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. 291 respondents participated in the State of Fashion Survey for the State of Fashion 2019 report between August and September 2019. 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. 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. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. The report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. 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… People create and sustain change. 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). Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions. 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. 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. 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. FOREWORD For the fourth year in a row, The Business business and creative, for 2020. Against this background, fashion-industry fortunes are highly polarized. 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. 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. Learn about 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. They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. 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 … 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. “McKinsey … cookies, Explore all our insights on the next normal beyond coronavirus. Flip the odds. 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 fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. 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. A report by McKinsey & Company and the publication, ... “The State of Fashion 2020 Coronavirus Update,” says fashion is particularly vulnerable because of … Not that the state of fashion was looking any good beforehand, Mckinsey’s coronavirus update paints a grim picture for the rest of 2020. 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. 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. 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. The prevailing mood of fashion leaders is one of anxiety and concern. What will define the industry in the coming year? 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. 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… 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. Select topics and stay current with our latest insights. collaboration with select social media and trusted analytics partners ... McKinsey agreed to do so in a communication to the commission on 21 November 2020, it said. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. Equally, consumers and advocates are calling for the industry to become more inclusive. 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. Unleash their potential. This should lead to a move beyond 2019’s focus on transparency toward real commitment. 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. The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. These are some of the findings from our latest report, The State of Fashion 2020, written in partnership with The Business of Fashion (BoF). 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. So what are the key takeaways from the State of Fashion by Mckinsey? 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. We use cookies essential for this site to function well. 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. our use of cookies, and This year has radically reshaped the landscape for the fashion 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. It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. 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. tab. Explore some of the most popular and innovative insights that the McKinsey Global Publishing team brought to you this year. 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). 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. 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. Use minimal essential 14 May 2018. On the other, global economic growth is slowing and competition is more intense than ever. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. The outlook for 2021 does not look bright either. At the vanguard, we are seeing a new breed of direct-to-customer companies. 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). At the forefront for many is the future role of brick-and-mortar stores. 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. No Brasil, o … That’s great news for consumers and for companies that can make sustainability real. 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. The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Please click "Accept" to help us improve its usefulness with additional cookies. For many in the fashion industry, the glass is half empty. The trick in 2020 will be to prove to investors they can turn potential into profit. 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. By using this site you agree with our privacy and cookie policy. Press enter to select and open the results on a new page. This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. 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. Indonesia is due to be the largest modest fashion market in the world (The Business of Fashion and McKinsey & Company). No Brasil, o … 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. Fashion growth is expected to slow in 2020 to 3 to 4 percent, as labels face challenges ranging from cautious consumers to geopolitical and economic uncertainty. Alongside public companies, we also identified a group of “hidden champions.” These privately owned gems often dominate their category areas and generate significant revenues. Fashion & Beauty. 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. 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. However, there will be opportunities. 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). percent in 2020 year-on-year, but positive growth of 1 to 4 percent in 2021. When it comes to sustainability, the industry’s track record remains a source of concern. They need to get digital right and to address consumers … 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). 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. 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 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. Our flagship business publication has been defining and informing the senior-management agenda since 1964. 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 fashion industry can expect a year of uncertainty and concern across all geographies and value segments for 2020, save for only a … hereLearn more about cookies, Opens in new 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. However, given the scale of investment required, it means nervous times for small and midsize players. The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. 14 May 2018. 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. Advises global apparel, fashion, and luxury clients on strategy, operations, and marketing, helping executives design and execute transformational work. The bottom line? 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