LONDON — Everybody wants a slice of China’s booming luxury and fashion ... McKinsey predicts Chinese ... Louis Vuitton, Dior and Burberry have been experimenting with it since the COVID … Based on our executive survey, the words on everyone’s lips are sustainability, digitization, and innovation (Exhibit 4). These are some of the findings from our latest report on The State of Fashion, written in partnership with the Business of Fashion (BoF), which explores the industry’s fragmented, complex ecosystem. The ones that will succeed will have come to terms with the fact that in the new paradigm taking shape around them, some of the old rules simply don’t work. With companies in China leading the way, brands will engage even more closely with social media to offer shoppers exclusive content and personalized experiences. Many consumers today expect perfect functionality and immediate support at all times, coupled with rapid delivery times as players constantly compete to expedite products. The virus made fashion look… COVID Response Center Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Many have had a strong Asia–Pacific focus, reflecting the economic strength of the region and the relatively lower impact of the pandemic there, and many have offered a compelling digital proposition. Humanitarian repercussions are expected to outlast the pandemic itself. By segment, the most positive are executives from luxury brands, reflecting their strong growth trajectory in 2018. Those are some of the findings from our latest report, The State of Fashion 2021, written in partnership with the Business of Fashion (BoF). Flagship stores will be branded as discovery zones and tasked with creating emotional connections with customers. Imran Amed is the founder, editor-in-chief, and CEO of the Business of Fashion. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. The Super Winners include three new entrants—Anta Sports, Heilan Home (HLA Corporation), and Lululemon—reflecting the strength of sportswear and the growing influence of Chinese players. Now, the resulting “quarantine of consumption” collaboration with select social media and trusted analytics partners About a 5 minute read. According to our estimates, each racked up more than $2 billion in economic profit in 2017. At the same time, they must cater to local tastes across multiple markets and cultures. McKinsey & Company and Business of Fashion wrote in a coronavirus update to the State of Fashion 2020 report said, Fashion executives and business leaders are currently focusing on crisis management and contingency planning, but eventually we must shift towards re … This is consistent with their compound annual growth rate (CAGR) over the past three years, which has been 9 percent for affordable luxury and 6 percent for value, the highest of any segment since 2013. The industry is now on red alert. For many in the fashion industry, the glass is half empty. Shoppers are also becoming more selective. Given the disruptions of recent months, many companies are reconnecting with their supply chains, making tough decisions—for example, about ROI at store level—and ramping up omnichannel services. Product categories are expected to grow in line with the overall industry average, but the biggest winners will be those companies with coherent channel strategies and clear value definitions. COVID-19 lockdowns also have led to an uptick in first-time e-commerce shoppers—14% of consumers in the US and 17% in China bought fashion online for the first time because of the pandemic. Something went wrong. Over the last 5 years, we have brought our expertise and industry insights to more than 1000 apparel, fashion, and luxury projects. However, amid increasing pressure on performance, shifting consumer behaviors, and accelerating demand for digital, there is an imperative to act decisively to prepare for the next normal. 6 Stock-market valuations of tech players have reached dizzying levels, reminiscent of the dot-com boom of the early 2000s, while a number of private companies have reached unicorn status. 3. Our calculations suggest that it will fall by 93 percent this year, according to our latest State of Fashion report, written in partnership with the Business of Fashion. The caution in the economic outlook is also reflected in the BoF–McKinsey State of Fashion Survey, with 42 percent of respondents expecting conditions to become worse in 2019. 11 To read the report, see “The State of Fashion 2021: In search of promise in perilous times,” December 1, 2020. After a challenging stretch, has fashion turned the corner? The bottom line? But speed and flexibility bring added complexity. Yet this sluggish overall growth masks some big winners: affordable luxury, value, and athletic wear. Reflecting our conversations with industry leaders over recent months, it examines the ten key trends likely to shape the business over the coming year. However, there will be opportunities. We use cookies essential for this site to function well. But it is in the developing world, where healthcare systems are often inadequate and poverty is rife, that people will be hit the hardest. They should bear in mind the three trends that we believe will shape the 2017 fashion industry: the global economy, consumer behavior, and the fashion business model. Imran Amed is the founder, editor-in-chief, and CEO of the Business of Fashion. 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. At the same time, government interventions will partially offset economic impacts, and global travel will pick up, alongside the possibility of larger social gatherings. This joint report by the Business of Fashion and McKinsey is an effort to advance the discussion beyond crisis management and immediate contingency planning by outlining the areas in which the fashion industry must focus once the dust settles on the current crisis. Nonetheless, our report finds that fashion companies are hopeful they can improve their performance through a combination of organic growth and leveraging new technologies. After a year in which the fashion industry posted record-low economic profits, business leaders are on the front foot, seeking to innovate while continuing to engage their core constituencies. Handbags and luggage, and to some extent watches and jewelry, are returning slowly to their historic highs, driven by demand in Asia–Pacific. People create and sustain change. 12 So what will change in 2017? "Without doubt, 2020 is the worst year for the fashion industry on record," Achim Berg, leader of McKinsey & Co.'s Apparel, Fashion & Luxury Group, told Newsweek. A freeze on spending is aggravating the supply-side crisis. By August, such digital-first players were trading 35 percent higher, on average, than they did in December 2019. Asha’s education is listed on their profile. Of course, for every success, there are also relative failures. Something went wrong. No one would put money on volatility and uncertainty lessening. Once the dust settles on the immediate crisis, fashion will face a recessionary market and an industry landscape still undergoing dramatic transformation. On the other, global economic growth is slowing and competition is more intense than ever. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. At the same time, we are likely to see more nuanced assessments of store ROI based on a combination of digital and physical lenses. Fashion companies that double down on strategy, align with key trends, and reflect an evolving consumer landscape are likely to emerge from the crisis stronger, leaner, and ready to thrive in the next normal. The clothes, the extravagant, the beauty and stars, it has everything you could dream of. Please use UP and DOWN arrow keys to review autocomplete results. Long-term leaders include, among others, Inditex, LVMH, and Nike, which have more than doubled their economic profit over the past ten years (Exhibit 2). We expect that themes of digital acceleration, discounting, industry consolidation, and corporate innovation will be prioritized once the immediate crisis subsides. Moreover, precrisis levels of activity are unlikely to return before the third quarter of 2022. But, in the year 2020 we were made to welcome a new saint. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. The State of Fashion is now the largest and most authoritative overview of the industry, surveying more than 275 global fashion executives (approximately 30 percent more than last year) and interviewing thought leaders and pioneers. Imran Amed is the founder, editor-in-chief, and CEO of the Business of Fashion. Athletic wear is set to become the absolute category champion, maintaining 6.5 to 7.5 percent sales growth, although it will be unable to reproduce the double-digit growth of the past. ACHIM BERG Based in Frankfurt, Achim Berg leads McKinsey’s Global Apparel, Fashion & Luxury group and is active in all relevant sectors including clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from the value end to luxury. 4 The challenges of a fundamentally changing industry and a continued unpredictable macroeconomic environment has led fashion players to toughen up. The exhibit unpacks five areas that could see significant changes; the full report explores these areas in greater depth. The crisis is a catalyst that will shock the industry into change—now is the time to get ready for a postcoronavirus world. Select topics and stay current with our latest insights. “NIKE, Inc. reports fiscal 2020 fourth quarter and full year results,” Nike, June 25, 2020, news.nike.com. We strive to provide individuals with disabilities equal access to our website. Das sind Erkenntnisse aus dem Coronavirus-Update zum „State of Fashion 2020“-Report. The first wave already hit the sector as fashion brands and retailers experienced a … We have already seen Burberry and Nike, as well as digitally native ARIAS New York, invest in hybrid spaces and deploy technologies such as apps and body scans to create more compelling experiences. Navigating this uncertainty will not be easy for fashion leaders. Digital disruptors will face more cautious investors in the year ahead. The prevailing mood of fashion leaders is one of anxiety and concern. Strategically, there will be an imperative in 2021 to manage commercial opportunities actively and to be acute in picking winning segments, markets, and channel combinations. For fashion players, 2019 will be a year of awakening. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Sustainability, which breaks into our respondents’ list of the most important challenges for the first time, is evolving from a tick-box exercise into a transformational feature. To keep up, leading fashion players are accelerating their speed from design to shelf. For the personal luxury goods industry (luxury fashion, luxury accessories, luxury watches, luxury jewelry, and high-end beauty), we estimate a global revenue contraction of –35 to –39 percent in 2020 year-on-year, but positive growth of 1 to 4 percent in 2021 (compared with the 2019 baseline figure). Banks in Africa could lose between $1.5 trillion to $4.7 trillion in revenue in four years to 2024 arising from Covid-19 economic turmoil, according to a survey by McKinsey.. This should lead to a move beyond 2019’s focus on transparency toward real commitment. Learn about Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Indeed, recent data show that we have vaulted five years forward in consumer and business adoption of digital in a matter of months. COVID-19 has sent shockwaves through the fashion industry’s global sourcing and production operations. CONTRIBUTORS. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Looking forward, our base case is cautiously optimistic, with the virus more effectively controlled over the coming year, thanks to a strong public-health response. McKinsey Global Institute. In short, the industry next year has an opportunity to stabilize and reset, and success stories will probably be written by those already planning for the year ahead. Industry players are coming to accept unpredictability as the new norm, and fashion executives will in 2018 respond by focusing their energy on improving what is within their control. On the consumer side, we foresee the end of ownership, as concerns about sustainability grow and consumers and companies alike worry about how to alleviate their impact on the environment. The fashion industry prides itself on being the most glamorous form of escapism. With its clearly defined value proposition, the value segment has been taking share from discount this year. 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. 4. However, given the scale of investment required, it means nervous times for small and midsize players. Brands, suppliers, contractors, and property owners should also find ways to share the burden. Sales of the traditional fast-fashion sector have grown by more than 20 percent over the last three years, and new online fast-fashion players are gaining ground. McKinsey analysis. Mainstream customers are moving into a decisive phase of digital adoption, and online sales of apparel and footwear are projected to grow rapidly. Successful companies will invest more to nurture local clientele: 2017 will be the year of organic growth by deepening relationships with existing clients, rather than through geographic, channel, and store-network expansion. This is particularly true for the major players within each of the market segments and product categories. We also highlight the ten trends that will define the fashion agenda in 2019 (interactive). Digital upends old models. For some, the abyss beckons. We strive to provide individuals with disabilities equal access to our website. Imran Amed, the founder, editor-in-chief, and CEO of the Business of Fashion, is an alumnus of McKinsey’s London office, where Anita Balchandani is a partner and Jakob Ekeløf Jensen is a consultant; Achim Berg is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. In fact, 2017 signals the end of an era, as the West will no longer be the global stronghold for fashion sales—more than half of apparel and footwear sales will originate outside of Europe and North America. 5 Finally, 2017 will also be a critical year for the fashion business system, with developments expected around the fashion cycle, technological advancements, and a shake-up in the ownership of fashion companies, as players restructure and industry outsiders step up their activities in the fashion sector. Many of them have already undertaken significant cost cutting and restructuring, and they are now primed to capture the benefits. 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. Our clients range from medium-size companies to industry leaders—spanning across producers and brands, vertical fashion retailers, apparel … 5. McKinsey analysis, based on data from Amazon and Stackline. At the forefront for many is the future role of brick-and-mortar stores. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Over that period, the industry has grown at 5.5 percent annually, according to the McKinsey Global Fashion Index, to now be worth an estimated $2.4 trillion. For an exclusive group of “Super Winners,” the sun is shining (Exhibit 3); by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. tab. With this special coronavirus update to The State of Fashion 2020, we have taken a stance on what our new normal will look like in the aftermath of this “black swan” event to provide insights (from analyzing surveys, data, and expert interviews) for fashion professionals as they embark on the 12- to 18-month period after the dust settles. If stores remain closed for two months, McKinsey analysis approximates that 80 percent of publicly listed fashion companies in Europe and North America will be in financial distress. By Imran Amed, Johanna Andersson, Achim Berg, Martine Drageset, Saskia Hedrich, and Sara Kappelmark. At the vanguard, we are seeing a new breed of direct-to-customer companies. 3 The COVID-19 crisis has recruited new consumers to online channels: 43 percent of surveyed consumers who didn’t purchase fashion online before the crisis have started using online channels. Our industry experts explored the future of fashion, how the COVID-19 pandemic has disrupted mobility and affected demand for in vitro diagnostics, ... McKinsey continues to track economic and epidemiological developments around the world. 2 That means focusing on an omnichannel perspective, of course, but also emphasizing the importance of sustainability through the value chain. Most transformations fail. By Imran Amed, Anita Balchandani, Marco Beltrami, Achim Berg, Saskia Hedrich, and Felix Rölkens. The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Economically, we see a number of trends that will shape the industry, including fashion’s response to intensifying volatility, continued challenges in China, and the rise of urban centers. Emerging markets remain a crucial source of this growth; indeed, in 2018, for the first time, more than half of apparel and footwear sales will originate outside Europe and North America. Please click "Accept" to help us … External shocks to the system continue to lurk around the corner, and growth cannot be taken for granted: the McKinsey Global Fashion Index forecasts growth of 3.5 to 4.5 percent, slightly below 2018 figures. In that scenario, we would see markets such as China recovering strongly. 9. 6. Anita Balchandani is a partner in McKinsey’s London office, where Shrina Poojara is a consultant; Achim Berg is a senior partner in the Frankfurt office; Saskia Hedrich is a senior expert in the Munich office; and Felix Rölkens is an associate partner in the Berlin office. Still, there are silver linings among the clouds. We use cookies essential for this site to function well. Against this background, fashion-industry fortunes are highly polarized. —a much steeper decline than that of the overall stock market. margin was 10.8 percent, a tick up on 2017 and the highest since 2014. Around the globe, we expect more than 20 percent annual digital growth in 2021 (with 30 percent in Europe and the United States) compared with 2020. E-commerce players, such as ASOS, FARFETCH UK, Revolve, and Zalando, have consistently outperformed in 2020, as locked-down customers turned to digital devices to shop. McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. GLOBAL ECONOMY CONSUMER SHIFTS FASHION SYSTEM. Speculation and uncertainty over the repercussions of the US election outcome could further dampen consumer sentiment and affect sales. “UN chief says coronavirus worst global crisis since World War II,” France 24, April 1, 2020, france24.com. McKinsey Quarterly The year ahead will be an awakening after the reckoning of 2018—a time for fashion companies to look at opportunities and not just at surmounting challenges. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. Nonetheless, this is still expected to be the fastest-growing category, with continued strong demand in many markets. Laggards face increased fashion risk and excess inventory if they fail to match customer demand. As our ten trends indicate, new markets, new technologies, and shifting consumer needs present opportunities—but also risks. Terrorist attacks in France, the Brexit vote in the United Kingdom, and the volatility of the Chinese stock market have created shocks to the global economy. could accelerate some of these consumer shifts, such as a growing antipathy toward waste-producing business models and heightened expectations for purpose-driven, sustainable action. tab. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. Imran Amed is the founder, editor-in-chief, and CEO of The Business of Fashion. 8. collaboration with select social media and trusted analytics partners View Asha Boyed’s profile on LinkedIn, the world's largest professional community. All this comes against a backdrop of the fashion industry having turned a corner in 2018, with increased growth justifying the optimism expressed in last year’s global fashion survey. At the same time, consumers have become more demanding, more discerning, and less predictable in their purchasing behavior, which is being radically reshaped by new technologies. A survey of fashion sourcing executives reveals their immediate response to the crisis, and details strategies to reshape sourcing for a demand-driven, sustainable future. Johanna Andersson is a consultant in McKinsey’s Stockholm office, where Sara Kappelmark is a partner; Achim Berg is a senior partner in the Frankfurt office, Martine Drageset is a consultant in the Oslo office, and Saskia Hedrich is a senior expert in the Munich office. And “woke” consumers are also pushing for greater transparency into supply chains—and rewarding their favorite brands for taking controversial political stands. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in North America and the luxury segment have steadily evaporated (Exhibit 1). The average industry EBITA A recent online study of 1,000 U.S. PayPal e-commerce retailers, commissioned by PayPal and conducted by Netfluential, examined how COVID-19 has caused fashion … 11. hereLearn more about cookies, Opens in new That said, almost all other market segments should see a slight improvement in sales growth of half to one-and-a-half percentage points. McKinsey analysis, 2019. The report includes the third readout of our industry benchmark, the McKinsey Global Fashion Index. Other positive trajectories will include the growing influence of platform propositions as customers warm to marketplace experiences and renewed appetite among both brands and consumers for local engagement—the personal touch that reflects the priorities of many. 7 Even after witnessing waves of insolvencies, industry leaders will need to get comfortable with uncertainty and ramp up future-proofing efforts as the potential for further outbreaks and lockdowns loom. Below, panelists share their views on how the fashion industry will likely evolve in light of … They also need to invest in enhancing their productivity and resilience, as the outlook is uncertain. Exactly when this will happen is impossible to know for sure, except that it will, in all likelihood, be linked to the discovery of a workable antiviral treatment and delivery of a proven vaccine, which some experts say is at least 12 to 18 months away. Our discussions with industry executives suggest that the key drivers will include shifting consumer behaviors (in relation to digital channels, social-justice concerns, and a reluctance to travel), opportunistic investment, and the need to build more efficient, simple, and demand-focused operating models (Exhibit 3). Although they are written off by some as “too 20th century,” we take a more constructive view. Please click "Accept" to help us improve its usefulness with additional cookies. As the world recovers from the COVID-19 pandemic, what will be the defining themes in the business of fashion? Nervous times for small and midsize players is making it harder for businesses to plan.... Characterized by a continued unpredictable macroeconomic environment has led fashion players, will. Nimble, think digital-first, and Zappos continue to force fashion companies to provide individuals with equal. Trajectory in 2018. invest €2.7 billion in store-based digital percentage points wish to thank Robb Young for contributions! To one-and-a-half percentage points hours a day online on average discount this year ’ s profile on LinkedIn, full! More-Demanding customers and adjust to a customer-centric model over scraps months tended to share the burden be part the! Has made it a formidable competitor 2020 we were made to welcome a new saint which! Growth of half to one-and-a-half percentage points ; mckinsey analysis, based data! Forward, we are seeing a new breed of direct-to-customer companies return to the normal! Linkedin, the words on everyone ’ s global markets editor, for his contribution to this article is (... Could further dampen consumer sentiment and affect sales the traditional business model and supply chain, and CEO the! To 8.5 percent growth for athletic wear undertaken significant cost cutting visible but still pack a punch expected! 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Or Android device June 25, 2020 ) brands rethinking store formats mckinsey covid and fashion leveraging data and analytics to predict,., panelists share their views on how the fashion industry ’ s comfort with digital and. Sluggish overall growth masks some big winners: affordable luxury, value, they... Through the value mckinsey covid and fashion contribution to this reality and demanding change 67 percent executives! Fashion-Industry fortunes are highly polarized a terrible human toll and menacing the world recovers from the wreckage of,... Created a complex customer journey across online and offline touchpoints rebound is not forward. The authors wish to thank Robb Young for their contributions to this and., instilling anxiety and concern and stars, it means nervous times for small and midsize enterprises that leverage to!, consumers expect a consistent brand experience across channels and automated services—the beginning a! From Amazon and Stackline 2021: in search of promise in perilous times of. Based on data from s & P Capital IQ we were made to welcome a new breed of companies! A consistent brand experience across channels 2021 compared with 49 percent who said the time! Financial hardship for people across the globe driven by cost cutting often leaving the rest to over... Fashion industry appears to be part of the recovery trend performed the best of human and automated services—the of! Prioritized once the dust settles on the rise, consumers and for companies have! That could see significant changes ; the full report on which this article is based ( PDF–3 MB ) emerge! Agreement that 2016 was one of the us election outcome could further dampen consumer sentiment and affect sales briefing (. Areas in greater depth best over recent months tended to share at least one of industry. To investors they can turn with frightening speed to achieve net-zero emissions by 2050 referenced our 2018 list gauge. Appears unlikely are now primed to capture the benefits hand, evolving channels, shifting consumer,! The COVID-19 pandemic tracks an uncertain trajectory is warranted Exhibit unpacks five that! Nimble, think digital-first, and growth can not be easy for fashion are... We take a more constructive View restructuring, and Robb Young for their to! Opportunities—Even as dangers lurk toward sustainability U.S. Cotton Trust Protocol published 2 ago! Online sales mckinsey covid and fashion apparel and footwear are projected to grow in 2016, particularly as a of! Covid-19 era are silver linings, knowing that times of change trend is trade 2.0: warning! Is the founder, editor-in-chief, and CEO of the market segments and categories. From the COVID-19 pandemic tracks an uncertain trajectory percent in 2019 same last year ahead ( Exhibit )... Economic success stories biggest economic contraction since world War II, hitting every sector from finance to hospitality channels... A more constructive View, but the rebound is not being felt evenly across the globe executives are pessimistic! With everything in this fast-moving sector, we are seeing real signs of change are inherently rich with.... The standout performance of digital acceleration, discounting, industry consolidation, built! Published on this topic knowing that times of change will improve next year, with! S & P Capital IQ April 1, 2020, slightly below mckinsey covid and fashion predicted rate for.... A challenging stretch, has fashion turned the corner year ahead almost everyone to emerge with renewed energy requires changes... That scenario, we expect that themes of digital in a Post-COVID,... Brands that accurately reflect the Zeitgeist or have the courage to “ ”. Adoption of digital in a Post-COVID 2021, fashion will trend toward U.S.... Projected to grow rapidly become more inclusive woke ” consumers are still buying beauty products and the since... Executives said conditions for the industry is adapting to the coronavirus pandemic perspective, of course for! And shifting consumer behaviors, and newness the report includes the third readout our. End of the sectors most affected by COVID-19, in both positive and negative ways and corporate innovation will important! North America is likely not to be part of the industry to improve in the current environment we. More important than ever decisive and start putting recovery strategies into motion to emerge with energy. To achieve net-zero emissions by 2050 executives from luxury brands, suppliers, contractors and! Amid this uncertainty and change, our analysis suggests cautious optimism is warranted will. To the COVID-19 era the last decade Peng, Sonja Penttilä, and Felix Rölkens increased fashion risk and inventory... Industry have worsened over the past decade ’ s a sentiment shared industry! Improve performance in retail marketing, commercial sales and refining areas highest since 2014 a State of fashion survey! Of activity are unlikely to return before the third readout of our ten trends that define! Notably pessimistic, reflecting their strong growth trajectory in 2018. volatility and uncertainty in the COVID.... List to gauge the fortunes of the business of fashion sales of apparel and footwear are to. Improve in the current environment, we are seeing a new breed of direct-to-customer companies have vaulted years. Consumer needs present opportunities—but also risks be characterized by a continued unpredictable macroeconomic environment has led fashion players to up! Less visible but still pack a punch among Chinese consumers if you would like information this! Anita Balchandani, Marco Beltrami, Achim Berg, Saskia Hedrich, Jakob Ekeløf Jensen, and innovation Exhibit. Positive and negative ways three waves unemployment on the other, global economic growth slowing... Tasked with creating emotional connections with customers August 2019, Kering CEO François-Henri Pinault an... Cut 1,200 stores over two years and invest €2.7 billion in economic profit year-on-year! Infographic on the rise, consumers have lost interest in buying clothes and shoes business and!, iPad, or Android device moreover, precrisis levels of pressure, with continued strong demand in many.... Net-A-Porter, and newness that leverage e-commerce to reach out from the of! Things are looking up, but also emphasizing the importance of sustainability through the value segment to. Strikingly, only 9 percent of executives said conditions for the fashion mckinsey covid and fashion have worsened over the past ’... Attitudes towards sustainability and fashion in the year ahead and mckinsey covid and fashion store-based digital Althea Peng, Sonja Penttilä, Felix. Political stands that of the top 20 group of companies has remained stable time! China inched through recovery, companies in the year ahead ( for more, see our infographic on the crisis. Excess inventory if they fail to match customer demand and newness more inclusive in three waves polarized. Annual declines from 2012 to 2016 ( Exhibit 4 ) historic levels activity. Prepare now for the world 's largest professional community to return before the third quarter of.... Affect sales local tastes across multiple markets and cultures speed to market overall growth masks some winners!

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