiatives with resellers to in-house resale ventures, you will learn what luxury resale means and how high-end brands can participate in this fast-moving and rapidly growing market.

Secondary market definition: The meaning of luxury resale The secondary market for premium and luxury goods refers to the market where consumers buy and sell pre-owned designer items. Secondary market sellers entrust their goods to a consignment store or try to sell their items directly themselves. Buyers, on the other hand, have the opportunity to acquire designer items at a discount onsecondhand resale websites. Digital is transforming the luxury resale industry by facilitating secondary market connections and accelerating transactions.

The market for secondhand luxury goods isn't new, but it is now in the spotlight as it becomes one of the fastest-growing luxury trends.

The stigma formerly associated with buying pre-owned items is fading.

Even celebrities are openly endorsing pre-owned luxury goods. The Kardashians-Jenners, for example, are making a move into the resale market, with the launch of Kardashian Kloset. The e-commerce site sells items like clothing, shoes and handbags that once belonged to the celebrity family members.

Luxury resale - buying and selling of the pre-owned luxury goods - is a booming business, fueled by digital platforms like The RealReal, Vestiaire Collective, Fashionphile, Chrono24, Watchfinder & Co. and more. The first successful IPO of a secondhand luxury retailer, TheRealReal in June 2019 confirms growing interest in the resale market and a clear indication that the pre-owned market is one worth keeping a close eye on.

Estimated to be worth around $24 billion in 2018, the secondhand luxury market accounts for around 7 percent of the $365 billion personal luxury goods market. But, more interestingly, the secondhand market is growing four times faster than the primary market and is projected to double in value over the next five years. That creates opportunities, as well as challenges for luxury brands.

34%

of True-Luxury consumers -consumers that averaged $44,000 in total luxury spending- sell secondhand products, while 26% buy pre-owned goods (BCG x Altagamma)

Sales of secondhand or vintage, luxury goods - from Burberry to Gucci and Louis Vuitton - are thriving on luxury consignment websites and capturing the coveted young affluent generations.

Although it seems that luxury resale is becoming more widely accepted, most luxury brands are not yet in control of their aftermarket.

80%

of secondhand market participants use online channels to get informed and to trade. (BCG x Altagamma)

Accustomed to exercising strict brand and distribution control, luxury brands have an unsettled relationship with resale businesses. Some luxury brands are dipping toes into the secondhand luxury market to attract the younger affluent customers, boost sales and their sustainability credentials.

But not all are on board.
Fashion house Chanel has filed lawsuits against The RealReal, and vintage consignment company What Goes Around Comes Around for allegedly damaging the reputation and appeal of the brand and selling counterfeit goods.

The four main drivers of luxury resale growth

Four main drivers are supporting the growth of the luxury resale market: digital, affordability, collectability, and changing consumer preferences towards sustainability and experiences.

1. Growing sophistication and consolidation of the luxury resale market: Digital platforms enhance the experience of buying secondhand

The global luxury resale market has historically been fragmented in small local boutiques and person-to-person transactions with limited consumer reach. The market is now moving towards consolidation. The increased professionalisation of the trade channels has won over affluent consumers around the world by offering more transparency and trust.

Online luxury resale platforms are transforming the secondhand market by offering seamless end-to-end experience with far greater certified pre-owned brand and product assortment. Resale websites are also competing to offer extra premium services such as curation, authentication and personalised experiences driven by deep data insights.

By centring on the consumer experience - improving the ease of selling used clothes, streamlining logistics, offering engaging online shopping platforms and ensuring quality - recommerce is more convenient and accessible to consumers than ever.

2. Affordability: Luxury resale gives shoppers the ability to gain access to luxury items at accessible price points

Luxury resale is bringing luxury goods to a wider audience. The secondhand market offers a unique product range at accessible price points for the buyers and an extra income opportunity for the sellers.

If secondhand sellers tend to be existing customers, secondhand buyers are indeed more likely to be customers who are new to the brand and may need to be acquired through paid social or other marketing spend.

3. Collectability: Luxury resale can unearth scarce, sold-out collaborations or unique limited editions

A major advantage of the secondhand market is the chance for affluent shoppers to shop for previous season collections, vintage gems, limited-edition releases, sold-out streetwear exclusives and drops missed the first time.

Luxury goods and their unique collaborations' built-in scarcity mean they hold their resale value and make them highly collectable. Luxury resale sites are tapping into this collector culture.

Millennials and Gen Z are adopting secondhand fashion 2.5 times faster than other age groups. - ThredUp

4. Generational shift: Changing consumer preferences fuel resale market

There are two key motivations behind luxury buyers' shifting purchase behaviour that explain the growth of the high-end pre-owned economy:

Conscious shopping: Seeking sustainability

Modern affluent consumers increasingly shop with a purpose. They are driven by a commitment to sustainability.

64%

of Gen Z and Millennials are influenced by sustainability when making purchases. (BCG x Altagamma)

Experiential luxury: Wanting newness

Young affluent luxury consumers tend to value access to luxury more than owning luxury goods forever. This is what we call the experiential transformation of luxury.

In this new context, secondhand shopping is perceived as a responsible way for new affluent generations of acquiring something temporarily without contributing to the negative impact on the environment of buying fast fashion.
Combined with the need to constantly show new styles on social media, luxury shoppers are turning to pre-owned goods to fulfil their desire for frequent turnover of wardrobes.

How can certified and authentic resale be relevant for luxury brands?

The increased, closer relationship with the luxury resale market could provide luxury brands with four broad opportunities.

1. Fueling sales and marketing

Acquire new customers: Resale can be a gateway to luxury brands for aspirational consumers

The secondhand market acts as a 'recruiting mechanism for luxury brands' by encouraging interest in luxury brands for first-time luxury buyers.

Resale sites can serve as engaging tools for luxury brands to connect with pre-owned luxury buyers who don't have access to the primary luxury market yet and build loyalty with these future luxury primary customers.

Increase the frequency of purchase and loyalty: Secondhand sellers are first-hand buyers

Secondhand sellers are usually first-hand buyers of traditional luxury goods. By selling their secondhand luxury items, they have the ability to reinvest in new, full-price luxury goods, trade up for more expensive items or purchase more frequently.

Most sellers reinvest their resale earnings in purchases of new goods from the brands they love. The more conviction consumers have that these luxury goods are liquid, the more new goods they will buy."
- Charles Gorra, co-founder of Rebag

Read our in-depth article on how lifelong value drives first-time luxury purchase for affluent consumers to see this critical purchase behaviour in action.

2. Supporting sustainability goals

As Millennials and Gen-Z shoppers place greater importance to the social and environmental impact of their purchases, luxury resale appears as a way to boost their sustainability credentials with younger generations and driving the circular luxury economy.

In contrast, behaviours such as stock destruction can backfire in the eyes of the younger generations.

In June 2018, for example, Burberry got social media backlash for incinerating over $37 million worth of unsold goods to control its supply and protect the exclusivity of the brand. Burberry took the hint and started to promote sustainability initiatives as we will highlight later in this report.

By opposition, Apple has embraced the resale market for its premium phones for several years. It encourages consumers to recycle their old phone and buy newer models as soon as they become available.

3. Gathering valuable actionable insights

Access to insightful data is another reason for luxury brands to get in on the resale trend. By collaborating with or managing the luxury resale market, luxury brands can benefit from access to additional data on purchasing patterns and underlying trends that would help in eventually converting secondhand shoppers to the primary market.

Leveraging luxury resale's communities of engaged consumers can also provide luxury brands with valuable feedback on products and brand positioning.

Interestingly, search and buying trends, as well as consumer behaviours and preferences observed on luxury resale platforms can also serve as indicators of what luxury brands are in vogue in the primary market and how much value the items are holding. New or secondhand, Gucci dominates the luxury retail market as the most-searched-for luxury brands, as also reflected in our latest ranking of the best luxury brands online. This resurgence in popularity among young affluent shoppers was seen in real-time by The RealReal.

4. Reinforcing the fight against counterfeiting

Authenticity is at the heart of any successful, sustainable resale venture. As the entire luxury resale reputation (at least for the biggest players) and client bases are built on trust and transparency, the ability of online luxury resellers to properly authenticate luxury goods and guarantee the quality of their inventory is critical.

For luxury goods companies, embracing luxury resale can help take control of their products throughout their lifecycles. In their seemingly never-ending battle against counterfeiters, luxury brands are now turning to technology, including blockchain, for help.

Luxury resale can also support luxury brands in their anti-counterfeiting efforts by offering aspirational consumers more affordable but still genuine options.

How to benefit from resale: different approaches for luxury brands

As the resale market grows, luxury brands are increasingly exploring ways to tap into the emerging trend - from partnering with high-end resale platforms to facilitating consignment selling or altogether building their own resale infrastructure.

The main objectives of these experiments for brands are to get back control of their image and positioning throughout the extended product lifecycle, adopt a more sustainable approach, and earn new revenue streams.

We can categorise brands' resale initiatives across two axes:

The level of integration with the primary market ;

The lead at the helm of the resale initiative (brand in-house venture versus third-party control).

To better illustrate the various levels of luxury resale inclusions by luxury brands, we created four luxury resale archetypes:

The Resale Ruler: Resale is an integrated part of the brand's retail operations. It's characterised by tight control of the entire product lifecycle.

The Resale Explorer: Luxury brands in this category are leveraging third-party expertise and are openly endorsing luxury resale.

The Selective Experimenter: Opportunistic use of the existing resale channels. Resale initiatives are seen as a sustainability-friendly standalone showroom to acquire aspirational consumers and drive sales.

The Hesitant Claimer: Resistant holdouts, luxury brands in this category want to exercise control over their products in the secondary market, but are clearly separating these resale initiatives from their primary market.

We will illustrate below different approaches that luxury brands are currently experimenting with.

1. Partnering with existing resale platforms

Some luxury brands are testing the waters by partnering with online luxury resale sites. Some brands are quietly placing unsold merchandise on resale platforms. Stella McCartney and lately Burberry are some of the few brands to publicly endorse luxury resale.

Promoting resale and driving sales back with a financial incentive: Stella McCartney x TheRealReal

In 2017, Stella McCartney became the first luxury brand to promote the consignment of its products on The RealReal. Anyone consigning Stella McCartney pieces on the resale platform receives a $100 store credit to shop at any of the brand's retail stores or via its website.

Encouraging people to adopt the "make well, buy well, resell" model, the partnership gives Stella McCartney pieces a second life through resale.

Promoting resale and driving sales back with an experiential reward: Burberry x TheRealReal

In October 2019, British fashion house Burberry announced a partnership with luxury marketplace The RealReal in the name of sustainability. Burberry will not supply The RealReal with unsold stock or exclusives, but the pilot programme encourages customers to consign Burberry pieces on the luxury resale site to receive an exclusive "personal styling appointment and British High Tea" in select Burberry stores across the U.S.

Resale demand for the British fashion brand has increased by 64 percent in 2019, with searches for Burberry goods rising fastest among The RealReal's millennial and Gen-Z customers.

A brand as storied as Burberry embracing the circular economy demonstrates the power of resale's impact on both the luxury market and the planet. I hope together we'll be a part of pioneering a future in which circularity is a consideration for every luxury brand."
- Julie Wainwright, CEO of The RealReal

Facilitating luxury consignment/upcycling: Reformation x ThredUp

Some luxury brands are facilitating the resale of their product through partnerships such as Reformation's alliance with ThredUp. On Reformation's website, there are details about how ThredUp works and how much money someone could earn by selling their used clothes and accessories.

Furthermore, to encourage affluent shoppers to clean out their closets and educate them about the positive impact of resale, Reformation is giving customers store credit - whenever customers consign a product from any brand via ThredUp.

Merging brick-and-mortar retail and resale: Selfridges x Vestiaire Collective

In October 2019, 10-year old resale site Vestiaire Collective opened its first permanent boutique dedicated to preloved luxury fashion at Selfridges department store on Oxford Street in London.

Luxury resale site Vestiaire Collective has teamed up with Selfridges to open its first permanent store space in London

The boutique features a curated pre-owned inventory including rare vintage pieces. The brick-and-mortar store also features a dedicated resale point where customers can deposit their own pre-owned luxury goods they want to sell through the Concierge Service and Vestiaire Collective App in real-time. Affluent shoppers can also buy from an online Vestiaire edit on Selfridges' website.

This partnership between Vestiaire Collective and high-end legacy department store Selfridges demonstrates how much the resale market is infiltrating traditional luxury retail and bears testament to the growing interest in luxury secondhand.

2. Acquiring or investing in resale sites

Some luxury companies are taking this one step further by acquiring resale platforms altogether.

U.S. luxury retailer Neiman Marcus, for example, acquired a minority stake in online consignment market Fashionphile, marking the department store's entry into the resale market. Fashionphile is offering an increased buyout price for sellers who opt to receive payment as a credit at Neiman Marcus.

Richemont - that owns Cartier, IWC Schaffhausen, and Piaget, among other watch brands and fashion companies - acquired Watchfinder, a UK online marketplace for luxury watches in June 2018.

Competitor Farfetch, on the other hand, acquired resale platform Stadium Goods.

3. Curating vintage pieces

Audemars Piguet began experimenting with trade-ins of the brand's old timepieces as partial exchanges for new ones in some of its boutiques in Switzerland. Audemars Piguet does not rule out selling pre-owned timepieces in the near future.

It is important to control the sale of secondhand watches to protect the owners and the value of watches already in the market by keeping the grey market in check

Vacheron Constantin also took some control over the secondary luxury market. Curated by the Maison's own heritage specialists, the selection of vintage watches are restored by the luxury watchmaker and made available to connoisseurs at dedicated Vacheron Constantin events.

In April 2019 in a commitment to circular fashion, GUESS launched the #GUESSVintage programme, a curated collection of over 150 authenticated GUESS vintage pieces sourced from around the globe. The vintage assortment for the nostalgia loving customers was sold exclusively at LA-based retailer Fred Segal for a limited time only.

Ralph Lauren has teamed up with digital marketplace Depop to offer customers curated vintage, sold-out Ralph Lauren pieces

In October 2019, Ralph Lauren launched Re/Sourced in collaboration with UK-based fashion marketplace app Depop. Sourced by Depop sellers, the uniquely curated collection of vintage products was available for purchase for a limited time at a pop-up space at the Ralph Lauren New Bond Street flagship store in London.

4. Multi-brand luxury retailers experimenting with building resale platforms

Online multi-brand luxury retailer Farfetch launched in May 2019 a pilot resale programme for designer handbags named Second Life. Customers using secondlife.farfetch.com can trade their pre-loved luxury bags in exchange for credits to be used towards future purchases on Farfetch.

Farfetch has also extended its offering of luxury fashion to include pre-owned pieces on the core website where people can, in Farfetch's own words, "find rare pieces that will instantly and indefinitely raise your street cred".

5. Launching a mono-brand resale platform

For luxury brands launching their own resale services, this would give them greater control over prices, availability, authentication and brand positioning in the secondary market.

It would also drive new revenue streams. But managing the luxury resale model in-house would also involve a new set of logistics and investments.

For affluent consumers, brand-owned luxury resale sites could expand the offering and build further trust in secondhand products.

Upscale outdoors brand Arc'teryx launched Rock Solid to buy back used Arc'teryx products from consumers. The brand then refurbishes these used items and sell them at discounted prices.

Apple has made it easy to trade in an eligible device either in a store or online. Customers simply need to answer a few questions about the device for Apple to provide an instant estimated trade-in value. Customers either mail it out using a prepaid trade-in kit or bring it in for an Apple Store Gift Card or instant credit at an Apple Store. Apple's Trade-In programme doesn't always offer the best prices, but for those buying a new iPhone, it is worth considering.

Apple also manages its own refurbished online store, where it sells pre-owned devices for less (savings of up to 15%).

White-labelled resale platforms for brands

Using Yerdle's white-labelled resale services, Eileen Fischer, the popular sportswear designer, offers consumers the possibility to trade in used items, which the brand then sells on as part of its secondhand trade (Eileen Fisher Renew). Yerdle powers the warehouse logistics (including pricing, order quantities and merchandising assortments) and recommerce expertise.

And for goods that aren't up to resale standards, Eileen Fisher repurposes material to make new designs or refashioned into other products that are sold as limited editions.

Following the success of the online resale programme, the brand is now adding Renew shop-in-shops in some of its stores.

Final thoughts: Something old, something new

While the secondhand personal luxury goods market is today relatively small compared to the entire luxury market, its growing influence on the primary market is enough for luxury brands to take notice.

As attitudes towards ownership and sustainability continue to evolve, the momentum of the luxury resale market will most likely continue to rise.

Given that secondhand luxury is growing whether luxury brands approve it or not, adopting a favourable approach to luxury resale is, therefore, an important business consideration.

If luxury brands want to maintain some level of brand and quality control in the secondary market, playing an active role in resale will be critical to increase their customer lifetime value.

Many luxury brands are still only nibbling at the edges of the luxury resale market. It will be interesting to see how the top luxury labels approach the resale market. Whether most luxury brands will opt for strategic alliances with resellers or attempt to ramp up resale models on their own or with the support of technology third parties remains to be seen. If luxury brands were to take back even just a fraction of their items in circulation and run luxury resale on their own, this would shift the entire pre-owned landscape.

One thing is clear, however: stopping consumers from reselling their authentic preloved luxury goods and preventing customers from buying those goods at discounted prices is mission impossible.

At the end of the day, the clear winners of the pre-owned luxury boom will be those who own the customer relationship.

2019 True - Luxury Global Consumer Insight, by BCG-Altagamma, April 17, 2019

Why luxury brands should celebrate the preowned boom, by BCG x Vestiaire Collective, October 2019

Chanel, Inc. v. The RealReal, Inc. (1:18-cv-10626), District Court, S.D. New York.

The New Normal: Luxury in the Secondary Market, by Charles Gorra, Harvard Business School

Luxury Resale Report 2019, by The RealReal

Neiman Marcus Group Becomes First Luxury Retailer to Invest in Pre-Owned Market, by Neiman Marcus Group, BusinessWire, April 17, 2019

LVMH, ConsenSys and Microsoft announce AURA, a consortium to power the luxury industry with blockchain technology, Press release, by ConsenSys, May 16, 2019

Support the circular economy. Shop and consign sustainably, by The RealReal

Extend the lifecycle of luxury items. Join the consignment movement, by The RealReal

Burberry and The RealReal join forces to make fashion circular, by Burberry, October 7, 2019

ThredUp Resale Report 2020, by ThredUp

Vacheron Constantin enlists the skills of the Arianee consortium to develop its digital certificate of authenticity using Blockchain technology, by Vacheron Constantin, June 18, 2019

Farfetch Unveils Handbag Pilot Re-Sale Service, Farfetch Second Life, by Farfetch, May 13, 2019

The RealReal I.P.O.: Secondhand Fashion Goes Mainstream, by Sapna Maheshwari, New York Times, June 27, 2019

Ralph Lauren and Depop launch"Re/Sourced" a uniquely curated collection celebrating vintage Polo, October 21, 2019

Image credits: Brands and Luxe Digital

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Luxury Resale: A Secondhand Strategy for Brands in 2020

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This article is part of a series on the future of luxury resale. Discover the rest of the series: Luxury Resale: How Blockchain Helps Fight Counterfeit And Improve Traceability How Lifelong Value Drives First-Time Luxury Purchase Top 10 Best Designer Resale Sites To Buy Secondhand Luxury Online The pre-owned luxury goods market is growing and shows no signs of slowing down.

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Growth of E-commerce

"Resale giants cater to younger generations since they give extreme importance to their digital platforms"

(Fernandez, 2020)

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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Growth of E-commerce

"Increasing preference for shopping online (in general)

Particularly for Gen Z and Millennials - generations that have grown up with technology and feel comfortable"

(Liu, 2020)

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Is Coronavirus increasing online luxury shopping?

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Vestiaire Collective CEO Max Bittner says he has seen an increase in seller activity since the coronavirus took hold, as shoppers find sustainable shopping solutions online

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Growth of E-commerce

"Resale ecommerce - Generation Z and Millennials love experiential environments"

(Goldring, 2020)

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We've come a ways since Jennifer Hudson's character Louise rented luxe handbags from Bag Borrow or Steal in the 2008 Sex and the City movie. Now it's not just about renting for affordable brag cred, it's about usage, ownership and contribution to a sustainable circular economy.

Sustainable fashion is increasingly becoming a "thing", and not just at grassroots level. Hollywood star Jane Fonda has recently re-worn dresses from several years ago on the red carpet. At this year's Oscars, actress Saoirse Ronan wore a sustainable Gucci dress made from fabric surplus.

The consumer sustainability trend - combined with the affordability that resale provides - has seen luxury resale become big business - US$36 billion by 2021, according to management consulting firm BCG, and 9 per cent of the total personal luxury goods market.

Department store Nordstrom's See You Tomorrow resale store launch on January 31 is the latest in a spate of physical store openings for luxury resale: the physical store expression of what started online.

Tapping into a global market
Initially the luxury resale market was dominated by a fragmentation of independent physical consignment boutiques. Then the rise of social media, e-commerce, mobile apps and personalised digital platforms opened up the market by providing large, organised inventories tapping into a global network of sellers. This brought brands like Gucci, Hermès and Chanel to a new set of consumers.

Early online entrants included France-based Vestiaire Collective, established in 2009 (now operating in a dozen countries and in Australia since 2018); TheRealReal, established in 2011; and Poshmark, also established 2011.

It has since become something of a crowded market. A January 2020 Harper's Bazaar UK article lists what it considers the top luxury and designer resale sites. Included along with the above are HEWI (Hardly Ever Worn It) London, Videdressing, Designer Exchange, Edit Second Hand, Bagista and Rewind Vintage.

A 2019 blog on multimerch.com lists no fewer than 96 fashion resale sites, the luxury and designer listings which include what are by now some of the usual suspects plus Depop, Mosh Posh, Rebelle, Tradesy, Bag Borrow or Steal, Carnet de Mode, Collector Square, Couture USA and Australian operator Blue Spinach. Additional Australian operators include Luxe.It.Fwd, Revoir, Modsie and Hock Your Frocks.

Commissions are widely varied, ranging from 10 to 60 per cent of the sell price, as are payment terms, with some of the faster ones being within two days of receipt of goods from the seller. Some operators provide a "white glove" concierge or VIP service where they go to the seller's residence, assess and authenticate the goods on the spot and provide an estimate.

Going omnichannel
According to a BCG/Vestiaire study, digital platforms currently account for 25 per cent of second-hand luxury sales globally. Given how much Generation Z and millennials love experiential environments, and how quickly they are embracing secondhand goods (at 2.5 times the rate of everybody else, according to Thredup), a raft of luxury resale physical stores have launched in the past two years. Some are the online players moving into the

physical space themselves, and some combine the smarts of the online tech resale players with the retail experience of established physical chains.

Going their own way, TheRealReal opened its first permanent store in New York in 2017, as well as pop-ups in San Francisco and Las Vegas. It now includes physical locations in Los Angeles and a second in New York.

The US's Rebag has a network of nine stores across New York, California and Miami. "Rebag bars" in-store allow for instant product authentication and valuation, 60-minute payments to sellers, and the Rebag Infinity program provides 70 per cent store credit for every previously purchased bag exchanged for a new Rebag handbag within six months. Rebag's medium-term plans are to expand to 30 physical stores, both standalone and in malls.

Designer Exchange, established in 2013, claims to be the first to offer instant cash payment and exchange on designer items. It has four stores in the UK and one in Madrid.

Xupes opened its first physical store in London's Royal Stock Exchange last year. The store spans two floors, with the ground floor devoted to appointments and consultations. It has also opened a retail store in Amsterdam and a pop-up concession in Dutch department store De Bijenkorf's.

Which brings us to online players leveraging established retailers (and the reverse), a synergistic relationship which sees both the department store and online provider generate more traffic.

Neiman Marcus acquired a minority stake in Fashionphile in mid-2019, not long after Nordstrom inked a partnership with Rent the Runway. In early 2019 Macy's announced a partnership with Thredup and has gone on to launch a resale shop-in-shop, with plans to pilot in a dozen stores. Thredup also has a similar relationship with retailer Stage Stores, which opened 12 stores in 2018 for a total of 45 stores.

Vestiaire experimented with pop-ups at Selfridges in late 2018 and a pop-up at Paris's Le Bon Marché in early 2019 before committing to a permanent space in Selfridges, launched in October 2019. The 40sqm space in the store's third-floor designer studio launched with 200 items including 10 rare vintage pieces from Versace, Paco Rabanne and Maison Margiela. Vestiaire Collective products are labelled as "pre-loved" to differentiate them from Selfridges' current luxury inventory. Shoppers can also sell through a dedicated resale point in the store, which acts as the physical incarnation of Vestiaire's Concierge Service.

And now Nordstrom's See You Tomorrow ranges products previously bought by consumers but now returned or resold to Nordstrom. It appears to be running independent of specific online luxury resale entities.

Who's buying luxury resale?
While luxury resale is an opportunity for Gen Zs and millennials to enter a luxury brand and upgrade over time, according to Thredup 13 per cent of those buying luxury resale are already millionaires. This is a fact some brands have been slow to recognise, preferring to remain exclusive by focusing on narrowly defined affluent consumers rather than proactively expanding their markets using a "cradle to grave" lens.

According to Vestiaire, while 52 per cent of consumers donate apparel items to charities, only 33 per cent resell and buy second-hand so there is still a job to be done in education and awareness.

Challenges and a likely trajectory
While longer-term players employ professionally trained product authenticators, the potential for fraud and fakes is still reasonably high, particularly on peer-to-peer selling sites. Chanel took TheRealReal to court with claims over selling fakes, despite its in-house authentication process.

Retailers selling resale may result in conflict with a retailer's traditional suppliers. However, resale may generate traffic in department stores, to the benefit of all brands. And reselling is going mainstream, with the likes of ASOS in the market. A number of players, including Poshmark, are extending into other categories such as home decor and manchester.

The established luxury brands can't ostrich forever. Momentum has built around resale; a 2019 report from the Business of Fashion and McKinsey State of Fashion indicates that rental and second-hand is one of the top fashion industry trends. Luxury brands are better off maintaining some control over and input into their marketing and retailing by looking at alternative avenues and partnerships than putting their heads in the sand and conceding control altogether. And it may expand their markets further. As the saying goes, "If you can't beat 'em, join 'em."
Norrelle has 20 years' experience in retail, category, channel and customer strategy, planning, research and marketing, working in and with global retailers, manufacturers, research and consulting houses. Contact Norrelle on 0411735190 or email norrellegoldring@hotmail.com

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Luxury resale comes of age - Inside Retail

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We've come a ways since Jennifer Hudson's character Louise rented luxe handbags from Bag Borrow or Steal in the 2008 Sex and the City movie. Now it's not just about renting for affordable brag cred, it's about usage, ownership and contribution to a sustainable circular economy.

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Growth of E-commerce

"Factor resulting in growth is growing e-commerce sales furthering demand for online resales"

(Fernandez, 2020)

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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Sustainability

"Luxury e-commerce platform Farfetch Limited is testing the waters in the fast-growing resale market with the launch of a new pilot program

'Second Life' will allow customers to trade in their old designer handbags for Farfetch credit that can be spent on new merchandise"

(Kent and Chen, 2019)

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LONDON, United Kingdom -Luxury e-commerce platform Limited is testing the waters in the fast-growing resale market with the launch of a new pilot program. The service, dubbed Second Life, will allow customers to trade in their old designer handbags for Farfetch credit that can be spent on new merchandise.

The new initiative is part of broader plans at Farfetch - a marketplace that connects consumers with a global network of fashion boutiques and, increasingly, brands - to experiment with a range of new business models as the company seeks scale. Farfetch already offers a selection of vintage merchandise and is also examining opportunities in rental.

The company has made no secret of its ambitions in the resale market snapping up peer-to-peer sneaker and streetwear marketplace Stadium Goods in December for $250 million, just three months after going public. For Farfetch, the Stadium Goods deal opened up access to a new segment of opportunity at a time when e-commerce players are engaged in what The Business of Fashion and McKinsey's The State of Fashion 2019 report describes as a "digital land grab."

Farfetch is gaining on online luxury leader Yoox Net-a-Porter, which digitised the traditional wholesale model. It generated just over $600 million in revenue last year, though its shares are down around 16 percent since it went public in September.

The global market for secondhand apparel is expected to reach $51 billion by 2023.

The next horizon for platforms like Farfetch, as they push to stay ahead of the curve, is business model diversification. "Whether through acquisitions, investments or internal R&D, those players who diversify their ecosystem will strengthen their lead over those who remain pure players relying solely on retail margins," says the State of Fashion 2019 report.

Farfetch's latest foray into resale comes soon after a move by luxury department store Neiman Marcus, which, last month, took a minority stake in secondhand luxury site Fashionphile. Last year, the global market for secondhand apparel totalled $24 billion, according to resale site ThredUp. It is expected to reach $51 billion by 2023 and has already given birth to a number of successful luxury "re-commerce" players, including The RealReal and Vestiaire Collective.

"The pre-owned luxury market is growing rapidly," said Giorgio Belloli, chief commercial and sustainability officer at Farfetch, who is spearheading the Second Life project. "It allows us to enter this market and test the demand of Farfetch customers for this kind of service."

Luxury brands have largely stayed away from resale due to concerns over damage to full-price sales and brand dilution, but attitudes may be shifting. For luxury consumers, the stigma of the secondary market has dissipated in recent years.

For its new resale venture, Farfetch is teaming up with an alumnus of its tech incubator program to power the service. While the Second Life platform will be branded Farfetch, behind the scenes Hong Kong-based Upteam will evaluate each new handbag put up for sale on the platform, provide sellers with an offer price based on photos, and take on the responsibility of authentication and finding a buyer if the offer is accepted.

The initial launch of Second Life will be open to customers in the UK and other European markets. The service will accept handbags from 27 different brands, including , Dior and .
Related Articles: The Clothing Rental Market's Broadening Appeal What Chanel Can Learn from Nike About the Resale Market How Big Retailers Are Selling Sustainability

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Farfetch Signals Growing Ambitions in Resale

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LONDON, United Kingdom -Luxury e-commerce platform Limited is testing the waters in the fast-growing resale market with the launch of a new pilot program. The service, dubbed Second Life, will allow customers to trade in their old designer handbags for Farfetch credit that can be spent on new merchandise.

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Sustainability

"Adidas Plans to Cash In on Old Clothes partnering with London-based start-up Stuffstr to launch a new online take-back scheme for old clothes in the UK

New scheme to clean up customers’ old or unwanted garments in return for Adidas vouchers

The initiative aims to address the growing amount of waste generated by the fashion industry

While the initiative is currently limited to the UK, the scheme is expected to roll out in further select markets next year

New degree of sophistication to clothing take-back schemes that Stuffstr hopes could shift the current model of consumer behaviour away from fast and wasteful consumption to a more value-driven approach"

(Kent, 2019)

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adidas Originals Streetballs | Source: Courtesy

By Sarah Kent October 16, 2019 05:20

LONDON, United Kingdom - Adidas AG wants your old socks.

The sportswear giant is rolling out a new scheme to clean up customers' old or unwanted garments in return for Adidas vouchers. The initiative aims to address the growing amount of waste generated by the fashion industry.

Adidas, in partnership with the London-based start-up Stuffsr, is offering consumers signed onto its UK loyalty program the opportunity to return any items they have purchased from the brand in the last five years, no matter the condition. The items are repaired where needed, resold where possible, and as a final resort, recycled into new products.

While the initiative is currently limited to the UK, the scheme is expected to roll out in further select markets next year. It marks a significant step up in Adidas's efforts to manage waste generated by consumer's speedy churn of sneakers, tracksuits and other three-stripe branded gear.

The company launched a take-back-and-recycle scheme in stores in Brazil in 2012, but has been slow to expand the initiative. It piloted further take-back programmes in Canada in 2016, and last year provided a service for consumers to drop off old clothes and shoes in nine stores across London, Paris, New York and Los Angeles.

This latest scheme reflects mounting pressure by consumers and regulators for big fashion brands to show they are tackling the amount of waste generated by their operations. According to waste-management nonprofit WRAP, roughly £140 million ($176 million) of clothes end up in landfills every year in the UK alone.

The initiative introduces a new degree of sophistication to clothing take-back schemes.

Adidas has made strong commitments in recent years to pursuing a more circular model of production. Earlier this year, it announced the launch of a fully reusable shoe following a technological breakthrough that took the brand years to achieve. Elsewhere, the company has committed to eliminate virgin plastic from all its products wherever possible by 2024.

But incentivising consumers to return products they don't want anymore is a trickier proposition, as are the logistical problems that sorting, processing and reselling an oddball assortment of unwanted goods causes.

Those are issues Adidas is looking to solve with its new partnership. UK consumers can return items with a combined buy-back value of £20 ($25) or more through the company's Creator's Club App. The logistics of the scheme are managed by Stuffstr, which will pick-up or provide pre-paid postage for items and handle resale via existing e-commerce sites like eBay. Adidas gets cash benefit from the gift cards, sustainability kudos and valuable data on consumer habits, without the hassle of waste management.

The initiative introduces a new degree of sophistication to clothing take-back schemes that Stuffstr hopes could shift the current model of consumer behaviour away from fast and wasteful consumption to a more value-driven approach.

"We're trying to take all these things so consumers have a direct incentive to buy things that hold value better," said Stuffstr Founder and Chief Executive John Atcheson. "Otherwise you're not giving people the tools to think differently and act differently."
Editors' Note: An earlier version of this article stated that under Adidas's new scheme, UK consumers can return items above the value of £20. This is incorrect. The combined buy-back value of returned items must be £20 or over. Related Articles: How Can New Technologies Help Make Fashion More Sustainable? Circularity: Sustainable Fashion's Holy Grail or Greenwashing? In Search of a Business Case for Sustainability

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How Adidas Plans to Cash In on Old Clothes

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adidas Originals Streetballs | Source: Courtesy By Sarah Kent October 16, 2019 05:20 LONDON, United Kingdom - Adidas AG wants your old socks. The sportswear giant is rolling out a new scheme to clean up customers' old or unwanted garments in return for Adidas vouchers.

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Sustainability

"In spite of the growing momentum, the industry’s efforts to tackle its waste problems are still at an early stage

Many of the solutions currently in the works don’t go to the root of the problem: the need to make and consume less

In June, France, a global leader in luxury fashion, introduced a ban on the destruction of unsold fashion goods, with manufacturers and retailers obliged to donate, reuse or recycle

The move was the first of its kind in the world on a national level"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Sustainability

"The industry needs to eradicate waste from all elements of production, right through to encouraging consumers to extend the lifespan of their pieces for as long as possible"

(Liu, 2020)

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Is Coronavirus increasing online luxury shopping?

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Vestiaire Collective CEO Max Bittner says he has seen an increase in seller activity since the coronavirus took hold, as shoppers find sustainable shopping solutions online

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Sustainability

"Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers.

Younger generations that prefer to shop online for sustainable products will continue to drive overall growth"

(Fernandez, 2020)

# data[].attributes.attachment_link.readable_text
In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

# data[].attributes.attachment_link.description
In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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Sustainability

"Huge potential and growth in the resale market

A model that has the ability to simultaneously reduce production and the amount of clothing that is sent to land-fill"

(Proske, 2019)

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WGSN, the World's Global Style Network, has taken a close look at sustainability in the fashion industry. Associate Editor Olivia Barnes cites numerous positive examples in an exclusive interview with the Luna Journal.

How have consumer habits changed? What do consumers expect from fashion companies today in terms of sustainability?

Olivia Barnes, Associate Editor, Materials, Textiles and Knitwear: There has been a big shift in consumer mindset. In the digital age information is more readily available, people are better connected and consumers are more clued up than they ever have been before. In the physical world, the effects of global warming are becoming apparent, grabbing cross-generational attention through personal experience and media coverage. In turn, consumers expect action from fashion companies in terms of both environmental and social sustainability development.

What positive examples do you have of sustainable action in companies?

Founded on the belief that the company should not compromise on the social or environmental aspects of production, Mini Rodini pave the way for sustainable children fashion. Ensuring 99% of their product ranges made from sustainable materials, reducing waste and toxic chemicals and working towards implementing a living wage system by 2020 are just a selection of their trailblazing initiatives. Organic baby wear company, UpChoose also aim for a more sustainable future for the apparel industry. The wear-and-return system reduces waste and cost for consumer by offering new or used products that customers return in exchange for new sizes once their child has outgrown it.

Waste avoidance is an important issue for many consumers. We are concerned about the zero waste movement and what should companies offer here?

Companies must tackle waste from all aspects, from packaging and production to end-of-life garment recycling opportunities. Over the past few years we have seen companies step up, announcing ambitious waste reduction and recycled content goals. The question is whether they are able to match these ambitions with results. Using deadstock fabrics, partnering with recycling schemes and producing in limited runs offer solid routes for reducing pre- and post-production waste, a model that is being explored by childrenswear brand, Soor Ploom. From a future-gazing perspective, projects from Stella McCartney and Adidas engage with principles of the circular economy by designing footwear that can be dissembled and recycled at end of use, with no material loss or wastage.

What other trends do you see in the area of sustainability that are important for fashion companies - especially in children's fashion?

We see huge potential and growth in the resale market, a model that has the ability to simultaneously reduce production and the amount of clothing that is sent to land-fill. Whilst resale platforms have long been part of the kidswear market, we are seeing new players such as ThredUp and Kids Collective re-invent the second-hand clothing scene. The introduction of innovative materials will also play a role in expanding the fibre basket and a move towards using preferable materials. Within kids footwear, Vivobarefoot have developed a shoe that contains 10% algae and North Sea Sneakers are working with by-product fish leather that would otherwise go to waste.

You might be also interested in:
Tchibo Share - a first balance of the rental service Sustainability is becoming increasingly important in children's clothing hessnatur: Digital world map provides insight into production chain
Link: The World's Global Style Network is also dedicated to topics such as sustainability in the fashion industry.

Image: pixabay

//KH

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WGSN - Sustainability offers huge potential in the resale market

# data[].attributes.attachment_link.description
WGSN, the World's Global Style Network, has taken a close look at sustainability in the fashion industry. Associate Editor Olivia Barnes cites numerous positive examples in an exclusive interview with the Luna Journal. Olivia Barnes, Associate Editor, Materials, Textiles and Knitwear: There has been a big shift in consumer mindset.

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Sustainability
(Amed et al., 2019)

"New recycling technologies and new business models focused on digital rental and resale offer promising opportunities to extend the life of old clothes"

(Amed et al., 2019)

# data[].attributes.attachment_link.readable_text
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Sustainability

"21st century blind mass consumerism has people questioning what role they play in the negative environmental impact the fashion industry has"

(Newbold, 2019)

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent. 44 million women shopped second-hand in 2017 in comparison to 35 million in 2016, according to ThredUP, a consignment site that is part of a larger Collaborative Consumption movement, which encourages consumers to live in a more collective, sharing economy.

ThredUP posits that the global resale market will be worth $41 billion by 2022, because "resale disruptors" like itself are growing 24 times faster than the retail industry as a whole: 49 percent year-over-year, versus two percent. This means that second-hand or thrift items will make up one-third of our wardrobes in 2027.

Is this dramatic spike due to an increased interest in mindful shopping, with shoppers keen to actively cut down on consumption via second-hand acquisitions? Or are consumers just hungry for discounted designer products? With the fifth annual Fashion Revolution Week coming to a close, it seems like an apt time to investigate.

Research into what Lyst users are actually searching for reveals some home truths. Bags are the most popular pre-owned item to buy online, followed by jewelry and shoes - three categories known for their comprehensive manufacturing techniques. Customers aren't searching specifically for "pre-owned" accessories, but for brands like Chanel and Céline, which have historically not been readily-available to buy new online (the former still only sells via its boutiques).

Searches are also trend-led. In the last three months, there has been a 62 percent increase in searches for logo pieces in response to the Nineties logomania that the street-style set is currently enjoying. Dior's saddle bag and Louis Vuitton's Speedy model garner the most consumer interest, while Fendi is also gaining traction, no doubt due to the hype around the return of its graphic double Fs.

Accessories have always been an affordable gateway purchase for first-time luxury shoppers, and indeed, ThredUP's report shows that 66 percent of consumers use resale channels to buy brands that they couldn't pay full price for. Millennials are the thriftiest shoppers and buy resale items more than any other age group, citing sustainability as the reason for shopping second-hand. 77 percent of 18-to-24-year-olds prefer to shop from environmentally-conscious brands. But the data also showed that they are the most impulsive shoppers and discard items after one to five wears. The millennial moral and retail habits don't match up - suggesting that green-washed consumers are merely jumping on the back of the trend du jour.

"Discussing which website you use to re-sell your clothes is now like saying, 'Who does your hair?'" Sharon Wolter-Ferguson, CEO and founder of Hardly Ever Worn It, said. The e-tailer, which rebranded itself as HEWI after members started using "hewi" as a verb, has seen a growth of 1,000 percent in four years and launched a sister site, Hewistreet.com, a week ago to keep up with the demand for buying, selling and swapping contemporary brands, such as Sandro and The Kooples.

Cora Hilts, co-founder of sustainable luxury etailer Rêve En Vert, thinks the mass rise in interest around sustainability roots back to Blue Planet II. The finale gave an unflinching look at the impact of human activity on marine life, and ended with a conservation rallying cry from David Attenborough. "It was a real wake-up call to people that we have individual responsibilities towards our consumption habits," Hilts says of the 30 percent month-on-month traffic increase Rêve En Vert has received since the show aired.

Ceanne Fernandes Wong, Vestiaire Collective chief marketing officer and vice president, agrees: "We're seeing customers evolve and become more mindful about their consumption habits. As brands and their products are becoming more visible via the likes of Instagram, everyone is seeing the same thing and individuality is standing up against this sense of homogeny." One million new members joined Vestiaire Collective last year, bumping up its resale community up to seven million members globally.

Circular clothing economy has always been a part of Vestiaire Collective's DNA, but it's currently carrying out a project to analyze how internal operations within the business can operate more sustainably. Later this year it will sign the CFS 2020 Circular FashionSystem Commitment Letter, and packaging will be its first priority. HEWI is also transitioning to eco-friendly packaging, and customers have the option of donating a portion of the profits from their sales to charities.

Designer resale shoppers seem to be going through the motions of compiling guilt-free wardrobes, but if millennials are throwing items away after a handful of wears, it doesn't matter how many consignment sites are promoting the "buy less, but better" policy. Stella McCartney, a designer known for her staunch activism, concurs: "It's absolutely crazy that only one percent of clothing is actually recycled," she told Vogue.

McCartney recently partnered with the RealReal, one of the top three resale websites alongside ThredUP and Poshmark, to promote fashion sharing. But, there's only so many times she can reiterate her outrage at fashion's environmental footprint. Consumers need to get their stories straight, and Fashion Revolution Week proves there's no time like the present to start shopping sustainably in the first place. Here are seven young designers pioneering a sustainable fashion revolution.

Credit to: Alice Newbold

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Is The Growth Of Resale Really Linked To Sustainability?

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Disruption has been fashion's buzzword of choice in recent years, but are you familiar with the new wave of "resale disruptors"? In recent years, the global fashion search engine Lyst has seen traffic to luxury resale products increase by 447 percent.

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Sustainability

"Resale is an easy concept to understand that requires no prior knowledge

People are able to maintain a consumption focused lifestyle, at a lower cost and guilt free

Currently sustainable products come at a high cost – resale offers otherwise

Mass-market players, meanwhile, are continuing to work on reducing prices of sustainable options which have traditionally been priced at a premium"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Sustainability

"Purchasing a secondhand product reduces its carbon footprint by 82%

Last year, the percentage of consumers who preferred to buy from environmentally friendly brands increased to 72%, which aligns with Gen Z and younger consumers’ values"

(Pallien, 2019)

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Sustainability

"Millennials and Gen Z are more environmentally conscious than previous generations - sustainability top shopping priority

Very budget-conscious, but 3/4 Millennials and Gen Z members say they’d be willing to pay extra for sustainable products"

(Winmarkfranchises.com, 2020)

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

From overtaking fast fashion to capturing the wallet share of an increasingly economical and environmentally conscious consumer, the future of the growing resale industry is strong and sustainable in more ways than one.

Here are some key demographic and marketplace trends that will continue to drive the future success of the resale industry:
1. Sustainability Sparks Demand
The impressive growth experienced by the resale industry can be largely attributed to changing consumer demographics. Specifically, millennials and Generation Z comprise the majority of the buyer cohort today, and their purchase decisions and preferences are fairly distinct from their generational predecessors.

These consumers are more environmentally conscious than previous generations, and the vast majority cite sustainability as a top shopping priority. Although they're also very budget-conscious, three out of four millennials and Gen Z members say they'd be willing to pay extra for sustainable products.

Unlike traditional retailers, key resale industry players appeal to both sides of fiscally constrained, environmentally conscious consumers. Not only do resale stores offer significant cost savings on a variety of brand-name retail products, but they also help consumers take an active role in saving the environment while saving money. Conversely, the traditional fashion industry is one of the largest polluters in the world, second only to crude oil.

As consumers continue to prioritize cost and environmental impact savings, resale stores will continue to pick up where traditional retail has left off.
2. Recession-Resilient Concepts Dominate the Marketplace
Similarly, resale stores' environmental and affordability appeal also positions the industry to thrive in any economic climate - an increasingly important point moving into the new year, as economists continue to predict a potential recession in 2020.

During the 2008 recession, nearly two-thirds of U.S. resale store respondents reported an increase in sales, by an average 31 percent, according to data from the National Association of Resale & Thrift Shops (NARTS).

When times are tough, consumers increasingly turn toward resale stores, looking for easy ways to spend and earn money more efficiently. The resale segment's unique business model, value proposition and essential inventory make it the ideal solution for cost-conscious consumers in any economy.
3. Changing Digital Landscape Opens a Window of Opportunity
The rise of ecommerce and the digital marketplace also posed a threat to many traditional retailers, but the resale model is inherently immune to many of these obstacles.

For example, the resale ecommerce (or re-commerce) hybrid answers a strong demand for a bricks-and-clicks business model. Consumers are more inclined toward omnichannel brand experiences, creating a growing need for businesses to carve out a presence and be wherever their customers are.

Younger consumers also expect to have the power and autonomy to choose how they interact with brands, both online and in person. This represents a key opportunity for resale industry growth and innovation, as resale businesses complement existing brick-and-mortar stores with a broader digital reach.

To learn more about the future of the resale industry, download our eBook.

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3 Trends Driving the Future of the Resale Industry

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The growth of resale has been a seismic shift within the broader retail segment. Growing at a rate 21 times faster than traditional retail, the resale market continues to gain even more momentum with each passing year. Now a $24 billion market, the sector is projected to more than double in the next five years, reaching $51 billion in revenue by 2024.

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Sustainability

"75% of U.S. consumers now have sustainability in mind when shopping

A global report by PwC shows that number is even higher in international markets

Textile waste has doubled since the beginning of the century, as consumers are buying more clothing — but discarding it more quickly than they used to

Resale allows people to keep up with fast developing trends without the guilt of the negative environmental impact

Millennials and Gen Z grew up on mass consumerism/fast fashion

The first generation that are able to see really the irrefutable visual evidence of the environmental impact (unlike in the past there is solid evidence)

Human nature makes us desire for something different - actively cut down on consumption"

(Barr, 2019)

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For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

But in recent years, there's been a shift in how people are considering what they wear for special (and even not so special) occasions. No longer do fashionistas want - or need - to pay high prices for things that might end up gathering dust in the closet after that one special night. They instead want a more convenient shopping experience, a more affordable lifestyle, greater variety, and the option to consume more conscientiously. So, they're embracing the era of "new to you" when it comes to a wide range of products, including fashion, high-end sneakers, and toys. In fact, according to retail analytics firm GlobalData, the resale market has grown 21 times faster than the retail market since 2016. And according to the 2019 PwC Holiday Outlook report, 36 percent of the younger U.S. consumers who were surveyed are planning to shop for resale items, for themselves or for gifts, this holiday season. This trend extends beyond the holiday season and circles the globe. Research by data provider QuestMobile shows that 38 million Chinese shoppers used online resale platforms in 2017, up from 1.5 million in 2014.

For retailers, it makes sense to meet consumers where they are. Many companies - following in the footsteps of the now 10-year-old Rent the Runway - have already shifted from thinking of product sales as a one-time transaction to adopting models based on rental, reuse, and monthly subscriptions. In a sometimes struggling retail industry, embracing these new markets offers companies, particularly legacy brands and brick-and-mortar retailers, an opportunity to reinvent themselves and breathe new life into their business model.

Shoppers are shaking up what buying means

The customer has always been king. But now customers are helping reimagine the kingdom. For one thing, social media means consumers are influenced more quickly by more factors and trends than ever before, and those consumers, in turn, have a microphone they can use to wield influence 24/7. Customers increasingly want an improved experience - not just the latest product. Powering much of this shift is technology, which lets consumers curate their own experience and factor in all of the things they care about.

In a sometimes struggling retail industry, embracing these new markets offers companies an opportunity to reinvent themselves and breathe new life into their business model.

Sustainability. According to the PwC Outlook report, 75 percent of U.S. consumers now have sustainability in mind when shopping. And a global report by PwC shows that number is even higher in international markets. But the fashion industry leaves a surprisingly large carbon footprint, according to a study (pdf) by the Ellen MacArthur Foundation. The study also shows that textile waste has doubled since the beginning of the century, as consumers are buying more clothing - but discarding it more quickly than they used to. Downsizing is another consumer pattern that's related to sustainability. Young consumers, according to Business Insider, tend to live in smaller apartments and homes, and don't have the closet space to store lots of belongings. This helps to explain popularity of Marie Kondo, the global champion of decluttering, who has sold millions of copies of her 2014 book, The Life-Changing Magic of Tidying Up, and in 2019 introduced a popular Netflix series in which she helps families bring minimalism and order to their domestic chaos.

Convenience. Consumers are used to having pretty much everything delivered, down to a tall nonfat cappuccino before they leave for work. Renting fashion or other goods is just part of the same "delight me" delivery experience. And some reuse companies, such as thredUP, even have subscription models that let a consumer get a goodie box of used clothes every month, for far less than the cost of brand-new clothes.

Affordability. According to Statista, price is the most important factor for online shoppers - it's cited by 80 percent of the company's survey respondents. To get an idea of the way renting or reusing affects a shopper's bottom line, consider these comparisons. Someone wanting to put together the perfect designer look for a special evening can rent a silver and tulle Marchesa dress for four days for US$105 at Rent the Runway. The same dress retails for $695. Visiting villageluxe to rent a stunning pair of Christian Louboutin heels to go with the dress will cost $63 for a week, versus $735 to purchase. And a coveted Hermès Evelyne III PM shoulder bag to finish off the look would require an investment of almost $3,000 retail, but rents at Bag Borrow or Steal for $325 for a month.

Variety. In 2019, many people, especially younger ones, are opting for experiences over accumulating things, according to . Having two cars in the garage, a suburban house, and a closet full of designer clothes has lost some of its appeal. Yet consumers still want the latest looks or to try new products - just without the commitment and high price tags of buying. If you don't know whether you'll like camping, why should you spend a small fortune on tents and gear? It's much more practical to rent the equipment and take it for a spin, and then decide if you love it - and the experience - enough to buy it.

Companies are getting in the game

Retailers, including traditional brick-and-mortar companies, are listening to consumers and reacting.

Macy's, facing dipping sales, has announced a partnership with thredUP to sell used clothing, and also has announced it wants to get into the subscription-box market.

Banana Republic has debuted Style Passport, an $85/month service that sends subscribers three pieces at a time, from skinny corduroy pants to dressy overcoats. When they're done with the clothes, they send them back and get a fresh box.

YCloset, backed in part by the Chinese Internet giant Alibaba, rents clothing, shoes, and accessories, mostly to young women who live in China's bigger cities. It carries mostly midrange outfits and also has a monthly subscription model. Other popular Asian sites include MSParis, Starluxe, Yeechoo, Yiqidai (for jewelry), and Dou Bao Bao (for luxury handbags).

The Mode, based in Dubai, touts its focus on sustainability and offers a wide variety of current fashions for rent.

Flyrobe, based in India, rents all sorts of outfits, from traditional wedding attire and saris to Western looks.

Eileen Fisher, creator of high-end garments in classic styles and fabrics, takes the reuse concept a step further. In addition to its Eileen Fisher Renew program, through which customers can return used clothing for resale, the company will also take back damaged garments. That program, Eileen Fisher Resewn, will even take in torn or stained pieces and re-dye them or make them into new pieces, like a patchwork cashmere sweater.

REI makes it possible to try new outdoor adventures without much commitment. A novice backpacker doesn't need to figure out what they might require for a four-night excursion. REI has created kits for nearly every kind of adventure. The prepacked backpacking kit, for example, includes pretty much everything a couple would need, including the tent, sleeping bags, and headlamps, priced per night used.

Legos no longer have to end up jumbled in growing, unused piles in kids' toy bins. There are several subscription companies, with names like Brickbox and Brick Loot, that let parents sign up for a monthly box of the toy bricks, which they mail back in exchange for a new box. The monthly rates range from about $15 to $40.

This trend seems to have no real downside. Consumers can get quality - and quantity - of fashion, equipment, toys, and more without accumulating too much stuff or paying retail price tags. And retailers can broaden their business models to appeal to those consumers, and potentially reinvent themselves as environmentally conscious and forward thinking - burnishing their brand and gaining customer loyalty as they go.

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The newest shopping trend isn't new at all

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For fashion retailers, the holiday season usually generates healthy sales. Shoppers ready to get their sparkle on are in the market for fancy outfits for holiday galas, designer shoes for New Year's Eve parties, and high-end designer bags and jewelry to complete their look.

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Sustainability

"Environmentally conscious consumers

Millennials (33.0% - sustainability is their main reason) and Baby Boomers (31.0%) are the largest market for the resale industry

However, Gen Z and Millennials have been driving the growth of the second-hand market, adopting the trend 2x+ as fast as other generations"

(Fernandez, 2020)

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity. Between 2009 and 2011, resale companies such as ThredUP, Depop, Poshmark and The RealReal were established and began expanding their clientele. Currently, the resale industry is estimated to reach $36.0 billion in 2021 and, a While overall demand for new and used clothing is on the rise, most consumers are shopping online. As a result, IBISWorld estimates that both the Women's and Men's Clothing Stores industry revenue (IBISWorld reports 44812 and 44811), which measure revenue from brick-and-mortar locations, will decrease an estimated 3.2% and 2.0%, respectively, in 2020.

Consumers are increasingly accepting of the resale of luxury items, and companies specializing in this field have raised millions of dollars with investors. For instance, The RealReal, a leader in authenticated luxury consignment, has recently gone public. According to BCG, the global sales of secondhand luxury goods has increased an annualized 12.0%, compared with an average of 3.0% for the core luxury market. As consumers become more environmentally conscious and demand ethical products, the resale market will continue to increase. By 2028, it is estimated that secondhand will be larger than fast fashion as consumers shift away from disposable clothing toward higher-quality clothes, preferring to spend more on sustainable products.

Millennials and baby boomers are the largest market for the resale industry, accounting for 33.0% and 31.0% of the market, respectively, followed by Gen X and Gen Z. However, Gen Z and millennials have been driving the growth of the secondhand market, adopting the trend more than twice as fast as other generations. In fact, 72.0% of Gen Z would reportedly spend more money on a product if it is ethical and sustainable. Vintage clothing has become a fashion trend and appeals to younger generations that are concerned with the environmental impact of the fashion industry. These resale giants cater to younger generations since they give extreme importance to their digital platforms. IBISWorld estimates that e-commerce sales will increase 19.8% and 18.0% in 2020 and 2021, respectively, furthering demand for the online resale market. Additionally, internet traffic volumes are anticipated to increase 26.4% in 2020 alone, representing an opportunity for new entrants that want to sell secondhand clothing online.

Moving forward, executives will likely find new ways to diminish textile waste through upcycling. Brands will need to become part of the circular economy and partner with resale sites to remain relevant and cater to environmentally-conscious consumers. IBISWorld estimates that consumer spending and demand for clothing will continue to increase over the next few years. However, consumer spending habits and preferences will continue to evolve. Younger generations that prefer to shop online for sustainable products will continue to drive overall growth and provide new opportunities for the fashion industry.
Edits by Sean Egan Infographic by Veronica Albarella

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Sustainability and the Online Resale Market | IBISWorld Industry Insider

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In 1995, when eBay and Craigslist emerged, hundreds of consumers started selling secondhand clothing online, expanding access to goods previously only found in vintage and thrift shops. At first, secondhand clothing was only a niche online market, and early entrants took advantage of this opportunity.

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Sustainability

"Americans now buy at least one item of clothing a week

The fashion industry, driven by fast fashion, has steadily become one of the most serious polluters in the world"

(Greenwood, 2018)

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is the Holy Grail of sustainable fashion.
So how close are we?

A funny thing started to happen about 15 years ago. Maybe you noticed it only when you went to take a new shirt out of its maiden voyage in the washer and discovered the hem had unraveled. Or maybe the lifetime of your jeans began to shorten perceptibly. First, you found yourself at the store for a replacement pair, a bit sooner than you might have expected. Then you were there again less than a year later. Then you're there with the new pair ripped across the knees, less than 2 months after you bought them, embarrassed but also confused. Are you imagining it, or was this different before?

I remember acutely the moment in 2010 when I put on a pair of what looked like black brogues and discovered they were nothing but a kind of vinyl sac with a rubber pad for a sole. They aren't shoes, I realized with a chill, looking around the sleek glass box of a Manhattan store. They just look like them. And no wonder. For $20 you can't buy shoes, not really. You're buying a facsimile designed to get you out the door and back again in a couple of weeks, when brogues are out of style and ballet flats are in. You aren't imagining it: clothes have changed, and what has happened is a whodunit where the stakes are very, very high.

In the 1950s, Americans spent a whopping ten percent of their income on clothes. These garments were relatively expensive, compared to what we expect now, but they also lasted longer. When people had to choose a new skirt or suit for the office, they might not be able to afford another one for quite some time. In fact, as journalist Elizabeth Cline wrote in her 2012 book Overdressed: The Shockingly High Cost of Cheap Fashion, for much of the twentieth century, many people often did not buy clothes more than a few times a year. Even until relatively recently-as late as the 1980s-new clothes were usually occasional purchases. Labor has always been the most expensive part of clothing, and an irreducible one at that: It is actually impossible to mechanize a seamstress, beyond giving her a sewing machine. "Because clothing is so labor-intensive, the price of labor directly affects the retail price of clothes," says Cline, who has continued to cover the social and environmental impact of modern fashion.

However, in 1993 came a turning point. With the passage of the North American Free Trade Agreement (NAFTA), it became much, much easier to import clothing. Over the next ten or so years, a quota system that had limited the number of imported items entering the US was abolished. Very swiftly, US-based textile mills and factories went out of business. Around the world, similar events happened in developed countries with free-trade agreements. Labor, that limiting factor, was at least ten or 20 times cheaper in other places. Companies that didn't move their operations out of the US could not compete. Not long afterward, one of the most successful business models of this century took advantage of this change to shoulder its way to the front of the pack: it is now called "fast fashion."

Fast-fashion companies such as Zara and H&M make their money by shortening the time between trends and encouraging customers to buy inexpensive clothes that, in many cases, appear to be made to last no longer than the lifetime of the fad. Currently, H&M alone makes between 550 and 600 million items of clothing a year. And thanks to the fact that most clothes today are made by people working for low wages, developed-world consumers have never spent so little on their wardrobes. It might surprise you to learn that Americans now buy at least one item of clothing a week.

Run this clock forward over the years, however, and you start to see a problem (beyond the humanitarian one-companies continue to use factories like the one in which more than 1,000 workers died in a building collapse in Bangladesh in 2013). Already, says Cline, "global clothing consumption has doubled in the past 15 years." The industry, driven by fast fashion, has steadily become one of the most serious polluters in the world. Clothing manufacture was never exactly tidy, what with toxic dyes, copious amounts of water needed for growing fiber and processing fabrics, and waste from factories. But in 2015, carbon emissions from clothes surpassed those emitted from all international flights and all maritime shipping combined. Cotton, for example, uses more pesticides than any other crop-and organic cotton takes up more land and much more water than conventionally grown cotton. At the same time, clothes are worn for less time than they ever have been previously. Every year, 12.7 million tons of textiles enter American landfills; in 2015 in the UK, 300,000 tons of clothes went in, about ten pounds per person. Giving old clothes to charity isn't the charitable act you might think it is-many of the clothes made today are of such poor quality that they cannot be sold again.

You might not think of yourself as the kind of person who cares much about clothes. I know I didn't. As someone who has always felt like a brain inconveniently hampered by a body, I can't say I ever thought much about them-except to wonder why, as an averagely shaped human being, I found it so hard to find things that fit. But even if you don't spend much time thinking about fashion, this concerns you.

Clothing is a thorny industry to get your mind around, because it's agriculture, mining, light industry, fun, necessity, and luxury all rolled into one. The fibers that go into a shirt usually begin as something grown in a field, such as cotton, or something extracted from the earth, such as polyester. They must be processed at mills to make thread, then fabric; they are dyed along the way, using petrochemicals, and are treated with other substances. The cut fabric is pieced together at sewing machines; trims and buttons, each with their own industrial footprint, make their appearance; and the final product may be treated again to give it a certain texture or quality. There's a lot going on here.

One angle on saving ourselves from our clothes comes from economizing in the mills and factories. On this front, one of the most striking efforts has come from Clean by Design, a program run by the Natural Resources Defense Council. Mills in China that make fabrics for brands in the US and elsewhere commit to picking what Linda Greer, senior scientist in the NRDC's health program, calls the "low-hanging fruit" of sustainability.

Dyeing a single ton of fabric can take 200 tons of water and enormous quantities of energy. Mills that join the Clean by Design program commit to insulating pipes; using waste heat to heat water; installing meters to monitor electricity, steam, and water usage; and other measures drawn from a list of ten basic best practices to bring down their impact as well as their operating cost. Many of the improvements have a quick return on investment, usually recouping costs within a year. The changes seem very straightforward and simple, but they're miles ahead of where these mills were before. Out of an estimated 15,000 in China, about 150 mills have gone the Clean by Design process, and an additional 60 or so in Italy have joined as well. Between 2014 and 2017, the project prevented the use of 70 million tons of water and 90,000 tons of coal. Clean By Design is now transitioning from the NRDC to the Sustainable Apparel Coalition, an industry-funded group, in order to accelerate the process of converting mills.

Furthermore, in an effort to create more transparency, the NRDC and the Institute of Public and Environmental Affairs released in January of this year a map where consumers can check the pollution records of suppliers for Gap, Target, New Balance, Esprit, PUMA, and Inditex (the parent company of Zara). Brands provide the identities of their suppliers-factories, mills, and so on-and the map reports the facilities' numbers, collected by automatic sensors, in real time. In practice, the maps are difficult to use and the readouts can be glitchy-but it's a start to bringing in accountability. Greer and colleagues have also begun designing science-based targets for the fashion industry in order to control carbon emissions; she expects to release blueprints this summer.

Another opportunity to save resources comes when the fabric has been made and all the pieces come together. To highlight this, Redress, a Hong Kong NGO focused on reducing waste in fashion, runs an annual competition in which 30 or so emerging designers produce collections using waste from the clothing-making process. Although consumers never see that waste, it can be substantial: the leftover fabric from millions of little black dresses and trendy spring tops grows into mountains of garbage. At the same time, designers learn from industry insiders how to make sustainable design choices-choosing a mill that minimizes its environmental impact, for example, and selecting a fabric that can be recycled when the clothing has reached the end of its life. Designers have control over roughly 80 percent of the environmental impact of clothing manufacturing, says Redress founder Christina Dean, in that they can make decisions that influence a garment's entire lifetime.

Still, efficiency-though important-will not solve the problem of clothing in the garbage. The most efficient and environmentally friendly process, if it runs 24 hours a day making objects that go nearly immediately into the landfill, is not sustainable.

Several years ago, Tasha Lewis, a professor of fiber sciences at Cornell University, found herself in Haiti surrounded by first-world cast-offs. Some were donations that came in as aid, while others came in through the extensive second-hand-clothes market-whereby the discards of the developed world are shipped hundreds or thousands of miles to be sold in the developing world. Increasingly, these used clothes cannot find even a second-hand market, thanks to differing tastes or poor quality. The energy that goes into making finished garments is so significant, however, that even if they avoid the landfill by becoming rags, it's a wasted opportunity. And so Lewis, her students, and the founders of a Toronto clothing start-up called Local Buttons picked through those cast-offs, sifting out the climatically inappropriate wool suits and the sizes and styles unlikely to sell in Haiti-and made new clothes out of them.

As they worked, using software to snapshot the pieces of old garments and then carefully designing new bodices, skirt panels, and other items out of that footprint, they discovered numerous signs of the manufacturers' lack of foresight about a garment's life cycle. For instance, Lewis had hoped to avoid having to take apart every single seam by hand, instead using a solvent to dissolve the threads efficiently. But the threads are often blended-meaning they include both polyester and cotton. "So we can't make a solvent to dissolve the thread and not destroy the garment," Lewis says. Designing clothes so they are easy to take apart and reassemble isn't on the industry's radar screen.

Nor is recycling much on people's minds yet, though there are rumbles of change. Five years ago, H&M began to accept returns of used clothing, which are recycled at a plant in Wolfen, Germany, owned by a company called I:CO. On average, 14 tons a day arrive at the plant and are sorted both by machine and by hand. Some clothes are sent for resale, potentially to the developing world; others are broken down into their component fibers to be used again. This is not quite the panacea it might seem, again because of that foresight issue: while 100 percent polyester garments are relatively easy to render back into reusable material, cotton-polyester blends currently are essentially unrecyclable-the Styrofoam of the clothing world-since the fibers cannot be separated from each other. Cotton fibers on their own are fairly easily recycled, as they can be turned into new denim, much as recycled paper can become new paper. But even then, they must be mixed with new, virgin-cotton fiber to be usable because after recycling, the fibers are much shorter. H&M's line of jeans made from recycled cotton consists of 20 percent recycled, 80 percent virgin material. (A representative of H&M did not respond with a number when asked what percentage of the clothing sold each year was collected for recycling and re-use. "In general, 36 percent of all the products in H&M's assortment are made of more sustainable or recycled materials," she wrote instead.)

Lewis wonders how different things would be if a company had a legal responsibility to plan for the end of its product's lifetime. "If you had to take it back, how would you design it?" she asks.

Turning away from virgin fibers altogether, or at least finding a source for them that doesn't involve such immense squandering of natural resources, might be accelerated if companies bore that responsibility. There are glimmerings of solutions to this problem in laboratories, from finding ways to recycle cotton-poly blends-a focus of the UK-based company Worn Again, which is working with H&M-to developing alternate sources of starting material. "The lab invention needs to scale up," says Dean, "so we can just keep churning the same fabric through, which we can do with polyester."

Lewis recounts a recent trip to New York, where she met scientists working on fibers spun from food waste. Even though such projects are in the comparatively early stages of development, many have moved past the whimsical phase of stunts and art projects. One company in the San Francisco Bay Area, Mango Materials, has been working for eight years on commercializing a process in which bacteria convert methane into a biodegradable plastic; last summer, the company found a way to spin the substance into polyester-like fibers that can be used in clothes.

These methane-munching bacteria, which naturally make a plastic polymer to use in their own cell walls, are given methane that otherwise would be considered waste. One of the company's current methane providers is a Bay Area wastewater-treatment facility, says company founder Molly Morse. Although Mango Materials has focused mainly on using the plastic they extract from the bacteria for making biodegradable packaging-the polymers will break down when exposed to heat, acid, or soil bacteria-Morse says that from the beginning, the interest from textile companies has been intense. When the company happened on a method for generating fibers and brought it to clothing makers, it was met with great excitement. Such clothes could degrade naturally in a landfill but could also be recycled to produce new fibers. Morse hopes that within the next year or two, a small number of garments made this way will be released, to gauge the public's response.

But these solutions are still coming up to scale. Turning back to the question of whether this is enough, the answer is still no. If we're going to save ourselves, the problem of volume-the sheer, immense, improbable volume of clothes pouring out of factories every single day of every single year-needs to be met head-on.

"The solution right now that the industry really doesn't want to talk about is reducing consumption," Dean says. "And consumers don't really want to talk about it."

Kate Fletcher, a professor of sustainability, fashion, and design at the University of the Arts in London, posted a manifesto of sorts on her blog last fall. In it, she spoke against the idea that simply consuming smarter, rather than consuming radically less, could ever be the solution to the problem of fashion. "There have been some really impressive gains in terms of efficiency delivery within the sector over the last decade," she said on the phone recently. "I would say, hand on heart, that every single garment produced now is better in pure resource-efficiency terms today than it was a decade ago." But the volume, she says, is "outstripping any benefits" gained from improvements in efficiency.

"Essentially," says Fletcher, "everything is getting worse, not better." Measures to rein in waste are useful, she says, "but all they are is a transitional strategy while we figure out what is the better thing to do."

Even if companies don't want to slow down-if there is nothing forcing them to slow down-we as consumers must. To start with, on the most basic level, we must stop throwing away clothes, churning through disposable dresses and pants that are worn only once. And that's hard to do if we don't-let's be honest-particularly care about them.

"As we've consumed so much," reflects Dean, "we've lost the emotional attachment of clothes. And from a sustainability perspective, that's what people want to bring back."

Historically, I have a bad relationship with clothes. After many years in New York City, Switzerland, and other bastions of the well dressed, I moved to China, to a city at the pulsing heart of the world's textile industry. When I began frequenting a street-market stall-where I dug through enormous heaps of ludicrously ugly garments while the proprietress, a thin woman from Sichuan Province, hollered, "You're too fat! They're all too small for you!"-it didn't really feel like much of a departure from normal. If anything, it was refreshingly honest. The shop where I tried on those laughable excuses for shoes years ago, when fast fashion was younger and more innocent, didn't have the guts to say what was on its mind. It was hard to imagine love entering into the picture.

Elizabeth Cline feels, however, that when done right, owning clothes does involve a great deal of emotion. "What does it mean to create a functioning wardrobe you can get a lot of use out of?" she asks. This is a vastly important question for the future of sustainable fashion. Rather than focusing solely on buying clothes made ethically or with less waste, we should focus on transforming what we have into things that we actually want to wear for years into the future.

Repairing clothes that develop holes or lose buttons is a simple first step to take. Numerous studies have found that even very simple mending skills have fallen out of practice, and that many people today could not sew on a button or darn a sock. These skills are worth learning, not just because it's satisfying to bring a beloved sweater back out of retirement, but because they can increase the number of times clothing is worn before being discarded. Presently, many items are worn only seven to ten times before being tossed, and the average person keeps clothing for half as long as they did 15 years ago. Companies such as Patagonia, who ask you to have a jacket repaired for free rather than throwing it away, are on the right track, says Cline. Even if only a portion of our belongings gets this treatment, from professionals or from ourselves, it would make a difference.

For people who truly love fashion, joining a rental service-Rent the Runway and Le Tote are two well-known options-that mails you things fitted to your taste and that you send back when you're through, can be a way to keep the thrill of the new. And of course, shopping at second-hand stores is an important part of the solution. (There are even subscription boxes filled with stylist-selected secondhand clothes, such as thredUP Goody Boxes.) Cline says that in the years since she wrote her book, she's stopped buying new clothes entirely. "I watched a global sustainable fashion movement emerge since the book came out," she says. "I think that we can trust consumers to care about the fashion issue. People in their everyday lives do have a lot of power."

Along those lines, getting a garment custom-made sounds like insanity to most of us, the kind of conspicuous consumption that's totally out of reach. But many of us, though not all, do in fact shell out for high-end or hand-made products: a top-of-the-line laptop, local eggs, a good mattress. Why not, in light of the devastation wreaked by heedless production of a sub-par product, clothes? The idea is to build a garment that fits you like a glove and that you purchase instead of impulse-buying ten lesser ones. Cline says that if a new custom garment seems improbable right now, consider asking a local seamstress or tailor how much it would cost to alter a find from a thrift store so that it fits you well. It may be surprisingly inexpensive.

Reining in consumption by buying better quality and keeping it for longer can cost more money upfront. But unlike buying organic food, say, it is within the reach of almost anyone with a mind for a good deal and the patience to repair. Organic milk will be consumed just as quickly as conventional milk, but it's not an option for everyone: many budgets cannot accommodate a more expensive product that lasts exactly as long as a cheaper one. Clothes, however, last a very, very, long time, even though many people forget that. If you a buy good-quality wool skirt at a thrift store for five dollars, you could pass it on to your granddaughter.

Doing clothes right takes planning, some resources, and some ingenuity, and it isn't always simple. Still, it can be worth it. After two years of making do with the handful of clothes I'd brought from the US-ironically, many of them made in China or Bangladesh-I had run out of options. I did mend things. But holes opened up next to them as the cheap fabric unraveled. It was stupid: I needed to look like a reasonable human being, and my clothes-to which I had always paid little or no attention-were getting in the way.

Riding a wave of irritation, I went into the fabric market across the street from my home. I found a stall selling a striking brocade unlike anything I had ever seen, a rich blue woven with a scene of mountains above a lake. I bought three meters of it. I took it to a woman who made me first a dress, then a coat. It was more affordable than it would have been in the US, but still more than I had ever spent on any item of clothing before. And it wasn't nearly as easy as buying something off the rack. There were arguments with the tailor, a last-minute restructuring of the coat collar, time ticking away.

But the coat! I described it to Cline: how for the first time in my life, a coat fit my shoulders as well as my waist. It also-and this was something that shocked me-covered my wrists. I had gotten so used to half-exposed wrists and to thinking of myself as someone who crept around in a shapeless down sack, that wearing this new thing was a revelation. I can throw it on with no preparation and look not just reasonable, but actually good. It feels like something I could keep for a long, long time.

There was a pause on the other end of the line. "So you do love clothes," she said, and a smile crept into her voice. "That's the lesson of the story."

_______________________

Veronique Greenwood's work has appeared in the Atlantic, the New York Times Magazine, Scientific American, and Discover.

Cover image: ©fStop Images GmbH/Alamy

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is the Holy Grail of sustainable fashion. So how close are we? A funny thing started to happen about 15 years ago. Maybe you noticed it only when you went to take a new shirt out of its maiden voyage in the washer and discovered the hem had unraveled.

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Sustainability

"The circular fashion movement and the uptick in resale are fuelled, at least in part, by the desire for more sustainability and consumer mindfulness

70% of the average woman’s wardrobe goes unworn, and the average clothing item gets five wears before it is discarded"

(Stone, 2018)

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff.

Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years. Not only that, but as the fashion world moves toward a more sustainable model and Millennials' spending preferences force brands to be more accountable, thrifting is making the transition from being something a few outliers did to save money to being positioned as, wait for it... the next big fashion trend.

Yeah. There are some interesting things going on here. So, strap in.

The Verticals We're Covering

In general, reports about the resale industry will exclude pawn shops because they make their money on loan interest paid) and stores that sell used vehicles, boats, trailers, and mobile homes. Some reports exclude online resalers from their data. But for THIS two-part series, I want to focus specifically on the online and offline fashion resale industry (including accessories).

Still, it's worth noting that the resale of furniture and books are top performers as well. In fact, used furniture is one of the fastest-growing segments in the resale industry.

Let's start with some big takeaways.

Recommerce as an industry is expected to double in size over the next 5 years.

Frugal, value-conscious Millennials are actively erasing the stigma formerly associated with resale.

Resale enables consumers to upgrade the quality of their wardrobe for the same amount of money they would pay for fast fashion and off-priced / closeout apparel.

The circular fashion movement and the uptick in resale are fueled, at least in part, by the desire for more sustainability and consumer mindfulness .

Market Size/ Growth

Let's start with the big one - does this category make money? The answer is a resounding, "Uhhhh... Yeah."

According to First Research , there are around 20,000 used merchandise stores generating $17.5 billion in annual sales in communities across the U.S.

Here's where things get exciting - ThredUP reports the online and offline resale industry is worth $20 billion, and expected to double in size to $41 billion by 2022, fueled in large part by the younger shoppers who have taken up the habit of thrifting. Resale apparel represents 49 percent of that number.

Source: ThredUP 2018 Fashion Resale Report

And there are now more physical thrift shops than ever before. According to Ibis World, the geographical spread of thrift stores mirrors the spread of the population. So, for the 25.7 percent of the population living in the Southeast region of the U.S., they are living in a region that accounts for 27.8 percent of resale industry establishments

There are also more thrifters than ever before. Post-Great Recession, resale revenue increased more than (from 2008 to 2016). Coincident with that increase, department store sales declined by about 25 percent.

Whether the economy is up or down, resale store sales are consistently increasing, and the growing popularity of online resale marketplaces such as ThredUP, Poshmark, The RealReal, and Depop is enabling resale to grow more than 20 times faster than retail. 20 times!

Source: ThredUP's 2018 Fashion Resale Report 2018
Younger thrifters are redirecting their apparel spending from off-price stores like TJ Maxx and Burlington to thrift stores. ThredUP's 2016 Fashion Resale Report said 87 percent of thrifters had redirected a portion of their spending from off-price retailers the ones I mentioned to online and offline resale shops.

According to America's Research Group, 16 - 18 percent of Americans will shop at a thrift store during a given year. To put this in perspective, 12 - 15 percent will shop at consignment resale shops, 11.4 percent will shop in a factory outlet mall, 19.6 percent will hit the regular apparel stores, and 21.3 percent will shop at a major department store.

Don't expect to see any signs of slowing down, either. In the five-year period from 2017 to 2022, retail apparel is expected to experience annual growth of two percent, growing from $360 billion to $400 billion. On the flip side, the resale apparel is expected to grow from $20 billion to $41 billion, at a rate of 15 percent annually.

According to ThredUP, one in three women shopped secondhand last year. ThredUP also points out that 70 percent of its first-time customers are also first-time resale shoppers, which means the resale sector is consistently producing new customers, online and offline.

In 2012, of the items in a thrifter's closet were secondhand. By 2017, nearly 25 percent of the items in a thrifter's closet were secondhand. By 2022, that number could reach as high as 40 percent.

The Resale Game is Changing

Back in high school, I shopped resale stores in the Detroit area a couple times a month. My mom was a thrifter - books. That was her thing. She didn't wear jewelry. She shopped at Sears for her old school mom wardrobe. She bought all our furniture new with warranties, fancy protection plans and a literal briefcase packed with polishes, sprays and other potions to keep everything looking and smelling new. The only thing she ever bought from thrift stores was books. And lots of them.

I, on the other hand, had a thing for men's sportcoats and ties. Oh, and turquoise jewelry. I wouldn't dare buy my shoes resale back then with my grandpa's dark tales of athlete's foot so fresh in my mind. But I had more men's bell bottom jeans and sport coats than any urban girl could want (or not want... my friends thought I was peculiar). And vinyl records. I supplemented my record collection with used vinyl. Heck, in college during a trip to France to study architecture and art, I skipped Euro Disney to make a solo trek to the Louvre and make my return visit to a funky used record shop I spotted on a long walk on a cold, rainy day through the Marais District.

But that was then... when resale shops were limited to Salvation Army stores and dingy, church-run storefronts that were never that great about being open and operational during posted business hours.

Today, resale shops are looking more and more like the typical business - open daily during post business hours, extended holiday hours, sales and closeouts, plus special discounts for card holders, veterans and seniors...

My friend, the resale game is changing. So, let's talk about how we got here

On the heels of the Great Recession, low per capita disposable income sent discretionary spending to a grinding halt. Consumers who had become accustomed to shopping in department stores started looking for other ways to get the quality they wanted at a price that wouldn't break the budget, and shopping resale fit the bill.

When the recession first hit ten years ago, the youngest Millennials were in junior high school, likely watching their parents scramble to find a plan b that would help them recover financially. Their parents may have been among the one in ten Americans who were suddenly unemployed. There were fewer jobs then.

If they were older Millennials, those in their late 20s when the Great Recession hit, they may have lived in or around a neighborhood in which of their neighbors had homes that were suddenly worth less than what they owed on the house. Millennials learned a valuable lesson then, as did we all - it benefits us to be smart about our spending, and shopping for quality is usually the wiser choice.

Sustainability is big on the list of things Millennials are looking for from the products they buy and the brands they support, and sustainability has become a HUGE deal in the fashion world.

The circular economy - and specifically circular fashion - is a movement that is growing in popularity and practice. Based on the framework of the Ellen MacArthur Foundation, Dr. Anna Brismar defines circular fashion as:

Clothes, shoes or accessories that are designed, sourced, produced and provided with the intention to be used and circulate responsibly and effectively in society for as long as possible in their most valuable form, and hereafter return safely to the biosphere when no longer of human use.

The Make Fashion Circular Initiative, spearheaded by Burberry, Gap Inc, H&M, Nike, Stella McCartney and HSBC, is a call-to-arms of sorts for the fashion industry to design with sustainability in mind. The fashion industry ranks in the top five of the most polluting industries today. Inexpensive, trendy clothing makes it easy for people to throw out clothing items when they're done wearing them. Often clothes are tossed long before they wear out.

According to ThredUP, 70 percent of the average woman's wardrobe goes unworn, and the average clothing item gets five wears before it's discarded. In the United States, we ditch the equivalent of 80 pounds of clothing every year per woman, man and child. Only about 20 percent of used clothing gets sold secondhand.

Since the news came out in July of this year, Burberry has been working nonstop to make sure the public knows the company has since stopped the practice of burning merchandise and will, in partnership with Make Fashion Circular Initiative, work toward increasing efforts to reuse, recycle, donate and repair unsold merchandise.

A Short History Lesson on the Second Hand Industry By the middle of the 20th Century, Clothing manufacturers were producing clothes faster, pushing out new lines more frequently and driving down the price of clothing. The result - clothing became disposable. Whereas earlier generations would repurpose worn-out clothing for their kids or use it to make pillows or stuff furniture, mass-produced clothing items were cheap enough to be thrown away. Perfect timing, too. America's middle class was rapidly growing. No longer was it the haves and the have-nots, it was the more-than-enoughs, just-enoughs, and the not-enoughs. This created an opportunity for what author and historian Secondhand items were passed down between family members, community members and even from an employer to domestic employee. Churches started food pantries and "community closets" to provide for those in need, which is how the second hand industry originally earned a reputation for being for poor people. calls an alternative economy. clothing was being mass-produced and sold in department stores. President Roosevelt standardized women's clothing measurements to sort of help things along, and clothes - though mass produced - were made with inexpensive fabrics and put together with wide seams, making it possible for people to alter their own clothes at home if they fit a little too snugly or loosely.

Thrifting hasn't gone mainstream. It's been pushed into the spotlight. So, if thrifting isn't just for lower income people anymore, who is it for? Let's get into the nitty gritty of the demographics

Boomers were the first generation to truly take advantage of being middle class. So, buying or accepting hand-me-downs were often seen as a sign of financial hardship. For Boomers as a whole, about one in four shop resale.

Gen Xers were a rebellious lot, in part because many of them grew up middle class latchkey kids. They came of age at a time when jobs started going overseas. Enter Grunge, vintage fashions, Goth and a few other trends that dove head-first into hand-me-down culture.

Think Austin Powers, Beck, the popularity of college radio and everything that ever came out of Seattle during the 1990s. Today, Gen Xers and Boomers are neck and neck with their resale purchases. According to ThredUP, 25 percent of Gen Xers are resale shoppers.

Millennials watched the world come to an end, like three times. The first was during the market crash in 2000. The second was during the September 11th attacks in 2001. The third, was the second market crash in 2008. Community-minded Millennials have more access to opportunities than the previous two generations. The catch is they have fewer opportunities.

So, they place value on budgeting their resources. Millennials introduced the world to the sharing economy. Whereas Boomers and Gen Xers see owning a car or a home as a signal of successful adulting, Millennials aren't as beholden to the idea that those two possessions in particular are symbols of success.

They pinch pennies on the less important things to spend with a little more freedom on what they value most. For many Millennials, experiences (which translate very well on social media) trump physical possessions. Sixty-five percent of resale shoppers say they spend their secondhand savings on experiences with their friends and families.

That said, it makes sense that Millennials are the most likely generation to shop resale, with 30 percent of Millennials in search of that sweet spot where quality intersects price.

Gen Zers had the good fortune of growing up with protective, disenfranchised Gen X parents, and watching what the economy did to Millennial siblings. They're a practical bunch with a well-honed ability to see through bullsh*t. They aren't so much disloyal to brands as they are unimpressed by brands. And they, too, value quality, wherever they can find it.

According to CNBC, of 14 to 19 year-olds have used online resale platforms for clothes and furniture. It's pretty much an even spread between resalers and specialty retailers.

Surprise! Millionaires are on the list. According to ThredUP, 13 percent of the most active resale shoppers (defined by ThredUP as those who spent $10K or more on used items in the last two years) are millionaires. That makes sense, right? Millionaires - especially self-made millionaires - find ways to reduce their consumption costs while increasing their revenue

Across demographics, shopping resale is growing. Thrifting gives shoppers the chance to stay on top of trends and more frequently update their wardrobes for a fraction of the cost it would normally take to do so.

Plato's Closet has been around forever, it seems. What you may not know is it is one of five resale franchises licensed by Winmark, the largest player in the thrift, resale and consignment market.

According to its website, Winmark generated $1 billion in revenue and recycled 140 million items in 2017 in 1200 stores across the country. In addition to Plato's Closet, popular franchises also include Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round.

In the nonprofit area, Goodwill and Salvation Army are the biggest retailers of used items in the United States. Both organizations have systems in place for sorting, testing and selling donated items in physical retail locations.

In Europe, Oxfam is a network of 20 independent charitable organizations with stores in Belgium, France, Great Britain, Ireland, Spain and Germany, as well as stores in Australia and New Zealand.

In the burgeoning online space, ThredUP, The RealReal, Poshmark, Rebagg, Depop, Tradesy, Grailed, and Vestiaire Collective are among the most well-trafficked resale websites. I'm intentionally leaving out vast global marketplaces like eBay and Amazon to focus instead of these newer, more niched-down platforms.

The Big Wrap-Up: Thrifting Isn't Just for Lower Income People and Grandmas Anymore.

Recommerce is fast-becoming a major sector in retail apparel and set to double in size over the next three years. In fact, it's one of the smartest, easiest and trendiest ways to upgrade your wardrobe without having to increase your income.

As the fashion industry moves more toward becoming circular, buying second hand and finding creative ways to lengthen the life cycle of every piece of clothing will become the norm, which means there will be more and more [not the mention greater and greater] opportunities for legacy brands to partner with resalers... and potentially fulfill the prediction that resale is the new fast fashion.

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The Rise of Recommerce and Online Resale Sites - The Shelf

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One retail category we've been watching closely over the last 12 to 18 months is resale. Resale includes secondhand stores, consignment shops, vintage boutiques, thrift shops, and resale websites for previously loved stuff. Offline and online, recommerce (that's what the data geeks are calling it) has outperformed the overall retail industry for the last six years.

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COVID-19

"The current pandemic has revealed the need for new paradigms to assess the health of large populations in real-time

What if you had a way to access your vital signs on a continuous basis?

Could subtle, imperceptibly small changes become early warning signs for the health issues of an individual?

What if you could correlate in space and time these changes for a large population, and do so in real time, to identify the spread of disease?

Fabrics become sophisticated platforms for value-added services catering to a large population"

(Chandler, 2020)

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In an opinion piece published in the journal Matter, members of the Fibers@MIT research group recently laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, "smart clothing" might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions. Headed by Professor Yoel Fink, the group is developing fibers and fabrics with advanced computational properties. MIT News asked PhD student Gabriel Loke, who was the article's lead author, along with Fink and six others, to elaborate on the team's outlook.

Q: The paper you just published describes a vision for a fabric computer. Could such computers help to address a pandemic situation like the one we confront now?

A: The current pandemic has revealed the need for new paradigms to assess the health of large populations in real-time. Current approaches of symptom-driven tests are lagging indicators, and can be likened to driving just with your rear-view mirror, as far as the spread of Covid-19 is concerned. So how do we create systems that are predictive, forward-looking and can deliver leading indicators? What if you had a way to access your vital signs on a continuous basis? Could subtle, imperceptibly small changes become early warning signs for the health issues of an individual? What if you could correlate in space and time these changes for a large population, and do so in real time, to identify the spread of disease?

No human-made objects are more ubiquitous or exposed to more vital data than the clothes we all wear. Wouldn't it be great if we could somhow teach our fabrics to sense, store, analyze, extract, and communicate this potentially useful information?

In this piece, I describe the four principles for this new computer. First, the capabilities of a single strand of fiber will advance rapidly over time through new material designs and scalable fiber fabrication approaches. The second step is the synergistic assembly of these fibers into a fabric uniquely positioned to capture, store, and process vast amounts of data released by our bodies. The third is the development of artificially intelligent fabrics, where specially architected machine-learning algorithms programmed into the fabrics could uncover and gain new insights into hidden bodily patterns. Fourth, fabrics become sophisticated platforms for value-added services catering to a large population.

Q: You describe a potential "Moore's Law," which originally described a doubling of computing capacity every 18 months, for the development of computational fabrics. Could you describe what you mean by that?

A: For a Moore's Law for fibers to emerge, fibers have to be made up of multiple materials, precisely arranged within a single fiber cross-section to produce devices of varying functionalities including computation. The field of multimaterial fibers is young, relative to that of thin-film technology for microchip devices. But what we are seeing now in papers and research is a large growth in the number of functions that a fiber can exhibit.

For example, in the past few years, the fabrication method called thermal fiber drawing has resulted in a variety of material combinations and functions including heart-rate monitoring and optical communication. With a Moore's Law for fibers, we imagine a future where computational fabrics will be consistently updated with new functions and capabilities, similar to how we are always updating software in our computers.

Q: You've laid out a long-term vision and blueprint for the future of computational fabrics. What do you see as the most significant near-term steps in that direction that we can expect to see in the next few years?

A: The most important thing is to make sure that people, in particular students, realize what is happening in fabrics and how capable they will soon become. In our group, a host of students from different disciplines are working on creating fabric computers as we speak. Similar to the personal computer evolution, there are vast opportunities for new companies and innovation in this space. I anticipate fibers entering the digital domain and the introduction of fiber input and output. Modern computers are made up of millions of logic gates, so incorporating digital circuits and gates into a fiber represents the first of many steps toward achieving full computing capabilities in fibers and fabrics.

Second, for the realization of a fabric computer, the significant near-term step will be the development of fabric architectures that allow fibers to communicate with each other while retaining the conventional qualities of fabrics.

Finally, to enable fabrics with artificial intelligence capabilities, training useful networks for accurate predictions requires large data sets. This requires the collection of large amounts of data from our body. It is then necessary for sensors in fabrics to be as seamless and resistant as possible so that these sensors can be worn for prolonged durations. Work on these fronts such as improving the flexibility, washability, and power requirements of fiber sensors will bring us a step ahead into the pervasive sampling of human body data.

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3 Questions: The rapidly unfolding future of smart fabrics

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An MIT team has laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, smart clothing might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions.

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"The growth will happen exponentially with the critical shift to smarter solutions already in the nearest years"

(Hassonjee and Maxey, 2019)

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7 minute read

Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents. How and who can make it possible? Focusingfuture.com interviewed two experts, home textile digitizer Qaizar Hasonjee and apparel innovator Madison Maxey, who create our future of smart textiles.

Why reinvent textiles? Both experts highlight that fabric is the substance that has always been around people since the times of dawn. Moreover, in the digitalized today, textiles lack of modern functionalities. It is time to give a natural extension to the interior and apparel fabrics to provide people with more than style and protection.

You are in the center of the textile innovation hub. Can you share your vision of the future with new technologies?
Qaizar Hassonjee:
First of all, the biggest change is that smart textiles will become a new medium of communication to a tool of social media like Facebook or Twitter. The second way is how smart textiles will supply us with an additional benefit in the form of safety by data provision. As we will never abandon textiles, the fabric becomes the best medium to integrate the technology. Changing the color, apparel can notify if user has a heart attack, for example. The continuum of smart textile to get commercial has already begun. It is a very steady evolution of research, development, commercialization of digital fabrics. The growth will happen exponentially with the critical shift to smarter solutions already in the nearest years.
Madison Maxey:
We are looking for a way to make textiles human intelligent. It will enable a constant feedback for differentinteractions that we have with objects and a new way of distributed computing. At the moment, all of thecomputing functions live on computers or phones but they could eventually be ambient everywhere. Smarttextiles will enable the future where digital has no screens. I am really curious to see how this future wouldlook like. Especially, as people we know are working towards making our living better.

Qaizar, you mentioned that smart textiles will enhance our communication. What is the role of smart textiles in human Interaction and in the interior?

By looking at the possibility of textiles being more than just fabric to cover ourselves, we will get a new perspective, a broad scale of functionalities textiles can give us. For example, by providing more information about other people, the environment and ourselves. What is more, we can transform textiles to entertain and even educate people. The challenge is to determine how much do we want to express ourselves with textiles: is it our mood, health condition, bank information or else?

We have an opportunity to grant textiles additional functions by integrating technology into the fabric we are sitting on - chairs and sofas, walking on - carpets and rugs, surrounding ourselves - drabs and curtains in the rooms, bedding sheets, towels, etc. Smart textiles will generate an enormous amount of data enriching analytics and insights and helping human to make sustainable decisions. Digitalizing textiles can provide us with better tech coverage. There are places where you have a carpet, but you don't have a camera. We are going to transform the textiles that are already in use and make new products out of smart fabric that has not been thought ever before.

In SpinTales, we have launched the smart textiles that entertain and educate children. It is an interactive smart home textile, that with the help of tablet or phone, transforms regular carpet or duvet to augmented storytelling. This is one of the examples how future of smart textiles can look like. And more exciting augmentations are yet to come.

Maddy, your specialty is smart apparel. What is the future of fashion and clothes overall?

I do not separate the fashion from apparel. In my opinion, the most important is that combination of smart textiles and fashion enable creativity. Every person in this world purchases textiles. I wish to create a highly functional apparel which will perform a shift from a commodity attitude to clothing for its color and pattern to a well-engineered product that one buys for its capabilities.

At the moment we, at Loomia, are working towards revolution shifting textiles to a service-based industry. Loomia has grown from Crated, which was working on one-time projects integrating technology in apparel. There is a large market potential for creating actual smart textiles that enable the smart future. There are a lot of highly functional textiles in the industrial and space industries, and now it is time to bring intelligence to any textile that is surrounding us. The result of all those efforts is creating a screenless world with the latest tech possibilities so people can spend more time living and enjoying their life instead of operating through the screens.

Will the design of interior textiles and apparel change? If yes, how?
Qaizar Hassonjee:
We can see the focus on design, appearance, and comfort of wearable technologies. At the beginning of wearables' development, functionality had a high importance level. Now, it all comes to design and customer experience without compromising on functionality. From clothes standpoint, I think it will always be gender specific fro both male and female fashion. However, when talking about other textiles like home and interior, it is less gender specific while more theme oriented. Interior textiles are not be necessarily used by one person; they are shared commodity. Depending on the situation, the textile might seamlessly change adapting to the need of the particular user.
Madison Maxey:
I would hope that at some point there is enough customization that you can get a product that works well for any biological shape and size. I find issues with things like Oculus Rift making women noxious because of men and women sense distance to objects in a different way. For example, in my work, I also think about people with tattoos. I want to be sure that my products work for a wide variety of people and are suitable for all skin types. The future products have to be gender binary, fitting both genders and those who do not resemble any sex. It is my hope that intelligent wear will serve everyone representing a large scale of people.

It seems like textiles will gather a lot of valuable and private data. What is your take on the future of privacy?
Qaizar Hassonjee:
To begin with, we have to understand that monitoring combined with smart management can prevent a catastrophic event. This is when customers give away some pieces of privacy for safer and more controllable future. People already openly share their thoughts and feelings on the Internet as they believe it gives some value back. It is a form of social exchange. I would expect the same mechanism will happen with smart fabrics. As long as sharing of personal data is providing a value back, the exchange is justified.

Madison Maxey:

There are certain risks that we as consumers take on with any product. At times, the risk, like privacy, is worth the trade off. The system works that way: if you want to get better and more personalized solutions, you have to share your data. At the same time, there are well-reputed groups like Veritas putting a lot of thoughts on data privacy and protection. Certainly, it's essential to have new regulations for the industry. Also, we need to raise customers' awareness about the trade-off for the products that serve you better.

About our experts:

Qaizar Hassonjee is a pioneer in Smart Textiles leading into Wearables and Internet of Things with 20 years experience. Qaizar is a co-founder of Textronics Inc, which is an electro-textile technology company originated from DuPont's textile fiber research effort and acquired by Adidas. He was the first to launched Heart Rate Monitoring Sports Bra in 2005. Today, Qaizar brings technology to the home and interior textiles at TILT through the children entertainment system Spintales.

Madison Maxey is a smart apparel and wearables innovator who is delivering high-tech apparel solutions for the biggest apparel brands. Maddy is a member of Forbes 30Under30 and the first fashion designer to win a $100000 Thiel fellowship. Today, she fabricates smart future at her company Loomia (previously The Crated) enabling enhanced screenless future for everyone.

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Future of smart fabrics: apparel and home textiles - Focusing Future

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7 minute read Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents.

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"Contributing to an enhanced design palette and a range of new commercial opportunities

Sharp rise suggests fibre innovation is moving decisively from the margins to the mainstream

The global smart-textile market is expected to grow from the current $93 billion to $475 billion by 2025

The pace of adoption of these innovative technologies over the next 30 years is heavily dependent on market factors, regulation and consumer acceptance

We expect more partnerships between large brands and start-ups, deeper research, and increasing commercialisation"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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"In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods

Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure"

(ApexMills, 2019)

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Looking for a custom Smart Textile Solution? Use our custom solutions form here!
Or contact our team now and we'll be happy to answer any questions you have!

Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties. But what if the clothing you wore could monitor your heart rate and transmit medical alerts to your doctor? Or if the bandages you affix to your skin didn't just cover a wound but dispensed healing medication. Perhaps a construction worker would be interested in wearing a hard hat that can provide a warning about carbon monoxide poisoning based on fluids from the skin. That's where smart textiles come in.

Smart textiles - also referred to as functional fabrics and e-textiles - are changing the way we think about the role of fabrics for industrial purposes and everyday use. With new technological advancements, we're moving closer to a future where fabrics are functional, beautiful and responsive.

What Are Smart Textiles?

Since smart fabrics are a newer technology, many people aren't aware of their potential. Smart textiles provide an added benefit to the user beyond the typical value of the fabric. They respond and adapt to their environment.

Fabrics are a combination of fibers and polymers, natural and man-made, that are constructed through a variety of techniques, the most popular being knitted or woven. Each blend of fabric serves a different purpose, individualized for a particular climate or function. But since fabric is the foundation for so many products and more, it makes sense to see how its utility can be expanded.

Take temperature, for instance - cotton and linen clothing are perfect for hot environments, as they are breathable and light. However, the allowance for airflow that keeps you cool creates a problem in colder temperatures. Going back and forth from hot to cold areas can be a nuisance when choosing what clothing to wear.

Functional textiles change that. They can adapt based on design structure or external stimuli. Imagine a fabric that can respond to a temperature change and keep you comfortable, much like your skin. And, along with adopting new capabilities, smart fabrics create a more sustainable culture. With the ability to transform, less product is needed which produces less waste.

What Makes Functional Textiles, Smart?

The evolution of technical textiles takes cues from the electronics and photonics industries. The integration of sensor arrays and plastic optical fiber (POF) creates an extension of functional fabrics commonly known as smart textiles.

At its core, technical textile manufacturing is a vast landscape of advanced yarn systems combined with textile formation techniques. The completed construction can be further transformed through lamination, coatings and composite methods.

Depending on their use, smart fabrics are created by fusing together fibers and technology. These fibers include conductive yarns and polymers, shape memory polymers, encapsulated phase change materials, fiber optics, and other small electronics. They may also use external additions, such as:

These materials interact with one another along with an external stimuli - such as temperature, light or pressure - creating a transfer of energy. Once activated, the functional fabric responds depending upon the textile's function.

What Are Smart Textiles Used For?

Smart textiles generally belong to one of two main categories:

Aesthetic: Smart fabric has been breaking out in the fashion industry. Aesthetic smart textiles can light up and change color, have an interactive element or shift with their environment. Fashion designers have already picked up on the new technology, creating entire lines out of smart materials. This category also encompasses decor and design elements.

Performance enhancement: With a focus on function over fashion, performance-enhancing smart fabrics provide the user with a unique experience, dependent on their purpose. This includes body temperature regulation, reducing wind and water resistance, guarding against radiation, minimizing the effects of space travel and even controlling the vibration of muscles.

Both categories of smart fabric serve their own purposes and work to solve current issues with industrial and fashionable materials.

What Industries Employ Smart Fabrics?

Smart fabric can be used in any industry. We have seen heightened use in these industries:

Technology as a Smart Fabric Solution

Smart fabrics solve common issues in many industries. Body temperature regulation is crucial in law enforcement, military, and athletic professions, among others. Rather than relying on layers and worrying about breathability, smart fabric can adapt to temperature shifts fluidly.

Within the medical field, developers are working on textiles that can monitor heart rate, dispense medication, and even transmit immediate notification if the wearer of the textile were to fall.

Currently, researchers at Advanced Functional Fabrics of America (AFFOA) are focusing on four main categories of technology-enabled fibers:

Prior to this new age of development, semiconductors were affixed to fabric, creating the ability to "power-up." But the yarns lacked softness and putting a circuit board/power source onto the fabric decreased its wearability. Today, the industry wants to shrink these diodes to sand-like particles and infuse them into the fiber itself.

As technology continues to advance, smart textiles will become the solution for many more common issues, possibly replacing the bulky hardware objects that currently adorn our home and workplace surfaces. The versatility and adaptability of e-textiles allow for a wide range of soft, flexible applications. With durable designs and innovative yarns, these products can stand the test of time.

Integration in the Military

Soldiers dress in thick layers and haul about 110 pounds of tactical gear. Not only does it take a lot of effort to carry, but it also poses a need for portable power sources. Batteries are carried, along with their gear, and disposed of quickly. Without ample power, the equipment becomes unusable.

The consortium of companies, academia and the Department of Defense that make up AFFOA have been developing the ability to create wearable power sources for military applications. Batteries are a huge cost, due to how many of them soldiers go through to keep their devices running. The development of power source smart textiles and connectors in body armor and similar fabrics are crucial to creating a system that's both reliable and user-friendly.

This isn't the only application, either. The Canadian military has made use of full-fabric keyboards in its IAV Stryker units, developed to replace the bulky, traditional hardware. They're lighter, easier to transport and have fewer components to break. Applications for smart textiles vary greatly, making them a great solution for many needs.

Greater Usage of Smart Fabrics

Grandview Research projects that the compound annual growth rate for smart fabrics will soar over the next few years. As technology advances, there has been a growing demand for more sophisticated and smarter textile products.

This, coupled with the rapid growth of low-cost smart wireless sensor networks, has been driving the market in North America. The Asia-Pacific region is witnessing increased demand for smart textiles as well, attributing the need to the rapidly developing healthcare and construction industries. On the other hand, the growing market for automobiles in Europe is boosting the smart fabrics growth rate in this region.

This growing demand creates opportunities for manufacturers who may have thought smart fabrics were out of their reach. As people begin to anticipate and demand them, the market will widen.

Decrease in Material Prices Gives Smart Fabrics a Boost

Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components. Cheaper building blocks generally lead to higher demand. Conductive materials are needed for smart fabric manufacturing. Smart fabrics may contain electrical components such as:

Army uniforms in several countries have been made with nanotechnology. Anything that can assist with military efficiency opens new options and will garner lots of attention from government scientists, creating further demand for the material. Some scientists even believe smart fabrics could be used to help military personnel detect chemical weapons and alert wearers to biological threats.

Benefits of Smart Textiles

Creating a world where smart textiles become commonplace can be beneficial in several ways. Sustainability and extending the lifespan of the products we use have been worldwide topics of concern. By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically.

With the ability to serve everyone from fabric consumers to astronauts, smart fabrics are incredibly versatile and customizable. There is a smart fabric solution for every need. Everyone seeks ways to improve their lifestyle, whether it's through their workouts, commutes or their social communication skills. E-textiles are technologically multi-faceted and can help to enhance an individual's lifestyle in so many ways:

While e-textiles are currently expensive and difficult to access, incorporating them into all areas of everyday life will make them more readily available. Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use.
Learn More About Our Textiles
A Recent History of Technological Advances in the Smart Textile Industry

Over the past few years, wearable smart fabrics have gained traction and are becoming more readily available to consumers. Here are a few highlights:

2015: While most of the technological advancements in smart fabric have occurred in scientific spaces, smart fabric started becoming commercially available in stores in 2015. Most of the first releases available centered around athletics and baby care, including big names like Hexoskin and Ralph Lauren's Polo Tech Shirt.

2016: CuteCircuit, a fashion-based brand, launched the groundbreaking SoundShirt. Using embedded haptics, this shirt allowed a deaf person to feel music. 2016 also marked the U.S. Commerce Department's first smart fabric-centered gathering.

2017: Google collaborated with Levi's® to create and release a Bluetooth-enabled jacket, Levi's® Commuter X Jacquard By Google. The project intended to help bicyclists who live in cities, giving them more accessible, hands-free communication on their daily commutes. The Next Generation Jacket was released in September 2019.

2018: At the Winter Olympic Games, hosted in PyeongChang, the entirety of Team USA wore self-heating jackets. Created by a collaboration of Ralph Lauren and several tech companies, these jackets kept athletes from suffering in the frigid temperatures.

2019: Technology brand Loomia releases a winter coat with a textile substrate layered heating system. The system minimizes the bulk of traditionally warm coats and allows for user control of their comfort setting.

Smart fabrics are continually advancing in their capabilities. Some of the latest e-textiles to hit stores include temperature control, integrated payment options, and health tracking features. There have already been major strides in creating wearable technology. Growing intrigue and industrial need will continue the upward trend of smart textiles.

The Future of Smart Textiles

Smart textiles and functional fabrics have been in sight of scientists and designers for years. Only recently have they made their way onto runways and into headlines. And, the more consumers and technologists learn about smart fabrics, the further they push the limits.

As technicians continue to develop these textiles, their capabilities will expand, making them able to function as a sort of second skin. Temperature-regulating fabric is already available, but progression will allow for a more fluid user experience. The fabric will read stimuli and respond to it with a shift in energy.

One of the most significant areas of progression will likely be in the field of health and wellness. Beauty and medicinal companies are looking at ways we can make fabrics that positively affect the wearer's health. This includes the ability to:

Making clothing that resists wear is presently underway, thanks to the innovation of smart fabric. Through continued development, self-healing and repairing fabric may become a reality. Tears, holes and seam rips could become a thing of the past. Clothing may evolve from short-term to lifetime purchases.

In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods. Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure.

Knitting and weaving technologies are setting the standards for e-textile manufacturing, and Apex Mills is helping to pioneer the future.

Yarn is the Next Invention

When considering developing a new yarn for interlacing into textile structures there are a multitude of formation methods to consider; wet emulsion, wet dispersion, vapor deposition, extrusion, wet spinning, dry spinning, electro-spinning, drawing, co-extrusion, covering, twisting, plaiting, and co-mingling, to name a few.

Universities, institutes, and companies are innovating yarn functionality for the next level of performance. Energy and communication are the newest performance characteristics that will be required to enable e-textiles.

Drexel University's Center for Functional Fabric has recently engineered a yarn that will store energy. This textile battery is much lighter and remarkably flexible, enabling it to become part of the fabric structure. Modifying traditional yarn with textile coatings and twisting methods, fibers are converted to a conductive yarn which is then paired through twisting with a stainless-steel yarn. The dual conductor systems work together to collect endless quantities of energy.
Creating technical, smart or functional fabrics is a regular business at Apex Mills. Our custom approach to textile product development begins with customers like you.

Discover Custom Smart Textiles with Apex Mills

At Apex Mills, we believe in creating a smarter world, where bold solutions to everyday problems thrive. Our business operates through one unifying motto - "Problem shared. Problem solved." We create custom fabric solutions for your specific design challenges, working with you as a partner. Each project is carefully evaluated to provide you with the best solution possible. Apex Mills practices Application Driven Design, ensuring we can fulfill your needs.

Every design is created and manufactured in the U.S., with locations in Long Island, New York, and North Carolina. Being an all-American company, we can provide quick and effective services globally. Apex Mills wants to help you find exactly what you're looking for. Partner with us and experience our fast and thorough customer service. Fill out our online questionnaire, and we'll get started creating a personalized warp knit fabric for you.
Looking for a custom Smart Textile Solution? Use our custom solutions form here!

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Smart Textiles: The Future of the Fabric Industry | Apex Mills

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Looking for a custom Smart Textile Solution? Use our custom solutions form here! Or contact our team now and we'll be happy to answer any questions you have! Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties.

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Health & Wellbeing

"In the next decade, the smart clothes are likely to take lead in the fitness segment and the market might see a surge in high finish athletic clothes that have biosensors installed

In order to broaden the target market, the focus should now be on making the technology user friendly"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

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Health & Wellbeing

"Smart clothes in the future could have self-healing properties

If you fall and graze your skin, the technology woven into the fabric you are wearing, will treat your skin

There is a consumer demand for it"

(Draper, 2018)

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High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature. Researchers are developing smart fabrics that do things that traditional fabrics cannot.

"If you think about what your skin is doing and then think of fabric - it will be able to do the same," says Sabine Seymour, a futurologist and founder of wearables start-up Supa. "You tan, you sweat, your pores open up, your skin changes depending on the humidity ... So imagine your hairs standing up and that changing the shape of the garment, or tanning and your apparel changing color. If you perspire, what if a garment responds to that?"
Read more Smart Fiber to Introduce Diagnostic Capabilities Into Clothing
Seymour says smart clothes in the future could have self-healing properties. If you fall and graze your skin, the technology woven into the fabric you are wearing, will treat your skin.

"There is a consumer demand for it," she says.

Fabrics interwoven with technology are becoming a reality. In the future, likely to be 5 to 10 years away, smart clothes will monitor our health hand help keep us stay healthy and fit.

"Are we about to suffer from a medical problem? Are we having a good time? Do we need to relax? Textiles will warn you about impending epileptic seizures. Your bra can already contain a heart rate sensor. There could be advantages to using garments rather than attaching gadgets, as some of the sensors need to be placed in exact positions on the body. We need investment in wearable technology, and smart textiles, as they will have relevance for us all in the coming years," says Alison Welsh, head of department at the Manchester Fashion Institute at Manchester Metropolitan University.

Project Jacquard, run by Google's Advanced Technologies and Projects unit, weaves technology into fabric to give it conductive and interactive properties. Google has collaborated with Levi's on a smart jacket that will enable cyclists to brush their fingers on the fabric of their jacket to check the time or play their music.

Read more Yarn Battery Could Power Smart Clothes and Wearables

Last year, University of Manchester's National Graphene Institute produced a dress in collaboration with wearable tech company Cute Circuit. The dress is made with a fabric that has "wonder material" graphene which causes the dress to change color according to the wearer's breathing patterns.

A key factor in this technology is sustainable materials. Plant-based fibers that use the latest technologies will help manufactures produce innovative hybrid fabrics, according to Kate Hart, senior trend researcher at Trendstop.

"Developments such as Stella McCartney's Skin-free Skin illustrate the elevations in faux leather quality, increasing their viability as an alternative to animal hides at designer level," she said.

Sam Draper ( Google+) is Online Editor at WT | Wearable Technologies specialized in the field of sports and fitness but also passionated about any new lifestyle gadget on the market.Sam can be contacted at press(at)wearable-technologies.com.

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Are Smart Fabrics the Future of Fashion?

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High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature.

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Digital

"Biggest change is that smart textiles will become a new medium of communication to a tool of social media like Facebook or Twitter

At the moment, all of the computing functions live on computers or phones but they could eventually be ambient everywhere

Smart-textiles will enable the future where digital has no screens"

(Hassonjee and Maxey, 2019)

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7 minute read

Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents. How and who can make it possible? Focusingfuture.com interviewed two experts, home textile digitizer Qaizar Hasonjee and apparel innovator Madison Maxey, who create our future of smart textiles.

Why reinvent textiles? Both experts highlight that fabric is the substance that has always been around people since the times of dawn. Moreover, in the digitalized today, textiles lack of modern functionalities. It is time to give a natural extension to the interior and apparel fabrics to provide people with more than style and protection.

You are in the center of the textile innovation hub. Can you share your vision of the future with new technologies?
Qaizar Hassonjee:
First of all, the biggest change is that smart textiles will become a new medium of communication to a tool of social media like Facebook or Twitter. The second way is how smart textiles will supply us with an additional benefit in the form of safety by data provision. As we will never abandon textiles, the fabric becomes the best medium to integrate the technology. Changing the color, apparel can notify if user has a heart attack, for example. The continuum of smart textile to get commercial has already begun. It is a very steady evolution of research, development, commercialization of digital fabrics. The growth will happen exponentially with the critical shift to smarter solutions already in the nearest years.
Madison Maxey:
We are looking for a way to make textiles human intelligent. It will enable a constant feedback for differentinteractions that we have with objects and a new way of distributed computing. At the moment, all of thecomputing functions live on computers or phones but they could eventually be ambient everywhere. Smarttextiles will enable the future where digital has no screens. I am really curious to see how this future wouldlook like. Especially, as people we know are working towards making our living better.

Qaizar, you mentioned that smart textiles will enhance our communication. What is the role of smart textiles in human Interaction and in the interior?

By looking at the possibility of textiles being more than just fabric to cover ourselves, we will get a new perspective, a broad scale of functionalities textiles can give us. For example, by providing more information about other people, the environment and ourselves. What is more, we can transform textiles to entertain and even educate people. The challenge is to determine how much do we want to express ourselves with textiles: is it our mood, health condition, bank information or else?

We have an opportunity to grant textiles additional functions by integrating technology into the fabric we are sitting on - chairs and sofas, walking on - carpets and rugs, surrounding ourselves - drabs and curtains in the rooms, bedding sheets, towels, etc. Smart textiles will generate an enormous amount of data enriching analytics and insights and helping human to make sustainable decisions. Digitalizing textiles can provide us with better tech coverage. There are places where you have a carpet, but you don't have a camera. We are going to transform the textiles that are already in use and make new products out of smart fabric that has not been thought ever before.

In SpinTales, we have launched the smart textiles that entertain and educate children. It is an interactive smart home textile, that with the help of tablet or phone, transforms regular carpet or duvet to augmented storytelling. This is one of the examples how future of smart textiles can look like. And more exciting augmentations are yet to come.

Maddy, your specialty is smart apparel. What is the future of fashion and clothes overall?

I do not separate the fashion from apparel. In my opinion, the most important is that combination of smart textiles and fashion enable creativity. Every person in this world purchases textiles. I wish to create a highly functional apparel which will perform a shift from a commodity attitude to clothing for its color and pattern to a well-engineered product that one buys for its capabilities.

At the moment we, at Loomia, are working towards revolution shifting textiles to a service-based industry. Loomia has grown from Crated, which was working on one-time projects integrating technology in apparel. There is a large market potential for creating actual smart textiles that enable the smart future. There are a lot of highly functional textiles in the industrial and space industries, and now it is time to bring intelligence to any textile that is surrounding us. The result of all those efforts is creating a screenless world with the latest tech possibilities so people can spend more time living and enjoying their life instead of operating through the screens.

Will the design of interior textiles and apparel change? If yes, how?
Qaizar Hassonjee:
We can see the focus on design, appearance, and comfort of wearable technologies. At the beginning of wearables' development, functionality had a high importance level. Now, it all comes to design and customer experience without compromising on functionality. From clothes standpoint, I think it will always be gender specific fro both male and female fashion. However, when talking about other textiles like home and interior, it is less gender specific while more theme oriented. Interior textiles are not be necessarily used by one person; they are shared commodity. Depending on the situation, the textile might seamlessly change adapting to the need of the particular user.
Madison Maxey:
I would hope that at some point there is enough customization that you can get a product that works well for any biological shape and size. I find issues with things like Oculus Rift making women noxious because of men and women sense distance to objects in a different way. For example, in my work, I also think about people with tattoos. I want to be sure that my products work for a wide variety of people and are suitable for all skin types. The future products have to be gender binary, fitting both genders and those who do not resemble any sex. It is my hope that intelligent wear will serve everyone representing a large scale of people.

It seems like textiles will gather a lot of valuable and private data. What is your take on the future of privacy?
Qaizar Hassonjee:
To begin with, we have to understand that monitoring combined with smart management can prevent a catastrophic event. This is when customers give away some pieces of privacy for safer and more controllable future. People already openly share their thoughts and feelings on the Internet as they believe it gives some value back. It is a form of social exchange. I would expect the same mechanism will happen with smart fabrics. As long as sharing of personal data is providing a value back, the exchange is justified.

Madison Maxey:

There are certain risks that we as consumers take on with any product. At times, the risk, like privacy, is worth the trade off. The system works that way: if you want to get better and more personalized solutions, you have to share your data. At the same time, there are well-reputed groups like Veritas putting a lot of thoughts on data privacy and protection. Certainly, it's essential to have new regulations for the industry. Also, we need to raise customers' awareness about the trade-off for the products that serve you better.

About our experts:

Qaizar Hassonjee is a pioneer in Smart Textiles leading into Wearables and Internet of Things with 20 years experience. Qaizar is a co-founder of Textronics Inc, which is an electro-textile technology company originated from DuPont's textile fiber research effort and acquired by Adidas. He was the first to launched Heart Rate Monitoring Sports Bra in 2005. Today, Qaizar brings technology to the home and interior textiles at TILT through the children entertainment system Spintales.

Madison Maxey is a smart apparel and wearables innovator who is delivering high-tech apparel solutions for the biggest apparel brands. Maddy is a member of Forbes 30Under30 and the first fashion designer to win a $100000 Thiel fellowship. Today, she fabricates smart future at her company Loomia (previously The Crated) enabling enhanced screenless future for everyone.

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Future of smart fabrics: apparel and home textiles - Focusing Future

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7 minute read Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents.

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Factors Preventing Growth

"The field of multimaterial fibers is young, relative to that of thin-film technology for microchip devices

Work on these fronts such as improving the flexibility, washability, and power requirements of fiber sensors will bring us a step ahead into the pervasive sampling of human body data"

(Chandler, 2020)

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In an opinion piece published in the journal Matter, members of the Fibers@MIT research group recently laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, "smart clothing" might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions. Headed by Professor Yoel Fink, the group is developing fibers and fabrics with advanced computational properties. MIT News asked PhD student Gabriel Loke, who was the article's lead author, along with Fink and six others, to elaborate on the team's outlook.

Q: The paper you just published describes a vision for a fabric computer. Could such computers help to address a pandemic situation like the one we confront now?

A: The current pandemic has revealed the need for new paradigms to assess the health of large populations in real-time. Current approaches of symptom-driven tests are lagging indicators, and can be likened to driving just with your rear-view mirror, as far as the spread of Covid-19 is concerned. So how do we create systems that are predictive, forward-looking and can deliver leading indicators? What if you had a way to access your vital signs on a continuous basis? Could subtle, imperceptibly small changes become early warning signs for the health issues of an individual? What if you could correlate in space and time these changes for a large population, and do so in real time, to identify the spread of disease?

No human-made objects are more ubiquitous or exposed to more vital data than the clothes we all wear. Wouldn't it be great if we could somhow teach our fabrics to sense, store, analyze, extract, and communicate this potentially useful information?

In this piece, I describe the four principles for this new computer. First, the capabilities of a single strand of fiber will advance rapidly over time through new material designs and scalable fiber fabrication approaches. The second step is the synergistic assembly of these fibers into a fabric uniquely positioned to capture, store, and process vast amounts of data released by our bodies. The third is the development of artificially intelligent fabrics, where specially architected machine-learning algorithms programmed into the fabrics could uncover and gain new insights into hidden bodily patterns. Fourth, fabrics become sophisticated platforms for value-added services catering to a large population.

Q: You describe a potential "Moore's Law," which originally described a doubling of computing capacity every 18 months, for the development of computational fabrics. Could you describe what you mean by that?

A: For a Moore's Law for fibers to emerge, fibers have to be made up of multiple materials, precisely arranged within a single fiber cross-section to produce devices of varying functionalities including computation. The field of multimaterial fibers is young, relative to that of thin-film technology for microchip devices. But what we are seeing now in papers and research is a large growth in the number of functions that a fiber can exhibit.

For example, in the past few years, the fabrication method called thermal fiber drawing has resulted in a variety of material combinations and functions including heart-rate monitoring and optical communication. With a Moore's Law for fibers, we imagine a future where computational fabrics will be consistently updated with new functions and capabilities, similar to how we are always updating software in our computers.

Q: You've laid out a long-term vision and blueprint for the future of computational fabrics. What do you see as the most significant near-term steps in that direction that we can expect to see in the next few years?

A: The most important thing is to make sure that people, in particular students, realize what is happening in fabrics and how capable they will soon become. In our group, a host of students from different disciplines are working on creating fabric computers as we speak. Similar to the personal computer evolution, there are vast opportunities for new companies and innovation in this space. I anticipate fibers entering the digital domain and the introduction of fiber input and output. Modern computers are made up of millions of logic gates, so incorporating digital circuits and gates into a fiber represents the first of many steps toward achieving full computing capabilities in fibers and fabrics.

Second, for the realization of a fabric computer, the significant near-term step will be the development of fabric architectures that allow fibers to communicate with each other while retaining the conventional qualities of fabrics.

Finally, to enable fabrics with artificial intelligence capabilities, training useful networks for accurate predictions requires large data sets. This requires the collection of large amounts of data from our body. It is then necessary for sensors in fabrics to be as seamless and resistant as possible so that these sensors can be worn for prolonged durations. Work on these fronts such as improving the flexibility, washability, and power requirements of fiber sensors will bring us a step ahead into the pervasive sampling of human body data.

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3 Questions: The rapidly unfolding future of smart fabrics

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An MIT team has laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, smart clothing might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions.

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Factors Preventing Growth

"High cost and the lack of exhaustive standards and regulations are the major restraining factors for the growth of the smart textiles market

High initial price may restrain the addressable market to only high-end consumer space in certain application areas

The factor would not have a long-term negative impact on consumers due to the increasing popularity of smart wearables"

(MarketsandMarkets, 2015)

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1 Introduction (Page No. - 13)
1.1 Objectives of the Study
1.2 Market Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Years Considered for the Study
1.4 Currency
1.5 Package Size
1.6 Limitations
1.7 Stakeholders
3 Executive Summary (Page No. - 30)
4 Premium Insights (Page No. - 35)
4.1 Attractive Opportunities in the Smart Textiles Market
4.2 APAC Expected to Emerge as A Lucrative Market
4.3 The Market for the Sensing Function is Expected to Grow at the Highest CAGR
4.4 Active Smart Textiles Accounted for the Largest Market Share in 2014
4.5 Emerging Markets Such as China, India, and South Korea are Some of the Key Growth Regions

6 Industry Analysis (Page No. - 52)
6.1 Introduction
6.2 Supply Chain Analysis
6.2.1 Core Stakeholders
6.2.2 Supporting Stakeholders
6.3 Industry Trends
6.4 Porter's Five Forces Analysis
6.4.1 Bargaining Power of Suppliers
6.4.2 Bargaining Power of Buyers
6.4.3 Threat of New Entrants
6.4.4 Threat of Substitutes
6.4.5 Degree of Competition

7 Smart Textile Market, By Type (Page No. - 63)
7.1 Introduction
7.2 Passive Smart Textiles
7.3 Active Smart Textiles
7.4 Ultra Smart Textiles

8 Smart Textiles Market, By Function (Page No. - 71)
8.1 Introduction
8.2 Sensing
8.3 Energy Harvesting
8.4 Luminescence & Aesthetics
8.5 Thermo-Electricity
8.6 Others

9 Smart Textiles Market, By End-User Industry (Page No. - 77)
9.1 Introduction
9.2 Military and Protection
9.3 Architecture
9.4 Healthcare
9.5 Sports and Fitness
9.6 Fashion and Entertainment
9.7 Automotive
9.8 Others

11 Competitive Landscape (Page No. - 117)
11.1 Overview
11.2 Key Players in the Smart Textiles Market, 2014
11.3 Competitive Situation and Trends
11.3.1 New Product Launches
11.3.2 Agreements, Partnerships, and Expansions
11.3.3 Acquisitions

13 Appendix (Page No. - 152)
13.1 Insights of Industry Experts
13.2 Discussion Guide
13.3 Introducing RT: Real-Time Market Intelligence
13.4 Available Customizations
13.5 Related Reports

List of Tables (68 Tables)
List of Figures (59 Figures)
Table 1 Uptrend in Wearable Electronics Industry Fueling the Growth of Smart Textiles Market
Table 2 High Cost of Smart Textilesis A Major Restraining Factor
Table 3 Increasing Opportunities in Multiple Applications Areas and Technological Growth Pave Growth Avenues for Players in the Smart Textiles Market
Table 4 Smart Textile Market, By Type, 2014–2020 (USD Million)
Table 5 Passive Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 6 Active Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 7 Ultra-Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 8 Passive Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 9 Active Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 10 Ultra-Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 11 Market, By Function, 2014–2020 (USD Million)
Table 12 Smart Textiles Market in Sensing, By Type, 2014–2020 (USD Million)
Table 13 Smart Textiles Market in Energy Harvesting, By Type, 2014–2020 (USD Million)
Table 14 Smart Textiles Market in Luminescence & Aesthetics, By Type, 2014–2020 (USD Million)
Table 15 Smart Textiles Market in Thermo-Electricity, By Type, 2014–2020 (USD Million)
Table 16 Market in Others, By Type, 2014–2020 (USD Million)
Table 17 Market, By End-User Industry, 2014 - 2020 (USD Million)
Table 18 Market for Military and Protection, By Type, 2014 - 2020 (USD Million)
Table 19 Smart Textiles Market for Military and Protection, By Geography, 2014 - 2020 (USD Million)
Table 20 Market for Architecture, By Type, 2014 - 2020 (USD Million)
Table 21 Market for Architecture, By Geography, 2014 - 2020 (USD Million)
Table 22 Market for Healthcare, By Type, 2014 - 2020 (USD Million)
Table 23 Market for Healthcare, By Geography, 2014 - 2020 (USD Million)
Table 24 Market for Sports and Fitness, By Type, 2014 - 2020 (USD Million)
Table 25 Smart Textiles Market for Sports and Fitness, By Geography, 2014 - 2020 (USD Million)
Table 26 Market for Fashion and Entertainment, By Type, 2014 - 2020 (USD Million)
Table 27 Smart Textiles Market for Fashion and Entertainment, By Geography, 2014 - 2020 (USD Million)
Table 28 Market for Automotive, By Type, 2014 - 2020 (USD Million)
Table 29 Market for Automotive, By Geography, 2014 - 2020 (USD Million)
Table 30 Market for Others, By Type, 2014 - 2020 (USD Million)
Table 31 Market for Others, By Geography, 2014 - 2020 (USD Million)
Table 32 Market, By Geography, 2014–2020 (USD Million)
Table 33 Americas: Smart Textiles Market, By Country, 2014–2020 USD (USD Million)
Table 34 Americas: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 35 Americas: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 36 Americas: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 37 Americas: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 38 Americas: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 39 Americas: Smart Textiles Market for Automotive, By Country, 2014–2020 (USD Million)
Table 40 Americas: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 41 Europe: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 42 Europe: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 43 Europe: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 44 Europe: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 45 Europe: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 46 Europe: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 47 Europe: Market, By Country for Automotive, 2014–2020 (USD Million)
Table 48 Europe: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 49 APAC: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 50 APAC: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 51 APAC: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 52 APAC: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 53 APAC: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 54 APAC: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 55 APAC: Market for Automotive, By Country, 2014–2020 (USD Million)
Table 56 APAC: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 57 RoW: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 58 RoW: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 59 RoW: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 60 RoW: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 61 RoW: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 62 RoW: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 63 RoW: Market for Automotive, By Country, 2014–2020 (USD Million)
Table 64 RoW: Market for Others, By Country, 2014–2020 (USD Million)
Table 65 Smart Textiles Market: Key Players Rating, 2014
Table 66 New Product Launches
Table 67 Agreements, Partnerships, and Expansions
Table 68 Acquisitions

Figure 1 Smart Textiles Market: Research Methodology
Figure 2 Wearable Electronics Market Size (Value), 2014 – 2020 (USD Billion)
Figure 3 Global Smartphones Shipments in Million Units, 2013-2018
Figure 4 Bottom-Up Approach
Figure 5 Top-Down Approach
Figure 6 Market Breakdown and Data Triangulation
Figure 7 Assumptions of the Research Study
Figure 8 Smart Textiles Market Snapshot, By End-User Industry (2014 vs 2020): Applications in the Sports and Fitness Sector are Expected to Lead 31
Figure 9 Smart Textiles Market Snapshot, By Function (2014 vs 2020): Sensors are the Most Widely-Used Components in Smart Textile Products
Figure 10 Global Smart Textiles Market, By Type, 2014
Figure 11 Global Market, By Region, 2014
Figure 12 Global Market Size, 2015 - 2020 (USD Billion)
Figure 13 Geographic Snapshot: Smart Textiles Market, By End-User Industry
Figure 14 Market, By Function, 2015 - 2020 (USD Million)
Figure 15 Market, 2014
Figure 16 Region-Wise CAGR for the Smart Textiles Market (2015-2020)
Figure 17 Smart Textiles Market, By Function
Figure 18 Market, By Type
Figure 19 Market, By End-User Industry
Figure 20 Market, By Geography
Figure 21 Events in the Smart Textiles Market
Figure 22 Uptrend in Wearable Electronics Industry Fueling the Growth of Smart Textiles Market
Figure 23 CAGR (%) (2014-2020) of Wearable Electronics Market, By Region
Figure 24 History of Chip Resistor Miniaturization
Figure 25 Market Supply Chain
Figure 26 Emergence of Iot and Remote Health Monitoring are the Major Trends
Figure 27 Porter's Five Forces Analysis (2014): Smart Textiles Market
Figure 28 Porter's Five Forces Analysis for the Market
Figure 29 Bargaining Power of Suppliers in the Smart Textiles Market
Figure 30 Bargaining Power of Buyers in the Market
Figure 31 Threat of New Entrants in the Smart Textiles Market
Figure 32 Threat of Substitutes in the Market.
Figure 33 Degree of Competition in the Market
Figure 34 Smart Textile Market, By Type
Figure 35 Smart Textiles Market, By Function
Figure 36 Market, By End-User Industry
Figure 37 Geographic Snapshot: APAC is Emerging as A Key Growth Region for the Market
Figure 38 Americas Market Snapshot
Figure 39 European Market Snapshot
Figure 40 APAC Market Snapshot
Figure 41 RoW Market Snapshot
Figure 42 Companies Adopted Partnerships as the Key Growth Strategy Over the Last Four Years (2012-2015)
Figure 43 Battle for Market Share: Partnerships Have Been the Key Strategy
Figure 44 Geographic Revenue Mix of Major Market Players
Figure 45 AIQ Smart Clothing Inc.: Business Overview
Figure 46 Clothing Plus Ltd. : Business Overview
Figure 47 Clothing Plus Ltd. : SWOT Analysis
Figure 48 E. I. Du Pont De Nemours and Company : Business Overview
Figure 49 E. I. Dupont De Nemours and Company : SWOT Analysis
Figure 50 Gentherm Incorporated: Business Overview
Figure 51 Google: Company Snapshot
Figure 52 Google Inc.: SWOT Analysis
Figure 53 Interactive Wear AG: Business Overview
Figure 54 Outlast Technologies LLC: Company at A Glance
Figure 55 Schoeller Textil AG : Business Overview
Figure 56 Sensoria, Inc.: Business Overview
Figure 57 Sensoria Inc.: SWOT Analysis
Figure 58 Textronics, Inc. : Business Overview
Figure 59 Textronics, Inc.: SWOT Analysis

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1 Introduction (Page No. - 13) 1.1 Objectives of the Study 1.2 Market Definition 1.3 Study Scope 1.3.1 Markets Covered 1.3.2 Years Considered for the Study 1.4 Currency 1.5 Package Size 1.6 Limitations 1.7 Stakeholders 3 Executive Summary (Page No. - 30) 4 Premium Insights (Page No.

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Factors Preventing Growth

"Not only possible but also feasible for the mass market

In the short term smart clothing will remain a niche – will first happen in the less cost conscious segments of fashion until the means necessary for mass production have matured"

(Farzaneh, 2020)

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Hamid Farzaneh, Biz Chief, Sensoplex

Hamid Farzaneh, Biz Chief, Sensoplex

Until now clothing was primarily for two things: for covering our bodies and for visually distinguishing ourselves from others. As self-quantification goes mainstream, it is only natural that much attention is being focused on the fact that nothing is closer to our bodies than our clothing, making it the ideal medium for collecting more information about our physical state and performance. The idea of smart clothing is not new. Steve Mann, an MIT researcher, wrote in 1996 "Clothing can enhance our capabilities without requiring any conscious thought or effort". These capabilities can range from sensing, to providing stimuli or response, to enhancing visual effects.

Smart clothing is steadily becoming a reality. As sensors improve and "High tech textiles" are developed, such functionality is not only possible but also feasible for the mass markets. In the short term, however, smart clothing will remain a niche market. As with most new technologies, new concepts and implementations will first happen in the less cost-conscious segments of the fashion and entertainment industries until all the different nuts and bolts necessary for mass production have evolved enough and arrived at an adequate level of maturity.

The Wearable Revolution

By now most people are at least familiar with the concept of wearable technology, thanks to existing consumer products such as Nike Fuelband, Fitbit and the forthcoming Apple Watch. Earlier, products were very limited in capability, essentially just capable of performing step counting, and typically wrist mounted. More recently, attempts to add more sensors are making the devices bigger and more obtrusive, raising questions as to the willingness of consumers to wear clunky objects on their wrist. Smart clothing takes wearable tech a big step forward by allowing not only to integrate more sensors, but also to distribute them on different parts of the body making it possible to becoming practically invisible.

This is of particular interest as more sophisticated sensors than just step-counting accelerometers are commercialized, which are necessary for measuring biological functions. Think of things such as heart rate monitoring, oximetry, transpiration analysis, environmental condition sensors, and more. Currently, the vast majority of smart clothes are limited to mainly heart rate monitors and body kinematic sensors - but there is so much more possible.

Technical challenges

While the benefits of smart clothing are obvious, manufacturing, reliability and utility challenges still abound. Typically, smart clothes include three distinct elements:

1. The actual electronics that contain processors, wireless communication, sensing electronics, batteries, and other hardware
2. Electrodes or textile-based sensors
3. Connectors and conductive thread or wires that link electrodes and textile sensors to the electronics

The biggest issue right now is that washing and drying cycles are too harsh for electronics in their current state, while electrodes and connectors and wires can endure a limited number of cycles. This is not an insurmountable issue and progress will undoubtedly be made in the coming couple of years on this front. Techniques used in smart clothing to connect electrodes to the electronics range from using coated wires sawn to the fabric, to using conductive thread woven in the cloth, to simply laminating a single-sided conductive material inside the clothing. Of these techniques, the latter has been the most popular because of its simplicity, low cost and durability.

While consumers view it as an inconvenience, they will still have to remove the electronics from their smart clothing before a washing cycle. This is made reasonably easy by the use of snap-on buttons. The actual electrodes (necessary for heart rate monitoring), and the conductive thread or wires cannot be so easily removed from the clothing and must endure the rigors of washers and dryers. Their durability is thus critical and there is an emerging de facto industry standard with regard to durability specifications for smart clothing. Companies are expected to provide garments that can survive at least 50 cycles (and preferably 100) in the average washing machine. Failure to guarantee such a level of durability would represent a major commercial disadvantage for manufacturers and suppliers.

Applications Abound

As smart clothing evolves, it is expected that greater medical and health applications will become possible. While the technology would face most of the same challenges as for consumer applications, the fact that cost and convenience are less of an issue makes such applications particularly attractive. For these applications it is accuracy and comfort that count far more than durability. A promising application attempts to address obesity that's often the result of a very stationary life style. Another approach might be to measure the real-time physiological state of at-risk individuals to help detect the cause and effect of their lifestyle on their health.

Smart clothing also offers a huge potential for helping improve individuals' wellness. We can imagine devices coupled with mobile application to serve the community of elderly people, providing them and their relatives or caregivers low cost and very practical ways to quantitatively monitor their well-being, daily routines, level of fitness and health status.

User Experience and Adoption

Given all of the attractive benefits of smart clothing, one must ask why adoption has been rather limited so far. The first issue is of course the lack of choice in the market thus far. It's still very early in the game. Another issue, which has plagued manufacturers of smart clothing, is the durability, or lack thereof, of the electrodes and connective wires. In spite of the progress achieved recently in this area, the cost/durability ratio of the technology is still sub-optimal.

Lastly, there is the obvious issue of continuity of use. Most users will want their clothes to monitor their vital signs throughout their life, seven days a week. This means that users must have multiple smart garments for everyday use - which is currently rather expensive. Longer term, as costs drop, the modest premium of smart clothes might justify for people to have their entire wardrobe composed of smart garments.

More Science than Fiction

Clothing started as a mean for protection from the environment long before it became a fashion statement and a powerful tool for making social statements. With the advent of embedded smarts, clothing will gradually emerge as a second skin that enhances our senses, measures our physiological attributes, and facilitates the sharing of our personal data.

The future for smart clothing is brighter than ever, and will be accelerated by advances in sensors and in smart textiles - such as the ability to reliably and cheaply weave wires into the material. From there, large-scale manufacturing is only a matter of time. The more we can detect and measure, the bigger the benefits we can see in healthcare, and our overall wellness as humans.

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Hamid Farzaneh, Biz Chief, Sensoplex Hamid Farzaneh, Biz Chief, Sensoplex Until now clothing was primarily for two things: for covering our bodies and for visually distinguishing ourselves from others. As self-quantification goes mainstream, it is only natural that much attention is being focused on the fact that nothing is closer to our bodies than our clothing, making it the ideal medium for collecting more information about our physical state and performance.

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Factors Preventing Growth

"The major restraint for the smart textile market is the high cost of production

Smart textiles require high-end materials and are highly sophisticated due to which perfect cost-price balance is not achieved by manufacturers

The market is hindered due to the cost of electronic devices and components, which further increases the prices of the smart textiles"

(Sharma, 2017)

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality. It senses and reacts to stimuli or environmental conditions, such as those from thermal, mechanical, chemical, magnetic, and other sources. The global demand for various smart textile products has increased continuously due to their expanding base of applications in end user industries. Most of the demand for smart textile comes from end use industries such as military and defense and healthcare. Both developed and developing countries, will witness the increase in demand with innovative trends. This can be attributed to the factors such as increase in standard of living, rising incomes, awareness of safety and environmentalism, advances in medical technology, expanding automotive sectors, and increased spending on healthcare.

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Integration of smart textiles & wearables, use of nanotechnology in textiles, applications in smartphones, wearables in healthcare sector, and application in the military, defense & sports sector are the major factors that drive the smart textile market across the globe. Increasing research and development in the smart textile market along with the growing demand in emerging economies such as India and China are acting as major opportunities in the global smart textile market.

North America was the highest revenue-generating region in 2015, which is expected to grow at CAGR of 27.9% during 2016 to 2022. Moreover, North America is expected to maintain its dominant position over the forecast period. Europe and Asia-Pacific are the second and third leading regions for smart textile market respectively.

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The global smart textile market is segmented based on function, application, and geography. On the basis of function the smart textile market is categorized into energy harvesting, sensing, thermoelectricity, luminescent, and others, which include weaving, knitting, and braiding. On the basis of application, the smart textile market is bifurcated into healthcare, military and defense, entertainment, automotive, sport and fitness, and others. Geographic breakdown and deep analysis of each of the aforesaid segments is included for North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pockets:
At present, military & defense, healthcare, and entertainment segments have witnessed large-scale adoption of smart textiles due to increasing demand for functional and superior properties products. Automotive and sports & fitness are other popular segments in the global smart textile market. The rapid growth of smart textiles in the end user application is expected in subsequent years due to rise in demand for higher quality fabrics. These segments have a potential to generate high returns due to expected rise in the adoption of high-end fabrics.

Increasing adoption of smart textiles in the military and defense and entertainment sectors are expected to rise and have been identified as some of the lucrative targets for investment. As compared to other segments, these segments possess larger market size by value. Other emerging end user applications such as healthcare, automotive, sport & fitness, and others are expected to witness good growth in the coming years. However, these applications currently possess moderate market size in terms of value.

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Market Dynamics: Drivers: Integration of Smart Textiles and Wearables
With the integration of electronic components in smart textiles, they are used in various applications such as health management, actuation, response, and communication. They consist of components such as sensors, actuators, control units, and others. Wearable technology mainly concerns textiles, electronic devices, and apparel. These textiles help to control muscle vibrations, regulate body temperatures, and protect from environmental hazards such as radiation. As electronic components can be miniaturized, it is possible to integrate textiles and electronic components. These are the factors that are the driving the global smart textile market.
Restraints: High Cost of Production
The major restraint for the smart textile market is the high cost of production. Smart textiles require high-end materials and are highly sophisticated due to which perfect cost-price balance is not achieved by manufacturers. The market is hindered due to the cost of electronic devices and components, which further increases the prices of the smart textiles.

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LAMEA Review:
Brazil is expected to witness growth in the smart textile market and is presumed to be the market leader in this region. Brazil is the ninth largest economy in the world in terms of GDP and the fifth largest by purchasing power parity. Brazil is the only South American country that holds a prominent position in global textile production. The country is one of the largest producers of apparel, according to the Institute of Studies and Industrial Marketing of Brazil. The Brazilian textile industry is constantly growing owing to the acquisition of modern equipment and technical development, which is further expected to drive the smart textile market during the forecast period. UAE has the largest market for smart textile in the Middle East region.

Major players that operate in this market are DuPont de Nemours & Co., Koninklijke Ten Cate NV, Texas Instruments Inc., Google Inc., Gentherm Inc., Schoeller Textiles AG, Sensoria Inc., Textronics, Adidas, and Ohmatex.

Other key market players in the value chain include, Intelligent Clothing Ltd., International Fashion Machines, Inc., Interactive Wear AG, Vista Medical Ltd., Nike Inc., ONeill, Eleksen, Fibretronic Limited, ThermoSoft International, and Peratech Ltd.
Key Benefits for Stakeholders:

The smart textile market research report provides a quantitative and qualitative analysis of the current market trends, estimations, and dynamics through 2014-2022, which assist in identifying the prevailing market opportunities in different end user segments.

Market trends of major countries in each region are mapped according to forecasted market revenue.

Top investment pockets, which highlight the opportunity in the most lucrative end user segments is part of the study.

Focused study of the factors that drive and restrict the growth of smart textile market is provided.

Key manufactures of smart textiles are profiled and their recent developments are listed.

Smart Textile Market Key Segments:

By Function

By End User Industry

Healthcare

Military and defense

Entertainment

Automotive

Sport and fitness

Others

By Geography

1.1 REPORT DESCRIPTION
1.2 KEY BENEFITS
1.3 KEY MARKET SEGMENTS
1.4 RESEARCH METHODOLOGY

3.3 VALUE CHAIN ANALYSIS
3.4 PORTER'S FIVE FORCES ANALYSIS

3.4.1 Moderate Bargaining Power Of Suppliers Due To Large Number Of Suppliers And Low Switching Cost
3.4.2 Moderate Bargaining Power Of Buyer Due To High Product Dependency ,Less Availability Of Substitutes, And Number Of Players That Provide Quality Product
3.4.3 Less Availability Of Substitutes And High Cost Increases Product Differentiation
3.4.4 High Threat Of New Entrants Due To Growth In These Sector
3.4.5 Presence Of Numerous Players, Low Brand Loyalty, Low Switching Cost Increases The Competition Among Rivalries

6.3.1 Key Market Trends
6.3.2 Key Growth Factors And Opportunities
6.3.3 Market Size And Forecast
6.3.4 Uk Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.5 France Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.6 Germany Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.7 Italy Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.8 Spain Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.9 Rest Of Europe Smart Textile Market, ($Million), Growth (%) 2014-2022

FIG. 1. TOP INVESTMENT POCKETS
FIG. 2. PORTER'S FIVE FORCES ANALYSIS OF SMART TEXTILE MARKET
FIG. 3. GLOBAL SMART TEXTILE MARKET BY FUNCTION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 4. GLOBAL SMART TEXTILE MARKET BY APPLICATION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 5. GLOBAL SMART TEXTILEMARKET BY GEOGRAPHY, 2015(PIE CHART OF GLOBAL NUMBERS BY GEOGRAPHY)
FIG. 6. DUPONT DE NEMOURS & CO.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 7. DUPONT DE NEMOURS & CO.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 8. DUPONT DE NEMOURS & CO.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 9. 7.2 KONINKLIJKE TEN CATE NV: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 10. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 11. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 12. TEXAS INSTRUMENTS INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 13. TEXAS INSTRUMENTS INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 14. TEXAS INSTRUMENTS INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 15. GOOGLE INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 16. GOOGLE INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 17. GOOGLE INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 18. GENTHERM INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 19. GENTHERM INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 20. GENTHERM INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 21. SCHOELLER TEXTILES AG: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 22. SCHOELLER TEXTILES AG: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 23. SCHOELLER TEXTILES AG: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 24. SENSORIA INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 25. SENSORIA INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 26. SENSORIA INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 27. TEXTRONICS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 28. TEXTRONICS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 29. TEXTRONICS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 30. ADIDAS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 31. ADIDAS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 32. ADIDAS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 33. OHMATEX: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 34 OHMATEX: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 35. OHMATEX: REVENUE, BY GEOGRAPHY, 2015 (%)

TABLE 1. GLOBAL ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 2. NORTH AMERICA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 3. EUROPE ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 4. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 5. LAMEA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 6. GLOBAL SENSING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 7. NORTH AMERICA SENSINGMARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 8. EUROPE SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 9. ASIA-PACIFIC SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 10. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 11. GLOBAL THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 12. NORTH AMERICA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 13. EUROPE THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 14. ASIA-PACIFIC THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 15. LAMEA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 16. GLOBAL LUMINESCENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 17. NORTH AMERICA LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 18. EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 19. ASIA-PACIFIC LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 20. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 21. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 22. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022.
TABLE 23. EUROPE OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 24. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 25. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 26. GLOBAL HEALTHCARE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 27. NORTH AMERICA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 28. EUROPE TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 29. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 30. LAMEA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 31. GLOBAL MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 32. NORTH AMERICA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 33. EUROPE MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 34. ASIA-PACIFIC MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 35. LAMEA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 36. GLOBAL ENTERTAINMENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 37. NORTH AMERICA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 38. EUROPE ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 39. ASIA-PACIFIC ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 40. LAMEA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 41. GLOBAL AUTOMOTIVE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 42. NORTH AMERICA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 43. EUROPE AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 44. ASIA-PACIFIC AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 45. LAMEA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 46. GLOBAL SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 47. NORTH AMERICA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 48. EUROPE SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 49. ASIA-PACIFIC SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 50. LAMEA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 51. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 52. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 53. EUROPE TYPE OTHERS, ($MILLION), GROWTH (%) 2014-2022
TABLE 54. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 55. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 56. NORTH AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 57. U.S. SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 58. CANADA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 59. MEXICO SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 60. EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 61. UK SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 62. FRANCE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 63. GERMANY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 64. ITALY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 65. SPAIN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 66. REST OF EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 67. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 68. INDIA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 69. CHINA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 70. JAPAN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 71. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 72. LAMEA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 73. LATIN AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 74. MIDDLE EAST SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 75. AFRICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 76. COMPANY SNAPSHOT
TABLE 77. DUPONT DE NEMOURS & CO.: OPERATING SEGMENTS
TABLE 78. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 79. COMPANY SNAPSHOT
TABLE 80. 7.2 KONINKLIJKE TEN CATE NV: OPERATING SEGMENTS
TABLE 81. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 82. COMPANY SNAPSHOT
TABLE 83. TEXAS INSTRUMENTS INC.: OPERATING SEGMENTS
TABLE 84. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 85. COMPANY SNAPSHOT
TABLE 86. GOOGLE INC.: OPERATING SEGMENTS
TABLE 87. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 88. COMPANY SNAPSHOT
TABLE 89. GENTHERM INC.: OPERATING SEGMENTS
TABLE 90. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 91. COMPANY SNAPSHOT
TABLE 92. SCHOELLER TEXTILES AG: OPERATING SEGMENTS
TABLE 93. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 94. COMPANY SNAPSHOT
TABLE 95. SENSORIA INC.: OPERATING SEGMENTS
TABLE 96. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 97. COMPANY SNAPSHOT
TABLE 98. TEXTRONICS: OPERATING SEGMENTS
TABLE 99. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 100. COMPANY SNAPSHOT
TABLE 101. ADIDAS: OPERATING SEGMENTS
TABLE 102. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 103. COMPANY SNAPSHOT
TABLE 104. OHMATEX: OPERATING SEGMENTS
TABLE 105. KEY STRATEGIC MOVES & DEVELOPMENTS

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Smart Textile Market Size, Share | Industry Growth and Analysis by 2022

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality.

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Factors Preventing Growth

"Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components

Cheaper building blocks generally lead to higher demand"

(ApexMills, 2019)

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Looking for a custom Smart Textile Solution? Use our custom solutions form here!
Or contact our team now and we'll be happy to answer any questions you have!

Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties. But what if the clothing you wore could monitor your heart rate and transmit medical alerts to your doctor? Or if the bandages you affix to your skin didn't just cover a wound but dispensed healing medication. Perhaps a construction worker would be interested in wearing a hard hat that can provide a warning about carbon monoxide poisoning based on fluids from the skin. That's where smart textiles come in.

Smart textiles - also referred to as functional fabrics and e-textiles - are changing the way we think about the role of fabrics for industrial purposes and everyday use. With new technological advancements, we're moving closer to a future where fabrics are functional, beautiful and responsive.

What Are Smart Textiles?

Since smart fabrics are a newer technology, many people aren't aware of their potential. Smart textiles provide an added benefit to the user beyond the typical value of the fabric. They respond and adapt to their environment.

Fabrics are a combination of fibers and polymers, natural and man-made, that are constructed through a variety of techniques, the most popular being knitted or woven. Each blend of fabric serves a different purpose, individualized for a particular climate or function. But since fabric is the foundation for so many products and more, it makes sense to see how its utility can be expanded.

Take temperature, for instance - cotton and linen clothing are perfect for hot environments, as they are breathable and light. However, the allowance for airflow that keeps you cool creates a problem in colder temperatures. Going back and forth from hot to cold areas can be a nuisance when choosing what clothing to wear.

Functional textiles change that. They can adapt based on design structure or external stimuli. Imagine a fabric that can respond to a temperature change and keep you comfortable, much like your skin. And, along with adopting new capabilities, smart fabrics create a more sustainable culture. With the ability to transform, less product is needed which produces less waste.

What Makes Functional Textiles, Smart?

The evolution of technical textiles takes cues from the electronics and photonics industries. The integration of sensor arrays and plastic optical fiber (POF) creates an extension of functional fabrics commonly known as smart textiles.

At its core, technical textile manufacturing is a vast landscape of advanced yarn systems combined with textile formation techniques. The completed construction can be further transformed through lamination, coatings and composite methods.

Depending on their use, smart fabrics are created by fusing together fibers and technology. These fibers include conductive yarns and polymers, shape memory polymers, encapsulated phase change materials, fiber optics, and other small electronics. They may also use external additions, such as:

These materials interact with one another along with an external stimuli - such as temperature, light or pressure - creating a transfer of energy. Once activated, the functional fabric responds depending upon the textile's function.

What Are Smart Textiles Used For?

Smart textiles generally belong to one of two main categories:

Aesthetic: Smart fabric has been breaking out in the fashion industry. Aesthetic smart textiles can light up and change color, have an interactive element or shift with their environment. Fashion designers have already picked up on the new technology, creating entire lines out of smart materials. This category also encompasses decor and design elements.

Performance enhancement: With a focus on function over fashion, performance-enhancing smart fabrics provide the user with a unique experience, dependent on their purpose. This includes body temperature regulation, reducing wind and water resistance, guarding against radiation, minimizing the effects of space travel and even controlling the vibration of muscles.

Both categories of smart fabric serve their own purposes and work to solve current issues with industrial and fashionable materials.

What Industries Employ Smart Fabrics?

Smart fabric can be used in any industry. We have seen heightened use in these industries:

Technology as a Smart Fabric Solution

Smart fabrics solve common issues in many industries. Body temperature regulation is crucial in law enforcement, military, and athletic professions, among others. Rather than relying on layers and worrying about breathability, smart fabric can adapt to temperature shifts fluidly.

Within the medical field, developers are working on textiles that can monitor heart rate, dispense medication, and even transmit immediate notification if the wearer of the textile were to fall.

Currently, researchers at Advanced Functional Fabrics of America (AFFOA) are focusing on four main categories of technology-enabled fibers:

Prior to this new age of development, semiconductors were affixed to fabric, creating the ability to "power-up." But the yarns lacked softness and putting a circuit board/power source onto the fabric decreased its wearability. Today, the industry wants to shrink these diodes to sand-like particles and infuse them into the fiber itself.

As technology continues to advance, smart textiles will become the solution for many more common issues, possibly replacing the bulky hardware objects that currently adorn our home and workplace surfaces. The versatility and adaptability of e-textiles allow for a wide range of soft, flexible applications. With durable designs and innovative yarns, these products can stand the test of time.

Integration in the Military

Soldiers dress in thick layers and haul about 110 pounds of tactical gear. Not only does it take a lot of effort to carry, but it also poses a need for portable power sources. Batteries are carried, along with their gear, and disposed of quickly. Without ample power, the equipment becomes unusable.

The consortium of companies, academia and the Department of Defense that make up AFFOA have been developing the ability to create wearable power sources for military applications. Batteries are a huge cost, due to how many of them soldiers go through to keep their devices running. The development of power source smart textiles and connectors in body armor and similar fabrics are crucial to creating a system that's both reliable and user-friendly.

This isn't the only application, either. The Canadian military has made use of full-fabric keyboards in its IAV Stryker units, developed to replace the bulky, traditional hardware. They're lighter, easier to transport and have fewer components to break. Applications for smart textiles vary greatly, making them a great solution for many needs.

Greater Usage of Smart Fabrics

Grandview Research projects that the compound annual growth rate for smart fabrics will soar over the next few years. As technology advances, there has been a growing demand for more sophisticated and smarter textile products.

This, coupled with the rapid growth of low-cost smart wireless sensor networks, has been driving the market in North America. The Asia-Pacific region is witnessing increased demand for smart textiles as well, attributing the need to the rapidly developing healthcare and construction industries. On the other hand, the growing market for automobiles in Europe is boosting the smart fabrics growth rate in this region.

This growing demand creates opportunities for manufacturers who may have thought smart fabrics were out of their reach. As people begin to anticipate and demand them, the market will widen.

Decrease in Material Prices Gives Smart Fabrics a Boost

Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components. Cheaper building blocks generally lead to higher demand. Conductive materials are needed for smart fabric manufacturing. Smart fabrics may contain electrical components such as:

Army uniforms in several countries have been made with nanotechnology. Anything that can assist with military efficiency opens new options and will garner lots of attention from government scientists, creating further demand for the material. Some scientists even believe smart fabrics could be used to help military personnel detect chemical weapons and alert wearers to biological threats.

Benefits of Smart Textiles

Creating a world where smart textiles become commonplace can be beneficial in several ways. Sustainability and extending the lifespan of the products we use have been worldwide topics of concern. By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically.

With the ability to serve everyone from fabric consumers to astronauts, smart fabrics are incredibly versatile and customizable. There is a smart fabric solution for every need. Everyone seeks ways to improve their lifestyle, whether it's through their workouts, commutes or their social communication skills. E-textiles are technologically multi-faceted and can help to enhance an individual's lifestyle in so many ways:

While e-textiles are currently expensive and difficult to access, incorporating them into all areas of everyday life will make them more readily available. Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use.
Learn More About Our Textiles
A Recent History of Technological Advances in the Smart Textile Industry

Over the past few years, wearable smart fabrics have gained traction and are becoming more readily available to consumers. Here are a few highlights:

2015: While most of the technological advancements in smart fabric have occurred in scientific spaces, smart fabric started becoming commercially available in stores in 2015. Most of the first releases available centered around athletics and baby care, including big names like Hexoskin and Ralph Lauren's Polo Tech Shirt.

2016: CuteCircuit, a fashion-based brand, launched the groundbreaking SoundShirt. Using embedded haptics, this shirt allowed a deaf person to feel music. 2016 also marked the U.S. Commerce Department's first smart fabric-centered gathering.

2017: Google collaborated with Levi's® to create and release a Bluetooth-enabled jacket, Levi's® Commuter X Jacquard By Google. The project intended to help bicyclists who live in cities, giving them more accessible, hands-free communication on their daily commutes. The Next Generation Jacket was released in September 2019.

2018: At the Winter Olympic Games, hosted in PyeongChang, the entirety of Team USA wore self-heating jackets. Created by a collaboration of Ralph Lauren and several tech companies, these jackets kept athletes from suffering in the frigid temperatures.

2019: Technology brand Loomia releases a winter coat with a textile substrate layered heating system. The system minimizes the bulk of traditionally warm coats and allows for user control of their comfort setting.

Smart fabrics are continually advancing in their capabilities. Some of the latest e-textiles to hit stores include temperature control, integrated payment options, and health tracking features. There have already been major strides in creating wearable technology. Growing intrigue and industrial need will continue the upward trend of smart textiles.

The Future of Smart Textiles

Smart textiles and functional fabrics have been in sight of scientists and designers for years. Only recently have they made their way onto runways and into headlines. And, the more consumers and technologists learn about smart fabrics, the further they push the limits.

As technicians continue to develop these textiles, their capabilities will expand, making them able to function as a sort of second skin. Temperature-regulating fabric is already available, but progression will allow for a more fluid user experience. The fabric will read stimuli and respond to it with a shift in energy.

One of the most significant areas of progression will likely be in the field of health and wellness. Beauty and medicinal companies are looking at ways we can make fabrics that positively affect the wearer's health. This includes the ability to:

Making clothing that resists wear is presently underway, thanks to the innovation of smart fabric. Through continued development, self-healing and repairing fabric may become a reality. Tears, holes and seam rips could become a thing of the past. Clothing may evolve from short-term to lifetime purchases.

In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods. Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure.

Knitting and weaving technologies are setting the standards for e-textile manufacturing, and Apex Mills is helping to pioneer the future.

Yarn is the Next Invention

When considering developing a new yarn for interlacing into textile structures there are a multitude of formation methods to consider; wet emulsion, wet dispersion, vapor deposition, extrusion, wet spinning, dry spinning, electro-spinning, drawing, co-extrusion, covering, twisting, plaiting, and co-mingling, to name a few.

Universities, institutes, and companies are innovating yarn functionality for the next level of performance. Energy and communication are the newest performance characteristics that will be required to enable e-textiles.

Drexel University's Center for Functional Fabric has recently engineered a yarn that will store energy. This textile battery is much lighter and remarkably flexible, enabling it to become part of the fabric structure. Modifying traditional yarn with textile coatings and twisting methods, fibers are converted to a conductive yarn which is then paired through twisting with a stainless-steel yarn. The dual conductor systems work together to collect endless quantities of energy.
Creating technical, smart or functional fabrics is a regular business at Apex Mills. Our custom approach to textile product development begins with customers like you.

Discover Custom Smart Textiles with Apex Mills

At Apex Mills, we believe in creating a smarter world, where bold solutions to everyday problems thrive. Our business operates through one unifying motto - "Problem shared. Problem solved." We create custom fabric solutions for your specific design challenges, working with you as a partner. Each project is carefully evaluated to provide you with the best solution possible. Apex Mills practices Application Driven Design, ensuring we can fulfill your needs.

Every design is created and manufactured in the U.S., with locations in Long Island, New York, and North Carolina. Being an all-American company, we can provide quick and effective services globally. Apex Mills wants to help you find exactly what you're looking for. Partner with us and experience our fast and thorough customer service. Fill out our online questionnaire, and we'll get started creating a personalized warp knit fabric for you.
Looking for a custom Smart Textile Solution? Use our custom solutions form here!

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Smart Textiles: The Future of the Fabric Industry | Apex Mills

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Looking for a custom Smart Textile Solution? Use our custom solutions form here! Or contact our team now and we'll be happy to answer any questions you have! Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties.

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Factors Preventing Growth

"As of now, the smart textile is very costly, which makes it inaccessible and less popular

As per a survey conducted in Canada, customers rated cost, comfort and type as the most important factors, even ahead of functions"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

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Factors Preventing Growth

"Market growth is likely to be sluggish due to high prices of finished products of smart textiles as compared to conventional textiles"

(Syduzzaman, Patwary, Farhana and Ahmed, 2015)

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Factors Preventing Growth

"Washing and drying cycles are too harsh or electronics in their current state – however this is predicted to be overcome in the near future"

(Farzaneh, 2020)

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Hamid Farzaneh, Biz Chief, Sensoplex

Hamid Farzaneh, Biz Chief, Sensoplex

Until now clothing was primarily for two things: for covering our bodies and for visually distinguishing ourselves from others. As self-quantification goes mainstream, it is only natural that much attention is being focused on the fact that nothing is closer to our bodies than our clothing, making it the ideal medium for collecting more information about our physical state and performance. The idea of smart clothing is not new. Steve Mann, an MIT researcher, wrote in 1996 "Clothing can enhance our capabilities without requiring any conscious thought or effort". These capabilities can range from sensing, to providing stimuli or response, to enhancing visual effects.

Smart clothing is steadily becoming a reality. As sensors improve and "High tech textiles" are developed, such functionality is not only possible but also feasible for the mass markets. In the short term, however, smart clothing will remain a niche market. As with most new technologies, new concepts and implementations will first happen in the less cost-conscious segments of the fashion and entertainment industries until all the different nuts and bolts necessary for mass production have evolved enough and arrived at an adequate level of maturity.

The Wearable Revolution

By now most people are at least familiar with the concept of wearable technology, thanks to existing consumer products such as Nike Fuelband, Fitbit and the forthcoming Apple Watch. Earlier, products were very limited in capability, essentially just capable of performing step counting, and typically wrist mounted. More recently, attempts to add more sensors are making the devices bigger and more obtrusive, raising questions as to the willingness of consumers to wear clunky objects on their wrist. Smart clothing takes wearable tech a big step forward by allowing not only to integrate more sensors, but also to distribute them on different parts of the body making it possible to becoming practically invisible.

This is of particular interest as more sophisticated sensors than just step-counting accelerometers are commercialized, which are necessary for measuring biological functions. Think of things such as heart rate monitoring, oximetry, transpiration analysis, environmental condition sensors, and more. Currently, the vast majority of smart clothes are limited to mainly heart rate monitors and body kinematic sensors - but there is so much more possible.

Technical challenges

While the benefits of smart clothing are obvious, manufacturing, reliability and utility challenges still abound. Typically, smart clothes include three distinct elements:

1. The actual electronics that contain processors, wireless communication, sensing electronics, batteries, and other hardware
2. Electrodes or textile-based sensors
3. Connectors and conductive thread or wires that link electrodes and textile sensors to the electronics

The biggest issue right now is that washing and drying cycles are too harsh for electronics in their current state, while electrodes and connectors and wires can endure a limited number of cycles. This is not an insurmountable issue and progress will undoubtedly be made in the coming couple of years on this front. Techniques used in smart clothing to connect electrodes to the electronics range from using coated wires sawn to the fabric, to using conductive thread woven in the cloth, to simply laminating a single-sided conductive material inside the clothing. Of these techniques, the latter has been the most popular because of its simplicity, low cost and durability.

While consumers view it as an inconvenience, they will still have to remove the electronics from their smart clothing before a washing cycle. This is made reasonably easy by the use of snap-on buttons. The actual electrodes (necessary for heart rate monitoring), and the conductive thread or wires cannot be so easily removed from the clothing and must endure the rigors of washers and dryers. Their durability is thus critical and there is an emerging de facto industry standard with regard to durability specifications for smart clothing. Companies are expected to provide garments that can survive at least 50 cycles (and preferably 100) in the average washing machine. Failure to guarantee such a level of durability would represent a major commercial disadvantage for manufacturers and suppliers.

Applications Abound

As smart clothing evolves, it is expected that greater medical and health applications will become possible. While the technology would face most of the same challenges as for consumer applications, the fact that cost and convenience are less of an issue makes such applications particularly attractive. For these applications it is accuracy and comfort that count far more than durability. A promising application attempts to address obesity that's often the result of a very stationary life style. Another approach might be to measure the real-time physiological state of at-risk individuals to help detect the cause and effect of their lifestyle on their health.

Smart clothing also offers a huge potential for helping improve individuals' wellness. We can imagine devices coupled with mobile application to serve the community of elderly people, providing them and their relatives or caregivers low cost and very practical ways to quantitatively monitor their well-being, daily routines, level of fitness and health status.

User Experience and Adoption

Given all of the attractive benefits of smart clothing, one must ask why adoption has been rather limited so far. The first issue is of course the lack of choice in the market thus far. It's still very early in the game. Another issue, which has plagued manufacturers of smart clothing, is the durability, or lack thereof, of the electrodes and connective wires. In spite of the progress achieved recently in this area, the cost/durability ratio of the technology is still sub-optimal.

Lastly, there is the obvious issue of continuity of use. Most users will want their clothes to monitor their vital signs throughout their life, seven days a week. This means that users must have multiple smart garments for everyday use - which is currently rather expensive. Longer term, as costs drop, the modest premium of smart clothes might justify for people to have their entire wardrobe composed of smart garments.

More Science than Fiction

Clothing started as a mean for protection from the environment long before it became a fashion statement and a powerful tool for making social statements. With the advent of embedded smarts, clothing will gradually emerge as a second skin that enhances our senses, measures our physiological attributes, and facilitates the sharing of our personal data.

The future for smart clothing is brighter than ever, and will be accelerated by advances in sensors and in smart textiles - such as the ability to reliably and cheaply weave wires into the material. From there, large-scale manufacturing is only a matter of time. The more we can detect and measure, the bigger the benefits we can see in healthcare, and our overall wellness as humans.

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Hamid Farzaneh, Biz Chief, Sensoplex Hamid Farzaneh, Biz Chief, Sensoplex Until now clothing was primarily for two things: for covering our bodies and for visually distinguishing ourselves from others. As self-quantification goes mainstream, it is only natural that much attention is being focused on the fact that nothing is closer to our bodies than our clothing, making it the ideal medium for collecting more information about our physical state and performance.

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"Smart textiles will supply us with an additional benefit in the form of safety by data provision

Changing the color, apparel can notify if user has a heart attack, for example.

The trend is enabled by increased regulation related to e-textiles

The continuum of smart textile to get commercial has already begun"

(Hassonjee and Maxey, 2019)

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7 minute read

Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents. How and who can make it possible? Focusingfuture.com interviewed two experts, home textile digitizer Qaizar Hasonjee and apparel innovator Madison Maxey, who create our future of smart textiles.

Why reinvent textiles? Both experts highlight that fabric is the substance that has always been around people since the times of dawn. Moreover, in the digitalized today, textiles lack of modern functionalities. It is time to give a natural extension to the interior and apparel fabrics to provide people with more than style and protection.

You are in the center of the textile innovation hub. Can you share your vision of the future with new technologies?
Qaizar Hassonjee:
First of all, the biggest change is that smart textiles will become a new medium of communication to a tool of social media like Facebook or Twitter. The second way is how smart textiles will supply us with an additional benefit in the form of safety by data provision. As we will never abandon textiles, the fabric becomes the best medium to integrate the technology. Changing the color, apparel can notify if user has a heart attack, for example. The continuum of smart textile to get commercial has already begun. It is a very steady evolution of research, development, commercialization of digital fabrics. The growth will happen exponentially with the critical shift to smarter solutions already in the nearest years.
Madison Maxey:
We are looking for a way to make textiles human intelligent. It will enable a constant feedback for differentinteractions that we have with objects and a new way of distributed computing. At the moment, all of thecomputing functions live on computers or phones but they could eventually be ambient everywhere. Smarttextiles will enable the future where digital has no screens. I am really curious to see how this future wouldlook like. Especially, as people we know are working towards making our living better.

Qaizar, you mentioned that smart textiles will enhance our communication. What is the role of smart textiles in human Interaction and in the interior?

By looking at the possibility of textiles being more than just fabric to cover ourselves, we will get a new perspective, a broad scale of functionalities textiles can give us. For example, by providing more information about other people, the environment and ourselves. What is more, we can transform textiles to entertain and even educate people. The challenge is to determine how much do we want to express ourselves with textiles: is it our mood, health condition, bank information or else?

We have an opportunity to grant textiles additional functions by integrating technology into the fabric we are sitting on - chairs and sofas, walking on - carpets and rugs, surrounding ourselves - drabs and curtains in the rooms, bedding sheets, towels, etc. Smart textiles will generate an enormous amount of data enriching analytics and insights and helping human to make sustainable decisions. Digitalizing textiles can provide us with better tech coverage. There are places where you have a carpet, but you don't have a camera. We are going to transform the textiles that are already in use and make new products out of smart fabric that has not been thought ever before.

In SpinTales, we have launched the smart textiles that entertain and educate children. It is an interactive smart home textile, that with the help of tablet or phone, transforms regular carpet or duvet to augmented storytelling. This is one of the examples how future of smart textiles can look like. And more exciting augmentations are yet to come.

Maddy, your specialty is smart apparel. What is the future of fashion and clothes overall?

I do not separate the fashion from apparel. In my opinion, the most important is that combination of smart textiles and fashion enable creativity. Every person in this world purchases textiles. I wish to create a highly functional apparel which will perform a shift from a commodity attitude to clothing for its color and pattern to a well-engineered product that one buys for its capabilities.

At the moment we, at Loomia, are working towards revolution shifting textiles to a service-based industry. Loomia has grown from Crated, which was working on one-time projects integrating technology in apparel. There is a large market potential for creating actual smart textiles that enable the smart future. There are a lot of highly functional textiles in the industrial and space industries, and now it is time to bring intelligence to any textile that is surrounding us. The result of all those efforts is creating a screenless world with the latest tech possibilities so people can spend more time living and enjoying their life instead of operating through the screens.

Will the design of interior textiles and apparel change? If yes, how?
Qaizar Hassonjee:
We can see the focus on design, appearance, and comfort of wearable technologies. At the beginning of wearables' development, functionality had a high importance level. Now, it all comes to design and customer experience without compromising on functionality. From clothes standpoint, I think it will always be gender specific fro both male and female fashion. However, when talking about other textiles like home and interior, it is less gender specific while more theme oriented. Interior textiles are not be necessarily used by one person; they are shared commodity. Depending on the situation, the textile might seamlessly change adapting to the need of the particular user.
Madison Maxey:
I would hope that at some point there is enough customization that you can get a product that works well for any biological shape and size. I find issues with things like Oculus Rift making women noxious because of men and women sense distance to objects in a different way. For example, in my work, I also think about people with tattoos. I want to be sure that my products work for a wide variety of people and are suitable for all skin types. The future products have to be gender binary, fitting both genders and those who do not resemble any sex. It is my hope that intelligent wear will serve everyone representing a large scale of people.

It seems like textiles will gather a lot of valuable and private data. What is your take on the future of privacy?
Qaizar Hassonjee:
To begin with, we have to understand that monitoring combined with smart management can prevent a catastrophic event. This is when customers give away some pieces of privacy for safer and more controllable future. People already openly share their thoughts and feelings on the Internet as they believe it gives some value back. It is a form of social exchange. I would expect the same mechanism will happen with smart fabrics. As long as sharing of personal data is providing a value back, the exchange is justified.

Madison Maxey:

There are certain risks that we as consumers take on with any product. At times, the risk, like privacy, is worth the trade off. The system works that way: if you want to get better and more personalized solutions, you have to share your data. At the same time, there are well-reputed groups like Veritas putting a lot of thoughts on data privacy and protection. Certainly, it's essential to have new regulations for the industry. Also, we need to raise customers' awareness about the trade-off for the products that serve you better.

About our experts:

Qaizar Hassonjee is a pioneer in Smart Textiles leading into Wearables and Internet of Things with 20 years experience. Qaizar is a co-founder of Textronics Inc, which is an electro-textile technology company originated from DuPont's textile fiber research effort and acquired by Adidas. He was the first to launched Heart Rate Monitoring Sports Bra in 2005. Today, Qaizar brings technology to the home and interior textiles at TILT through the children entertainment system Spintales.

Madison Maxey is a smart apparel and wearables innovator who is delivering high-tech apparel solutions for the biggest apparel brands. Maddy is a member of Forbes 30Under30 and the first fashion designer to win a $100000 Thiel fellowship. Today, she fabricates smart future at her company Loomia (previously The Crated) enabling enhanced screenless future for everyone.

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Future of smart fabrics: apparel and home textiles - Focusing Future

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7 minute read Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents.

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"Companies in the United States are working on making the circuitry and batteries more flexible, which can result in providing comfort to the wearer like any other ordinary piece of garment

A method to store power in wires made of copper has already been developed, which when woven into shirt results in small scale energy supply

This shirt can easily survive 50 washes, making it more appealing"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

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"The US Department of Defence-backed Fibres and Textiles Manufacturing Innovation Institute is researching new technologies to impregnate fibres and yarns with integrated circuits, LEDs, solar cells and other capabilities

Fashion brands are exploring alternatives to today’s standard materials

Some of fashion’s biggest brands have joined the new “materials revolution,” characterised by rising investment, radical experimentation and a growing commitment to sustainability

Spirit of innovation is reflected in a growing lexicon of synthetic and re-engineered fibres

Companies around the world are set to file eight times as many fibre innovation patent applications in 2019 as they did in 2013"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

# data[].attributes.attachment_link.title
The State of Fashion 2020: Navigating uncertainty

# data[].attributes.attachment_link.description
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

# data[].attributes.body
"Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics – from those that change their hue to those that regulate body temperature

Researchers are developing smart fabrics that do things that traditional fabrics cannot

If you think about what your skin is doing and then think of fabric – it will be able to do the same, says Sabine Seymour"

(Draper, 2018)

# data[].attributes.attachment_link.readable_text
High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature. Researchers are developing smart fabrics that do things that traditional fabrics cannot.

"If you think about what your skin is doing and then think of fabric - it will be able to do the same," says Sabine Seymour, a futurologist and founder of wearables start-up Supa. "You tan, you sweat, your pores open up, your skin changes depending on the humidity ... So imagine your hairs standing up and that changing the shape of the garment, or tanning and your apparel changing color. If you perspire, what if a garment responds to that?"
Read more Smart Fiber to Introduce Diagnostic Capabilities Into Clothing
Seymour says smart clothes in the future could have self-healing properties. If you fall and graze your skin, the technology woven into the fabric you are wearing, will treat your skin.

"There is a consumer demand for it," she says.

Fabrics interwoven with technology are becoming a reality. In the future, likely to be 5 to 10 years away, smart clothes will monitor our health hand help keep us stay healthy and fit.

"Are we about to suffer from a medical problem? Are we having a good time? Do we need to relax? Textiles will warn you about impending epileptic seizures. Your bra can already contain a heart rate sensor. There could be advantages to using garments rather than attaching gadgets, as some of the sensors need to be placed in exact positions on the body. We need investment in wearable technology, and smart textiles, as they will have relevance for us all in the coming years," says Alison Welsh, head of department at the Manchester Fashion Institute at Manchester Metropolitan University.

Project Jacquard, run by Google's Advanced Technologies and Projects unit, weaves technology into fabric to give it conductive and interactive properties. Google has collaborated with Levi's on a smart jacket that will enable cyclists to brush their fingers on the fabric of their jacket to check the time or play their music.

Read more Yarn Battery Could Power Smart Clothes and Wearables

Last year, University of Manchester's National Graphene Institute produced a dress in collaboration with wearable tech company Cute Circuit. The dress is made with a fabric that has "wonder material" graphene which causes the dress to change color according to the wearer's breathing patterns.

A key factor in this technology is sustainable materials. Plant-based fibers that use the latest technologies will help manufactures produce innovative hybrid fabrics, according to Kate Hart, senior trend researcher at Trendstop.

"Developments such as Stella McCartney's Skin-free Skin illustrate the elevations in faux leather quality, increasing their viability as an alternative to animal hides at designer level," she said.

Sam Draper ( Google+) is Online Editor at WT | Wearable Technologies specialized in the field of sports and fitness but also passionated about any new lifestyle gadget on the market.Sam can be contacted at press(at)wearable-technologies.com.

# data[].attributes.attachment_link.title
Are Smart Fabrics the Future of Fashion?

# data[].attributes.attachment_link.description
High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature.

# data[].attributes.body
Fashion

"Present new structural and decorative solutions for fashion design"

(Syduzzaman, Patwary, Farhana and Ahmed, 2015)

# data[].attributes.body
Fashion

"University of Manchester’s National Graphene Institute produced a dress in collaboration with wearable tech company Cute Circuit

The dress is made with a fabric that has “wonder material” graphene which causes the dress to change color according to the wearer’s breathing patterns"

(Draper, 2018)

# data[].attributes.attachment_link.readable_text
High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature. Researchers are developing smart fabrics that do things that traditional fabrics cannot.

"If you think about what your skin is doing and then think of fabric - it will be able to do the same," says Sabine Seymour, a futurologist and founder of wearables start-up Supa. "You tan, you sweat, your pores open up, your skin changes depending on the humidity ... So imagine your hairs standing up and that changing the shape of the garment, or tanning and your apparel changing color. If you perspire, what if a garment responds to that?"
Read more Smart Fiber to Introduce Diagnostic Capabilities Into Clothing
Seymour says smart clothes in the future could have self-healing properties. If you fall and graze your skin, the technology woven into the fabric you are wearing, will treat your skin.

"There is a consumer demand for it," she says.

Fabrics interwoven with technology are becoming a reality. In the future, likely to be 5 to 10 years away, smart clothes will monitor our health hand help keep us stay healthy and fit.

"Are we about to suffer from a medical problem? Are we having a good time? Do we need to relax? Textiles will warn you about impending epileptic seizures. Your bra can already contain a heart rate sensor. There could be advantages to using garments rather than attaching gadgets, as some of the sensors need to be placed in exact positions on the body. We need investment in wearable technology, and smart textiles, as they will have relevance for us all in the coming years," says Alison Welsh, head of department at the Manchester Fashion Institute at Manchester Metropolitan University.

Project Jacquard, run by Google's Advanced Technologies and Projects unit, weaves technology into fabric to give it conductive and interactive properties. Google has collaborated with Levi's on a smart jacket that will enable cyclists to brush their fingers on the fabric of their jacket to check the time or play their music.

Read more Yarn Battery Could Power Smart Clothes and Wearables

Last year, University of Manchester's National Graphene Institute produced a dress in collaboration with wearable tech company Cute Circuit. The dress is made with a fabric that has "wonder material" graphene which causes the dress to change color according to the wearer's breathing patterns.

A key factor in this technology is sustainable materials. Plant-based fibers that use the latest technologies will help manufactures produce innovative hybrid fabrics, according to Kate Hart, senior trend researcher at Trendstop.

"Developments such as Stella McCartney's Skin-free Skin illustrate the elevations in faux leather quality, increasing their viability as an alternative to animal hides at designer level," she said.

Sam Draper ( Google+) is Online Editor at WT | Wearable Technologies specialized in the field of sports and fitness but also passionated about any new lifestyle gadget on the market.Sam can be contacted at press(at)wearable-technologies.com.

# data[].attributes.attachment_link.title
Are Smart Fabrics the Future of Fashion?

# data[].attributes.attachment_link.description
High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature.

# data[].attributes.body
Health & Wellbeing

"The demand for sports and fitness applications are expected to see a rise, which will further drive the demand for smart fabrics as they increase the comfort level for the user and eliminate the use of heavy equipment"

(MordorIntelligence, 2017)

# data[].attributes.attachment_link.readable_text
The global smart textile market is estimated at USD XX billion in 2016 and is forecasted to reach USD XX billion by 2021, at a CAGR of 32.8%. North America is the largest market for the smart textile industry with 40% market share, followed by Europe, and Asia-Pacific is the fastest-growing region. The protection and military applications are expected to remain the largest market segment in the coming years. This is attributed to the growing usage of smart textile in sports & fitness and medical applications, mainly due to its water and stain resistance, UV protection and anti-bacterial properties, helping the user to stay protected.
Drivers
The major drivers for the smart textile market are the growing demand for smart watches and wristbands, increase in growth rate of low-cost smart wireless sensor networks, the increasing demand for sophisticated gadgets with advanced functions, and miniaturization of electronic components. The demand for sports and fitness applications are expected to see a rise, which will further drive the demand for smart fabrics as they increase the comfort level for the user and eliminate the use of heavy equipment. Medical applications, which accounted for over XX% of global smart textile in 2015, will grow faster than the global average, which will further enhance the smart textile market. Smart fabrics can analyse physiological parameters such as temperature, heart rate and blood pressure. The problems concerning power supply are expected to drive the need for energy harvesting.
Restraints and Challenges
The major restraining factors for the growth of the smart textiles market are the slow rate of adoption and the lack of extensive standards and regulations. Compatibility issues and high-cost of production of these textiles are also some of the factors affecting the growth of this market. Smart textiles are highly complex and require high-end materials. Hence, the perfect cost-price balance has been difficult to achieve. Incompatibility issues among different types of smart textiles and electronic systems are also common, further making it difficult for the global smart textiles market to achieve a steady growth.
Opportunities
The advances in nanotechnology are expected to boost the overall smart textile market. Incorporating nanotechnology into fabrics helps to change or enhance the properties like fire resistance, electronic capability and monitoring. This textile has many applications in the health and military sectors. For example, lightweight uniforms that can detect the blood flow in the body, lightweight battle suits, uniforms that can change the color to match the surrounding, etc. Western European countries, the US, and Japan are investing in the R&D of nanomaterial-based smart textile.
Major Players
The major players in the global smart textile market include:

Google Inc. (U.S.)

International Fashion Machines, Inc. (U.S.)

Intelligent Clothing Ltd. (U.K.)

Schoeller Textiles AG (Switzerland)

Interactive Wear AG (Germany)

Textronics, Inc. (U.S.)

Textronics, Inc. (U.S.)

Vista Medical Ltd. (Canada)

Sensoria Inc. (U.S.)

Gentherm Incorporated (U.S.)

About the Market
PESTLE Analysis (Overview): Macro market factors pertinent to this region.

Market Definition: Main, as well as, associated/ancillary components constituting the market.

Key Findings of the Study: Top headlines about market trends & numbers.

Market Dynamics:

Drivers: What are the key factors driving growth in the market?

Restraints: Most relevant threats and restraints which hinder the growth of the market?

Opportunities: Sectors of high return or quick turn around on investment?

Market Concentration: Porter's 5 Forces Analysis quantified by a comprehensive list of parameters.

Chain Analysis:

Competition:

Market Share Analysis: Top players in the market (by value and volume).

Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.

# data[].attributes.attachment_link.title
Smart Textiles Market Size, Trends, Growth, Forecast 2019-24

# data[].attributes.attachment_link.description
The global smart textile market is estimated at USD XX billion in 2016 and is forecasted to reach USD XX billion by 2021, at a CAGR of 32.8%. North America is the largest market for the smart textile industry with 40% market share, followed by Europe, and Asia-Pacific is the fastest-growing region.

# data[].attributes.body
Health & Wellbeing

"Japan’s Xenoma has gone a step further, developing “e-skin” that monitors fitness and health with Printed Circuit Fabric (PCF) technology

This kind of technology is likely to be the basis of the next generation of sportswear"

(Amed et al., 2019)

# data[].attributes.attachment_link.readable_text
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

# data[].attributes.attachment_link.title
The State of Fashion 2020: Navigating uncertainty

# data[].attributes.attachment_link.description
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

# data[].attributes.body
Digital

"Investment and experimentation are driven by the internet of things and the potential upside associated with social media and technology differentiators for businesses

With rapid advances in science and new funding pouring in, developments in the biological revolution are exciting and worth tracking for the fashion and beauty industry"

(Amed et al., 2019)

# data[].attributes.attachment_link.readable_text
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

# data[].attributes.attachment_link.title
The State of Fashion 2020: Navigating uncertainty

# data[].attributes.attachment_link.description
The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

# data[].attributes.body
Digital

"IT companies are closely working with textile companies to come up with e-textiles and smart textiles

The future of textile sector is now being seen in smart textiles, as with consumers becoming more techno savvy, the requirement for textile that caters to the technical needs of the wearer are seen as inevitable"

(Fibre2fashion, 2019)

# data[].attributes.attachment_link.title
Global Smart Textile Market | Growing Smart Textile Market

# data[].attributes.attachment_link.description
Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

# data[].attributes.body
Digital

"Fabric has always been around – in the digitised today, textiles lack modern functionalities

It is time to give a natural extension to apparel fabrics to provide people with more than style and protection"

(Hassonjee and Maxey, 2019)

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7 minute read

Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents. How and who can make it possible? Focusingfuture.com interviewed two experts, home textile digitizer Qaizar Hasonjee and apparel innovator Madison Maxey, who create our future of smart textiles.

Why reinvent textiles? Both experts highlight that fabric is the substance that has always been around people since the times of dawn. Moreover, in the digitalized today, textiles lack of modern functionalities. It is time to give a natural extension to the interior and apparel fabrics to provide people with more than style and protection.

You are in the center of the textile innovation hub. Can you share your vision of the future with new technologies?
Qaizar Hassonjee:
First of all, the biggest change is that smart textiles will become a new medium of communication to a tool of social media like Facebook or Twitter. The second way is how smart textiles will supply us with an additional benefit in the form of safety by data provision. As we will never abandon textiles, the fabric becomes the best medium to integrate the technology. Changing the color, apparel can notify if user has a heart attack, for example. The continuum of smart textile to get commercial has already begun. It is a very steady evolution of research, development, commercialization of digital fabrics. The growth will happen exponentially with the critical shift to smarter solutions already in the nearest years.
Madison Maxey:
We are looking for a way to make textiles human intelligent. It will enable a constant feedback for differentinteractions that we have with objects and a new way of distributed computing. At the moment, all of thecomputing functions live on computers or phones but they could eventually be ambient everywhere. Smarttextiles will enable the future where digital has no screens. I am really curious to see how this future wouldlook like. Especially, as people we know are working towards making our living better.

Qaizar, you mentioned that smart textiles will enhance our communication. What is the role of smart textiles in human Interaction and in the interior?

By looking at the possibility of textiles being more than just fabric to cover ourselves, we will get a new perspective, a broad scale of functionalities textiles can give us. For example, by providing more information about other people, the environment and ourselves. What is more, we can transform textiles to entertain and even educate people. The challenge is to determine how much do we want to express ourselves with textiles: is it our mood, health condition, bank information or else?

We have an opportunity to grant textiles additional functions by integrating technology into the fabric we are sitting on - chairs and sofas, walking on - carpets and rugs, surrounding ourselves - drabs and curtains in the rooms, bedding sheets, towels, etc. Smart textiles will generate an enormous amount of data enriching analytics and insights and helping human to make sustainable decisions. Digitalizing textiles can provide us with better tech coverage. There are places where you have a carpet, but you don't have a camera. We are going to transform the textiles that are already in use and make new products out of smart fabric that has not been thought ever before.

In SpinTales, we have launched the smart textiles that entertain and educate children. It is an interactive smart home textile, that with the help of tablet or phone, transforms regular carpet or duvet to augmented storytelling. This is one of the examples how future of smart textiles can look like. And more exciting augmentations are yet to come.

Maddy, your specialty is smart apparel. What is the future of fashion and clothes overall?

I do not separate the fashion from apparel. In my opinion, the most important is that combination of smart textiles and fashion enable creativity. Every person in this world purchases textiles. I wish to create a highly functional apparel which will perform a shift from a commodity attitude to clothing for its color and pattern to a well-engineered product that one buys for its capabilities.

At the moment we, at Loomia, are working towards revolution shifting textiles to a service-based industry. Loomia has grown from Crated, which was working on one-time projects integrating technology in apparel. There is a large market potential for creating actual smart textiles that enable the smart future. There are a lot of highly functional textiles in the industrial and space industries, and now it is time to bring intelligence to any textile that is surrounding us. The result of all those efforts is creating a screenless world with the latest tech possibilities so people can spend more time living and enjoying their life instead of operating through the screens.

Will the design of interior textiles and apparel change? If yes, how?
Qaizar Hassonjee:
We can see the focus on design, appearance, and comfort of wearable technologies. At the beginning of wearables' development, functionality had a high importance level. Now, it all comes to design and customer experience without compromising on functionality. From clothes standpoint, I think it will always be gender specific fro both male and female fashion. However, when talking about other textiles like home and interior, it is less gender specific while more theme oriented. Interior textiles are not be necessarily used by one person; they are shared commodity. Depending on the situation, the textile might seamlessly change adapting to the need of the particular user.
Madison Maxey:
I would hope that at some point there is enough customization that you can get a product that works well for any biological shape and size. I find issues with things like Oculus Rift making women noxious because of men and women sense distance to objects in a different way. For example, in my work, I also think about people with tattoos. I want to be sure that my products work for a wide variety of people and are suitable for all skin types. The future products have to be gender binary, fitting both genders and those who do not resemble any sex. It is my hope that intelligent wear will serve everyone representing a large scale of people.

It seems like textiles will gather a lot of valuable and private data. What is your take on the future of privacy?
Qaizar Hassonjee:
To begin with, we have to understand that monitoring combined with smart management can prevent a catastrophic event. This is when customers give away some pieces of privacy for safer and more controllable future. People already openly share their thoughts and feelings on the Internet as they believe it gives some value back. It is a form of social exchange. I would expect the same mechanism will happen with smart fabrics. As long as sharing of personal data is providing a value back, the exchange is justified.

Madison Maxey:

There are certain risks that we as consumers take on with any product. At times, the risk, like privacy, is worth the trade off. The system works that way: if you want to get better and more personalized solutions, you have to share your data. At the same time, there are well-reputed groups like Veritas putting a lot of thoughts on data privacy and protection. Certainly, it's essential to have new regulations for the industry. Also, we need to raise customers' awareness about the trade-off for the products that serve you better.

About our experts:

Qaizar Hassonjee is a pioneer in Smart Textiles leading into Wearables and Internet of Things with 20 years experience. Qaizar is a co-founder of Textronics Inc, which is an electro-textile technology company originated from DuPont's textile fiber research effort and acquired by Adidas. He was the first to launched Heart Rate Monitoring Sports Bra in 2005. Today, Qaizar brings technology to the home and interior textiles at TILT through the children entertainment system Spintales.

Madison Maxey is a smart apparel and wearables innovator who is delivering high-tech apparel solutions for the biggest apparel brands. Maddy is a member of Forbes 30Under30 and the first fashion designer to win a $100000 Thiel fellowship. Today, she fabricates smart future at her company Loomia (previously The Crated) enabling enhanced screenless future for everyone.

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Future of smart fabrics: apparel and home textiles - Focusing Future

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7 minute read Will technology mix up with the textiles or will textiles become a new technology? The future of fabric is definitely in reinventing the whole apparel and home textiles industries. Just imagine one piece of clothing that serves the whole family from children to grandparents.

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Digital

"When it comes to innovation, consumers are also keen for their fashion choices to reflect their digitally enhanced lifestyles

Google in September 2019 released its Cit-e backpack in collaboration with Saint Laurent

The pack’s left strap contains a computer that connects with an app on the owner’s phone

Users can use simple hand motions to get news, weather or even a selfie"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Market

"North America was the highest revenue-generating region in 2015, which is expected to grow at CAGR of 27.9% during 2016 to 2022

North America is expected to maintain its dominant position over the forecast period

Europe and Asia-Pacific are the second and third leading regions for smart textile market respectively"

(Sharma, 2017)

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality. It senses and reacts to stimuli or environmental conditions, such as those from thermal, mechanical, chemical, magnetic, and other sources. The global demand for various smart textile products has increased continuously due to their expanding base of applications in end user industries. Most of the demand for smart textile comes from end use industries such as military and defense and healthcare. Both developed and developing countries, will witness the increase in demand with innovative trends. This can be attributed to the factors such as increase in standard of living, rising incomes, awareness of safety and environmentalism, advances in medical technology, expanding automotive sectors, and increased spending on healthcare.

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Integration of smart textiles & wearables, use of nanotechnology in textiles, applications in smartphones, wearables in healthcare sector, and application in the military, defense & sports sector are the major factors that drive the smart textile market across the globe. Increasing research and development in the smart textile market along with the growing demand in emerging economies such as India and China are acting as major opportunities in the global smart textile market.

North America was the highest revenue-generating region in 2015, which is expected to grow at CAGR of 27.9% during 2016 to 2022. Moreover, North America is expected to maintain its dominant position over the forecast period. Europe and Asia-Pacific are the second and third leading regions for smart textile market respectively.

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The global smart textile market is segmented based on function, application, and geography. On the basis of function the smart textile market is categorized into energy harvesting, sensing, thermoelectricity, luminescent, and others, which include weaving, knitting, and braiding. On the basis of application, the smart textile market is bifurcated into healthcare, military and defense, entertainment, automotive, sport and fitness, and others. Geographic breakdown and deep analysis of each of the aforesaid segments is included for North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pockets:
At present, military & defense, healthcare, and entertainment segments have witnessed large-scale adoption of smart textiles due to increasing demand for functional and superior properties products. Automotive and sports & fitness are other popular segments in the global smart textile market. The rapid growth of smart textiles in the end user application is expected in subsequent years due to rise in demand for higher quality fabrics. These segments have a potential to generate high returns due to expected rise in the adoption of high-end fabrics.

Increasing adoption of smart textiles in the military and defense and entertainment sectors are expected to rise and have been identified as some of the lucrative targets for investment. As compared to other segments, these segments possess larger market size by value. Other emerging end user applications such as healthcare, automotive, sport & fitness, and others are expected to witness good growth in the coming years. However, these applications currently possess moderate market size in terms of value.

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Market Dynamics: Drivers: Integration of Smart Textiles and Wearables
With the integration of electronic components in smart textiles, they are used in various applications such as health management, actuation, response, and communication. They consist of components such as sensors, actuators, control units, and others. Wearable technology mainly concerns textiles, electronic devices, and apparel. These textiles help to control muscle vibrations, regulate body temperatures, and protect from environmental hazards such as radiation. As electronic components can be miniaturized, it is possible to integrate textiles and electronic components. These are the factors that are the driving the global smart textile market.
Restraints: High Cost of Production
The major restraint for the smart textile market is the high cost of production. Smart textiles require high-end materials and are highly sophisticated due to which perfect cost-price balance is not achieved by manufacturers. The market is hindered due to the cost of electronic devices and components, which further increases the prices of the smart textiles.

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LAMEA Review:
Brazil is expected to witness growth in the smart textile market and is presumed to be the market leader in this region. Brazil is the ninth largest economy in the world in terms of GDP and the fifth largest by purchasing power parity. Brazil is the only South American country that holds a prominent position in global textile production. The country is one of the largest producers of apparel, according to the Institute of Studies and Industrial Marketing of Brazil. The Brazilian textile industry is constantly growing owing to the acquisition of modern equipment and technical development, which is further expected to drive the smart textile market during the forecast period. UAE has the largest market for smart textile in the Middle East region.

Major players that operate in this market are DuPont de Nemours & Co., Koninklijke Ten Cate NV, Texas Instruments Inc., Google Inc., Gentherm Inc., Schoeller Textiles AG, Sensoria Inc., Textronics, Adidas, and Ohmatex.

Other key market players in the value chain include, Intelligent Clothing Ltd., International Fashion Machines, Inc., Interactive Wear AG, Vista Medical Ltd., Nike Inc., ONeill, Eleksen, Fibretronic Limited, ThermoSoft International, and Peratech Ltd.
Key Benefits for Stakeholders:

The smart textile market research report provides a quantitative and qualitative analysis of the current market trends, estimations, and dynamics through 2014-2022, which assist in identifying the prevailing market opportunities in different end user segments.

Market trends of major countries in each region are mapped according to forecasted market revenue.

Top investment pockets, which highlight the opportunity in the most lucrative end user segments is part of the study.

Focused study of the factors that drive and restrict the growth of smart textile market is provided.

Key manufactures of smart textiles are profiled and their recent developments are listed.

Smart Textile Market Key Segments:

By Function

By End User Industry

Healthcare

Military and defense

Entertainment

Automotive

Sport and fitness

Others

By Geography

1.1 REPORT DESCRIPTION
1.2 KEY BENEFITS
1.3 KEY MARKET SEGMENTS
1.4 RESEARCH METHODOLOGY

3.3 VALUE CHAIN ANALYSIS
3.4 PORTER'S FIVE FORCES ANALYSIS

3.4.1 Moderate Bargaining Power Of Suppliers Due To Large Number Of Suppliers And Low Switching Cost
3.4.2 Moderate Bargaining Power Of Buyer Due To High Product Dependency ,Less Availability Of Substitutes, And Number Of Players That Provide Quality Product
3.4.3 Less Availability Of Substitutes And High Cost Increases Product Differentiation
3.4.4 High Threat Of New Entrants Due To Growth In These Sector
3.4.5 Presence Of Numerous Players, Low Brand Loyalty, Low Switching Cost Increases The Competition Among Rivalries

6.3.1 Key Market Trends
6.3.2 Key Growth Factors And Opportunities
6.3.3 Market Size And Forecast
6.3.4 Uk Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.5 France Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.6 Germany Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.7 Italy Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.8 Spain Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.9 Rest Of Europe Smart Textile Market, ($Million), Growth (%) 2014-2022

FIG. 1. TOP INVESTMENT POCKETS
FIG. 2. PORTER'S FIVE FORCES ANALYSIS OF SMART TEXTILE MARKET
FIG. 3. GLOBAL SMART TEXTILE MARKET BY FUNCTION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 4. GLOBAL SMART TEXTILE MARKET BY APPLICATION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 5. GLOBAL SMART TEXTILEMARKET BY GEOGRAPHY, 2015(PIE CHART OF GLOBAL NUMBERS BY GEOGRAPHY)
FIG. 6. DUPONT DE NEMOURS & CO.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 7. DUPONT DE NEMOURS & CO.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 8. DUPONT DE NEMOURS & CO.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 9. 7.2 KONINKLIJKE TEN CATE NV: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 10. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 11. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 12. TEXAS INSTRUMENTS INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 13. TEXAS INSTRUMENTS INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 14. TEXAS INSTRUMENTS INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 15. GOOGLE INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 16. GOOGLE INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 17. GOOGLE INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 18. GENTHERM INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 19. GENTHERM INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 20. GENTHERM INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 21. SCHOELLER TEXTILES AG: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 22. SCHOELLER TEXTILES AG: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 23. SCHOELLER TEXTILES AG: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 24. SENSORIA INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 25. SENSORIA INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 26. SENSORIA INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 27. TEXTRONICS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 28. TEXTRONICS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 29. TEXTRONICS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 30. ADIDAS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 31. ADIDAS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 32. ADIDAS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 33. OHMATEX: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 34 OHMATEX: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 35. OHMATEX: REVENUE, BY GEOGRAPHY, 2015 (%)

TABLE 1. GLOBAL ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 2. NORTH AMERICA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 3. EUROPE ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 4. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 5. LAMEA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 6. GLOBAL SENSING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 7. NORTH AMERICA SENSINGMARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 8. EUROPE SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 9. ASIA-PACIFIC SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 10. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 11. GLOBAL THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 12. NORTH AMERICA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 13. EUROPE THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 14. ASIA-PACIFIC THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 15. LAMEA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 16. GLOBAL LUMINESCENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 17. NORTH AMERICA LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 18. EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 19. ASIA-PACIFIC LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 20. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 21. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 22. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022.
TABLE 23. EUROPE OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 24. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 25. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 26. GLOBAL HEALTHCARE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 27. NORTH AMERICA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 28. EUROPE TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 29. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 30. LAMEA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 31. GLOBAL MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 32. NORTH AMERICA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 33. EUROPE MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 34. ASIA-PACIFIC MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 35. LAMEA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 36. GLOBAL ENTERTAINMENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 37. NORTH AMERICA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 38. EUROPE ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 39. ASIA-PACIFIC ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 40. LAMEA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 41. GLOBAL AUTOMOTIVE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 42. NORTH AMERICA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 43. EUROPE AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 44. ASIA-PACIFIC AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 45. LAMEA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 46. GLOBAL SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 47. NORTH AMERICA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 48. EUROPE SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 49. ASIA-PACIFIC SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 50. LAMEA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 51. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 52. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 53. EUROPE TYPE OTHERS, ($MILLION), GROWTH (%) 2014-2022
TABLE 54. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 55. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 56. NORTH AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 57. U.S. SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 58. CANADA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 59. MEXICO SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 60. EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 61. UK SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 62. FRANCE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 63. GERMANY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 64. ITALY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 65. SPAIN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 66. REST OF EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 67. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 68. INDIA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 69. CHINA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 70. JAPAN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 71. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 72. LAMEA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 73. LATIN AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 74. MIDDLE EAST SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 75. AFRICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 76. COMPANY SNAPSHOT
TABLE 77. DUPONT DE NEMOURS & CO.: OPERATING SEGMENTS
TABLE 78. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 79. COMPANY SNAPSHOT
TABLE 80. 7.2 KONINKLIJKE TEN CATE NV: OPERATING SEGMENTS
TABLE 81. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 82. COMPANY SNAPSHOT
TABLE 83. TEXAS INSTRUMENTS INC.: OPERATING SEGMENTS
TABLE 84. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 85. COMPANY SNAPSHOT
TABLE 86. GOOGLE INC.: OPERATING SEGMENTS
TABLE 87. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 88. COMPANY SNAPSHOT
TABLE 89. GENTHERM INC.: OPERATING SEGMENTS
TABLE 90. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 91. COMPANY SNAPSHOT
TABLE 92. SCHOELLER TEXTILES AG: OPERATING SEGMENTS
TABLE 93. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 94. COMPANY SNAPSHOT
TABLE 95. SENSORIA INC.: OPERATING SEGMENTS
TABLE 96. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 97. COMPANY SNAPSHOT
TABLE 98. TEXTRONICS: OPERATING SEGMENTS
TABLE 99. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 100. COMPANY SNAPSHOT
TABLE 101. ADIDAS: OPERATING SEGMENTS
TABLE 102. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 103. COMPANY SNAPSHOT
TABLE 104. OHMATEX: OPERATING SEGMENTS
TABLE 105. KEY STRATEGIC MOVES & DEVELOPMENTS

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Smart Textile Market Size, Share | Industry Growth and Analysis by 2022

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality.

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Market

"Americas accounted for the largest share of the smart textiles market"

(MarketsandMarkets, 2015)

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1 Introduction (Page No. - 13)
1.1 Objectives of the Study
1.2 Market Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Years Considered for the Study
1.4 Currency
1.5 Package Size
1.6 Limitations
1.7 Stakeholders
3 Executive Summary (Page No. - 30)
4 Premium Insights (Page No. - 35)
4.1 Attractive Opportunities in the Smart Textiles Market
4.2 APAC Expected to Emerge as A Lucrative Market
4.3 The Market for the Sensing Function is Expected to Grow at the Highest CAGR
4.4 Active Smart Textiles Accounted for the Largest Market Share in 2014
4.5 Emerging Markets Such as China, India, and South Korea are Some of the Key Growth Regions

6 Industry Analysis (Page No. - 52)
6.1 Introduction
6.2 Supply Chain Analysis
6.2.1 Core Stakeholders
6.2.2 Supporting Stakeholders
6.3 Industry Trends
6.4 Porter's Five Forces Analysis
6.4.1 Bargaining Power of Suppliers
6.4.2 Bargaining Power of Buyers
6.4.3 Threat of New Entrants
6.4.4 Threat of Substitutes
6.4.5 Degree of Competition

7 Smart Textile Market, By Type (Page No. - 63)
7.1 Introduction
7.2 Passive Smart Textiles
7.3 Active Smart Textiles
7.4 Ultra Smart Textiles

8 Smart Textiles Market, By Function (Page No. - 71)
8.1 Introduction
8.2 Sensing
8.3 Energy Harvesting
8.4 Luminescence & Aesthetics
8.5 Thermo-Electricity
8.6 Others

9 Smart Textiles Market, By End-User Industry (Page No. - 77)
9.1 Introduction
9.2 Military and Protection
9.3 Architecture
9.4 Healthcare
9.5 Sports and Fitness
9.6 Fashion and Entertainment
9.7 Automotive
9.8 Others

11 Competitive Landscape (Page No. - 117)
11.1 Overview
11.2 Key Players in the Smart Textiles Market, 2014
11.3 Competitive Situation and Trends
11.3.1 New Product Launches
11.3.2 Agreements, Partnerships, and Expansions
11.3.3 Acquisitions

13 Appendix (Page No. - 152)
13.1 Insights of Industry Experts
13.2 Discussion Guide
13.3 Introducing RT: Real-Time Market Intelligence
13.4 Available Customizations
13.5 Related Reports

List of Tables (68 Tables)
List of Figures (59 Figures)
Table 1 Uptrend in Wearable Electronics Industry Fueling the Growth of Smart Textiles Market
Table 2 High Cost of Smart Textilesis A Major Restraining Factor
Table 3 Increasing Opportunities in Multiple Applications Areas and Technological Growth Pave Growth Avenues for Players in the Smart Textiles Market
Table 4 Smart Textile Market, By Type, 2014–2020 (USD Million)
Table 5 Passive Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 6 Active Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 7 Ultra-Smart Textile Market, By Function, 2014–2020 (USD Million)
Table 8 Passive Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 9 Active Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 10 Ultra-Smart Textile Market, By End-User Industry, 2014–2020 (USD Million)
Table 11 Market, By Function, 2014–2020 (USD Million)
Table 12 Smart Textiles Market in Sensing, By Type, 2014–2020 (USD Million)
Table 13 Smart Textiles Market in Energy Harvesting, By Type, 2014–2020 (USD Million)
Table 14 Smart Textiles Market in Luminescence & Aesthetics, By Type, 2014–2020 (USD Million)
Table 15 Smart Textiles Market in Thermo-Electricity, By Type, 2014–2020 (USD Million)
Table 16 Market in Others, By Type, 2014–2020 (USD Million)
Table 17 Market, By End-User Industry, 2014 - 2020 (USD Million)
Table 18 Market for Military and Protection, By Type, 2014 - 2020 (USD Million)
Table 19 Smart Textiles Market for Military and Protection, By Geography, 2014 - 2020 (USD Million)
Table 20 Market for Architecture, By Type, 2014 - 2020 (USD Million)
Table 21 Market for Architecture, By Geography, 2014 - 2020 (USD Million)
Table 22 Market for Healthcare, By Type, 2014 - 2020 (USD Million)
Table 23 Market for Healthcare, By Geography, 2014 - 2020 (USD Million)
Table 24 Market for Sports and Fitness, By Type, 2014 - 2020 (USD Million)
Table 25 Smart Textiles Market for Sports and Fitness, By Geography, 2014 - 2020 (USD Million)
Table 26 Market for Fashion and Entertainment, By Type, 2014 - 2020 (USD Million)
Table 27 Smart Textiles Market for Fashion and Entertainment, By Geography, 2014 - 2020 (USD Million)
Table 28 Market for Automotive, By Type, 2014 - 2020 (USD Million)
Table 29 Market for Automotive, By Geography, 2014 - 2020 (USD Million)
Table 30 Market for Others, By Type, 2014 - 2020 (USD Million)
Table 31 Market for Others, By Geography, 2014 - 2020 (USD Million)
Table 32 Market, By Geography, 2014–2020 (USD Million)
Table 33 Americas: Smart Textiles Market, By Country, 2014–2020 USD (USD Million)
Table 34 Americas: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 35 Americas: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 36 Americas: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 37 Americas: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 38 Americas: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 39 Americas: Smart Textiles Market for Automotive, By Country, 2014–2020 (USD Million)
Table 40 Americas: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 41 Europe: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 42 Europe: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 43 Europe: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 44 Europe: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 45 Europe: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 46 Europe: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 47 Europe: Market, By Country for Automotive, 2014–2020 (USD Million)
Table 48 Europe: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 49 APAC: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 50 APAC: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 51 APAC: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 52 APAC: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 53 APAC: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 54 APAC: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 55 APAC: Market for Automotive, By Country, 2014–2020 (USD Million)
Table 56 APAC: Smart Textiles Market for Others, By Country, 2014–2020 (USD Million)
Table 57 RoW: Smart Textiles Market, By Country, 2014–2020 (USD Million)
Table 58 RoW: Market for Military and Protection, By Country, 2014–2020 (USD Million)
Table 59 RoW: Market for Architecture, By Country, 2014–2020 (USD Million)
Table 60 RoW: Market for Healthcare, By Country, 2014–2020 (USD Million)
Table 61 RoW: Market for Sports and Fitness, By Country, 2014–2020 (USD Million)
Table 62 RoW: Market for Fashion and Entertainment, By Country, 2014–2020 (USD Million)
Table 63 RoW: Market for Automotive, By Country, 2014–2020 (USD Million)
Table 64 RoW: Market for Others, By Country, 2014–2020 (USD Million)
Table 65 Smart Textiles Market: Key Players Rating, 2014
Table 66 New Product Launches
Table 67 Agreements, Partnerships, and Expansions
Table 68 Acquisitions

Figure 1 Smart Textiles Market: Research Methodology
Figure 2 Wearable Electronics Market Size (Value), 2014 – 2020 (USD Billion)
Figure 3 Global Smartphones Shipments in Million Units, 2013-2018
Figure 4 Bottom-Up Approach
Figure 5 Top-Down Approach
Figure 6 Market Breakdown and Data Triangulation
Figure 7 Assumptions of the Research Study
Figure 8 Smart Textiles Market Snapshot, By End-User Industry (2014 vs 2020): Applications in the Sports and Fitness Sector are Expected to Lead 31
Figure 9 Smart Textiles Market Snapshot, By Function (2014 vs 2020): Sensors are the Most Widely-Used Components in Smart Textile Products
Figure 10 Global Smart Textiles Market, By Type, 2014
Figure 11 Global Market, By Region, 2014
Figure 12 Global Market Size, 2015 - 2020 (USD Billion)
Figure 13 Geographic Snapshot: Smart Textiles Market, By End-User Industry
Figure 14 Market, By Function, 2015 - 2020 (USD Million)
Figure 15 Market, 2014
Figure 16 Region-Wise CAGR for the Smart Textiles Market (2015-2020)
Figure 17 Smart Textiles Market, By Function
Figure 18 Market, By Type
Figure 19 Market, By End-User Industry
Figure 20 Market, By Geography
Figure 21 Events in the Smart Textiles Market
Figure 22 Uptrend in Wearable Electronics Industry Fueling the Growth of Smart Textiles Market
Figure 23 CAGR (%) (2014-2020) of Wearable Electronics Market, By Region
Figure 24 History of Chip Resistor Miniaturization
Figure 25 Market Supply Chain
Figure 26 Emergence of Iot and Remote Health Monitoring are the Major Trends
Figure 27 Porter's Five Forces Analysis (2014): Smart Textiles Market
Figure 28 Porter's Five Forces Analysis for the Market
Figure 29 Bargaining Power of Suppliers in the Smart Textiles Market
Figure 30 Bargaining Power of Buyers in the Market
Figure 31 Threat of New Entrants in the Smart Textiles Market
Figure 32 Threat of Substitutes in the Market.
Figure 33 Degree of Competition in the Market
Figure 34 Smart Textile Market, By Type
Figure 35 Smart Textiles Market, By Function
Figure 36 Market, By End-User Industry
Figure 37 Geographic Snapshot: APAC is Emerging as A Key Growth Region for the Market
Figure 38 Americas Market Snapshot
Figure 39 European Market Snapshot
Figure 40 APAC Market Snapshot
Figure 41 RoW Market Snapshot
Figure 42 Companies Adopted Partnerships as the Key Growth Strategy Over the Last Four Years (2012-2015)
Figure 43 Battle for Market Share: Partnerships Have Been the Key Strategy
Figure 44 Geographic Revenue Mix of Major Market Players
Figure 45 AIQ Smart Clothing Inc.: Business Overview
Figure 46 Clothing Plus Ltd. : Business Overview
Figure 47 Clothing Plus Ltd. : SWOT Analysis
Figure 48 E. I. Du Pont De Nemours and Company : Business Overview
Figure 49 E. I. Dupont De Nemours and Company : SWOT Analysis
Figure 50 Gentherm Incorporated: Business Overview
Figure 51 Google: Company Snapshot
Figure 52 Google Inc.: SWOT Analysis
Figure 53 Interactive Wear AG: Business Overview
Figure 54 Outlast Technologies LLC: Company at A Glance
Figure 55 Schoeller Textil AG : Business Overview
Figure 56 Sensoria, Inc.: Business Overview
Figure 57 Sensoria Inc.: SWOT Analysis
Figure 58 Textronics, Inc. : Business Overview
Figure 59 Textronics, Inc.: SWOT Analysis

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1 Introduction (Page No. - 13) 1.1 Objectives of the Study 1.2 Market Definition 1.3 Study Scope 1.3.1 Markets Covered 1.3.2 Years Considered for the Study 1.4 Currency 1.5 Package Size 1.6 Limitations 1.7 Stakeholders 3 Executive Summary (Page No. - 30) 4 Premium Insights (Page No.

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Factors Contributing to Market Growth

"Increase in standard of living, rising incomes, awareness of safety and environmentalism, advances in medical technology, expanding automotive sectors, and increased spending on healthcare"

(Sharma, 2017)

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality. It senses and reacts to stimuli or environmental conditions, such as those from thermal, mechanical, chemical, magnetic, and other sources. The global demand for various smart textile products has increased continuously due to their expanding base of applications in end user industries. Most of the demand for smart textile comes from end use industries such as military and defense and healthcare. Both developed and developing countries, will witness the increase in demand with innovative trends. This can be attributed to the factors such as increase in standard of living, rising incomes, awareness of safety and environmentalism, advances in medical technology, expanding automotive sectors, and increased spending on healthcare.

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Integration of smart textiles & wearables, use of nanotechnology in textiles, applications in smartphones, wearables in healthcare sector, and application in the military, defense & sports sector are the major factors that drive the smart textile market across the globe. Increasing research and development in the smart textile market along with the growing demand in emerging economies such as India and China are acting as major opportunities in the global smart textile market.

North America was the highest revenue-generating region in 2015, which is expected to grow at CAGR of 27.9% during 2016 to 2022. Moreover, North America is expected to maintain its dominant position over the forecast period. Europe and Asia-Pacific are the second and third leading regions for smart textile market respectively.

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The global smart textile market is segmented based on function, application, and geography. On the basis of function the smart textile market is categorized into energy harvesting, sensing, thermoelectricity, luminescent, and others, which include weaving, knitting, and braiding. On the basis of application, the smart textile market is bifurcated into healthcare, military and defense, entertainment, automotive, sport and fitness, and others. Geographic breakdown and deep analysis of each of the aforesaid segments is included for North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pockets:
At present, military & defense, healthcare, and entertainment segments have witnessed large-scale adoption of smart textiles due to increasing demand for functional and superior properties products. Automotive and sports & fitness are other popular segments in the global smart textile market. The rapid growth of smart textiles in the end user application is expected in subsequent years due to rise in demand for higher quality fabrics. These segments have a potential to generate high returns due to expected rise in the adoption of high-end fabrics.

Increasing adoption of smart textiles in the military and defense and entertainment sectors are expected to rise and have been identified as some of the lucrative targets for investment. As compared to other segments, these segments possess larger market size by value. Other emerging end user applications such as healthcare, automotive, sport & fitness, and others are expected to witness good growth in the coming years. However, these applications currently possess moderate market size in terms of value.

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Market Dynamics: Drivers: Integration of Smart Textiles and Wearables
With the integration of electronic components in smart textiles, they are used in various applications such as health management, actuation, response, and communication. They consist of components such as sensors, actuators, control units, and others. Wearable technology mainly concerns textiles, electronic devices, and apparel. These textiles help to control muscle vibrations, regulate body temperatures, and protect from environmental hazards such as radiation. As electronic components can be miniaturized, it is possible to integrate textiles and electronic components. These are the factors that are the driving the global smart textile market.
Restraints: High Cost of Production
The major restraint for the smart textile market is the high cost of production. Smart textiles require high-end materials and are highly sophisticated due to which perfect cost-price balance is not achieved by manufacturers. The market is hindered due to the cost of electronic devices and components, which further increases the prices of the smart textiles.

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LAMEA Review:
Brazil is expected to witness growth in the smart textile market and is presumed to be the market leader in this region. Brazil is the ninth largest economy in the world in terms of GDP and the fifth largest by purchasing power parity. Brazil is the only South American country that holds a prominent position in global textile production. The country is one of the largest producers of apparel, according to the Institute of Studies and Industrial Marketing of Brazil. The Brazilian textile industry is constantly growing owing to the acquisition of modern equipment and technical development, which is further expected to drive the smart textile market during the forecast period. UAE has the largest market for smart textile in the Middle East region.

Major players that operate in this market are DuPont de Nemours & Co., Koninklijke Ten Cate NV, Texas Instruments Inc., Google Inc., Gentherm Inc., Schoeller Textiles AG, Sensoria Inc., Textronics, Adidas, and Ohmatex.

Other key market players in the value chain include, Intelligent Clothing Ltd., International Fashion Machines, Inc., Interactive Wear AG, Vista Medical Ltd., Nike Inc., ONeill, Eleksen, Fibretronic Limited, ThermoSoft International, and Peratech Ltd.
Key Benefits for Stakeholders:

The smart textile market research report provides a quantitative and qualitative analysis of the current market trends, estimations, and dynamics through 2014-2022, which assist in identifying the prevailing market opportunities in different end user segments.

Market trends of major countries in each region are mapped according to forecasted market revenue.

Top investment pockets, which highlight the opportunity in the most lucrative end user segments is part of the study.

Focused study of the factors that drive and restrict the growth of smart textile market is provided.

Key manufactures of smart textiles are profiled and their recent developments are listed.

Smart Textile Market Key Segments:

By Function

By End User Industry

Healthcare

Military and defense

Entertainment

Automotive

Sport and fitness

Others

By Geography

1.1 REPORT DESCRIPTION
1.2 KEY BENEFITS
1.3 KEY MARKET SEGMENTS
1.4 RESEARCH METHODOLOGY

3.3 VALUE CHAIN ANALYSIS
3.4 PORTER'S FIVE FORCES ANALYSIS

3.4.1 Moderate Bargaining Power Of Suppliers Due To Large Number Of Suppliers And Low Switching Cost
3.4.2 Moderate Bargaining Power Of Buyer Due To High Product Dependency ,Less Availability Of Substitutes, And Number Of Players That Provide Quality Product
3.4.3 Less Availability Of Substitutes And High Cost Increases Product Differentiation
3.4.4 High Threat Of New Entrants Due To Growth In These Sector
3.4.5 Presence Of Numerous Players, Low Brand Loyalty, Low Switching Cost Increases The Competition Among Rivalries

6.3.1 Key Market Trends
6.3.2 Key Growth Factors And Opportunities
6.3.3 Market Size And Forecast
6.3.4 Uk Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.5 France Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.6 Germany Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.7 Italy Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.8 Spain Smart Textile Market, ($Million), Growth (%) 2014-2022
6.3.9 Rest Of Europe Smart Textile Market, ($Million), Growth (%) 2014-2022

FIG. 1. TOP INVESTMENT POCKETS
FIG. 2. PORTER'S FIVE FORCES ANALYSIS OF SMART TEXTILE MARKET
FIG. 3. GLOBAL SMART TEXTILE MARKET BY FUNCTION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 4. GLOBAL SMART TEXTILE MARKET BY APPLICATION, 2015(PIE CHART OF GLOBAL NUMBERS BY TYPE)
FIG. 5. GLOBAL SMART TEXTILEMARKET BY GEOGRAPHY, 2015(PIE CHART OF GLOBAL NUMBERS BY GEOGRAPHY)
FIG. 6. DUPONT DE NEMOURS & CO.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 7. DUPONT DE NEMOURS & CO.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 8. DUPONT DE NEMOURS & CO.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 9. 7.2 KONINKLIJKE TEN CATE NV: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 10. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 11. 7.2 KONINKLIJKE TEN CATE NV: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 12. TEXAS INSTRUMENTS INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 13. TEXAS INSTRUMENTS INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 14. TEXAS INSTRUMENTS INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 15. GOOGLE INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 16. GOOGLE INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 17. GOOGLE INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 18. GENTHERM INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 19. GENTHERM INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 20. GENTHERM INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 21. SCHOELLER TEXTILES AG: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 22. SCHOELLER TEXTILES AG: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 23. SCHOELLER TEXTILES AG: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 24. SENSORIA INC.: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 25. SENSORIA INC.: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 26. SENSORIA INC.: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 27. TEXTRONICS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 28. TEXTRONICS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 29. TEXTRONICS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 30. ADIDAS: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 31. ADIDAS: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 32. ADIDAS: REVENUE, BY GEOGRAPHY, 2015 (%)
FIG. 33. OHMATEX: REVENUE ANALYSIS, 2013-2015 ($MILLION)
FIG. 34 OHMATEX: REVENUE, BY BUSINESS SEGMENT, 2015 (%)
FIG. 35. OHMATEX: REVENUE, BY GEOGRAPHY, 2015 (%)

TABLE 1. GLOBAL ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 2. NORTH AMERICA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 3. EUROPE ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 4. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 5. LAMEA ENERGY HARVESTING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 6. GLOBAL SENSING MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 7. NORTH AMERICA SENSINGMARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 8. EUROPE SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 9. ASIA-PACIFIC SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 10. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 11. GLOBAL THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 12. NORTH AMERICA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 13. EUROPE THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 14. ASIA-PACIFIC THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 15. LAMEA THERMOELECTRICITY MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 16. GLOBAL LUMINESCENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 17. NORTH AMERICA LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 18. EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 19. ASIA-PACIFIC LUMINESCENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 20. LAMEA SENSING MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 21. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 22. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022.
TABLE 23. EUROPE OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 24. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 25. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 26. GLOBAL HEALTHCARE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 27. NORTH AMERICA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 28. EUROPE TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 29. ASIA-PACIFIC TYPE A MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 30. LAMEA HEALTHCARE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 31. GLOBAL MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 32. NORTH AMERICA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 33. EUROPE MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
EUROPETYPE B MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 34. ASIA-PACIFIC MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 35. LAMEA MILITARY AND DEFENSE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 36. GLOBAL ENTERTAINMENT MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 37. NORTH AMERICA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 38. EUROPE ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 39. ASIA-PACIFIC ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 40. LAMEA ENTERTAINMENT MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 41. GLOBAL AUTOMOTIVE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 42. NORTH AMERICA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 43. EUROPE AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 44. ASIA-PACIFIC AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 45. LAMEA AUTOMOTIVE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 46. GLOBAL SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 47. NORTH AMERICA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 48. EUROPE SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 49. ASIA-PACIFIC SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 50. LAMEA SPORTS AND FITNESS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 51. GLOBAL OTHERS MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 52. NORTH AMERICA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 53. EUROPE TYPE OTHERS, ($MILLION), GROWTH (%) 2014-2022
TABLE 54. ASIA-PACIFIC OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 55. LAMEA OTHERS MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 56. NORTH AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 57. U.S. SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 58. CANADA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 59. MEXICO SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 60. EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 61. UK SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 62. FRANCE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 63. GERMANY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 64. ITALY SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 65. SPAIN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 66. REST OF EUROPE SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 67. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 68. INDIA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 69. CHINA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 70. JAPAN SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 71. ASIA-PACIFIC SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 72. LAMEA SMART TEXTILE MARKET, ($MILLION), GROWTH (%)2014-2022
TABLE 73. LATIN AMERICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 74. MIDDLE EAST SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 75. AFRICA SMART TEXTILE MARKET, ($MILLION), GROWTH (%) 2014-2022
TABLE 76. COMPANY SNAPSHOT
TABLE 77. DUPONT DE NEMOURS & CO.: OPERATING SEGMENTS
TABLE 78. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 79. COMPANY SNAPSHOT
TABLE 80. 7.2 KONINKLIJKE TEN CATE NV: OPERATING SEGMENTS
TABLE 81. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 82. COMPANY SNAPSHOT
TABLE 83. TEXAS INSTRUMENTS INC.: OPERATING SEGMENTS
TABLE 84. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 85. COMPANY SNAPSHOT
TABLE 86. GOOGLE INC.: OPERATING SEGMENTS
TABLE 87. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 88. COMPANY SNAPSHOT
TABLE 89. GENTHERM INC.: OPERATING SEGMENTS
TABLE 90. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 91. COMPANY SNAPSHOT
TABLE 92. SCHOELLER TEXTILES AG: OPERATING SEGMENTS
TABLE 93. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 94. COMPANY SNAPSHOT
TABLE 95. SENSORIA INC.: OPERATING SEGMENTS
TABLE 96. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 97. COMPANY SNAPSHOT
TABLE 98. TEXTRONICS: OPERATING SEGMENTS
TABLE 99. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 100. COMPANY SNAPSHOT
TABLE 101. ADIDAS: OPERATING SEGMENTS
TABLE 102. KEY STRATEGIC MOVES & DEVELOPMENTS
TABLE 103. COMPANY SNAPSHOT
TABLE 104. OHMATEX: OPERATING SEGMENTS
TABLE 105. KEY STRATEGIC MOVES & DEVELOPMENTS

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Smart Textile Market Size, Share | Industry Growth and Analysis by 2022

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Global Smart Textile Market size is expected to reach $5,369 million by 2022 from $943 million in 2015 at a CAGR of 28.4% from 2016 to 2022. Smart textiles are fabrics that are manufactured to include technologies that provide the wearer with increased functionality.

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Digital

"A key driver for smart textiles research is the fact that both textile and electronics fabrication processes are capable of functionalizing large-area surfaces at very high speeds"

(Cherenack and Pieterson, 2012)

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Individualism

"Personalisation/individualisation trend is supported by additional functionality"

(Ginsburg, 2020)

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Early morning in Oxford Street by Marble Arch, on 16th April 2020 in London, United Kingdom. ... [+]
In Pictures via Getty Images

One of the most glaring differences between socialist and capitalist societies centers on cultural ideology. Socialist countries have a collectivist mentality, where people are interdependent and link their self-identity to the "group". Conversely, individualism focuses on the independence of each person and prioritizes self-reliance. If there has ever been a time when we need a balance of both; it is now.

For the U.S. and other countries to avoid an economic implosion, we need to adopt the collective sensibility. The gritty, every man-for-himself American ethos encourages creditors to hold debtors to firm deadlines and not make any allowances. The landlord-tenant-lender dynamic is an illustrative example of how and why the US needs to partially shift this ideology. Many retail commercial tenants are not able to meet their rent obligations because of the lockdown's negative impact on consumer traffic. In turn, commercial landlords are not able to make their mortgage payments to their respective banks. Bankers ultimately need to answer to their shareholders and that is where the domino effect likely terminates. In the event that any one of these links in the chain defaults on their payments during normal times, the U.S.' individualistic ideology encourages creditors to hold debtors accountable. Regardless of any force majeure act of G-d, the bottom line of payment due-dates remains etched in stone. If pressed on this decision to not make any allowances in such unusual and tumultuous times, the banker might globalize the issue and argue that collective sensibility is impractical and has failed time and again when used by socialist countries throughout history.

Whether or not you agree with this argument, one thing is crystal clear: all of us should shoulder the imminent financial burden created by the virus if any of us can stave off a financial catastrophe. If the bank can convince its shareholders to authorize a deferral of loan repayments for the commercial landlord, then tenants can pay partial rent and pay the balance once the recovery begins.

Andrew Bleiman of Marks & Klein, LLP, a business attorney who concentrates in representing franchised businesses and other small and mid-sized businesses says, "It is critical that all stakeholders work together to find solutions and that all share in any burden, cost and responsibility to get through this. The long term viability and success of these businesses should be the focus in these communications in the immediate future - with the message being that relief and concessions over the next 60 to 90 days will allow these businesses to survive for the next 60 to 90 months or more." Collective action (or inaction) can save the national economy with partial compromises by each of the different human links of the economic chain.

While the economy depends on a shift to collectivism, the health and survival of our globe depends on individualism. Certainly, the most obvious and necessary manifestation of individualism during these times focuses on social distancing. Still, the future of the earth depends on more intangible effects of this cultural ideology. Since its inception, the U.S. has been synonymous with innovation. Franklin, Edison, Jobs, Gates, and Ford are just a few names that have blazed trails in creating tools that have become necessities today. Why does a disproportionate number of innovators per capita come from the United States? First, the United States' prioritization of individual's rights allows for freedom of expression, which encourages people to think independently. More specifically, the First Amendment enables a robust exchange of opinions and fresh thinking, and with them, new ideas. This promotes an environment of innovation that stimulates an innovative energy that has rippled throughout the nation. Second, the United States encourages innovation with unrivaled financial incentives. With the world's highest health care expenditure per capita and top-tier intellectual property protections, U.S. innovators are encouraged to create life-saving products that will make them abundantly wealthy. While innovators in most countries are encouraged to find a remedy for this insidious virus, the long-held tradition of innovation in the U.S. suggests that the answer will be found in an American lab. Let's just hope that a national and global collective effort to share the financial burden can save the economy from implosion while the individuals go to work.

I am an attorney, risk manager, and political economist who is an expert on all stages of cross- border transactions. Since 1999, I have advised foreign investors and

... Read More

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Collectivism and Individualism: Reflections from a Pandemic

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One of the most glaring differences between socialist and capitalist societies centers on cultural ideology. Socialist countries have a collectivist mentality, where people are interdependent and link their self-identity to the "group". Conversely, individualism focuses on the independence of each person and prioritizes self-reliance.

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Health & Wellbeing

"There is a smart fabric solution for every need

Everyone seeks ways to improve their lifestyle, whether it’s through their workouts, commutes or their social communication skills

Sensors can track workout posture, and the fabrics can respond to muscle vibrations, ensuring correct athletic form and reducing the risk of injury"

(ApexMills, 2019)

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Looking for a custom Smart Textile Solution? Use our custom solutions form here!
Or contact our team now and we'll be happy to answer any questions you have!

Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties. But what if the clothing you wore could monitor your heart rate and transmit medical alerts to your doctor? Or if the bandages you affix to your skin didn't just cover a wound but dispensed healing medication. Perhaps a construction worker would be interested in wearing a hard hat that can provide a warning about carbon monoxide poisoning based on fluids from the skin. That's where smart textiles come in.

Smart textiles - also referred to as functional fabrics and e-textiles - are changing the way we think about the role of fabrics for industrial purposes and everyday use. With new technological advancements, we're moving closer to a future where fabrics are functional, beautiful and responsive.

What Are Smart Textiles?

Since smart fabrics are a newer technology, many people aren't aware of their potential. Smart textiles provide an added benefit to the user beyond the typical value of the fabric. They respond and adapt to their environment.

Fabrics are a combination of fibers and polymers, natural and man-made, that are constructed through a variety of techniques, the most popular being knitted or woven. Each blend of fabric serves a different purpose, individualized for a particular climate or function. But since fabric is the foundation for so many products and more, it makes sense to see how its utility can be expanded.

Take temperature, for instance - cotton and linen clothing are perfect for hot environments, as they are breathable and light. However, the allowance for airflow that keeps you cool creates a problem in colder temperatures. Going back and forth from hot to cold areas can be a nuisance when choosing what clothing to wear.

Functional textiles change that. They can adapt based on design structure or external stimuli. Imagine a fabric that can respond to a temperature change and keep you comfortable, much like your skin. And, along with adopting new capabilities, smart fabrics create a more sustainable culture. With the ability to transform, less product is needed which produces less waste.

What Makes Functional Textiles, Smart?

The evolution of technical textiles takes cues from the electronics and photonics industries. The integration of sensor arrays and plastic optical fiber (POF) creates an extension of functional fabrics commonly known as smart textiles.

At its core, technical textile manufacturing is a vast landscape of advanced yarn systems combined with textile formation techniques. The completed construction can be further transformed through lamination, coatings and composite methods.

Depending on their use, smart fabrics are created by fusing together fibers and technology. These fibers include conductive yarns and polymers, shape memory polymers, encapsulated phase change materials, fiber optics, and other small electronics. They may also use external additions, such as:

These materials interact with one another along with an external stimuli - such as temperature, light or pressure - creating a transfer of energy. Once activated, the functional fabric responds depending upon the textile's function.

What Are Smart Textiles Used For?

Smart textiles generally belong to one of two main categories:

Aesthetic: Smart fabric has been breaking out in the fashion industry. Aesthetic smart textiles can light up and change color, have an interactive element or shift with their environment. Fashion designers have already picked up on the new technology, creating entire lines out of smart materials. This category also encompasses decor and design elements.

Performance enhancement: With a focus on function over fashion, performance-enhancing smart fabrics provide the user with a unique experience, dependent on their purpose. This includes body temperature regulation, reducing wind and water resistance, guarding against radiation, minimizing the effects of space travel and even controlling the vibration of muscles.

Both categories of smart fabric serve their own purposes and work to solve current issues with industrial and fashionable materials.

What Industries Employ Smart Fabrics?

Smart fabric can be used in any industry. We have seen heightened use in these industries:

Technology as a Smart Fabric Solution

Smart fabrics solve common issues in many industries. Body temperature regulation is crucial in law enforcement, military, and athletic professions, among others. Rather than relying on layers and worrying about breathability, smart fabric can adapt to temperature shifts fluidly.

Within the medical field, developers are working on textiles that can monitor heart rate, dispense medication, and even transmit immediate notification if the wearer of the textile were to fall.

Currently, researchers at Advanced Functional Fabrics of America (AFFOA) are focusing on four main categories of technology-enabled fibers:

Prior to this new age of development, semiconductors were affixed to fabric, creating the ability to "power-up." But the yarns lacked softness and putting a circuit board/power source onto the fabric decreased its wearability. Today, the industry wants to shrink these diodes to sand-like particles and infuse them into the fiber itself.

As technology continues to advance, smart textiles will become the solution for many more common issues, possibly replacing the bulky hardware objects that currently adorn our home and workplace surfaces. The versatility and adaptability of e-textiles allow for a wide range of soft, flexible applications. With durable designs and innovative yarns, these products can stand the test of time.

Integration in the Military

Soldiers dress in thick layers and haul about 110 pounds of tactical gear. Not only does it take a lot of effort to carry, but it also poses a need for portable power sources. Batteries are carried, along with their gear, and disposed of quickly. Without ample power, the equipment becomes unusable.

The consortium of companies, academia and the Department of Defense that make up AFFOA have been developing the ability to create wearable power sources for military applications. Batteries are a huge cost, due to how many of them soldiers go through to keep their devices running. The development of power source smart textiles and connectors in body armor and similar fabrics are crucial to creating a system that's both reliable and user-friendly.

This isn't the only application, either. The Canadian military has made use of full-fabric keyboards in its IAV Stryker units, developed to replace the bulky, traditional hardware. They're lighter, easier to transport and have fewer components to break. Applications for smart textiles vary greatly, making them a great solution for many needs.

Greater Usage of Smart Fabrics

Grandview Research projects that the compound annual growth rate for smart fabrics will soar over the next few years. As technology advances, there has been a growing demand for more sophisticated and smarter textile products.

This, coupled with the rapid growth of low-cost smart wireless sensor networks, has been driving the market in North America. The Asia-Pacific region is witnessing increased demand for smart textiles as well, attributing the need to the rapidly developing healthcare and construction industries. On the other hand, the growing market for automobiles in Europe is boosting the smart fabrics growth rate in this region.

This growing demand creates opportunities for manufacturers who may have thought smart fabrics were out of their reach. As people begin to anticipate and demand them, the market will widen.

Decrease in Material Prices Gives Smart Fabrics a Boost

Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components. Cheaper building blocks generally lead to higher demand. Conductive materials are needed for smart fabric manufacturing. Smart fabrics may contain electrical components such as:

Army uniforms in several countries have been made with nanotechnology. Anything that can assist with military efficiency opens new options and will garner lots of attention from government scientists, creating further demand for the material. Some scientists even believe smart fabrics could be used to help military personnel detect chemical weapons and alert wearers to biological threats.

Benefits of Smart Textiles

Creating a world where smart textiles become commonplace can be beneficial in several ways. Sustainability and extending the lifespan of the products we use have been worldwide topics of concern. By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically.

With the ability to serve everyone from fabric consumers to astronauts, smart fabrics are incredibly versatile and customizable. There is a smart fabric solution for every need. Everyone seeks ways to improve their lifestyle, whether it's through their workouts, commutes or their social communication skills. E-textiles are technologically multi-faceted and can help to enhance an individual's lifestyle in so many ways:

While e-textiles are currently expensive and difficult to access, incorporating them into all areas of everyday life will make them more readily available. Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use.
Learn More About Our Textiles
A Recent History of Technological Advances in the Smart Textile Industry

Over the past few years, wearable smart fabrics have gained traction and are becoming more readily available to consumers. Here are a few highlights:

2015: While most of the technological advancements in smart fabric have occurred in scientific spaces, smart fabric started becoming commercially available in stores in 2015. Most of the first releases available centered around athletics and baby care, including big names like Hexoskin and Ralph Lauren's Polo Tech Shirt.

2016: CuteCircuit, a fashion-based brand, launched the groundbreaking SoundShirt. Using embedded haptics, this shirt allowed a deaf person to feel music. 2016 also marked the U.S. Commerce Department's first smart fabric-centered gathering.

2017: Google collaborated with Levi's® to create and release a Bluetooth-enabled jacket, Levi's® Commuter X Jacquard By Google. The project intended to help bicyclists who live in cities, giving them more accessible, hands-free communication on their daily commutes. The Next Generation Jacket was released in September 2019.

2018: At the Winter Olympic Games, hosted in PyeongChang, the entirety of Team USA wore self-heating jackets. Created by a collaboration of Ralph Lauren and several tech companies, these jackets kept athletes from suffering in the frigid temperatures.

2019: Technology brand Loomia releases a winter coat with a textile substrate layered heating system. The system minimizes the bulk of traditionally warm coats and allows for user control of their comfort setting.

Smart fabrics are continually advancing in their capabilities. Some of the latest e-textiles to hit stores include temperature control, integrated payment options, and health tracking features. There have already been major strides in creating wearable technology. Growing intrigue and industrial need will continue the upward trend of smart textiles.

The Future of Smart Textiles

Smart textiles and functional fabrics have been in sight of scientists and designers for years. Only recently have they made their way onto runways and into headlines. And, the more consumers and technologists learn about smart fabrics, the further they push the limits.

As technicians continue to develop these textiles, their capabilities will expand, making them able to function as a sort of second skin. Temperature-regulating fabric is already available, but progression will allow for a more fluid user experience. The fabric will read stimuli and respond to it with a shift in energy.

One of the most significant areas of progression will likely be in the field of health and wellness. Beauty and medicinal companies are looking at ways we can make fabrics that positively affect the wearer's health. This includes the ability to:

Making clothing that resists wear is presently underway, thanks to the innovation of smart fabric. Through continued development, self-healing and repairing fabric may become a reality. Tears, holes and seam rips could become a thing of the past. Clothing may evolve from short-term to lifetime purchases.

In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods. Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure.

Knitting and weaving technologies are setting the standards for e-textile manufacturing, and Apex Mills is helping to pioneer the future.

Yarn is the Next Invention

When considering developing a new yarn for interlacing into textile structures there are a multitude of formation methods to consider; wet emulsion, wet dispersion, vapor deposition, extrusion, wet spinning, dry spinning, electro-spinning, drawing, co-extrusion, covering, twisting, plaiting, and co-mingling, to name a few.

Universities, institutes, and companies are innovating yarn functionality for the next level of performance. Energy and communication are the newest performance characteristics that will be required to enable e-textiles.

Drexel University's Center for Functional Fabric has recently engineered a yarn that will store energy. This textile battery is much lighter and remarkably flexible, enabling it to become part of the fabric structure. Modifying traditional yarn with textile coatings and twisting methods, fibers are converted to a conductive yarn which is then paired through twisting with a stainless-steel yarn. The dual conductor systems work together to collect endless quantities of energy.
Creating technical, smart or functional fabrics is a regular business at Apex Mills. Our custom approach to textile product development begins with customers like you.

Discover Custom Smart Textiles with Apex Mills

At Apex Mills, we believe in creating a smarter world, where bold solutions to everyday problems thrive. Our business operates through one unifying motto - "Problem shared. Problem solved." We create custom fabric solutions for your specific design challenges, working with you as a partner. Each project is carefully evaluated to provide you with the best solution possible. Apex Mills practices Application Driven Design, ensuring we can fulfill your needs.

Every design is created and manufactured in the U.S., with locations in Long Island, New York, and North Carolina. Being an all-American company, we can provide quick and effective services globally. Apex Mills wants to help you find exactly what you're looking for. Partner with us and experience our fast and thorough customer service. Fill out our online questionnaire, and we'll get started creating a personalized warp knit fabric for you.
Looking for a custom Smart Textile Solution? Use our custom solutions form here!

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Smart Textiles: The Future of the Fabric Industry | Apex Mills

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Looking for a custom Smart Textile Solution? Use our custom solutions form here! Or contact our team now and we'll be happy to answer any questions you have! Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties.

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Health & Wellbeing

"The clothes likely to have a good share in the market include smart shirts comprising of bio-sensing circuitry that can be spun into the fibres

These shirts can easily read the vital signs of the wearer like coronary heart charge, exertion levels, changes in respiratory rate, etc.

Much easily in comparison to the wrist watches, as the surface of shirt is larger"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

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Health & Wellbeing

"Growth in medical and healthcare industries is anticipated to lead to higher demand for smart textiles"

(Syduzzaman, Patwary, Farhana and Ahmed, 2015)

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Health & Wellbeing

"Consumers are becoming more demanding of technologies that monitor their health and performance during exercise

Consumers desire more experiences over physical goods, valuing the additional functionality offered by e-textiles"

(Chandler, 2020)

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In an opinion piece published in the journal Matter, members of the Fibers@MIT research group recently laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, "smart clothing" might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions. Headed by Professor Yoel Fink, the group is developing fibers and fabrics with advanced computational properties. MIT News asked PhD student Gabriel Loke, who was the article's lead author, along with Fink and six others, to elaborate on the team's outlook.

Q: The paper you just published describes a vision for a fabric computer. Could such computers help to address a pandemic situation like the one we confront now?

A: The current pandemic has revealed the need for new paradigms to assess the health of large populations in real-time. Current approaches of symptom-driven tests are lagging indicators, and can be likened to driving just with your rear-view mirror, as far as the spread of Covid-19 is concerned. So how do we create systems that are predictive, forward-looking and can deliver leading indicators? What if you had a way to access your vital signs on a continuous basis? Could subtle, imperceptibly small changes become early warning signs for the health issues of an individual? What if you could correlate in space and time these changes for a large population, and do so in real time, to identify the spread of disease?

No human-made objects are more ubiquitous or exposed to more vital data than the clothes we all wear. Wouldn't it be great if we could somhow teach our fabrics to sense, store, analyze, extract, and communicate this potentially useful information?

In this piece, I describe the four principles for this new computer. First, the capabilities of a single strand of fiber will advance rapidly over time through new material designs and scalable fiber fabrication approaches. The second step is the synergistic assembly of these fibers into a fabric uniquely positioned to capture, store, and process vast amounts of data released by our bodies. The third is the development of artificially intelligent fabrics, where specially architected machine-learning algorithms programmed into the fabrics could uncover and gain new insights into hidden bodily patterns. Fourth, fabrics become sophisticated platforms for value-added services catering to a large population.

Q: You describe a potential "Moore's Law," which originally described a doubling of computing capacity every 18 months, for the development of computational fabrics. Could you describe what you mean by that?

A: For a Moore's Law for fibers to emerge, fibers have to be made up of multiple materials, precisely arranged within a single fiber cross-section to produce devices of varying functionalities including computation. The field of multimaterial fibers is young, relative to that of thin-film technology for microchip devices. But what we are seeing now in papers and research is a large growth in the number of functions that a fiber can exhibit.

For example, in the past few years, the fabrication method called thermal fiber drawing has resulted in a variety of material combinations and functions including heart-rate monitoring and optical communication. With a Moore's Law for fibers, we imagine a future where computational fabrics will be consistently updated with new functions and capabilities, similar to how we are always updating software in our computers.

Q: You've laid out a long-term vision and blueprint for the future of computational fabrics. What do you see as the most significant near-term steps in that direction that we can expect to see in the next few years?

A: The most important thing is to make sure that people, in particular students, realize what is happening in fabrics and how capable they will soon become. In our group, a host of students from different disciplines are working on creating fabric computers as we speak. Similar to the personal computer evolution, there are vast opportunities for new companies and innovation in this space. I anticipate fibers entering the digital domain and the introduction of fiber input and output. Modern computers are made up of millions of logic gates, so incorporating digital circuits and gates into a fiber represents the first of many steps toward achieving full computing capabilities in fibers and fabrics.

Second, for the realization of a fabric computer, the significant near-term step will be the development of fabric architectures that allow fibers to communicate with each other while retaining the conventional qualities of fabrics.

Finally, to enable fabrics with artificial intelligence capabilities, training useful networks for accurate predictions requires large data sets. This requires the collection of large amounts of data from our body. It is then necessary for sensors in fabrics to be as seamless and resistant as possible so that these sensors can be worn for prolonged durations. Work on these fronts such as improving the flexibility, washability, and power requirements of fiber sensors will bring us a step ahead into the pervasive sampling of human body data.

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3 Questions: The rapidly unfolding future of smart fabrics

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An MIT team has laid out a detailed vision for how the rapidly growing field of advanced fibers and fabrics could transform many aspects of our lives. For example, smart clothing might continuously monitor temperature, heart rate, and other vital signs, then analyze the data and give warnings of potential health conditions.

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Sustainability

"Sustainability and extending the lifespan of the products we use have been worldwide topics of concern

By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically

Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use

Making clothing that resists wear is presently underway

Continued development, self-healing and repairing fabric may become a reality

Tears and holes could become a thing of the past"

(ApexMills, 2019)

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Looking for a custom Smart Textile Solution? Use our custom solutions form here!
Or contact our team now and we'll be happy to answer any questions you have!

Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties. But what if the clothing you wore could monitor your heart rate and transmit medical alerts to your doctor? Or if the bandages you affix to your skin didn't just cover a wound but dispensed healing medication. Perhaps a construction worker would be interested in wearing a hard hat that can provide a warning about carbon monoxide poisoning based on fluids from the skin. That's where smart textiles come in.

Smart textiles - also referred to as functional fabrics and e-textiles - are changing the way we think about the role of fabrics for industrial purposes and everyday use. With new technological advancements, we're moving closer to a future where fabrics are functional, beautiful and responsive.

What Are Smart Textiles?

Since smart fabrics are a newer technology, many people aren't aware of their potential. Smart textiles provide an added benefit to the user beyond the typical value of the fabric. They respond and adapt to their environment.

Fabrics are a combination of fibers and polymers, natural and man-made, that are constructed through a variety of techniques, the most popular being knitted or woven. Each blend of fabric serves a different purpose, individualized for a particular climate or function. But since fabric is the foundation for so many products and more, it makes sense to see how its utility can be expanded.

Take temperature, for instance - cotton and linen clothing are perfect for hot environments, as they are breathable and light. However, the allowance for airflow that keeps you cool creates a problem in colder temperatures. Going back and forth from hot to cold areas can be a nuisance when choosing what clothing to wear.

Functional textiles change that. They can adapt based on design structure or external stimuli. Imagine a fabric that can respond to a temperature change and keep you comfortable, much like your skin. And, along with adopting new capabilities, smart fabrics create a more sustainable culture. With the ability to transform, less product is needed which produces less waste.

What Makes Functional Textiles, Smart?

The evolution of technical textiles takes cues from the electronics and photonics industries. The integration of sensor arrays and plastic optical fiber (POF) creates an extension of functional fabrics commonly known as smart textiles.

At its core, technical textile manufacturing is a vast landscape of advanced yarn systems combined with textile formation techniques. The completed construction can be further transformed through lamination, coatings and composite methods.

Depending on their use, smart fabrics are created by fusing together fibers and technology. These fibers include conductive yarns and polymers, shape memory polymers, encapsulated phase change materials, fiber optics, and other small electronics. They may also use external additions, such as:

These materials interact with one another along with an external stimuli - such as temperature, light or pressure - creating a transfer of energy. Once activated, the functional fabric responds depending upon the textile's function.

What Are Smart Textiles Used For?

Smart textiles generally belong to one of two main categories:

Aesthetic: Smart fabric has been breaking out in the fashion industry. Aesthetic smart textiles can light up and change color, have an interactive element or shift with their environment. Fashion designers have already picked up on the new technology, creating entire lines out of smart materials. This category also encompasses decor and design elements.

Performance enhancement: With a focus on function over fashion, performance-enhancing smart fabrics provide the user with a unique experience, dependent on their purpose. This includes body temperature regulation, reducing wind and water resistance, guarding against radiation, minimizing the effects of space travel and even controlling the vibration of muscles.

Both categories of smart fabric serve their own purposes and work to solve current issues with industrial and fashionable materials.

What Industries Employ Smart Fabrics?

Smart fabric can be used in any industry. We have seen heightened use in these industries:

Technology as a Smart Fabric Solution

Smart fabrics solve common issues in many industries. Body temperature regulation is crucial in law enforcement, military, and athletic professions, among others. Rather than relying on layers and worrying about breathability, smart fabric can adapt to temperature shifts fluidly.

Within the medical field, developers are working on textiles that can monitor heart rate, dispense medication, and even transmit immediate notification if the wearer of the textile were to fall.

Currently, researchers at Advanced Functional Fabrics of America (AFFOA) are focusing on four main categories of technology-enabled fibers:

Prior to this new age of development, semiconductors were affixed to fabric, creating the ability to "power-up." But the yarns lacked softness and putting a circuit board/power source onto the fabric decreased its wearability. Today, the industry wants to shrink these diodes to sand-like particles and infuse them into the fiber itself.

As technology continues to advance, smart textiles will become the solution for many more common issues, possibly replacing the bulky hardware objects that currently adorn our home and workplace surfaces. The versatility and adaptability of e-textiles allow for a wide range of soft, flexible applications. With durable designs and innovative yarns, these products can stand the test of time.

Integration in the Military

Soldiers dress in thick layers and haul about 110 pounds of tactical gear. Not only does it take a lot of effort to carry, but it also poses a need for portable power sources. Batteries are carried, along with their gear, and disposed of quickly. Without ample power, the equipment becomes unusable.

The consortium of companies, academia and the Department of Defense that make up AFFOA have been developing the ability to create wearable power sources for military applications. Batteries are a huge cost, due to how many of them soldiers go through to keep their devices running. The development of power source smart textiles and connectors in body armor and similar fabrics are crucial to creating a system that's both reliable and user-friendly.

This isn't the only application, either. The Canadian military has made use of full-fabric keyboards in its IAV Stryker units, developed to replace the bulky, traditional hardware. They're lighter, easier to transport and have fewer components to break. Applications for smart textiles vary greatly, making them a great solution for many needs.

Greater Usage of Smart Fabrics

Grandview Research projects that the compound annual growth rate for smart fabrics will soar over the next few years. As technology advances, there has been a growing demand for more sophisticated and smarter textile products.

This, coupled with the rapid growth of low-cost smart wireless sensor networks, has been driving the market in North America. The Asia-Pacific region is witnessing increased demand for smart textiles as well, attributing the need to the rapidly developing healthcare and construction industries. On the other hand, the growing market for automobiles in Europe is boosting the smart fabrics growth rate in this region.

This growing demand creates opportunities for manufacturers who may have thought smart fabrics were out of their reach. As people begin to anticipate and demand them, the market will widen.

Decrease in Material Prices Gives Smart Fabrics a Boost

Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components. Cheaper building blocks generally lead to higher demand. Conductive materials are needed for smart fabric manufacturing. Smart fabrics may contain electrical components such as:

Army uniforms in several countries have been made with nanotechnology. Anything that can assist with military efficiency opens new options and will garner lots of attention from government scientists, creating further demand for the material. Some scientists even believe smart fabrics could be used to help military personnel detect chemical weapons and alert wearers to biological threats.

Benefits of Smart Textiles

Creating a world where smart textiles become commonplace can be beneficial in several ways. Sustainability and extending the lifespan of the products we use have been worldwide topics of concern. By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically.

With the ability to serve everyone from fabric consumers to astronauts, smart fabrics are incredibly versatile and customizable. There is a smart fabric solution for every need. Everyone seeks ways to improve their lifestyle, whether it's through their workouts, commutes or their social communication skills. E-textiles are technologically multi-faceted and can help to enhance an individual's lifestyle in so many ways:

While e-textiles are currently expensive and difficult to access, incorporating them into all areas of everyday life will make them more readily available. Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use.
Learn More About Our Textiles
A Recent History of Technological Advances in the Smart Textile Industry

Over the past few years, wearable smart fabrics have gained traction and are becoming more readily available to consumers. Here are a few highlights:

2015: While most of the technological advancements in smart fabric have occurred in scientific spaces, smart fabric started becoming commercially available in stores in 2015. Most of the first releases available centered around athletics and baby care, including big names like Hexoskin and Ralph Lauren's Polo Tech Shirt.

2016: CuteCircuit, a fashion-based brand, launched the groundbreaking SoundShirt. Using embedded haptics, this shirt allowed a deaf person to feel music. 2016 also marked the U.S. Commerce Department's first smart fabric-centered gathering.

2017: Google collaborated with Levi's® to create and release a Bluetooth-enabled jacket, Levi's® Commuter X Jacquard By Google. The project intended to help bicyclists who live in cities, giving them more accessible, hands-free communication on their daily commutes. The Next Generation Jacket was released in September 2019.

2018: At the Winter Olympic Games, hosted in PyeongChang, the entirety of Team USA wore self-heating jackets. Created by a collaboration of Ralph Lauren and several tech companies, these jackets kept athletes from suffering in the frigid temperatures.

2019: Technology brand Loomia releases a winter coat with a textile substrate layered heating system. The system minimizes the bulk of traditionally warm coats and allows for user control of their comfort setting.

Smart fabrics are continually advancing in their capabilities. Some of the latest e-textiles to hit stores include temperature control, integrated payment options, and health tracking features. There have already been major strides in creating wearable technology. Growing intrigue and industrial need will continue the upward trend of smart textiles.

The Future of Smart Textiles

Smart textiles and functional fabrics have been in sight of scientists and designers for years. Only recently have they made their way onto runways and into headlines. And, the more consumers and technologists learn about smart fabrics, the further they push the limits.

As technicians continue to develop these textiles, their capabilities will expand, making them able to function as a sort of second skin. Temperature-regulating fabric is already available, but progression will allow for a more fluid user experience. The fabric will read stimuli and respond to it with a shift in energy.

One of the most significant areas of progression will likely be in the field of health and wellness. Beauty and medicinal companies are looking at ways we can make fabrics that positively affect the wearer's health. This includes the ability to:

Making clothing that resists wear is presently underway, thanks to the innovation of smart fabric. Through continued development, self-healing and repairing fabric may become a reality. Tears, holes and seam rips could become a thing of the past. Clothing may evolve from short-term to lifetime purchases.

In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods. Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure.

Knitting and weaving technologies are setting the standards for e-textile manufacturing, and Apex Mills is helping to pioneer the future.

Yarn is the Next Invention

When considering developing a new yarn for interlacing into textile structures there are a multitude of formation methods to consider; wet emulsion, wet dispersion, vapor deposition, extrusion, wet spinning, dry spinning, electro-spinning, drawing, co-extrusion, covering, twisting, plaiting, and co-mingling, to name a few.

Universities, institutes, and companies are innovating yarn functionality for the next level of performance. Energy and communication are the newest performance characteristics that will be required to enable e-textiles.

Drexel University's Center for Functional Fabric has recently engineered a yarn that will store energy. This textile battery is much lighter and remarkably flexible, enabling it to become part of the fabric structure. Modifying traditional yarn with textile coatings and twisting methods, fibers are converted to a conductive yarn which is then paired through twisting with a stainless-steel yarn. The dual conductor systems work together to collect endless quantities of energy.
Creating technical, smart or functional fabrics is a regular business at Apex Mills. Our custom approach to textile product development begins with customers like you.

Discover Custom Smart Textiles with Apex Mills

At Apex Mills, we believe in creating a smarter world, where bold solutions to everyday problems thrive. Our business operates through one unifying motto - "Problem shared. Problem solved." We create custom fabric solutions for your specific design challenges, working with you as a partner. Each project is carefully evaluated to provide you with the best solution possible. Apex Mills practices Application Driven Design, ensuring we can fulfill your needs.

Every design is created and manufactured in the U.S., with locations in Long Island, New York, and North Carolina. Being an all-American company, we can provide quick and effective services globally. Apex Mills wants to help you find exactly what you're looking for. Partner with us and experience our fast and thorough customer service. Fill out our online questionnaire, and we'll get started creating a personalized warp knit fabric for you.
Looking for a custom Smart Textile Solution? Use our custom solutions form here!

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Smart Textiles: The Future of the Fabric Industry | Apex Mills

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Looking for a custom Smart Textile Solution? Use our custom solutions form here! Or contact our team now and we'll be happy to answer any questions you have! Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties.

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Sustainability

"The market for smart textiles is on rise and with technology becoming more important for the consumers; amalgamation of technology into clothing has become a way to sustainability"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion

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Sustainability

"A key factor in this technology is sustainable materials

Plant-based fibers that use the latest technologies will help manufactures produce innovative hybrid fabrics

Kate Hart, senior trend researcher at Trendstop"

(Draper, 2018)

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High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature. Researchers are developing smart fabrics that do things that traditional fabrics cannot.

"If you think about what your skin is doing and then think of fabric - it will be able to do the same," says Sabine Seymour, a futurologist and founder of wearables start-up Supa. "You tan, you sweat, your pores open up, your skin changes depending on the humidity ... So imagine your hairs standing up and that changing the shape of the garment, or tanning and your apparel changing color. If you perspire, what if a garment responds to that?"
Read more Smart Fiber to Introduce Diagnostic Capabilities Into Clothing
Seymour says smart clothes in the future could have self-healing properties. If you fall and graze your skin, the technology woven into the fabric you are wearing, will treat your skin.

"There is a consumer demand for it," she says.

Fabrics interwoven with technology are becoming a reality. In the future, likely to be 5 to 10 years away, smart clothes will monitor our health hand help keep us stay healthy and fit.

"Are we about to suffer from a medical problem? Are we having a good time? Do we need to relax? Textiles will warn you about impending epileptic seizures. Your bra can already contain a heart rate sensor. There could be advantages to using garments rather than attaching gadgets, as some of the sensors need to be placed in exact positions on the body. We need investment in wearable technology, and smart textiles, as they will have relevance for us all in the coming years," says Alison Welsh, head of department at the Manchester Fashion Institute at Manchester Metropolitan University.

Project Jacquard, run by Google's Advanced Technologies and Projects unit, weaves technology into fabric to give it conductive and interactive properties. Google has collaborated with Levi's on a smart jacket that will enable cyclists to brush their fingers on the fabric of their jacket to check the time or play their music.

Read more Yarn Battery Could Power Smart Clothes and Wearables

Last year, University of Manchester's National Graphene Institute produced a dress in collaboration with wearable tech company Cute Circuit. The dress is made with a fabric that has "wonder material" graphene which causes the dress to change color according to the wearer's breathing patterns.

A key factor in this technology is sustainable materials. Plant-based fibers that use the latest technologies will help manufactures produce innovative hybrid fabrics, according to Kate Hart, senior trend researcher at Trendstop.

"Developments such as Stella McCartney's Skin-free Skin illustrate the elevations in faux leather quality, increasing their viability as an alternative to animal hides at designer level," she said.

Sam Draper ( Google+) is Online Editor at WT | Wearable Technologies specialized in the field of sports and fitness but also passionated about any new lifestyle gadget on the market.Sam can be contacted at press(at)wearable-technologies.com.

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Are Smart Fabrics the Future of Fashion?

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High quality fabrics that last a long time are hard to find these day. Many garments only last a few washes. Whether for performance or aesthetic reasons, the focus within the textiles orb is on smart fabrics - from those that change their hue to those that regulate body temperature.

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Sustainability
Key drivers of accelerating activity:

"Shifting consumer sentiment (often reflecting rising environmental awareness)

Regulation in areas such as e-textiles and accelerating in research and development

Lawmakers are working hard to ensure the fashion and textile industries comply with standards expected by consumers in other aspects of their lives

The EU’s Circular Economy Package introduces ambitious targets for recycling waste, including textile waste

Sustainable substitutes that include recently rediscovered and re-engineered old favourites as well as high-tech materials that deliver on aesthetics and function

Consumers are prioritising the environment in the choices they make, and some people are willing to pay more for products that have less negative impact

Brands around the world are reacting to rising demand for low-impact alternatives that are functional or sustainable or both"

(Amed et al., 2019)

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. They need to get digital right and to address consumers increasingly concerned by the climate-change agenda. At the same time, they must cater to local tastes across multiple markets and cultures. One size will not fit all.

These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region.

A darkening mood

For many in the fashion industry, the glass is half empty. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1).

The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year.

Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. The average industry EBITA margin was 10.8 percent, a tick up on 2017 and the highest since 2014.

One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Against this background, fashion-industry fortunes are highly polarized. For an exclusive group of "Super Winners," the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. The Super Winners include three new entrants-Anta Sports, Heilan Home (HLA Corporation), and Lululemon-reflecting the strength of sportswear and the growing influence of Chinese players. In luxury, Kering made an impressive rise through the ranks, driven by Gucci's double-digit sales growth and strong performance in Asia-Pacific markets such as Japan. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps.

Alongside public companies, we also identified a group of "hidden champions." These privately owned gems often dominate their category areas and generate significant revenues. Some are household names, while others are less visible but still pack a punch. Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. These players show that there is a great deal of industry value outside the spotlight, and the "hidden champions" too have much to offer alongside their listed counterparts.

Of course, for every success, there are also relative failures. A growing number of publicly traded and private companies have become "value destroyers." The midmarket in particular is in the doldrums, generating negative returns for shareholders. For some, the abyss beckons.

Ten themes for 2020

What will define the industry in the coming year? Based on our executive survey, the words on everyone's lips are sustainability, digitization, and innovation (Exhibit 4).

When it comes to sustainability, the industry's track record remains a source of concern. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. Consumers are increasingly waking up to this reality and demanding change. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. According to McKinsey's 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years.

Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. This should lead to a move beyond 2019's focus on transparency toward real commitment. That's great news for consumers and for companies that can make sustainability real. However, given the scale of investment required, it means nervous times for small and midsize players.

Equally, consumers and advocates are calling for the industry to become more inclusive. We see 2020 as being a watershed for "Inclusive Culture," with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles.

Digital disruptors will face more cautious investors in the year ahead. Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. The trick in 2020 will be to prove to investors they can turn potential into profit. At the vanguard, we are seeing a new breed of direct-to-customer companies. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor.

At the forefront for many is the future role of brick-and-mortar stores. Although they are written off by some as "too 20th century," we take a more constructive view. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline.

It's time to rewire the fashion system: State of Fashion coronavirus update

The bottom line? The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. However, there will be opportunities. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack.

About the author(s)

Anita Balchandani is a partner in McKinsey's London office, where Shrina Poojara is a consultant; is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion.

The authors wish to thank McKinsey's Tiffany Chan and Marilena Schmich, as well as The Business of Fashion's Robb Young, for their contributions to this article.

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The State of Fashion 2020: Navigating uncertainty

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The prevailing mood of fashion leaders is one of anxiety and concern. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. On the other, global economic growth is slowing and competition is more intense than ever.

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Digital

"With the ability to create hands-free communication, users will find it easier to keep up with their friends and family, simply by wirelessly connecting the smart fabric to their phones"

(ApexMills, 2019)

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Looking for a custom Smart Textile Solution? Use our custom solutions form here!
Or contact our team now and we'll be happy to answer any questions you have!

Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties. But what if the clothing you wore could monitor your heart rate and transmit medical alerts to your doctor? Or if the bandages you affix to your skin didn't just cover a wound but dispensed healing medication. Perhaps a construction worker would be interested in wearing a hard hat that can provide a warning about carbon monoxide poisoning based on fluids from the skin. That's where smart textiles come in.

Smart textiles - also referred to as functional fabrics and e-textiles - are changing the way we think about the role of fabrics for industrial purposes and everyday use. With new technological advancements, we're moving closer to a future where fabrics are functional, beautiful and responsive.

What Are Smart Textiles?

Since smart fabrics are a newer technology, many people aren't aware of their potential. Smart textiles provide an added benefit to the user beyond the typical value of the fabric. They respond and adapt to their environment.

Fabrics are a combination of fibers and polymers, natural and man-made, that are constructed through a variety of techniques, the most popular being knitted or woven. Each blend of fabric serves a different purpose, individualized for a particular climate or function. But since fabric is the foundation for so many products and more, it makes sense to see how its utility can be expanded.

Take temperature, for instance - cotton and linen clothing are perfect for hot environments, as they are breathable and light. However, the allowance for airflow that keeps you cool creates a problem in colder temperatures. Going back and forth from hot to cold areas can be a nuisance when choosing what clothing to wear.

Functional textiles change that. They can adapt based on design structure or external stimuli. Imagine a fabric that can respond to a temperature change and keep you comfortable, much like your skin. And, along with adopting new capabilities, smart fabrics create a more sustainable culture. With the ability to transform, less product is needed which produces less waste.

What Makes Functional Textiles, Smart?

The evolution of technical textiles takes cues from the electronics and photonics industries. The integration of sensor arrays and plastic optical fiber (POF) creates an extension of functional fabrics commonly known as smart textiles.

At its core, technical textile manufacturing is a vast landscape of advanced yarn systems combined with textile formation techniques. The completed construction can be further transformed through lamination, coatings and composite methods.

Depending on their use, smart fabrics are created by fusing together fibers and technology. These fibers include conductive yarns and polymers, shape memory polymers, encapsulated phase change materials, fiber optics, and other small electronics. They may also use external additions, such as:

These materials interact with one another along with an external stimuli - such as temperature, light or pressure - creating a transfer of energy. Once activated, the functional fabric responds depending upon the textile's function.

What Are Smart Textiles Used For?

Smart textiles generally belong to one of two main categories:

Aesthetic: Smart fabric has been breaking out in the fashion industry. Aesthetic smart textiles can light up and change color, have an interactive element or shift with their environment. Fashion designers have already picked up on the new technology, creating entire lines out of smart materials. This category also encompasses decor and design elements.

Performance enhancement: With a focus on function over fashion, performance-enhancing smart fabrics provide the user with a unique experience, dependent on their purpose. This includes body temperature regulation, reducing wind and water resistance, guarding against radiation, minimizing the effects of space travel and even controlling the vibration of muscles.

Both categories of smart fabric serve their own purposes and work to solve current issues with industrial and fashionable materials.

What Industries Employ Smart Fabrics?

Smart fabric can be used in any industry. We have seen heightened use in these industries:

Technology as a Smart Fabric Solution

Smart fabrics solve common issues in many industries. Body temperature regulation is crucial in law enforcement, military, and athletic professions, among others. Rather than relying on layers and worrying about breathability, smart fabric can adapt to temperature shifts fluidly.

Within the medical field, developers are working on textiles that can monitor heart rate, dispense medication, and even transmit immediate notification if the wearer of the textile were to fall.

Currently, researchers at Advanced Functional Fabrics of America (AFFOA) are focusing on four main categories of technology-enabled fibers:

Prior to this new age of development, semiconductors were affixed to fabric, creating the ability to "power-up." But the yarns lacked softness and putting a circuit board/power source onto the fabric decreased its wearability. Today, the industry wants to shrink these diodes to sand-like particles and infuse them into the fiber itself.

As technology continues to advance, smart textiles will become the solution for many more common issues, possibly replacing the bulky hardware objects that currently adorn our home and workplace surfaces. The versatility and adaptability of e-textiles allow for a wide range of soft, flexible applications. With durable designs and innovative yarns, these products can stand the test of time.

Integration in the Military

Soldiers dress in thick layers and haul about 110 pounds of tactical gear. Not only does it take a lot of effort to carry, but it also poses a need for portable power sources. Batteries are carried, along with their gear, and disposed of quickly. Without ample power, the equipment becomes unusable.

The consortium of companies, academia and the Department of Defense that make up AFFOA have been developing the ability to create wearable power sources for military applications. Batteries are a huge cost, due to how many of them soldiers go through to keep their devices running. The development of power source smart textiles and connectors in body armor and similar fabrics are crucial to creating a system that's both reliable and user-friendly.

This isn't the only application, either. The Canadian military has made use of full-fabric keyboards in its IAV Stryker units, developed to replace the bulky, traditional hardware. They're lighter, easier to transport and have fewer components to break. Applications for smart textiles vary greatly, making them a great solution for many needs.

Greater Usage of Smart Fabrics

Grandview Research projects that the compound annual growth rate for smart fabrics will soar over the next few years. As technology advances, there has been a growing demand for more sophisticated and smarter textile products.

This, coupled with the rapid growth of low-cost smart wireless sensor networks, has been driving the market in North America. The Asia-Pacific region is witnessing increased demand for smart textiles as well, attributing the need to the rapidly developing healthcare and construction industries. On the other hand, the growing market for automobiles in Europe is boosting the smart fabrics growth rate in this region.

This growing demand creates opportunities for manufacturers who may have thought smart fabrics were out of their reach. As people begin to anticipate and demand them, the market will widen.

Decrease in Material Prices Gives Smart Fabrics a Boost

Smart textiles will get a lift from an anticipated reduction in the expense of manufacturing electronic components. Cheaper building blocks generally lead to higher demand. Conductive materials are needed for smart fabric manufacturing. Smart fabrics may contain electrical components such as:

Army uniforms in several countries have been made with nanotechnology. Anything that can assist with military efficiency opens new options and will garner lots of attention from government scientists, creating further demand for the material. Some scientists even believe smart fabrics could be used to help military personnel detect chemical weapons and alert wearers to biological threats.

Benefits of Smart Textiles

Creating a world where smart textiles become commonplace can be beneficial in several ways. Sustainability and extending the lifespan of the products we use have been worldwide topics of concern. By creating e-textiles demonstrating longer lifespans, better durability, and interchangeable styles, we can reduce the amount of textile waste in landfills dramatically.

With the ability to serve everyone from fabric consumers to astronauts, smart fabrics are incredibly versatile and customizable. There is a smart fabric solution for every need. Everyone seeks ways to improve their lifestyle, whether it's through their workouts, commutes or their social communication skills. E-textiles are technologically multi-faceted and can help to enhance an individual's lifestyle in so many ways:

While e-textiles are currently expensive and difficult to access, incorporating them into all areas of everyday life will make them more readily available. Although they come with a premium price tag, their value is much higher, having the potential to last through an entire lifetime of use.
Learn More About Our Textiles
A Recent History of Technological Advances in the Smart Textile Industry

Over the past few years, wearable smart fabrics have gained traction and are becoming more readily available to consumers. Here are a few highlights:

2015: While most of the technological advancements in smart fabric have occurred in scientific spaces, smart fabric started becoming commercially available in stores in 2015. Most of the first releases available centered around athletics and baby care, including big names like Hexoskin and Ralph Lauren's Polo Tech Shirt.

2016: CuteCircuit, a fashion-based brand, launched the groundbreaking SoundShirt. Using embedded haptics, this shirt allowed a deaf person to feel music. 2016 also marked the U.S. Commerce Department's first smart fabric-centered gathering.

2017: Google collaborated with Levi's® to create and release a Bluetooth-enabled jacket, Levi's® Commuter X Jacquard By Google. The project intended to help bicyclists who live in cities, giving them more accessible, hands-free communication on their daily commutes. The Next Generation Jacket was released in September 2019.

2018: At the Winter Olympic Games, hosted in PyeongChang, the entirety of Team USA wore self-heating jackets. Created by a collaboration of Ralph Lauren and several tech companies, these jackets kept athletes from suffering in the frigid temperatures.

2019: Technology brand Loomia releases a winter coat with a textile substrate layered heating system. The system minimizes the bulk of traditionally warm coats and allows for user control of their comfort setting.

Smart fabrics are continually advancing in their capabilities. Some of the latest e-textiles to hit stores include temperature control, integrated payment options, and health tracking features. There have already been major strides in creating wearable technology. Growing intrigue and industrial need will continue the upward trend of smart textiles.

The Future of Smart Textiles

Smart textiles and functional fabrics have been in sight of scientists and designers for years. Only recently have they made their way onto runways and into headlines. And, the more consumers and technologists learn about smart fabrics, the further they push the limits.

As technicians continue to develop these textiles, their capabilities will expand, making them able to function as a sort of second skin. Temperature-regulating fabric is already available, but progression will allow for a more fluid user experience. The fabric will read stimuli and respond to it with a shift in energy.

One of the most significant areas of progression will likely be in the field of health and wellness. Beauty and medicinal companies are looking at ways we can make fabrics that positively affect the wearer's health. This includes the ability to:

Making clothing that resists wear is presently underway, thanks to the innovation of smart fabric. Through continued development, self-healing and repairing fabric may become a reality. Tears, holes and seam rips could become a thing of the past. Clothing may evolve from short-term to lifetime purchases.

In the near term, we can expect the apparel industry to be early to market smart textiles by technology integration through flexible printed electronic methods. Beyond 2021, integrated electronic textiles will permeate diverse business sectors, providing integrated communication services, touch sensing remote controls, energy harvesting, and charging embedded during the formation of the textile structure.

Knitting and weaving technologies are setting the standards for e-textile manufacturing, and Apex Mills is helping to pioneer the future.

Yarn is the Next Invention

When considering developing a new yarn for interlacing into textile structures there are a multitude of formation methods to consider; wet emulsion, wet dispersion, vapor deposition, extrusion, wet spinning, dry spinning, electro-spinning, drawing, co-extrusion, covering, twisting, plaiting, and co-mingling, to name a few.

Universities, institutes, and companies are innovating yarn functionality for the next level of performance. Energy and communication are the newest performance characteristics that will be required to enable e-textiles.

Drexel University's Center for Functional Fabric has recently engineered a yarn that will store energy. This textile battery is much lighter and remarkably flexible, enabling it to become part of the fabric structure. Modifying traditional yarn with textile coatings and twisting methods, fibers are converted to a conductive yarn which is then paired through twisting with a stainless-steel yarn. The dual conductor systems work together to collect endless quantities of energy.
Creating technical, smart or functional fabrics is a regular business at Apex Mills. Our custom approach to textile product development begins with customers like you.

Discover Custom Smart Textiles with Apex Mills

At Apex Mills, we believe in creating a smarter world, where bold solutions to everyday problems thrive. Our business operates through one unifying motto - "Problem shared. Problem solved." We create custom fabric solutions for your specific design challenges, working with you as a partner. Each project is carefully evaluated to provide you with the best solution possible. Apex Mills practices Application Driven Design, ensuring we can fulfill your needs.

Every design is created and manufactured in the U.S., with locations in Long Island, New York, and North Carolina. Being an all-American company, we can provide quick and effective services globally. Apex Mills wants to help you find exactly what you're looking for. Partner with us and experience our fast and thorough customer service. Fill out our online questionnaire, and we'll get started creating a personalized warp knit fabric for you.
Looking for a custom Smart Textile Solution? Use our custom solutions form here!

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Smart Textiles: The Future of the Fabric Industry | Apex Mills

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Looking for a custom Smart Textile Solution? Use our custom solutions form here! Or contact our team now and we'll be happy to answer any questions you have! Textiles are everywhere - from the clothing we wear, cars we drive, and furniture we occupy to the roads we travel, bandages we use to heal, and structures that shelter us for protection, each fabric is carefully selected for its unique construction and properties.

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Digital

"The rise in production of smart clothing is directly proportional to the development of technology

As the technology grows, market will witness increased demand of such clothing"

(Fibre2fashion, 2019)

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Global Smart Textile Market | Growing Smart Textile Market

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Read article about Global smart textile market is expected to exceed US $ 1,500 million by the year 2020. It is predicted that growing smart textile market continues being the largest market segment for the next six years. and more articles about Textile industry at Fibre2Fashion