In collaboration with McKinsey & Company, we were delighted to last week host an industry leaders’ reception to launch The State of Fashion 2018 report in Australia. The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. In its fifth annual State of Fashion report, The Business of Fashion and worldwide management consulting firm McKinsey & Company delivered its forecast for the 2021 outlook of the fashion … By using this site you agree with our privacy and cookie policy. The new State of Fashion 2021 report is based on two McKinsey fashion scenarios: a more optimistic “Earlier Recovery” scenario predicts that global fashion sales will decline by between 0 and 5 percent in 2021 compared to 2019, and a “Later Recovery” scenario would see sales growth decline by 10 to 15 percent next year compared with 2019. These are some of the findings from our latest report, The State of Fashion 2020 by McKinsey in partnership with The Business of Fashion (BoF). It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. At the forefront for many is the future role of brick-and-mortar stores. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. Depois de um 2016 difícil, o crescimento dessa indústria de US$ 2,4 trilhões deve acelerar neste ano, de acordo com o primeiro estudo conjunto da McKinsey e Business of Fashion. Through BoF’s of Fashion and McKinsey & Company have teamed extensive expertise in fashion strengthened by up to bring our trademark rigour and evidence to global industry networks, we thread McKinsey’s debates within the global fashion industry and international perspective and analytical rigour. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. Digital upends old models. Brands that can align with the dominant trends and continue to innovate are most likely to ride the challenges and emerge ahead of the pack, The headquarters of the Swarovski crystal empire are every bit as glitzy as you might expect -- but the sparkle can't distract …, This year has increased the importance of Chinese consumers to the luxury sector as the overall market has shrunk while …, Following the first post-Spring 2020 lockdown caused by the unprecedented global Covid-19 pandemic, many luxury hotels, stores in various destinations …, News collects all the stories you want to read. The State of Fashion 2021, BoF and McKinsey’s annual report analysing the trends that will shape fashion in the year ahead, will be released Dec. 2. The 2020 McKinsey report on the state of fashion predicts that revenue growth will slow and that sustainability will continue to be a hot topic. Asia in particular is emerging as a fertile ground for small and midsize enterprises that leverage e-commerce to reach out from the factory floor. A report by McKinsey & Company and the publication, ... “The State of Fashion 2020 Coronavirus Update,” says fashion is particularly vulnerable because of its discretionary nature. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps. According to Business of Fashion and McKinsey & Co.'s The State of Fashion 2021 report, fashion companies specifically are expected to post approximately a 90% decline in profit in 2020… In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. These are some of the findings from our latest report, The State of Fashion 2020 by McKinsey in partnership with The Business of Fashion (BoF). The fashion industry can expect a year of uncertainty and concern across all geographies and value segments for 2020, save for only a few bright spots. 14 May 2018. The State of Fashion 2018 | Australia. Advises global apparel, fashion, and luxury clients on strategy, operations, and marketing, helping executives design and execute transformational work. Select topics and stay current with our latest insights. The bottom line? 07.12.2016 - McKinsey & Company | After a tough 2016, growth in the $2.4 trillion industry may accelerate next year, according to the first joint report from McKinsey and the Business of Fashion. Most transformations fail. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year. No Brasil, o … the outlook for the global economy is less rosy, 2019 Apparel Chief Purchasing Officer Survey, The real rich don’t need our Swarovski crystals – they can buy diamonds, China’s share of the global luxury market has almost doubled in 2020. The trick in 2020 will be to prove to investors they can turn potential into profit. These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). Come to McKinsey to do the best work, with the best teams and truly be at your best. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. The average industry EBITA 1 margin was 10.8 percent, a tick up on 2017 and the highest since 2014. It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. This year has radically reshaped the landscape for the fashion industry. This is at least what the latest annual report on the state of the industry, "The State of Fashion 2020", by the consulting firm McKinsey and BoF, says, based on a survey of over 290 senior fashion executives, as well as opinion leaders and opinion leaders. This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. One reason that executives are not breaking out the bunting is that the outlook for the global economy is less rosy than it was a year ago. Press enter to select and open the results on a new page. We see 2020 as being a watershed for “Inclusive Culture,” with diverse races, genders, and sexual orientations increasingly present across organizations and in leadership roles. Introducing The Coronavirus Update to The State of Fashion 2020, BoF and McKinsey & Company’s authoritative annual report now in its fifth year, covering the $2.5 trillion industry, based on exclusive interviews with industry executives, a survey of more than 1,400 fashion professionals from the BoF community, and a global McKinsey pulse survey of more than 6,000 consumers. Over 300 global fashion brands to open stores in India by 2020: McKinsey. On the other, global economic growth is slowing and competition is more intense than ever. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. A new report from McKinsey and Business of Fashion finds fashion executives are far less optimistic heading into 2020 than they were ahead of 2019, with 57 percent of luxury leaders forecasting that next year will be worse. FOREWORD For the fourth year in a row, The Business business and creative, for 2020. According to McKinsey’s 2019 Apparel Chief Purchasing Officer Survey, while the absolute number of sustainable fashion products remains low, there has been a fivefold increase over the past two years. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 In 2021, McKinsey estimates that online will account for 37 percent of fashion and luxury retail sales, both in the U.K. and in China. Themes defining the state of fashion 2020 To thrive in this environment, companies must think strategically, sharpen their decision making, and keep their fingers on the pulse of customer demand. Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). The Indian clothing market will be worth $53.7 billion in 2020, making it the sixth-largest globally (The Business of Fashion and McKinsey & Company). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. People gather on the Via dei Condotti luxury fashion street on December 13, 2020 in downtown Rome, ... disrupted and the year approached its end with many regions in the grip of a second wave of infections," states ‘The State of Fashion’ report by media company Business of Fashion and management consulting firm McKinsey. At the vanguard, we are seeing a new breed of direct-to-customer companies. Image Courtesy of Kornit Digital Join the Kornit Digital VIRTUAL EVENT series featuring industry thought leaders discussing the dramatic transformation in the fashion industry following the Covid-19 pandemic. The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Indonesia is due to be the largest modest fashion market in the world (The Business of Fashion and McKinsey & Company). The industry was already on high alert, and executives expressed pessimism across all geographies and price points in our annual report, The State of Fashion 2020, released late last year. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to … 'Silver linings', 'Tailored Strategy' and 'Better Normal' are the keywords to reflect on from this comprehensive report. collaboration with select social media and trusted analytics partners These players show that there is a great deal of industry value outside the spotlight, and the “hidden champions” too have much to offer alongside their listed counterparts. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. hereLearn more about cookies, Opens in new Not that the state of fashion was looking any good beforehand, Mckinsey’s coronavirus update paints a grim picture for the rest of 2020. Drawing on data including executive surveys, the report casts a bleak outlook for next year, forecasting a 3 to 4 percent decrease in global, fashion industry growth. Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions. We estimate that revenues for the global fashion industry (apparel and footwear sectors) will contract by 27 to 30 percent in 2020 year-on-year, although the industry could regain positive growth of 2 to 4 percent in 2021. The Indian clothing market will be worth $53.7 billion in 2020, making it the sixth-largest globally (The Business of Fashion and McKinsey & Company). Major shopping occasions such as Singles Day on November 11, 2020 and Chinese New Year on February 12, 2021 will likely see unique spikes in online sales. We see local stores in particular building a role as partners in the digital revolution, helping customers touch, feel, and experience in convenient locations as they browse online and offline. As 2020 comes to a close, we share this look at some of the year’s milestones and what we’re looking forward to in 2021. The new State of Fashion 2021 report is based on two McKinsey fashion scenarios: a more optimistic “Earlier Recovery” scenario predicts that global fashion sales will decline by between 0 and 5 percent in 2021 compared to 2019, and a “Later Recovery” scenario would see sales growth decline by 10 to 15 percent next year compared with 2019. The fashion industry can expect a year of uncertainty and concern across all geographies and value segments for 2020, save for only a … Consumers are increasingly waking up to this reality and demanding change. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. The report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. A report by McKinsey & Company and the publication, ... “The State of Fashion 2020 Coronavirus Update,” says fashion is particularly vulnerable because of its discretionary nature. The new consumer insights series form McKinsey Australia explores the unique impact of the COVID-19 pandemic on Australian consumer sentiment, confidence and behaviour. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. Laut Prognose des McKinsey Global Fashion Index (MGFI) wird das Umsatzwachstum in der Modebranche 2020 weiter zurückgehen auf 3 bis 4% und damit leicht unter die Prognosen für 2019 fallen. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Business of Fashion has teamed up with McKinsey Global Fashion Index (MGFI) on The State of Fashion 2020, a report predicting industry challenges in the coming year. Reinvent your business. However, there will be opportunities. December 2, 2020 The State of Fashion 2021: In search of promise in perilous times (McKinsey) The sober mood among fashion executives surveyed in last year’s report has evolved over recent months into a strong determination to manage the industry through the COVID-19 pandemic. What will define the industry in the coming year? Drawing on data including executive surveys, the report casts a bleak outlook for next year, forecasting a 3 to 4 percent decrease in global, fashion industry growth. 291 respondents participated in the State of Fashion Survey for the State of Fashion 2019 report between August and September 2019. ... McKinsey agreed to do so in a communication to the commission on 21 November 2020, it said. Consumer behaviour shifted, supply chains were disrupted and the year approached its end with many regions in the grip of a second wave of infections," states ‘The State of Fashion’ report by media company Business of Fashion and management consulting firm McKinsey. The McKinsey Group, in partnership with The Business of Fashion, has released the latest report, called 'The State of Fashion 2021' that drills down into the major themes affecting the fashion economy and assesses a range of possible responses. This is at least what the latest annual report on the state of the industry, "The State of Fashion 2020", by the consulting firm McKinsey and BoF, says, based on a survey of over 290 senior fashion executives, as well as opinion leaders and opinion leaders. Even before the coronavirus disrupted financial markets, upended supply chains, and crushed consumer demand across the global economy, fashion-industry leaders were not optimistic about 2020. 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