Fashion’s Multi-Billion Dollar Opportunity in Travel
This article originally appeared on Ordre.
The global swimwear market is currently worth $20.8bn USD and is expected to grow by a CAGR of 2.2% at constant rates in the next 4 years to reach $22.7bn by 2022.
The increase in consumer demand for destination wear is fueled by a multitude of factors. As the economy has improved, young consumers, in particular, are spending more on experiences and travelling abroad. The rise of social media and its pervasiveness in every aspect of our lives means that even when on vacation, consumers feel compelled to stay connected to their peers by maintaining their online presence and enhancing how their travel experience looks to their followers. As consumers gravitate towards social media for both travel and style inspiration, it presents brands with a significant commercial opportunity and those who focus their business around vacation dressing are reaping the rewards.
Increased global mobility has had a major impact on the rise in demand for vacation dressing. Consumers are no longer solely shopping for beachwear in summer as they travel abroad more during the winter months and shop from brands and retailers based worldwide.
Luxury consumers, in particular, are spending more on travel as evidenced by the global market for luxury hotels currently worth $52.8bn USD and expected to grow by a CAGR of 3.6% at constant rates, to reach $60.9bn by 2022.
Social media is increasingly helping to fuel off-season swimwear purchases with beach and summertime postings taking over Instagram all year round and consumers planning their looks in advance.
What consumers wear on the beach is no longer just about the weather, they want their whole look to be on-trend and aspirational. Whereas previously vacation-wear was limited to swimwear and beach cover-ups, now a retailer’s offering must encapsulate a full head-to-toe holiday wardrobe and there are a wider variety of products available for consumers to buy into. In line with current fashion trends, one-piece swimsuits have seen a resurgence in both availability and demand and the appeal to consumers is not just for the aesthetic but also that they are more functional and have a “multi-tasking” appeal as they can be worn in various scenarios and easily transitioned off the beach. In addition, there are growing opportunities for retailers and brands in vacation apparel and accessories. Resort-wear clothing appeals to consumers as they are versatile enough to be worn on a warm day in the city, as well as on the beach and their price points can often be more competitive.
To learn more, take a look at our report “Consumer Trends Shaping the Designer Apparel and Footware Industry”.