Industry Voices: Hong Kong Design Institute Students and Educators on Denim’s Direction
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, students and lecturers from the Hong Kong Design Institute weigh in on what they are seeing and the path ahead for the category.
Chan Chun Yu (Matthew), fashion design student
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Chun Yu: Consumers today exhibit a heightened pursuit of self-actualization, reflecting a notable shift in trends compared to the past. The prevailing fashion culture now encourages individuals to experiment with diverse styles and express themselves boldly through their clothing choices. However, it is crucial to acknowledge the escalating issue of fast fashion, which has become increasingly prevalent in our society.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Chun Yu: Regarding denim, there is a discernible and positive upward trajectory in consumer interest. This is illustrated by the growing prominence of street culture and the emergence of influential brands such as Sacai, Diesel and Y Project, all of which showcase people’s affinity for denim. Within this trend, various craftsmanship techniques such as overdye, sand washing and acid washing offer distinct expressions of individuality.
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?
Chun Yu: Gen Z places great emphasis on style choices, favoring oversized fits and exploring denim’s application across different mediums and textures. For instance, denim finds its way into furniture and footwear, while digital fashion trends lean towards a more futuristic and sophisticated aesthetic. On the other hand, Gen X consumers prioritize experiential aspects, wearability, and the practicality of fabrics, seeking durable and aesthetically appealing jeans and denim jackets.
Fung Ka Man, fashion design student
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Man: The denim market is currently thriving due to a surge in demand, fueled by emerging trends like denim on denim and the Y2K style. These trends have captivated consumers, especially the younger demographic, and influenced their purchasing decisions. The versatility and timeless appeal of denim, combined with increased consumer confidence and a focus on self-expression, have contributed to the market’s positive performance. Overall, the denim market is experiencing strong growth, driven by evolving fashion trends and shifting consumer preferences.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Man: Denim possesses remarkable versatility, and as a result, innovative ideas for its utilization continue to emerge in the market. Furthermore, the growing popularity of trans-seasonal and seasonless styles has been a prominent trend for several years, and denim fabric lends itself well to these fashion preferences. Consequently, I anticipate a sustained high level of interest in denim.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Man: In terms of consumer demographics and expenditures, the younger generations, including millennials, exhibit a higher propensity for investing in denim compared to Gen X and baby boomers. As disposable incomes have grown, consumers have placed greater emphasis on personal style and fashion. Additionally, there is a segment of the population that has a strong affinity for vintage styles, further expanding the potential consumer base for denim. As a result, denim sales have experienced a notable increase.
Joanne Lau, senior lecturer
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Joanne: Denim is a timeless fashion trend that transcends age and social status. Regardless of whether you’re 3 years old or 80, an ordinary person or a celebrity, denim offers universal appeal and the ability to exude unique characteristics and charm. Its distinctiveness, marketability, diversity and dynamism make denim a truly exceptional product. As the fashion industry continues to emphasize individualization and embrace retro trends, denim remains highly sought after, attracting significant attention and demand. Furthermore, in response to the global drive for environmental sustainability, the denim industry has been actively innovating in terms of raw materials and production processes.
Consequently, a plethora of aesthetically pleasing, comfortable and eco-friendly denim materials has emerged, defying the previous perception of denim as a polluting industry. As a result, despite the challenging times we live in, denim retains a considerable market share and holds a promising future. The denim market is influenced by various factors, including fashion trends, shifts in consumer lifestyles, attitudes and values, as well as marketing and brand strategies. Additionally, price, material quality, appearance and comfort play significant roles.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Joanne: Consumers’ interest in denim remains stable. For instance, to share an example from HKDI Fashion Design students as young individuals and consumers, both male and female students exhibit a fondness for wearing jeans, whether during leisure time or in the classroom. Their ability to effortlessly mix and match denim in various styles showcases a distinct blend of fashion-forwardness and casual elegance. However, it is worth noting that their choices may fluctuate in response to trends and market demands. In the coming year, I anticipate that the demand for denim will remain steady and potentially experience growth due to innovative designs and creative approaches.
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?
Joanne: Given their heightened focus on internet trends and social media, Generation Z is exposed to new concepts and ideas at an accelerated pace. Consequently, they gravitate toward more personalized, bold and distinctive denim designs. Additionally, Generation Z consumers are likely to be influenced by social media influencers, prompting them to experiment with various denim styles. Within the denim retail industry, this calls for an increased emphasis on online sales and social media marketing, along with a wider range of products featuring unique differentiating features.
Yiu Yat Fung, fashion design student
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Fung: Compared to last year, consumers’ views on the environmental impact of the denim industry have changed. With the promotion efforts of major denim companies and influencers, consumers have gained more knowledge about the materials used in denim production nowadays. Moreover, due to the influence of the pandemic, consumers tend to choose materials that are comfortable, environmentally friendly and durable. I recently discovered that I have a pair of jeans made from TENCEL™ material, and they are really comfortable!
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Fung: The denim industry has placed a significant emphasis on customer satisfaction this year. Brands have been proactive in responding to market demands by introducing a diverse range of products. Notably, there has been a surge in futuristic designs crafted with denim fabric, as well as the revival of retro items made with raw denim. This departure from the conventional perception of denim as old-fashioned showcases the industry’s commitment to innovation and keeping up with evolving fashion trends. Denim has successfully transformed into a versatile and contemporary material, catering to a wider audience and challenging preconceived notions about its style potential.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Fung: Comfort, design, and practicality are crucial factors to consider in the denim market. In recent years, there has been a significant rise in the use of denim fabric in various design items. To capture a larger portion of consumers’ spending on denim, it is essential to explore different types of denim fabric. An excellent example is TENCEL™ denim fabric, which offers a unique sheen that can captivate consumers’ interest. By incorporating such innovative fabrics, denim retailers can enhance the appeal of their products and attract a broader consumer base.
Dr. Travis Li, lecturer
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Travis: From my perspective, the denim market is currently undergoing a significant transformation, shifting from a fast and mass market to a more esteemed designer market. One of the key factors influencing this change is the strong association between the denim market and the streetwear market. Unlike the traditional perception of denim wear, we now witness a plethora of products that blend different styles. For instance, there are outdoor-inspired designs incorporating denim, as well as denim washed haute couture pieces. Denim techniques and materials have found their way into contemporary designer labels, adding value to the denim market.
Another crucial factor affecting the denim market is the decline of fast fashion. Consumers are showing a growing willingness to invest more in unique and high-quality items, rather than purchasing a large quantity of inexpensive products. This shift in consumer behavior has created an opportunity for the denim market to thrive by offering distinctive designs, craftsmanship, and durable materials that align with the preferences of discerning shoppers.
Overall, the denim market’s current performance reflects its evolution into a valued designer market, where the fusion of styles and the integration of denim in contemporary fashion contribute to its appeal. The decline of fast fashion and the increasing demand for unique, high-quality items are driving factors that have reshaped consumer behavior and opened up new opportunities for the denim market to flourish.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Travis: Consumer interest in denim has experienced a shift due to the influence of comfort fashion and the changes brought about by the pandemic. Traditional denim lovers have been influenced by the rise of comfortable and pandemic-influenced fashion choices, leading them to explore alternatives to ordinary denim. While their interest in conventional denim may have slightly diminished, there is a growing desire among consumers to discover new and innovative offerings within the denim market.
Looking ahead to the next year, this trend of seeking novelty and uniqueness in denim is likely to continue. Consumers will be more inclined to explore unconventional denim styles, such as unique washes, experimental cuts or denim incorporated into unexpected fashion pieces. Denim brands that can introduce fresh designs, incorporate sustainable practices or offer customization options are likely to capture the attention and interest of consumers in the coming year. The evolving consumer preferences indicate that the denim market will need to adapt and cater to these changing demands by offering innovative and differentiated denim products.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Travis: To capture more wallet share from the dominant youth market in the fashion industry and capitalize on the trickle-up fashion influence, the denim industry can prioritize collaborations with popular street brands. These partnerships enable denim brands to tap into the trendy appeal of streetwear and expand their reach to a wider audience. By presenting a multi-faceted brand image, denim brands can enhance their desirability and add value to their products. Effective marketing, offering customization options, collaborating with influencers, prioritizing sustainability, engaging with younger generations and improving the online shopping experience are crucial strategies for attracting consumers. Highlighting denim’s unique qualities like versatility and durability, along with providing personalized experiences through customization, will further entice buyers. Emphasizing sustainability and actively engaging with younger demographics will drive denim purchases. By implementing these strategies, denim brands can increase their wallet share and capture the attention of consumers in the trickle-up fashion-influenced market.
Arthur Chan, lecturer
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Arthur: According to data analysis results from Grand View Research, the global denim jeans market was worth USD 77.67 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.8 percent from 2023 to 2030. In comparison, the revenue in the apparel market is projected to reach US$1.74 trillion in 2023, with an annual growth rate of 2.76 percent (CAGR 2023-2027). The predicted growth rate of the denim market is relatively higher than that of the overall apparel market. This optimistic performance in the denim market presents opportunities for different brands to launch new product lines, particularly in segments like kids’ wear.
Several factors influence the denim market: interest rates; cotton costs; political issues, such as the country of origin of cotton; trade wars, for example, the impact of exiting China; technological developments; fuel costs; possibility of U.S. recession; eco-friendly; brand authenticity; unemployment rate; China GDP; U.S. dollar exchange rate; RMB rate; and war.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Arthur: The Consumer Confidence Index in the U.S. experienced a rise in July, reaching 117.0 (1985=100), up from 110.1 in June. This indicates an increase in consumer confidence compared to the previous month. Furthermore, the index has shown growth compared to the same period last year. The rise in consumer confidence suggests that consumers in the U.S. have a more positive outlook on the economy, which could potentially lead to increased consumer spending and economic activity.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Arthur: I think denim industry should pay attention to the following: customisation and personality; digital integration; user experience; retail experience; ethical; eco; technological innovation.
Asa Leung, lecturer
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Asa: Consumer confidence has significantly declined compared to last year, reflecting economic uncertainty, health concerns, changing consumer behaviors and supply chain disruptions. This poor level of confidence stems from job losses, reduced incomes, fear of the ongoing health crisis, cautious spending and limited access to desired products. Rebuilding confidence requires addressing these concerns and restoring stability.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Asa: There is a growing focus on eco-friendly practices and sustainability to align with consumer demands for more environmentally conscious products. Brands are increasingly incorporating sustainable materials, manufacturing processes and ethical practices to better serve consumer expectations in terms of environmental responsibility. However, further progress and innovation are needed to fully address and meet consumer desires in the denim industry.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Asa: The industry should prioritize maintaining and enhancing the quality of denim products. This can be achieved by using durable materials, ensuring excellent craftsmanship and focusing on fit and comfort. By consistently delivering high-quality denim, the industry can build trust and loyalty among consumers, encouraging them to invest more in denim purchases.