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. The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. Some are household names, while others are less visible but still pack a punch. This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. 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. Please use UP and DOWN arrow keys to review autocomplete results. 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. collaboration with select social media and trusted analytics partners 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. Learn about ... 12 May 2020. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. No Brasil, o … 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. We use cookies essential for this site to function well. The trick in 2020 will be to prove to investors they can turn potential into profit. The McKinsey Global Fashion Index (MGFI) forecasts that fashion industry revenue growth will slow further in 2020—down to 3-4 per cent—slightly below the predicted growth for 2019. 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. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions. Am ehesten Anlass zu Optimismus bietet noch Asien, aber auch hier erwarten nur 14% der Führungskräfte ein stärkeres Wachstum. 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 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. Based on our executive survey, the words on everyone’s lips are sustainability, digitization, and innovation. 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. Learn more about cookies, Opens in new This should lead to a move beyond 2019’s focus on transparency toward real commitment. No Brasil, o … Equally, consumers and advocates are calling for the industry to become more inclusive. 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. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. Press enter to select and open the results on a new page. 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. BoF and McKinsey & Company’s in-depth report, The Coronavirus Update to The State of Fashion 2020, focuses on the themes, issues and opportunities impacting the sector in the wake of the coronavirus crisis.⁠ ⁠ Tomorrow on #BoFLIVE, Amed will be in conversation with McKinsey & Company’s Achim Berg to further explore the report. That’s great news for consumers and for companies that can make sustainability real. The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. This year has radically reshaped the landscape for the fashion industry. 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 2020 McKinsey report on the state of fashion predicts that revenue growth will slow and that sustainability will continue to be a hot topic. 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). 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. Washing, solvents, and dyes used in manufacturing are responsible for one-fifth of industrial water pollution, and fashion accounts for 20 to 35 percent of microplastic flows into the ocean. 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. 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. Come to McKinsey to do the best work, with the best teams and truly be at your best. Digital upends old models. 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. 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. 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. 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. McKinsey designers highlight the photos and illustrations that helped us tell the visual story of a remarkable year. 'Silver linings', 'Tailored Strategy' and 'Better Normal' are the keywords to reflect on from this comprehensive report. ... 2019 will be the year in which India will take centre stage," said McKinsey's report titled 'The State of Fashion 2019.' 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). BoF-McKinsey State of Fashion 2020 Survey Proprietary joint survey by The Business of Fashion and McKinsey. By using this site you agree with our privacy and cookie policy. Although they are written off by some as “too 20th century,” we take a more constructive view. 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. 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. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 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 use of cookies, and 14 May 2018. For many in the fashion industry, the glass is half empty. hereLearn more about cookies, Opens in new The bottom line? At the forefront for many is the future role of brick-and-mortar stores. ... McKinsey agreed to do so in a communication to the commission on 21 November 2020, it said. 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. This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. 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… Among the well-known brands, Chanel is a significant player, with revenues of more than $10 billion, while Rolex is one of the few large independent and private luxury watch brands remaining. Created in partnership with McKinsey & Company, the report anticipates that, due to the pandemic, companies will post a 90 percent drop in profit by the end of 2020 (in 2019, profits rose four percent). Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Business of Fashion has released its annual report on the state of the fashion industry, revealing a sharp decline in profit over 2020 as well as predicting the future of the sector. Explore some of the most popular and innovative insights that the McKinsey Global Publishing team brought to you this year. 291 respondents participated in the State of Fashion Survey for the State of Fashion 2019 report between August and September 2019. 5 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. 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). 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. A report by McKinsey & Company and the publication, ... “The State of Fashion 2020 Coronavirus Update,” says fashion is particularly vulnerable because of … This series highlights the top trends in fashion for 2019 as identified by Business of Fashion and McKinsey & Company in their yearly State of Fashion report. Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). People create and sustain change. Select topics and stay current with our latest insights. The fashion sector has been hit harder than most during the Covid-19 pandemic: an update to McKinsey’s The State of Fashion 2020 report estimates a global revenue contraction of 30% year-on-year. These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). 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. Not that the state of fashion was looking any good beforehand, Mckinsey’s coronavirus update paints a grim picture for the rest of 2020. Indonesia is due to be the largest modest fashion market in the world (The Business of Fashion and McKinsey & Company). By the end of the year, luxury sales in China could be 8 to 13 percent higher than in 2019, according to McKinsey Fashion Scenarios. It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. 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. Global consulting giant McKinsey will pay back roughly R650-million on Transnet and SAA contracts after admitting, for a second time, that it was swept up in State Capture. Over 300 global fashion brands to open stores in India by 2020: McKinsey. 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. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps. Takeaways: 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… ... 10 December 2020 … 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. This series highlights the top trends in fashion for 2019 as identified by Business of Fashion and McKinsey & Company in their yearly State of Fashion report. “McKinsey … Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. BoF-McKinsey State of Fashion 2020 Survey Proprietary joint survey by The Business of Fashion and McKinsey. Advises global apparel, fashion, and luxury clients on strategy, operations, and marketing, helping executives design and execute transformational work. They need to get digital right and to address consumers … But those that align with the dominant trends – namely, sustainability, digitization, and innovation – are most likely to prevail. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. 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… 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. The outlook for 2021 does not look bright either. 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 report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. ‎Sendung The McKinsey Podcast, Folge The state of fashion – 21.02.2020 ‎Players in the fashion industry remain less than optimistic about the runway ahead. Please click "Accept" to help us improve its usefulness with additional cookies. 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 $2.5 trillion industry, based on exclusive interviews with industry executives, a survey of more than 1,400 fashion professionals from the BoF community, and a global McKinsey pulse survey of more than 6,000 consumers. cookies, Explore all our insights on the next normal beyond coronavirus. See how the world changed this year through this collection of 20 charts culled from our new, daily Charting the Path to the Next Normal series. However, there will be opportunities. At the vanguard, we are seeing a new breed of direct-to-customer companies. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Depois de um 2016 difícil, o crescimento dessa indústria de US$ 2,4 trilhões deve acelerar neste ano, de acordo com o primeiro estudo conjunto da McKinsey e Business of Fashion. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last year. Against this background, fashion-industry fortunes are highly polarized. It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. 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. 14 May 2018. Takeaways: 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… 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. 'Silver linings', 'Tailored Strategy' and 'Better Normal' are the keywords to reflect on from this comprehensive report. Alongside public companies, we also identified a group of “hidden champions.” These privately owned gems often dominate their category areas and generate significant revenues. The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. 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. 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. 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. Digital disruptors will face more cautious investors in the year ahead. Business of Fashion has released its annual report on the state of the fashion industry, revealing a sharp decline in profit over 2020 as well as predicting the future of the sector. 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. The new consumer insights series form McKinsey Australia explores the unique impact of the COVID-19 pandemic on Australian consumer sentiment, confidence and behaviour. The report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. 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 2020 McKinsey report on the state of fashion predicts that revenue growth will slow and that sustainability will continue to be a hot topic. 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 … 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. 291 respondents participated in the State of Fashion Survey for the State of Fashion 2019 report between August and September 2019. There will be … This year has radically reshaped the landscape for the fashion industry. When it comes to sustainability, the industry’s track record remains a source of concern. McKinsey & Company estimate that fashion company revenues will “contract by 27 to 30 percent in 2020 year-on-year,” with a “90 percent decline in economic profit in 2020.” In luxury, Kering made an impressive rise through the ranks, driven by Gucci’s double-digit sales growth and strong performance in Asia–Pacific markets such as Japan. percent in 2020 year-on-year, but positive growth of 1 to 4 percent in 2021. Fashion & Beauty. Dec.02 -- Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. Unleash their potential. 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. 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. tab. 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. The prevailing mood of fashion leaders is one of anxiety and concern. 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. 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). This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to … Consumers are increasingly waking up to this reality and demanding change. 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.