This year, some brands stood out with strategic acquisitions and innovative collaborations, while others faced challenges such as greenwashing and deal cancellations. This year, it was seen that companies in the fashion industry shaped the dynamics and consumer expectations in the industry with their strategic growth moves, sustainability initiatives and digital transformation projects. These developments in the industry can be evaluated as important factors that will set out the future direction of the fashion industry.
Next Plc has emerged as one of the brightest stars in the UK. The company continued its growth by acquiring the FatFace brand for £115.2 million ($147.02 million) and Cath Kidston for £8.5 million. In the third quarter, the firm increased sales by 4% on a year on year basis while doubling expectations, and announced the launch of its Total Platform site for Joules in October 2023. The site will strengthen the online presence of Joules, which was acquired by Next Plc with a €34 million worth of agreement.
British Shein Ranked Amongst the Biggest
Frasers Group attracted attention with its aggressive acquisition strategy throughout the year. The company has become the largest shareholder of Boohoo and strengthened its presence in the online fashion market by increasing its share in Asos from 5% to 22.7%. The firm also expanded its online fast fashion investments by adding I Saw It First and Missguided brands to its portfolio. Shein recorded significant growth throughout the year. It was reported that the company plans to make an initial public offering in the US and that Forever 21 acquired a third of the US operator with the agreement it made with SPARC Group. In October, the firm acquired the intellectual property rights to UK Fast Fashion Pureplay from Frasers Group. However, behind the success of Shein, forced labor in its supply chain and environmental concerns were prevalent. Shein's market share in 2023 is expected to reach 2.2% and the company expected to be listed amongst the UK's top 10 fashion retailers.
Authentic Brands Group continued to expand in the United States and in international arena. It was stated that the company's global retail sales exceeded $25 billion, with a portfolio that includes more than 40 iconic brands. The company signed a procurement deal to acquire the Hunter boot brand in June and a 51% stake with Baozun, owner of Gap China, during the year. With Vince Holdings, the firm acquired the intellectual property of the Vince brand for $76.5 million, and controlled ABG Vince’s 75% share.
Nike Lost 20% of Its Market Share
Inditex increased revenues by 17.5% to €32.6 billion. EBIT increased by 29% to €5.5 billion, and net income increased by 27% to €4.1 billion. The company has taken important steps in the field of sustainability and has signed a 70 million Euro agreement with Ambercycle with a commitment to the purchase of recycled polyester. H&M had to face some criticism regarding sustainability, but has maintained its commitment in this area by investing in various green projects throughout the year. The company sold a €500 million green bond and launched a green loan program to reduce the carbon footprint of fashion supply chains. Nike shown a fluctuating performance throughout the year. According to GlobalData's analysis, the company's market value dropped by 19.2%, resulting in a loss of $32 billion. Nike strengthened its position in the industry by increasing its sustainability and digital investments.
