MARKET UPDATE 08.01.22
Despite recession fears being at an all time high after the US economy shrank for a second consecutive quarter, consumer spending rose 1.1% in June according to the US Commerce Department. With ongoing supply chain issues and inflation, the retail industry has seemed to have a bleak outlook in much of 2022.
Positive results in the industry include the overall “reset” of retail strategies and systems. Retailers have worked to “reimagine the workforce” through recruitment and retention strategies, develop “supply chain resiliency” through advanced technology, and blend with the “digital revolution” through investment in ecommerce strategies (Deloitte).
The Fabric Act: What is the future of Fashion Production?
In a new movement to protect garment workers, the Fabric Act reached the House of Representatives earlier this week. The bill covers the hourly pay protection for workers across the nation by removing “piece-rate pay” options. This bill advocates that both brands and retailers are equally responsible for violations. In addition, the act also includes a “$40 million Domestic Garment Manufacturing Support Program and [introduces] a 30% reshoring tax credit for garment manufacturers who bring their operations back to the U.S” (Glossy).
Congresswoman Carolyn B. Maloney believes that this bill is necessary to work towards increasing federal oversight into the retail industry with requirements put in place to hold all parties accountable. The Fabric Act is set to establish the US as a leader in ethical apparel production.
Skincare and “Skinimalism”
Post pandemic, there has been a rise in the consumer interest of skin care. People started to look to the ingredients instead of the products to determine what could help them develop the “best” care regimen for their skin. Experts believed that skin care trends would push into “skinimalism” and a great focus on skin health during 2022.
With the growth of ingredient based consumption, the global cosmetic bioactive ingredients market is predicted to grow at a CAGR of ~5% over the forecast period of 2022-2031. In addition, the global skincare market overall is projected to rise from USD $110.13 billion in 2021 to USD $145.82 billion in 2028 at a CAGR of 5.52%, growth attributable to rising demand (Fortune Business Insights).