Use minimal essential What will define the industry in the coming year? 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. This year has radically reshaped the landscape for the fashion industry. ... 12 May 2020. Unleash their potential. 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 trick in 2020 will be to prove to investors they can turn potential into profit. Fashion & Beauty. ... 10 December 2020 … However, there will be opportunities. 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. Most transformations fail. This year has radically reshaped the landscape for the fashion industry. 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. 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. So what are the key takeaways from the State of Fashion by Mckinsey? 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. The State of Fashion 2018 | Australia. 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. 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. This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. 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. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. Not that the state of fashion was looking any good beforehand, Mckinsey’s coronavirus update paints a grim picture for the rest of 2020. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. Please use UP and DOWN arrow keys to review autocomplete results. Based on our executive survey, the words on everyone’s lips are sustainability, digitization, and innovation. 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. ‎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. Digital disruptors will face more cautious investors in the year ahead. Mckinsey & Company Say That“Successful Companies Will Be The Ones That Make Moves Early.”—The State Of Fashion 2020. On the one hand, evolving channels, shifting markets, and groundbreaking research offer revenue opportunities and the chance for radical innovation. ... that it was swept up in State Capture. This fourth in our annual series analyzes major themes around the fashion economy and breaks new ground to explain the dynamics driving the industry. On the other, global economic growth is slowing and competition is more intense than ever. 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. 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. 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. The coming year will be tough, as the digital shakeout gathers pace, customers demand more on sustainability, and slower growth puts pressure on margins. 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 … 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. Equally, consumers and advocates are calling for the industry to become more inclusive. 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. FOREWORD For the fourth year in a row, The Business business and creative, for 2020. percent in 2020 year-on-year, but positive growth of 1 to 4 percent in 2021. 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. cookies, Explore all our insights on the next normal beyond coronavirus. At the forefront for many is the future role of brick-and-mortar stores. The report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. Indonesia is due to be the largest modest fashion market in the world (The Business of Fashion and McKinsey & Company). Alongside public companies, we also identified a group of “hidden champions.” These privately owned gems often dominate their category areas and generate significant revenues. 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. Am ehesten Anlass zu Optimismus bietet noch Asien, aber auch hier erwarten nur 14% der Führungskräfte ein stärkeres Wachstum. 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. 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. Strikingly, only 9 percent of respondents think conditions will improve next year, compared with 49 percent who said the same last 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). Consumers are increasingly waking up to this reality and demanding change. Anita Balchandani, partner at McKinsey & Co. Inc., discusses the global fashion industry, the trend she’s seeing and her outlook for the industry. 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. By using this site you agree with our privacy and cookie policy. 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. 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. For many in the fashion industry, the glass is half empty. Some are household names, while others are less visible but still pack a punch. Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions. 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. The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. Image Courtesy of Kornit Digital Join the Kornit Digital VIRTUAL EVENT series featuring industry thought leaders discussing the dramatic transformation in the fashion industry following the Covid-19 pandemic. McKinsey designers highlight the photos and illustrations that helped us tell the visual story of a remarkable year. The fashion industry can expect a year of uncertainty and concern across all geographies and value segments for 2020, save for only a … Reinvent your business. 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 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. The report is about 100 pages long, so I did all the legwork and packaged up the top trends for you. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Indonesia is due to be the largest modest fashion market in the world (The Business of Fashion and McKinsey & Company). 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. They need to get digital right and to address consumers … 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. The outlook for 2021 does not look bright either. 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. At the opposite end of the price spectrum is Primark, whose commitment to its core value proposition has made it a formidable competitor. 14 May 2018. “McKinsey … The textile sector still represents 6 percent of global greenhouse-gas emissions and 10 to 20 percent of pesticide use. 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. A report by McKinsey & Company and the publication, ... “The State of Fashion 2020 Coronavirus Update,” says fashion is particularly vulnerable because of … 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. BoF-McKinsey State of Fashion 2020 Survey Proprietary joint survey by The Business of Fashion and McKinsey. 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 … 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. Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions. 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. 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). 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. 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. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 This year’s speaker lineup includes Remo Ruffini, Samira Nasr and Virgil Abloh. collaboration with select social media and trusted analytics partners They are also most successful in attracting funding and talent, often leaving the rest to fight over scraps. Not only are leading companies highly value-creating, they are also at the cutting edge of innovation. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. However, given the scale of investment required, it means nervous times for small and midsize players. 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… That’s great news for consumers and for companies that can make sustainability real. No Brasil, o … 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. 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. Our flagship business publication has been defining and informing the senior-management agenda since 1964. When it comes to sustainability, the industry’s track record remains a source of concern. 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. Press enter to select and open the results on a new page. 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. The bottom line? 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. 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 new consumer insights series form McKinsey Australia explores the unique impact of the COVID-19 pandemic on Australian consumer sentiment, confidence and behaviour. 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. Advises global apparel, fashion, and luxury clients on strategy, operations, and marketing, helping executives design and execute transformational work. Economic profit grew for the second year running in 2018, following consecutive annual declines from 2012 to 2016 (Exhibit 2). 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. 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. 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. 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. Looking forward, we see more research into sustainable materials and technologies, as well as the circular economy. There will be … the outlook for the global economy is less rosy, 2019 Apparel Chief Purchasing Officer Survey, The real rich don’t need our Swarovski crystals – they can buy diamonds, China’s share of the global luxury market has almost doubled in 2020. Come to McKinsey to do the best work, with the best teams and truly be at your best. Explore some of the most popular and innovative insights that the McKinsey Global Publishing team brought to you this year. 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). Please click "Accept" to help us improve its usefulness with additional cookies. 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. In August 2019, Kering CEO François-Henri Pinault spearheaded an industry-wide pact to achieve net-zero emissions by 2050. Flip the odds. 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. 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 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. 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). It asks international fashion executives and experts to rate their business sentiment, investment plans, and industry trends. Over 300 global fashion brands to open stores in India by 2020: McKinsey. Our insights on the one hand, evolving channels, shifting markets, and industry trends by.... 49 percent who said the same last year emissions and 10 to 20 percent of global emissions... 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