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The global fashion industry is currently facing economic uncertainty, market dynamics, and shifts in consumer behavior. Navigating this complex landscape to find areas of growth has become increasingly challenging. Looking ahead to 2025, the fashion industry is expected to experience significant turbulence and uncertainty. A cyclical slowdown, heightened consumer price sensitivity due to recent inflation, the emergence of counterfeit products, the rapid progression of climate change, and ongoing changes in global trade dynamics all contribute to the industry's unpredictability. Regional disparities, which became more prominent in 2024, are anticipated to become even more pronounced in the upcoming year. Despite the potential for growth opportunities, brands will need to confront a multitude of challenges, including economic instability, geographic variations, and evolving customer preferences. As brands navigate these complexities, 2025 is poised to be a pivotal moment, prompting a period of reflection and decision-making for many within the industry. From McKinsey & Company #fashionretail #consulting #leadership #management

Our annual State of Fashion report is here and takes a close look at how executives can adapt to today’s challenging environment. The opportunity lies with those leaders who are able to identify the bright spots whether they be geographic, demographic or technological. Differentiation is a key driver to capture market share and those who take this into account will be primed for success, whether it’s through new designs, new shopping experiences, or localization. I would like to bring your attention on global trade shifting and three priorities for fashion brands we have identified in the report: 1. Regularly assess and optimize its sourcing footprint 2. Develop strategic relationships with manufacturers and suppliers 3. Shape trade flows with industry stakeholders Moreover, fashion brands should align on organisation-wide goals, establishing inventory KPIs such as carrying cost, turnover, tracking and sell-through with accountability that is shared across the business and endorsed by leadership. Read the report to learn more: https://lnkd.in/ehhrSuCm Kudos to BoF and our McKinsey authors Gemma D'Auria Anita B. Colleen Baum David B. Patricia González Méndez Joëlle Grunberg Felix Roelkens Daniel Zipser. #StateofFashion #SustainabilityinFashion #Fashion #McKinseyInsights

The State of Fashion report for 2024, co-authored by The Business of Fashion and McKinsey & Company, highlights ten critical themes shaping the industry. It emphasises the importance of rigorous contingency planning, cost control, and inventory management for fashion industry operators to navigate a potentially fragmented global economy and an ongoing climate crisis. Lessons for African fashion executives lie in adapting strategies to evolving consumer behaviours, such as addressing the changing face of influence, redefining outdoor fashion trends, and staying competitive in the evolving fast-fashion landscape. As our industry witnesses the shift towards sustainability, the report underscores the need for a strategic realignment of business models to align with emerging regulatory changes and mitigate the bullwhip effect on supply chains caused by unpredictable shifts in consumer demand. This is a useful playbook for fashion leaders to anticipate challenges, leverage opportunities, and adapt to the evolving dynamics of the global fashion landscape. More on the report here: https://lnkd.in/dXhTCZYS #fashionbusiness #fashionindustry #sustainablefashion #fashiontrends #africanfashion

I recently came across McKinsey & Company's State of Fashion 2025 report, which offers fascinating insights into the industry's future. One of the most interesting points for me was that for the first time since 2010, ''nonluxury segments are expected to drive the entirety of the increase in economic profit''. This shift challenges traditional norms and opens up exciting new opportunities for brands and businesses to rethink their strategies in a changing landscape. The report also highlights key challenges, such as evolving consumer priorities, sustainability pressures, and the rise of AI and digital tools. As someone deeply interested in the luxury and fashion industry, I found this report insightful for anyone looking to stay ahead or is generally interested in this dynamic sector. I highly recommend checking it out—it's an eye-opener! https://lnkd.in/dNMS5yxr #FashionIndustry #LuxuryIndustry #2025Predictions #Economics

👗 The "State of Fashion 2024" report by McKinsey outlines key trends and challenges. Amid global economic uncertainties, fashion companies are urged to focus on cost control and inventory management while driving growth through precise pricing strategies. Climate urgency is emphasized, pushing the industry to address the climate crisis promptly. Evolving consumer values, particularly in travel and shopping, require brands to adapt distribution and category strategies. Have a read and would be great to discuss your findings during a conversation with Usua López-Areal and myself! 📞

According to McKinsey & Company & Company's Fashion Growth Forecasts, retail sales are projected to grow modestly, ranging between 2 percent and 4 percent year over year. However, there are positive prospects in key markets like the US, China, and emerging Asian regions, particularly India. Certain consumers are increasingly engaging with brands both online and offline across various product categories, though differences are noticeable between luxury and non-luxury segments. For insights into the industry's upcoming trends and strategies, an annual #StateofFashion 2024 report by The Business of Fashion is available for download. It outlines 10 themes shaping the industry and offers guidance to industry leaders on navigating challenges and capitalizing on opportunities, such as exploring areas like travel and generative AI to ensure future competitiveness. 👉 https://lnkd.in/dWrSUy4F Imran Amed Achim Berg

“With cost-saving tactics mostly exhausted, the focus is expected to be on growing sales, underpinned by new pricing and promotion strategies, rather than volume increases.” It’s that time of year again….the launch of The State of Fashion 2024 report by McKinsey & Company and The Business of Fashion.  A must-read for anyone in the industry as it looks at the major themes shaping the fashion economy and potential responses. So what’s the outlook for the fashion retailers in 2024?  Uncertainty is a prominent sentiment, but there’s optimism for new opportunities. Find out about projected growth rates and the ten emerging themes for 2024 including new business models to align with increased sustainability regulation, capturing generative AI’s potential, and the new type of influencer (think Gstaad Guy!). #FashionIndustry #FutureofFashion #mckinsey #BusinessOfFashion #TheStateofFashion #SustainableFashion

Key takeaways from McKinsey & Company's State of Fashion 2024 report reveal a shift in consumer behavior, with this year poised to mark the largest surge of travel since the pandemic. Additionally, there is a growing emphasis on brands cultivating deeper emotional connections with consumers, now taking precedence over celebrity endorsements. For further insights, the full report is well worth exploring. #mckinsey #reports #fashion

What will you do differently to deepen consumer engagement in 2024? Check out this McKinsey & Company study on the state of the fashion market for 2024. As a board member, I advise executives to prepare for headwinds and ensure your brand stands out. McKinsey outlines the challenges and opportunities for the fashion market in 2024, so it's crucial to think ahead and stay ahead of the competition. According to McKinsey's analysis of fashion forecasts, the global industry is projected to achieve top-line growth of 2 to 4 percent in 2024, with regional and country-level variations. The luxury segment is expected to generate the largest share of economic profit, although companies will face challenges due to the tough economic environment. - The luxury segment is forecasted to grow globally by 3 to 5 percent, compared to 5 to 7 percent in 2023, as consumers rein in spending following a post-pandemic surge. - European and Chinese growth is set to slow, while US growth is expected to pick up after a relatively weak 2023, reflecting a slightly more optimistic outlook there. Take a look at the study to gain further insights and let’s inspire our teams to unlock the potential in our brands. #fashionindustry #McKinsey #2024forecast

As a fan of fashion and keen follower of trends, I was excited to dig into our annual State of Fashion report and see what’s in store for the $2.5 trillion global industry. It’s safe to say fashion executives are not feeling especially optimistic going into 2025. They are grappling with geopolitical and economic headwinds facing every business leader today, as well as more cost-conscious consumers, prioritization of the sustainability agenda, and finding new paths for product discovery. But as our report shows, there are bright spots and plenty of reasons for optimism. Success will hinge on differentiation—be it through innovative designs, unique shopping experiences, or localized strategies. And those who can capitalize on new growth engines across Asia, and pockets of resilience in luxury will be better positioned to thrive through shifting patterns of consumer spending. If you want to stay ahead of the trends, check out the report: https://lnkd.in/eNt9RqeU   Kudos to our McKinsey & Company authors Gemma D'Auria, Anita B., Colleen Baum, David B., Patricia González Méndez, Joëlle Grunberg, Felix Roelkens, and Daniel Zipser, in collaboration with The Business of Fashion, for their insightful research.   #StateofFashion #Fashion #McKinseyInsights