The Fashion Industry in Crisis: What’s Causing the Chaos & How Brands Can Adapt

INDUSTRY INSIGHTS

In July of 2024, an article by Alex Bitter of Business Insider made headlines: “Nike’s Trying to Pivot. It’s Not Working Just Yet.”

The piece dove deep into how Nike, a global fashion and performance apparel leader, is struggling to boost its stock price and reduce costs. Their strategies over the past year have included several rounds of layoffs, re-hiring former top executives, and restructuring their product lineup. Still, results have been underwhelming.

This story isn’t just about Nike, it’s a warning sign about a broader fashion industry crisis that’s unfolding in real time.

THE TRICKLE-DOWN EFFECT

When a brand as massive as Nike starts to stumble, it sparks concern across the entire industry. Nike is often the benchmark for excellence in the performance apparel world. If they’re facing these challenges, what does that mean for smaller brands and emerging labels?

We’re seeing firsthand how fashion supply chain issues, inflation, and changing consumer priorities are impacting even the most established players. And for everyone else, it’s becoming a fight for survival.

REALITY BITES

Let’s be honest, the past few years have been brutal.

Nike may be getting headlines now, but they’ve weathered the storms of 2023 and 2024 better than most. Many brands haven’t been so lucky. In the last year alone, countless fashion businesses have closed, liquidated, or gone silent.

Inflation continues to tighten budgets. Essentials like groceries have become significantly more expensive, leaving little room for discretionary purchases like new clothing. This shift in consumer behavior in fashion is making it harder for brands to compete—especially those who prioritize quality and sustainability.

FAST FASHION’S RISE

In tough times, affordability trumps longevity. This is why fast fashion has seen explosive growth.

Retail giants like Shein and Temu are churning out over 7,000 new styles weekly. While their prices are appealing, the environmental and ethical costs are staggering. With 8% of all produced garments ending up in landfills, it’s clear that this trend is unsustainable.

But it’s also a stark reflection of today’s market reality: people want more for less, even if that means lower quality. This moment calls for urgent change, and opportunity, for those championing sustainable fashion trends.

A MISSION AND A RESPONSIBILITY

At Unmarked Street, we’ve always been committed to raising awareness about these industry issues.

Ethical manufacturing, circular fashion principles, and transparent education are at the core of what we do. But meaningful change will only happen if more of us band together—designers, founders, retailers, and consumers alike.

We can’t let fast fashion dominate the future. The future of the fashion industry depends on those of us willing to challenge the norm, rethink waste, and demand better.

HOW TO SURVIVE (AND THRIVE)

If you're wondering how to navigate your business through this storm, check out this podcast episode that’s all about turning the tide.

In this episode, we cover:

• Why cash flow is king: make sure you’re bringing in more than you’re spending.

• How to calculate ROI on everything you do.

• The importance of knowing your core audience.

• Why systems and processes set you up for scalable success.

• Hard truth: new customers aren’t guaranteed. Make sure you build loyalty.

Plus, check out other episodes on Spotify, Apple, Audible, or wherever you get your podcasts!

YOUR TARGET CUSTOMER IS EVERYTHING

One of Nike’s biggest challenges right now is tied directly to their audience. While they’ve seen strong performance sales, their lifestyle product line is dragging them down. Why? Because they’ve strayed too far from their core target customer, the elite athlete.

This misalignment is a powerful reminder: knowing and serving your niche isn’t just good marketing. It’s essential for survival.

Want to learn more about defining your ideal customer? Start here!

THE BOTTOM LINE

The fashion world is changing fast and not always in the right direction. But while this fashion industry crisis is real, it’s also a wake-up call. By embracing sustainability, understanding evolving consumer behavior in fashion, and staying connected to your brand’s mission, you can not only weather the storm, but come out stronger on the other side.