Competing in the Fashion Realm: Strategies for Fashion Brands and Insights for Custom Yoga Apparel Manufacturers

In today’s retail landscape, it’s an extraordinary and largely uncharted time. Fashion brands and retailers are facing the challenge of ultra-fast fashion giants like Shein and Temu continuously capturing market share. As noted by Jack Stratten, head of trends at consultancy Insider Trends at Source Fashion in London, “This is a very strange and largely unprecedented time for retail.”

The past few years have brought significant changes to the apparel industry. The pandemic, record inflation, and a surge in online shopping have made the unusual become the norm. New fashion trends are emerging rapidly, and much of this change is attributed to disruptors like Shein and Temu.

A marketing platform survey showed that 70% of US consumers have shopped with online retailers like Shein and Temu in the last year. As consumers worldwide grapple with inflation and the rising cost of living, it’s no surprise that many are turning to discount retailers.

Yet, there’s a contradictory trend in the luxury fashion sector, which has seen remarkable growth in recent years. According to the Global Luxury Apparel Market to 2028 report, while growth in 2024 may be challenging due to low consumer confidence, luxury is expected to outperform the overall apparel market in the next four years.

Stratten clarifies that these two divergent trends are not due to different types of consumers. Instead, consumers are using ‘buy now, pay later’ services for expensive items or splurging on one-off luxury purchases a few times a year while also shopping regularly at value fashion retailers. This leads to ‘polarised spending’, where both value items and high-end products see growth.

So, how can fashion brands compete with Shein and Temu in this tough and confusing market? Here are some strategies:

Reducing Ranges
While Shein, Temu, and other retailers offer a vast array of products and often use AI for new designs, some are finding success by reducing their product ranges. For example, fashion retailer and online marketplace Wolf & Badger is seeing better results with fewer products online. This approach could also be beneficial for custom yoga apparel manufacturers, who could focus on a curated selection of high-quality items.

Building Brands
Starting a brand has never been easier, as seen with the growth of e-commerce platforms like Pietra, which enable influencers to start their own brands and sell clothing and other products. However, the sheer number of brands available makes it hard for fashion brands to survive long. Brands like Uniqlo, owned by Fast Retailing, are growing strong. Their retail strategy of opening stores in historic buildings gives them a story and shows they care about history, heritage, and product quality. Custom yoga apparel manufacturers can also build a unique brand story to stand out.

Embracing Heritage
Even though British brand Dr Martens has faced challenges, it is using its heritage as a selling point. This shows that history matters and can keep a brand relevant. Custom yoga apparel manufacturers could also explore their own heritage or create a unique backstory to connect with consumers.

Being Better
While Amazon is mimicking Shein and Temu’s business models, other companies like Walmart are taking a different approach. The key is not to copy but to be better and do something unique. Custom yoga apparel manufacturers can focus on quality, innovation, and customer service to differentiate themselves.