In 2021, the size of the global apparel market was just shy of the GDP of Brazil. In other words, if the apparel market was a country, it would have been the 14th largest economy in the world.

Looking ahead to 2023, it’s no secret that the global retail sector faces serious challenges as consumer confidence dips and supply chains are disrupted. But now is not the time to batten down the hatches. Instead, now is the time for the industry to seek out new opportunities.

A wave of high-net-worth individuals (HNIs) and growing urbanisation across the Middle East and Asia is unlocking an entirely new market of high-end, luxury fashion consumers. Not only is this manifesting in adult fashion ranges, but it’s also leading to growth in luxury childrenswear as parents want to ensure their kids are wearing the finest clothing that last longer and can be passed down to younger siblings.

There’ll also be a strong bounce back from the movement towards fast fashion as longevity and sustainability become increasingly important for younger consumers. While fast fashion giants may struggle to weather the current economic climate given their tight margins, this will unlock new markets for companies that can offer innovative ways of providing more sustainable options.

Another trend that will grow in 2023 is people spending more money on health, wellness, and quality of life. While this mostly has implications for the fitness, health, and wellbeing sector, it’s also leading to more people buying high-end, quality clothing.

There will also be some seismic changes in the consumer experience over the next 12 months. We’ve already seen how technology such as augmented and virtual reality can revolutionise the shopping experience by enabling a shopper to “try on” a piece of clothing remotely, but there are other emerging technologies that provide untrodden ground for the industry to walk. One example that caught my eye recently was Alice Delahunt, formerly chief digital executive at Ralph Lauren, and her tech-fashion start-up, Syky. The blockchain-enabled Web3 platform will allow users to curate, trade, and own fashion in digital, physical, and augmented reality.

With such kind of growth opportunities, I firmly believe that the next unicorn company should be a fashion brand. However, there is an underlying barrier that too often prevents fashion brands from realising their full potential – the inability to transform the raw creative talent and ideas in the fashion sector into long-term commercial success.

As it stands, too many start-ups simply aren’t equipped with the management experience, operational expertise, and financial tools they need to unlock new growth opportunities.

For example, a fashion start-up may fail to analyse which market demographics are reacting well to their products based on early data from online sales. A designer may over-invest in supplies by failing to undertake robust and accurate sales forecasts. And a new fashion brand may fail to attract new investment because they don’t have experience engaging with financial professionals.

Even larger companies in the sector will be ill-equipped to unlock new growth opportunities if they lack management talent or fail to evaluate the feasibility of integrating new technologies into business models.

As we move into a completely new economic and geopolitical climate in 2023 and beyond, now is the time for the industry to make changes to give fashion brands the tools they need to make the most of evolving consumer trends.

The industry must focus its efforts on fostering entrepreneurial and commercial talent in the same way it prioritises creative talent. There’s no silver bullet or overnight solution, but a starting point could be implementing base-level business training for fashion managers to improve financial numeracy throughout the industry.

The shift towards greater commercial strength must also come from outside the sector. The fashion industry has a reputation for being somewhat insular and bringing business professionals from other industries into leadership roles could help strengthen businesses’ hands in tapping into lucrative markets and pinpointing new growth opportunities.

Designers and fashion brands often lack visibility on market preferences, and retailers can play a crucial role in bridging the creativity-commercialisation gap. They have the sales data that provide clarity on consumer preferences and can therefore offer firm guidance on what designs and products are selling.

The industry must also work harder to attract new investment. Those from a financial or corporate background can often see the fashion industry as frivolous compared to sectors such as tech or e-commerce. This misled attitude is particularly prevalent in the UK, despite the fact it employs over 500,000 people and is worth around 60 billion.

Like any sector, the Government can also play its role. However, the answer doesn’t necessarily lie in funding or grants – the most effective way politicians and policymakers can drive growth in fashion is simply by giving it more visibility. Rarely is fashion and design given the same weight in economic policy as traditional industrial heavyweights such as manufacturing and engineering, and we must stop ignoring the growth potential of the sector.

Despite the dreary headlines and troublesome economic forecasts of late, there are still considerable growth opportunities in the fashion sector in 2023. To make the most of these opportunities, we must bridge the disconnect between the raw creative talent in fashion and its ability to translate this into long-term commercial success.