Sales of the fashion industry are expected to triple between 2016 and 2018. Emerging markets remain a crucial source of this growth. In 2018, for the first time, more than half of apparel and footwear sales will originate outside Europe and North America.

The main sources of growth are emerging market countries across Asia–Pacific, Latin America, and other regions. They are forecast to grow at rates ranging between 5 and 7.5 per cent in 2018. Meanwhile, the economic outlook in the mature part of Europe is stable, and fashion industry sales growth is likewise expected to remain at a modest but steady two per cent to three per cent. In North America, while overall consumer confidence is strong, the impact of policy changes is uncertain, and markdown pressures, market corrections, and store closures continue. Here, growth is expected to be modest, one per cent to two per cent.

Consumers are trading away from the midmarket price points even while the luxury, value, and discount segments are picking up speed. Stronger sales growth is expected in apparel and footwear. Handbags and luggage, and to some extent watches and jewelry, are returning slowly to their historic highs, driven by demand in Asia–Pacific. Athletic wear is the only category where record growth rates look to slow down slightly in 2018.