TRANSFORMATION OF THE GLOBAL FASHION INDUSTRY: CHALLENGES AND PROSPECTS FOR STRUCTURAL GROWTH

Abstract

The fashion industry, representing an independent sector of the world economy, has been in the process of forming its global configuration for the past decades. This process encompasses the production and sale of fashion goods (clothing, footwear, accessories), textile and garment industries, retail trade, information technologies, and organizational culture. It has been proven that major players in the global fashion clothing market have already gone through several cycles of popularity and are showing significantly less organizational, operational, and functional flexibility, primarily due to the global scaling of financial and economic activities, extremely complex supply chains, the orientation of corporate strategies and business models toward mass production, growing marketing costs and reputational problems, and significant bureaucracy in making strategic management decisions. Dynamic structural changes include shortening product life cycles, the development of niche brands, and increasing demand for eco-oriented and functional products. Particular attention is paid to the athleisure phenomenon, which combines comfort, style and versatility, becoming an important element of the wardrobe of modern consumers. The COVID-19 pandemic has significantly transformed demand, strengthening the trend for universality of clothing. Analysis of financial indicators demonstrates the redistribution of income from mass brands in favor of young designer companies. Merger and acquisition strategies in the global fashion industry have also experienced significant growth, allowing companies to consolidate their positions in the global market, increasing adaptability to consumer preferences. In particular, vertical integration has become a key corporate strategy, allowing them to reduce costs and effectively respond to market changes. The article examines the main challenges and prospects of the global fashion industry, including new business models and integration processes that contribute to the creation of sustainable competitive advantages in this sector.