Annika Wright Charlotte Borst Charlotte Grosvenor Diana Xu Chen Ossi Lehtonen

M2Di
CO FOUND

VALIDATION
REPORT
03.04.2017
AMFI
 TABLE OF CONTENTS

1. INTRODUCTION 3
2. MEGATRENDS 4-5
PROUD TO PROVE
WORLDS APART
3. CURRENT FASHION INDUSTRY 6
4. INFLUENCE ON FASHION 7
5. FASHION IN 2022 8
6. VIDEO STORY STRUCTURE 9
7. APPENDIX I 10-11
8. APPENDIX II 12-13
9. LIST OF REFERENCES 14
 INTRODUCTION

Based on in-depth research on current societal developments, this report points out
two megatrends we detected; how they are linked with each other and what kind of
influence they have on the fashion industry and the consumer.

Having analyzed the global driving forces focussing on the two megatrends Worlds
apart, which looks at the different facets of globalization, and Proud to prove which
is the demand for (fashion) brands to offer the highest level of transparency to their
consumers, we continue our research on the macro level by focussing on current con-
sumer trends and the influence on the current fashion industry as a whole. Finally, in
conclusion of the previous research, we establish four future scenarios for 2022 based
on the analyzed trends.

3
OUR
MEGATRENDS

WORLDS APART
This megatrend emerged in the course of the current po-
litical climate marked by global unrest and unpredictabi-
lity of the outcomes of the recent developments. Mainly,
there are two groups of individuals that help to explain
this trend:
On one hand, the so called Nation Nurturers are in fa-
vour of improving their local market and environment,
seeking solace in the familiar while on the other hand the
Global Citizens remain committed to the idea that an in-
terconnected world can be beneficial for everyone.
The presidency of Trump, Brexit and the increasing po-
pularity of right parties like Le Pen or the AfD in Germany
- all these factors caused division and oppositions.
Other ongoing factors like the immigration crisis, job au-
tomation and loss, depressed wages and terrorism fears
contributed even more to this development. We approa-
ched the trend Worlds Apart from the angle of the notion
to bring people back together among all of these brisant
issues.

The main causes, for this trend to emerge, are mainly

political developments. Especially in 2016, we saw how
the economical, social and cultural implications of globa-
lization where thrown into sharp relief.

WORLDS APART TREND CARTOGRAM

TREND INNOVATERS TREND DRIVERS TREND IMPACT TREND CONSEQUENCES

Worlds Apart is about an emerging More focused on bringing the world - positive action
trend in reaction to the current political back together amongst the things - NEW GLOBAL NETIZENS: embrace
climate. There are two types of people happening. brands that help foster understanding
that help explain this trend: - NATION NURTURERS: local first
outlook can be served by products and
campaings that show a real commit-
ment to a particular place.

Nation Nurturers: favour a turn in- -Trump

wards, seeking solace in the familiar. -Brexit Momondo Dna Journey
They want to only focus on improving -Le Pen
and nurturing their local market and -Immigration
environment. - Job automation
- depressed wages
-recovery from the great recessi-
on TREND FUTURE
- terrorism fears
-refugee crisis. Purposeful brands will find renewed
Showcasing art of the world opportunities in helping people un-
derstand their changing relationship
to home be that their nation, city or
neighborhood.

New Global Citizens: remain commit-

ted to the idea of an open and inter-
connected world.
Different individuals making a difference
int heir community

4
PROUD TO PROVE
This ongoing trend is about the notion and urgent need The top benefit for being transparent is the increasing le-
for brands to move away from covering up parts of their vel of trust between the brand and the customers. This
supply chain to aiming for a fully transparent and respon- proves that detailed information about supply chain, ma-
sible production process and business philosophy. terials and processes can be an inspiring and bonding
asset of a brand and products story, which will hopefully
A nice example, where all aspects of the business is become a standard requirement in the future.
shown to the consumer, is Honest By. Honest By is an
apparel brand and retailer claiming to offer sustainable
and fully transparent garment collections for both men
and women. Their website displays detailed information
on manufacturing including working conditions, materials,
supplier source, pricing, ethical and organic certifications.

PROUD TO PROVE TREND CARTOGRAM

TREND INNOVATERS TREND DRIVERS TREND IMPACT TREND CONSEQUENCES

- Latin Americans
- Brazilian consumers
- consumer/citizen confiden-
ce is low in Latin America
- institutional corruption
within public and private or-
ganizations
- Petrobras bribery scandal
- lack of government transpa-
rency
- water crisis in Brazil
- death of Alberto Nisman in
Buenos Aires
Consumers will love brands
that are proactively transpa-
rent from production to dis-
tribution to pricing and enga-
ged in an open dialogue.
The consumers will start de-
manding that brands proac-
tively start dialogues and
make their messagin truly
participatory.
71% Brazilians say they refuse to
buy products from the companies
they distrust.
They rather buy from companies
that have the courage to apologize
for doing wrong, an open channel
for critics, and strong beliefs that
I also share and that stay true to
them

Latin American consumers

are demanding honesty and
truth behind the making of
products. No hiding place for
brands.

TREND FUTURE

Its all about brands that need to

move from just having nothing to
hide, to showing and proving avery-
thing they do.

5
CURRENT
FASHION INDUSTRY
In a recent study, out of 87 of the fashion in-
dustrys biggest brands, less than half appea-
red to be transparent, with only 16% showing
a full list of factories involved in production [1].
Transparency is currently still the minority choi-
ce trend for brands to follow due to the fact that
there are some things a company wants hid-
den from its consumer that this new demand
for transparency uncovers.
Luxury segment has always been secretive
about the details on how their business works.
Being on top of the fashion industry, luxury
companies are not being questioned about
the operational decisions, but rather ignored,
as their supply chain has been celebrating the
industrys craftsmanship and manufacturing
processes for a long period before. Todays
growing capitalism is partly causing the high-
end segment to optimize their supply chain
and these decisions are well hidden in the
information shared publicly. One of the most
common ways of sharing biased details of the
production is the Made in disclosure that is,
especially within the EU, easy to decide on the
companys favor.
6 about/transparency/Transparency [Accessed 29 Mar. 2017].
For instance the manufacturing might happen
in a country with cheap labor, whereas finis-
hings, packaging and other end processes
happen in other countires that will then define
the country of origin on the wash label. This
is the reason why fashion today is not aligned
with their heritage and unique craft, but instead
sustaining their business by finding questiona-
ble solutions on the stake of ethics.
But luxury brands are all over the place when
it comes to disclosing where their products are
made. All recognise the potential advantages
of full disclosure but few even those boas-
ting a manufacturing heritage exploit it. The
majority go for partial disclosure, depending
on their positioning and the depth of their heri-
tage.
This need for transparency is still very new,
and while it has a positive affect on your re-
putation with your consumers, there are still
other factors that have a negative impact on
business.
[1]
[1] Anon, (2017). [online] Available at: http://fashionrevolution.org/
INFLUENCE ON
CONSUMER AND FASHION INDUSTRY
Over the past decade the fashion industry
has grown by 5.5% annually according to the
McKinsey Global Fashion Index, and people
are spending money on clothes again follo-
wing the 2010 financial crisis [1].
However, 2016 has been said to have been
one of the toughest years yet, not only for the
fashion industry but the global economy as a
whole. Various global and political issues such
as Brexit, President Trumps election, and ter-
rorists attacks in France and internationally,
have created a more demanding and discern-
ing consumer, whose spending patterns are
much less predictable. The modern consumer
has become increasingly aware of today so-
cietal changes. Politics isnt solely to blame for
this change in the industry, but also technology
adds to transparency regarding the consumer
level.
For years, the tradition of the fashion industry
was that of a secret, an unspoken quiet ima-
ge that never showed what its proceeding step
or upcoming change might be.. (Akahoshi:
2012,14).
One positive example of how luxury brands
are taking significant efforts to increase their
transparency and taking measurable steps to-
wards being more sustainable in their supply
chain, is the Kering group. They recently intro-
duced their targets to meet for 2022.
Examples are the introduction of a measure-
ment tool, which clearly shows the environ-
mental footprint of a potential design and the
incorporation of tracking tools for external sup-
pliers to ensure their traceability.
While this need for brand honesty is fitting with
the demand of the new aware and informed
consumer, the majority of the market is not fol-
lowing this trend since a company who choses
to become transparent still risks losing its com-
petitiveness and place in the market comple-
tely. Although in the future it will be the other
way around, making transparency a business
driver.
[1] McKinsey & Company. (2017). The state of fashion. [online]
Available at: http://www.mckinsey.com/industries/retail/our-insights/
the-state-of-fashion [Accessed 29 Mar. 2017].
7
CO-FOUND
IN 2022
By conducting in-depth research of our cho-
sen megatrends: Digitization, Proud To Prove
and Worlds Apart. We came up with 4 different
scenarios for our Trend to Forecast, named Hi-
dden Co, Co-Found, Blind Trust and Nation - Lower priced products with more options
Nurturers. These are all future scenarios pro-
jected for the year 2022. By conducting detai-
led research into the future scenarios and the
areas affecting it, we have concluded that the
Co-Found future scenario is the most likely pro-
jection to what the future of the fashion industry
could entail.
The Co-Found future scenario is a mixture of
open transparency and globalization.
This world is about accepting and sharing know-
ledge in between countries. It focuses on com-
panies and brands that are willing to collaborate
and to share information, in other words open
transparency.
INFLUENCE ON THE DESTEP [1]
1. DEMOGRAPHIC
- Increased education and skill sets for everyone
- Consumerism
- Convergence of consumer trends
- Declining fertility rates and increasing life
expectancy leading to an ageing population in CONCLUSION
most countries; demographic time bomb.
2. ECONOMIC
- Increased income for everyone
- An increase in global trade and world
financial markets which also increases the cerning organisations, governments, companies
global competition overall for everyone
- Access to finance and tax savings
3. SOCIAL
- Inmproved living standards in both LEDCs
and MEDCs
8
- Mass migration, cultural interaction,
tolerance and intolerance leads to blurred
lines between national cultures and their
individual identities.
available for consumers.
- Changing attitudes towards family, health,
crime and society.
4. TECHNOLOGICAL
- Transport, information and communication
revolution
- Business strategy becomes more fluid and
strategic, where production is easier to monitor
5. ENVIRONMENT
- Increased sustainability where everyone is
more aware of the supply chain of a product.
- More resources available to everyone and
everywhere
6. POLITICAL
- Reduced trade barriers
- Privatisation meaning less money to the
public, so more money to the individuals
- Increased democracy and fall of communism
We focused on factors that could have an impact
to possible changes. In doing this we have com-
mented on several changes that could occur in
the future surrounding the world Co-Found. We
explored possible changes in the society con-
and individuals.
[1] Anon, (2017). [online] Available at: Anon, (2017). [online]
Available at: https://catalogue.pearsoned.co.uk/assets/hip/gb/
hip_gb_pearsonhighered/samplechapter/Brooksch9.pdf [Acces-
sed 31 Mar. 2017]. [Accessed 31 Mar. 2017].
VIDEO
STORY STRUCTURE

9
APPENDIX I ACTOR NETWORK THEORY

We used the Actor Network Theory as one of our research methods. In order to predict our future scenarios we
had to determine our driving forces.

WORLDS APART ANT

For our Worlds Apart megatrend, we chose the words government, companies and consumers.
These keywords are the most important entities when it comes to this trend. This trend is most
likely about governments, companies and consumers coming together. Each entity has different
meanings when it comes to this trend, so it becomes another group of new entities.
In conclusion the entity Worlds Apart is the driving force that we are using for our scenario template.

10
PROUD TO PROVE ANT

For our Proud To Prove megatrend, we chose the words digitization, fashion and consumers.
These keywords are the most important entities when it comes to the trend Proud To Prove. This
trend is most likely about companies being 100% transparent about their supply chain and being pr-
oud about showing it. We chose transparency as the main driving force of this trend. Transparency
plays the biggest role and will be used in our scenario template.

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APPENDIX II
01 HIDDEN CO
The Hidden Co scenario is focusing on com-
panies and industries, which are willing to sha-
re and collaborate with each other, but are hi-
ding their transparency and supply chain. It is
comparable with our current society, because
it is all about competition and hidden the deve-
lopments.
The luxury segment is focusing on expanding
to different countries, but hiding thier transpa-
rency and staying blurred.
DESTEP ANALYSIS
Demographic
Regarding the European market, many cultu-
res are now functioning together. Borders and
countries are becoming increasingly blurred
as different cultures interact with each other.
Trends are going to be settled and developed,
but the competitive side of intercultural interca-
tion will drastically improve and gain strength.
12
FUTURE SCENARIOS
Economic
Regarding the economic aspect, the economy
will grow and increase due to collaborations
between companies and brands. The local
market will suffer from this fact, because com-
panies are more likely to produce in a different
country instead of producing locally.
Social-Cultural
Regarding the European market, many cultu-
res are now functioning together. Borders and
countries are becoming increasingly blurred
as different cultures interact with each other.
Trends are being developed, but are not fo-
cused on the local market and the individuals
need. The trends will become more clearly
structured and segregated, making it easier
to see the difference in cultural interactions
through the trends.
Technology
Technology is going to benefit from this scena-
rio, due to the fact that companies and govern-
ments are sharing and collaborating with each
other. This also means that technology can
develop faster. Furthermore companies can
easily copy from each other.
Ecological
The environment will suffer in this scenario.
Neither the government nor the multi-national
companies are willing to open their doors to
consumers in terms of transparency and sup-
ply-chain; Because of this, the consumers in
this world are unaware of environmental is-
sues. Due to the consumers lack of awareness
and understanding, business`s will not be held
accountable for their actions.
Political
Regarding this scenario the political aspects
will neither suffer or benefit from it.
02 BLIND TRUST
The Blind Trust future is comparable with the
current industry. Politics play a major role in
this world. In the world of Blind Trust, coun-
tries are focussing on the local market, regar-
ding the local production of products. They are
extremely patriotic. This leads to isolation from
the world. The supply chain happens locally,
so transparency is not needed in this case.
DESTEP ANALYSIS
Demographic
- Aging societies
- Educational system improved for all ages
Economic
- Focus on local markets
- Expansion of domestic advantage
- No trade agreements
- No comparative advantage
Social-Cultural
- Patriotism
- Discrimination of minorities
- Uniformity/ homogenous society
- Preservation of local culture and tradition
- Controlled society
Technological
- No kowledge of other cultures or skills
- Production processes are easier to control
due to advances in technology
Environmental
- Improvement of environmental impact
merely due to the lack of transport emissions
- Better control of sustainable standards due
to local productions
Political
- Government and institutions are in full
control of society
- Patriotism
03 NATION NURTURERS
This scenario focuses on the individual level.
These individuals create and establish a new
awareness, which forces companies/ brands to
be more transparent. They prefer brands, who
are willing to be more transparent about their
supply chain. On the other hand its also about
focusing on protectionism of their own country.
Brands and companies will focus more on their
nations pride, but are also willing to share this
with the world.
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LIST OF REFERENCES

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Spherelife.com. (2017). Luxury Trends 2017. [online] Available at: http://www.spherelife.com/future-trends/

[Accessed 21 Mar. 2017].

Retail Dive. (2017). Fast-fashion, luxury brands called out for lack of transparency. [online] Available at: http://
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14