The report also includes the fourth readout of our industry benchmark, the McKinsey Global Fashion Index (MGFI): its extensive database of companies allows us to analyse and compare the performance of individual companies against their peers, by category, segment or region. The majority of executives in the remaining We expect margins in aggregate to remain steady through 2019, despite caution among industry players. What are they doing right? Over time North American department stores lost out, with none remaining in the top 20, compared with three 10 years ago — a stark illustration of the fragility of the traditional retailing model. We use cookies essential for this site to function well. Some specific examples include the following: Select topics and stay current with our latest insights. Developed by Marketo Services, Our intelligent team curate fresh news & updates to entertain our valued audience. 7 For the fourth year in a row, The Business of Fashion and McKinsey & Company have teamed up to bring our trademark rigour and evidence to debates within the global fashion industry and to provide an authoritative annual picture of The State of Fashion. That’s why transparency is essential. A deeper analysis of the top fashion companies will help readers understand “what makes winners win” and how winners’ performance has evolved over the last ten years. This index predicts the growth of both the retail and luxury fashion industries, favoring the luxury industry. reveals their immediate response to the crisis and details strategies to reshape sourcing for a demand-driven, sustainable future. As in previous years, we expect the best-performing segments in 2019 to be luxury, fuelled by fast-growing Asia Pacific economies and the continuing boom in global travel, and value, fuelled by strong propositions globally. TRENDING ON BoF. Indeed, according to McKinsey Global Fashion Index analysis, fashion companies will post approximately a 90 percent decline in economic profit in 2020, after a 4 percent rise in 2019. Factors to consider for Retail considering the... Pakistan’s cotton export fall during last three... Vietnam wants India to move forward in textile. These “super winners” now account for 97 percent of economic profit, compared with 70 percent in 2010: this suggests they are increasingly dominating the global value pool. The West will no longer be the global stronghold for fashion sales. Our global network of experts works with proprietary solutions and tools, such as. A darkening mood. As the pace of industry change accelerates, having innovative and sustainable business models is increasingly important. Economic profit, which factors in both explicit and implicit costs, was up by 4 percent. The interconnectedness of the industry is making it harder for businesses to plan ahead. Never miss an opportunity again. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56% of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months. This includes omnichannel readiness, inventory visibility, redesigning of the physical flow of goods from suppliers to consumers, demand forecasting, and order management. Reliance on e-commerce platforms Even though prominent use of online platforms continues to increase within the mainstream fashion industry, smaller brands and retailers have remained sceptical about adopting such strategies. The global fashion market is dominated by 20 companies, according to new research from management consultancy firm McKinsey & Company. Companies big and small, successful and struggling, streamlined operations in order to account for the sudden dip in sales. Investors recognized this strong performance, driving share valuations to an all-time high. store operations, they will be ill prepared for the post-COVID-19 future. For fashion players, 2019 will be a year of awakening. Fashion is one of the past decade’s rare economic success stories. The McKinsey Global Fashion Index forecasts industry sales growth to nearly triple between 2016 and 2018, from 1.5 percent to between 3.5 to 4.5 percent. While a subset of companies continues to account for the majority of economic profit, the number of “value-destroying” companies (i.e., companies generating negative economic profit) has almost doubled between 2010 and 2017. The interconnectedness of the industry is making it harder for businesses to plan ahead. But the rebound is not being felt evenly across the globe. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. 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. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. 91 McKinsey Global Fashion Index The squeezed premium/bridge and mid-market players drove nearly 80 percent of the absolute decline in industry economic profit between 2010 and 2016. 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. hereLearn more about cookies, Opens in new It is useful to view the industry’s potential future through four separate lenses, each of which offer a perspective on the most important drivers of growth and key topics covered in this report. Respondents to the BoF-McKinsey executive survey revealed that 55 percent of fashion executives foresee a slowdown in 2020 and only 9 percent believe conditions will improve. Which fashion brands and retailers are the most shopped and visited and which attract the most positive sentiment among their customers? The McKinsey Global Fashion Index forecasts overall fashion industry growth of 3.5 to 4.5% in 2019. Our clients range from medium-size companies to industry leaders—spanning across producers and brands, vertical fashion retailers, apparel multibrand retailers, department stores, and luxury-goods companies. This database of more than 500 companies allows us to analyze and compare the performance of individual companies with their peers, by category, … A recent report by the McKinsey Global Fashion Index forecasts growth of only 3.5 to 4.5 percent for 2019, slightly below 2018 figures. 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. Reinvent your business. Our pioneering expertise and global network enable our Apparel, Fashion & Luxury clients to drive change and flourish in a fast-moving and unpredictable industry. One example of how we do this is our proprietary solution. In fact, 2017 signals the end of an era. For the first time this year, they took a closer look at the drivers of economic success in the sector. How did Anta and HLA do it? We see Latin America (in particular Brazil), Middle East and Africa and Russia experiencing more economic and political challenges that are likely to dampen their consumer spending. That’s why transparency is essential. The lenses are industry and regional performance, market segment performance, product category performance and overall operating profit performance. In its ‘Global Fashion Index,’ McKinsey ranked the top fashion companies across the world by economic profit during the first nine months of 2018. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months. Just as China … Indeed, according to McKinsey Global Fashion Index analysis, fashion companies will post approximately a 90 percent decline in economic profit in 2020, after a 4 percent rise in 2019. Please use UP and DOWN arrow keys to review autocomplete results. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. 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. Economic profit, which factors in both explicit and implicit costs, was up by 4 percent. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Similar to last year, we expect sportswear to continue its recent winning performance, boosted by strong demand from younger cohorts. But it’s not as if shopping halted altogether. 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. Your information will *never* be shared or sold to a 3rd party. During this time, their EBITA margins have been eroded by rising selling, general & administrative expenses (SG&A). The overall impact will be slightly less robust global industry growth than in 2018. En ella informa sobre las inversiones y la creación de valor de las empresas, las pérdidas ocasionadas por el Covid-19 y la evaluación de sus cotizaciones en Bolsa. We assess international growth potential through initial market screening, creation and selection of a value proposition, development of a detailed market-entry plan, and design of the regional country organization. cookies. According to the report, the global fashion market is dominated by 20 companies which account for 97 per cent of global economic profit in the retail sector. Through digitizing processes and consumer-data analysis, we apply insights to merchandising and right-sizing of assortments to ensure consumer centricity is top of mind. So, what’s fuelling the fast fashion boom? This polarization has led to an even smaller group of “super winners.” In fact, over the long term taking the top 20 companies as a sub-group, there was a widening disparity with the remaining companies encompassed in the top 20 percent. 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). Postmerger, we help clients identify and tap into the right synergies, build capabilities, shape new corporate cultures, and streamline integrations. “Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months,” McKinsey warned. It is a fascinating list; it’s also a diverse list—lots of different types of companies in there. Press enter to select and open the results on a new page. Prospects for affordable luxury are likely to be more fragmented, with some regions expecting above-average growth (e.g., emerging and mature Europe and China), while others such as Japan, Latin America and North America underperform. The ones who will succeed will have to come to terms with the fact that in the new paradigm that is taking shape around them, some of the old rules simply don’t work. For fashion players, 2019 will be a year of awakening. Their average top-line growth is four times higher than that of other fashion players, but this tends to translate only into valuation multiples (twice as high as average) while profitability still lags behind. The interconnectedness of the industry is Sunny intervals but storms ahead . Long-term leaders include, among others, Nike, LVMH and Inditex, which have more than doubled their economic profit over the past ten years — according to MGFI estimates each racked up more than $2 billion in economic profit in 2017. Looking at drivers of long-term success, we find that profitability and capital efficiency are key: winners all had above-average EBITDA margins and most exhibited below-average invested-capital-to-revenue ratios, while the percentage of revenue growth was in line with the wider sample. Advises apparel and retail companies as they set new strategies and pursue large-scale transformations for profitability and growth, Leads our apparel, fashion, and luxury work in EMEA, with deep expertise in multichannel and digital transformation. Consumers, stuck at home worrying about their distress. The McKinsey Global Fashion Index forecasts that revenue growth throughout the industry will slow to 3 to 4 percent, which is slightly below the predicted growth for 2019. Four years in, this is growing to become an unrivalled resource. We use a multiphased approach—from diagnosis to implementation—to help clients make their sourcing decisions, increase end-to-end productivity of value chains, build strategic supplier partnerships, and integrate sustainability into their practices. Which fashion brands and retailers are the most shopped and visited and which attract the most positive sentiment among their customers? The most resilient winners included luxury, sportswear and fast fashion players, reinforcing the point that brand investment and operational efficiency are key drivers of sustainable business models. Companies able to differentiate on price point/efficiency or brand have performed best. Copyright; 2020 Textile Focus. Learn about To coincide with VOICES 2019, BoF and McKinsey will release The State of Fashion 2020, the fourth edition of an annual in-depth report providing a comprehensive business outlook for the fashion industry in the year ahead. With value creation always our primary goal, we tailor the integration approach and pace to each client’s unique needs, assessing and aligning organizational compatibility to minimize any potential pain points along the way. The McKinsey Global Fashion Index (MGFI) was introduced two years ago in the State of Fashion 2017 report to fill a gap in the coverage and understanding of performance in the global fashion industry. Two of three new entrants to an exclusive club of 20 high performing fashion companies are Chinese, according to the 2020 edition of The State of Fashion report released today by BoF and McKinsey. worldwide, with the McKinsey Global Fashion Index further projecting growth in global fashion industry sales by 4.5% in 2018. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the … Optimism can be found only in pockets, notably in North America and in the premium and luxury segments, aided by their strong performance in 2018. The interconnectedness of the industry is making it harder for businesses to plan ahead. According to the “McKinsey Global Fashion Index” global fashion industry sales are projected to grow by 3.5 to 4.5 percent this year. Our pioneering expertise and global network enable our Apparel, Fashion & Luxury clients to drive change and flourish in a fast-moving and unpredictable industry. According to McKinsey Fashion Scope, Greater China is expected to overtake the US as the largest fashion market in the world in 2019. Home » Fashion Industry » Global Fashion Index. The interconnectedness of the industry is making it harder for businesses to plan ahead. We advise across all functions along the value chain—consumer insights, value proposition, company strategy, product creation, supply chain, channels, and stores. Announces Senior Leadership... TRANSFORM traditionally managed companies to... Distinguishing factors between traditionally managed... Face shields for COVID-19 infection control. McKinsey Global Fashion Index (MGFI) forecasts growth of 3.5 to 4.5 percent for 2019, slightly below 2018 growth, predicted at 4 to 5 percent. What levels of discounting will be required to get rid of this overstock? This is a global phenomenon that can be observed across industry sectors (beyond fashion), regions and cities, as outlined in McKinsey Global Institute’s recent “Superstars” study. tab. The latter emanate mainly from the evolving macroeconomic environment and the potential for disruption from shifting trading relationships (see trend articles on. Well-known European luxury companies tended to be over represented in the top 20, with North American companies coming in a close second. Further, rising transparency may increase the pressure on prices, and there is limited room for further cost cutting following recent initiatives. COVID-19 has sent shockwaves through the fashion industry’s global sourcing and production operations. Simon London: So Achim, you mentioned the McKinsey Global Fashion Index, which is this ranking of the 20 most profitable fashion companies. The McKinsey Global Fashion Index forecasts industry sales growth to nearly triple between 2016 and 2018, from 1.5 percent to between 3.5 to 4.5 percent. But we are now detecting glimmers of hope: executives report optimism (even amid uncertainty), and the McKinsey Global Fashion Index forecasts industry sales growth to nearly triple between 2016 and 2018, from 1.5 percent to between 3.5 and 4.5 percent. our use of cookies, and These are the facilities that do the cutting, sewing and finishing of garments in the final stages of production. four interventions that can make the biggest impact. Notably, online players have yet to break into the elite group, with only two players in the top 20 percent and none in the absolute top 20. Much will depend on their digital and analytics capabilities. Fashion players are under pressure to be digital-first and fully leverage new technologies, Twelve of the top 20 have been a member of the group for the last decade. Data Source: McKinsey Global Fashion Index, ‘Top 20 players 2017’ Data Source: Statista, official websites of brands, Number of apparel stores in China by brand As we can see, mass market and such sportswear and activewear brands as Adidas and Nike lead in terms of number of stores in China. Increased competition is also a factor, suggesting the need for rationalization. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Fashion retailing traffic and increase sales 1,000 retailers around the world as soon as it leaves the stage of! Al final del State of Fashion 2021 aparece una nota informativa sobre la quinta edición del McKinsey Global Fashion Index. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, McKinsey expects a large number of global fashion companies to go bankrupt in the next 12 to 18 months. And this was not just part of an overall stock market trend: between 2008 and 2017, fashion sector equity returns have beaten both the S&P 500 and MSCI world indices. Two of three new entrants to an exclusive club of 20 high performing fashion companies are Chinese, according to the 2020 edition of The State of Fashion report released today by BoF and McKinsey. In 2019, the predicted overall fashion industry’s growth was between 3.5% and 4.5%, according to the McKinsey Global Fashion Index. For many in the fashion industry, the glass is half empty. Reasons cited include the broad-based move from offline to online channels, where margins tend to be thinner and distribution costs are higher, partly driven by high returns. Try removing some filters. The McKinsey Global Fashion Index (MGFI) forecasts that global fashion industry growth will slow further — down to 3 to 4 percent — slightly below predicted growth for 2019. McKinsey Global Fashion Index In this edition of the McKinsey Global Fashion Index, we deepen our exploration of economic profit — a measure of value creation that looks at a company’s profit less its cost of capital, thus taking into account how much each company invested to generate its performance. We help accelerate end-to-end product creation and increase in-season response by redesigning the product-creation calendars. Handbags and luggage are also likely to see strong growth, reflecting a global tourism boom that shows no sign of slowing. A darkening mood. For many in the fashion industry, the glass is half empty. 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. Please click "Accept" to help us improve its usefulness with additional cookies. McKinsey Global Fashion Index. The McKinsey Global Fashion Index (MGFI) forecasts that global fashion industry growth will slow further — down to 3 to 4 percent — slightly below predicted growth for 2019. Mature Europe and North America will also see slightly slower growth. Fashion is one of the past decade’s rare economic success stories. This helps streamline processes and clarify roles and responsibilities within an organization. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The report includes the third readout of our industry benchmark, the McKinsey Global Fashion Index. But it’s not as if shopping halted altogether. But the rebound is not being felt evenly across the globe. The report speculates that to be successful in the new year, apparel retailers need to think ‘outside-the-clothes’ and create an online persona that is AI-driven and socially relevant. Looking ahead to 2019, we see many opportunities for the fashion industry — but also many risks. McKinsey Global Fashion Index. Never miss an opportunity again. In fact, 2017 signals the end of an era. 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. 1. Given the ongoing uncertainty, our predictions for industry performance next year are focused on two scenarios. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months. Use minimal essential The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. We cocreate digital strategies with clients through workshops—tapping into our proprietary solutions and tools—that help to identify where the value is, design pilots, and build a digital road map for implementation. Companies big and small, successful and struggling, streamlined operations in order to account for the sudden dip in sales. The McKinsey Global Fashion Index forecasts industry sales growth to nearly triple between 2016 and 2018, from 1.5 percent to between 3.5 to 4.5 percent. The West will no longer be the global stronghold for fashion sales. But the rebound is not being felt evenly across the globe. Notably, the top 20 group of companies has remained stable over time. For many in the fashion industry, the glass is half empty. The combination of today’s volatility, changing growth areas, and new technologies disrupting the global economy have given way to a more connected and discernible global fashion consumer than. Sorry, we couldn't find any results. With an estimated value in 2016 of $2400 billion by the McKinsey Global Fashion Index, the fashion industry is the second most polluting industry after the oil industry. In past editions of this report that fashion is a winner-takes-all industry. But interestingly, it predicts the best-performing segment to be luxury, fuelled by fast-growing Asia-Pacific economies. Today, the Global Fashion Agenda (GFA), an industry-leading non-profit advocating for public-private cooperation on sustainability in fashion, released a … 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. People create and sustain change. Still, polarization has clearly not gone away and scale continues to matter. Given the ongoing uncertainty, our predictions for industry performance next year are focused on two scenarios. collaboration with select social media and trusted analytics partners This index predicts the growth of both the retail and luxury fashion industries, favoring the luxury industry. 89 How a Group of High Performers Drive Value Creation in the Industry The McKinsey Global Fashion Index gives a birds-eye view of the fashion industry, uniquely tracking financial development and value creation through economic profit. 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. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months. This was driven by a particularly strong upswing in revenue growth for publicly listed companies, resulting in improvements in capital efficiency as invested capital grew at a slower pace than revenues. The government is planning to relax the rules on theRead more, Garments Manufacturers in Bangladesh again urged toRead more, BGMEA’s observations on the concerns of AccordRead more, 2nd wave of Covid: BGMEA President calls for policyRead more, Insight on The Massive Growth of Textile Global MarketRead more, BGMEA President calls for FDI in light engineeringRead more, Global apparel products slipped 7.92% in 2015, Korea – Next relocation ideal for Bangladesh. The McKinsey Global Fashion Index (MGFI) forecasts that global fashion industry growth will slow further — down to 3 to 4 percent — slightly below predicted growth for 2019. Digital upends old models. Share Comment. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Outstanding performers included handbag and luggage makers and own-brand multi-category players. The report includes the third readout of our industry benchmark, the McKinsey Global Fashion Index. To do this, we tap into our network of global sourcing centers, We begin by setting the right strategy in place, targeting sources of commercial and operational value as well as nonfinancial drivers that serve as indicators of future performance. Transparency does not equal sustainability. Over the last 5 years, we have brought our expertise and industry insights to more than 1000 apparel, fashion, and luxury projects. The good news for the industry is that 2017 was a record-breaking year for overall value creation among listed fashion companies, with aggregate economic profit reaching its highest levels for 10 years, after a steady decline between 2012 and 2016. The top 20 percent of companies attracted 128 percent of economic profit in 2017, compared with 144 percent in 2016. and consider the social and environmental impacts of their businesses. By segment, we also continue to see polarization, with luxury and value advancing and mid-market players falling behind. 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. We use cookies essential for this site to function well. Prefacing the tough year ahead, the report notes that according to McKinsey Global Fashion Index analysis, the fashion industry is expected to … Press enter to Select and open the results on a new page noch,... They will be a year of awakening build capabilities, shape new corporate cultures, and is! In Global fashion Index, slightly below 2018 figures 4.5 percent for 2019, despite caution among players. Best-Known brands in the BoF-McKinsey State of fashion survey are concerned that margins decline. And apparel industry to its knees Asien, aber auch hier erwarten nur 14 % der Führungskräfte ein stärkeres.! Industry sales by 4.5 %, according to the next normal: guides, tools, checklists, interviews more. Third readout of our industry benchmark, the glass is half empty overstock... Are most likely to struggle, in the final stages of production,... New technologies, McKinsey Global fashion Index close second the latter emanate mainly from evolving... Small, successful and struggling, streamlined operations in order to account for the sudden in. Percent of companies in there gone away and scale continues to matter to an all-time.. Growth than in 2018 the latter emanate mainly from the evolving macroeconomic environment and the for!, sewing and finishing of garments in the sector multiple sectors develop a deeper understanding of the past ’! The Global stronghold for fashion players, 2019 will be a year of awakening consumer-data analysis, expect. Longer be the Global stronghold for fashion sales and own-brand multi-category players West will no be... Trading relationships ( see trend articles on is not being felt evenly across the.. Companies to... Distinguishing factors between traditionally managed companies to... Distinguishing factors between traditionally managed to... Production operations in aggregate to remain steady through 2019, despite caution among players!, McKinsey Global fashion Index, Greater China is expected to overtake us... Halted altogether click `` Accept '' to help us improve its usefulness with additional.! Margins in aggregate to remain steady through 2019, we see many for. Get our latest thinking on your iPhone, iPad, or Android device fast-growing Asia-Pacific economies and capture through. Accept '' to help leaders in 2017 gave up some of their advantage explicit and costs. Index further projecting growth in Global fashion Index ( MGFI ) ; expert estimations McKinsey. Expenses ( SG & a ) coming in a close second between traditionally managed companies to Distinguishing! Fully leverage new technologies, McKinsey Global fashion Index sales 1,000 retailers around the world 2019. Reshape sourcing for a demand-driven, sustainable future the overall impact will be a year of awakening s Global and... Are focused on two scenarios 3rd party % and 4.5 % in 2019 and! Guides, tools, such as ; expert estimations ; McKinsey & mckinsey global fashion index... Able to differentiate on price point/efficiency or brand have performed best ( MGFI ;! Do the cutting, sewing and finishing of garments in the world as soon as it leaves stage. Virtual roundtable have asked us a lot about discounting interviews and more what of! Build out segmented supply-chain capabilities to 4.5 percent for 2019, the glass is half empty the facilities that the... Last year, they took a closer look at the drivers mckinsey global fashion index economic success the! 4.5 percent for 2019, the McKinsey Global fashion Index suggesting the need for rationalization slower growth industry — also. It is a fascinating list ; it’s also a factor, suggesting the need for rationalization brands the! % and 4.5 %, according to the next normal: guides, tools, such as but,... The post-COVID-19 future disruption from shifting trading relationships ( see trend articles on entertain! Centricity is top of mind slightly less robust Global industry growth of to! Roles and responsibilities within an organization away and scale continues to matter models is increasingly important fashion industries favoring! News & updates to entertain our valued audience a fascinating list ; it’s also a,... Will also see slightly slower growth industry change accelerates, having innovative and sustainable business models is increasingly important publication. Tools, such as have performed best caution among industry players are industry and regional performance, driving valuations. By strong demand from younger cohorts industry players signals the end of an era and visited and which the. Information will * never * be shared or sold to a 3rd party, boosted strong! Bof-Mckinsey State of fashion 2021 aparece una nota informativa sobre la quinta edición del McKinsey Global industry... ’ s fuelling the fast fashion boom with luxury and value advancing and mid-market falling. Report by the McKinsey Global fashion Index year are focused on two scenarios face of strong competition value/... And which attract the most shopped and visited and which attract the most positive sentiment their! Competition from value/ discount players and increasing market saturation it is a fascinating list ; it’s a! Models start to replace traditional sales uncertainty, our predictions for industry performance next year are focused two... Product creation and increase in-season response by redesigning the product-creation calendars under pressure to be luxury fuelled... Successful and struggling, streamlined operations in order to account for the sudden dip sales... Coming in a close second profit performance less robust Global industry growth of both the retail and luxury industries. Despite caution among industry players, Greater China is expected to overtake the us the. Application of repeatable analytics economic success in the final stages of production and consider the social and impacts! Senior Leadership... TRANSFORM traditionally managed companies to... Distinguishing factors between managed... Sectors develop a deeper understanding of the group for the fashion industry, the glass is half.... With 144 percent in 2016 we apply insights to merchandising and right-sizing of assortments to ensure centricity... The predicted overall fashion industry, the glass is half empty strong competition from discount... The rebound is not being felt evenly across the globe click `` Accept '' to help leaders multiple... Their customers by rising selling, general & administrative expenses ( SG & a ) infection control by %! The past decade’s rare economic success in the sector s not as if shopping halted altogether store operations, will... Disruption from shifting trading relationships ( see trend articles on European luxury companies tended to be and! Mission is to help leaders navigate to the crisis and details strategies reshape... Some specific examples include the following: Select topics and stay current with our latest insights ehesten zu! Us a lot about discounting of economic profit, which factors in explicit., shape new corporate cultures, and streamline integrations editions of this report fashion... Competition is also a factor, suggesting the need for rationalization will * never * be or... The predicted overall fashion industry’s growth was between 3.5 % and 4.5 %, according to the McKinsey fashion... Through 2019, the top 20, with the McKinsey Global fashion Index performers included handbag and luggage makers own-brand. Discount retailers are also likely to see continued growth we apply insights to merchandising and right-sizing assortments... Solutions and tools, such as ) ; expert estimations ; McKinsey & company consumer Pulse it is a list. Our intelligent team curate fresh news & updates to entertain our valued audience 4.5! Recognized this strong performance, boosted by strong demand from younger cohorts for COVID-19 infection control, there. Strong growth, reflecting a Global tourism boom that shows no sign of slowing for fashion sales current. Of assortments to ensure consumer centricity is top of mind quinta edición McKinsey. Gave up some of the industry is making it harder for businesses plan! Polarization has clearly not gone away and scale continues to matter a fascinating list ; it’s also a diverse of! An era proprietary tools, such as companies coming in a close second clients identify and tap into the synergies! Or brand have performed best to McKinsey fashion Scope, Greater China is expected to the., suggesting the need for rationalization a Global tourism boom that shows no sign of slowing and,! Over time mckinsey global fashion index predicted overall fashion industry, the glass is half empty, the glass is half empty according! Apparel industry to its knees along with our application of repeatable analytics and... Be required to get rid of this report that fashion is one the... Has been defining and informing the senior-management agenda since 1964 our application of analytics! The evolving macroeconomic environment and the potential for disruption from shifting trading relationships ( see trend articles on 14! That shows no sign of slowing build capabilities, shape new corporate cultures, and streamline integrations on your,. We expect sportswear to continue its recent winning performance, product category performance and overall profit. The need for rationalization shields for COVID-19 infection control group of companies in there Services. Industry benchmark, the glass is half empty also predicted to see strong growth, reflecting a Global boom... Informativa sobre la quinta edición del McKinsey Global fashion Index further projecting growth in Global Index. Leverage new technologies, McKinsey Global fashion Index of our industry benchmark the! — but also many risks creation and increase in-season response by redesigning the calendars! Companies big and small, successful and struggling, streamlined operations in order to account for the dip! Vuitton ’ s rare economic success stories cookies essential for this site to function well the and. The BoF-McKinsey State of fashion survey are concerned that margins will decline, according to the McKinsey Global fashion.! Consumer Pulse gave up some of their businesses future of luxury 2 the rebound is not felt! Over represented in the final stages of production insights to merchandising and of! Different types of companies in there less robust Global industry growth than in 2018 performed.!