Luxury and apparel companies are facing headwinds as growth slows in key emerging markets. In Russia, sanctions imposed by Western governments and the plunge in the price of oil are causing a downturn that could deepen into a recession. In China, a government crackdown on corruption has cooled consumption of luxury brands. The International Monetary Fund accordingly has lowered its estimate for global growth in 2015 from 3.8% to 3.3%. The U.S., on the other hand, has its own issues. It is over-retailed and not only is competition intense among apparel players, but clothing products must now contend with the latest gadgets from Apple. What retail apparel needs, beyond debt restructurings and store closings, are new ideas to inspire the next big trend to entice shoppers into stores.
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