Industry Voices: Mill Execs on the State of Denim, Part 3
Along with the rest of the apparel industry, denim has recently faced some ups and downs due to economic fluctuations and changing consumer behavior. For a window into what is happening on the ground, Carved in Blue is catching up with industry figures—including executives at mills and consultants—to get their perspective.
Here, denim manufacturing leaders from Artistic Milliners and Prosperity Textiles weigh in on what they are seeing and the path ahead for the category.
Baber Sultan, director of product and research, Artistic Milliners (Pakistan)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Baber: The denim market has displayed remarkable resilience in the face of some broad challenges such as saturated inventories, slow retail, change in consumer preference and inflationary pressure besides other macro factors such as geopolitical tensions. From my perspective, the denim market is currently recovering; we are seeing improved demand from our customers around the world, and we expect this trend to continue in the coming year. Some of the main factors affecting the denim market include the global economic outlook, which while seemingly trending upward overall—especially in the U.S.—remains under pressure due to inflation; sentiment based on recession predictions; and geopolitical uncertainty in Europe.
Another big factor is trend. While denim remains a wardrobe staple for most people, we have seen in recent seasons a big uptake in processed woven products. However, denim made an incredible comeback by aligning with the consumer choices of today, which are looser and baggier silhouettes, and the addition of non-traditional denim fits such as puddle, parachute, cargo and skirts besides evergreen vintage-inspired denim by taking advantage of fiber blends such as TENCEL™, linen and other sustainable fibers.
Another huge factor affecting everything from manufacturers to brands to consumers is sustainable and ethical denim. First and foremost, sustainability has become a pivotal concern at all decision-making levels. At Artistic Milliners, we are privileged by the early investments made by the company in sustainable technologies and our partnership with supply chain partners such as Lenzing.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Baber: Compared to 2022, we have witnessed noticeable improvements in consumer confidence. There are hopeful signals from the U.S. economy, and the recovery from the pandemic seems to have really taken. However, it’s essential to recognize that consumer confidence is still somewhat tempered due to persisting uncertainties in the global landscape, especially in Europe. Rising costs are on everyone’s mind, and our product development strategy is geared to be as flexible as possible to account for things like changing consumer sentiments. We expect consumer confidence to improve further once interest rates plateau in 2024 and money becomes slightly cheaper and helps consumer spending.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Baber: Consumer interest in denim is expected to go up, primarily driven by innovative designs, sustainable initiatives, and a renewed focus on comfort. Skinny fits remained massive for so many seasons but are now being replaced very quickly with loose and baggier fits, and retailers who are quick to react will have a bigger share besides some other year 2000-inspired designs and a lot of innovation coming from mills.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Baber: They all exhibit distinct behaviors when it comes to denim. Gen Z, for example, places a premium on sustainability, seeking out brands with strong ethical values. Millennials and Gen X, on the other hand, strike a balance between fashion-forward choices and comfort, gravitating towards versatile denim options. Baby boomers tend to value classic, timeless styles. As such, the denim retail landscape should be adaptable, offering a diversified product range to cater to these varying tastes. We always base our new product launch on the consumer lifestyle, and we have seen huge success with our capsules Y2K, Miller and Hygge, all three responding to three distinct consumer behaviors, which are contemporary fashion, vintage and comfort.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Baber: The denim industry is way ahead when it comes to understanding and responding to consumer wants and needs. The denim industry has made significant strides in aligning with consumer desire for comfort, durability and fashion also in the realm of sustainability and ethical production. But there’s no room for complacency; we need to continuously engage with our consumers to stay ahead of their evolving needs and preferences.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Baber: To capture more wallet share, it is extremely important for both manufacturers and brands to understand ever changing lifestyles and needs of consumers, as we have seen a major shift from fitted silhouettes to more roomier fits with big influence of Y2K fits like puddle, parachute, cargo and denim skirts. The material has to adapt first, then fits and washes and keep evolving with the consumer. We must keep up with this holistic approach, circular, eco-forward practices, such as using eco-friendly materials such as REFIBRA™ or ECOVERO™, recycling and responsible manufacturing processes, are paramount. Effective marketing campaigns, along with strategic collaborations with influencers, designers and brand partners, can inspire new loyalty to denim as a timeless fashion staple.
Stafford Lau, director, Prosperity Textiles (China)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Stafford: The denim market is currently performing quite well, with a steady growth trajectory. Despite fluctuations due to changing fashion trends and consumer preferences, the market has shown resilience and adaptability. Various factors, such as the rising popularity of sustainable and eco-friendly denim production, as well as increasing interest in vintage and retro styles, have contributed to the industry’s prosperous state. Moreover, the advancement of technology has played a significant role in enhancing denim manufacturing processes, resulting in higher quality products and greater customization options. As a result, both established denim brands and emerging market players have been able to cater to a wide range of consumer demands, sustaining market growth and profitability.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Stafford: The consumer interest in denim can be characterized as relatively flat and even slightly down trend in coming years. Denim has long been a staple in the fashion industry, evoking a sense of timelessness and versatility. However, in an era of growing sustainability and a shift towards athleisure wear, denim has faced some challenges in maintaining its popularity. Therefore, denim industry trends change following consumer demands by incorporating sustainable practices and offering innovative designs. The gradual shift towards eco-friendly denim, as well as collaborations with influencers and designers, has helped rejuvenate the interest in this enduring fabric. As a result, it can be argued that consumer interest in denim is currently stable, with a positive outlook for future growth.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Stafford: The future of the denim market appears challenging; the growth is depending on innovation within the industry. Firstly, the increasing popularity of sustainable fashion has influenced denim manufacturers to adopt eco-friendly practices and materials, thereby appealing to environmentally conscious consumers. Additionally, advancements in technology have paved the way for innovative denim designs, such as smart denim embedded with functional approach, which further enhance customer interest. Moreover, the surge in online retail platforms and e-commerce has enabled wider accessibility to denim products, catalyzing increased demand. As a result, it is anticipated that the denim market will continue to thrive in the upcoming year, driven elements should be involved by sustainability, technological advancements and market expansions.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Stafford: Gen Z, known for their digitally driven lifestyle, value sustainable and ethical practices, prompting them to seek eco-friendly denim alternatives and online shopping experiences. Millennials, highly influenced by social media and fashion trends, prioritize style and versatility, opting for distressed and embellished denim pieces that express their individuality. Baby boomers, on the other hand, tend to favor comfort and durability, choosing classic, non-trendy denim that aligns with their practical and functional fashion approach. By comprehending the unique attributes and motivations of each generation, denim retail can develop targeted offerings that cater to their specific denim preferences, ultimately fostering strong brand loyalty and driving revenue growth.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Stafford: Currently, denim manufacturers have successfully understood and catered to the diverse preferences and demands of today’s consumers. Offering a wide range of styles, fits and washes, the industry has effectively tapped into individualistic fashion trends while ensuring comfort and quality. Furthermore, recent advancements in sustainable practices and the adoption of eco-friendly manufacturing techniques demonstrate the industry’s responsiveness to consumers’ growing concerns about the environment. Overall, the denim industry’s ability to adapt to ever-changing consumer demands serves as a testament to its effectiveness and consumer-centered focus.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Stafford: The denim industry has the potential to capture a greater share of consumers’ wallets by implementing strategic initiatives that align with evolving market trends and requirements. Firstly, by embracing sustainability as a core value, denim manufacturers can introduce eco-friendly production processes and materials, thus appealing to environmentally conscious consumers. Additionally, leveraging technology to enhance the customization options for denim products can attract shoppers’ eyeballs for unique, personalized experiences. Moreover, collaborating with influential fashion bloggers and social media influencers can significantly boost brand visibility and cultivate a sense of desirability amongst younger demographics. Ultimately, we think the denim industry can be expanded by catering to consumer demands, using sustainability and an innovative future as the key.
See part 2 here.