In 2024, fashion emerged as a major winner in the global licensing industry, with a growth rate of 8.1 per cent, according to the recent Licensing International 2025 Global Licensing Industry Study. This growth significantly outpaced the overall global licensing industry, which saw a 3.7 per cent increase.
The report notes, a shortage of new intellectual property in the entertainment sector contributed to a rise in royalties from non-entertainment properties. This helped fashion licensing increase its market share to 9.3 per cent of licensed retail sales, a 0.4 percentage point jump. This expansion was also fueled by other product categories that frequently license fashion brands, such as home décor, beauty products, sportswear, and footwear.
The study also highlights how cost-conscious consumers are changing the retail landscape. As prices have risen, shoppers have increasingly turned to discount retailers. For example, the report points out, while Nordstrom's sales declined by 3 per cent in 2024, its off-price outlet, Nordstrom Rack, saw sales increase by nearly 15 per cent.
Price-sensitive consumers are also showing more interest in private-label products, as well as trade-in, buyback, and upcycling programs. Citing an eBay report, the study states, more than 70 per cent of global consumers planned to buy used goods in 2024. The stigma once associated with buying used clothing has been replaced by a focus on ‘deal-hunting, value, and sustainability; among younger consumers, particularly Gen Z and millennials.
Simultaneously, a growing interest in sustainability has also boosted the trend of ‘quiet luxury,’ which the report defines as an investment in minimalist, high-quality fashion.
