The State Of Fashion
Key Points of BoF/McKinsey’s “The State of Fashion” 2019 Report
For the 3rd year, the McKinsey Global Fashion Index and The Business of Fashion have teamed up for The State of Fashion 2019, outlining 10 trends that industry forecasters believe to shape the next year in fashion. The newest report focused on an “awakening” as speed, agility, and transparency drive key shifts in the markets.
As an appreciation for environmental concerns and social issues beget consumer trust, buyers are expected to break brands solely based on lack of visibility in areas where money, creative, and data protection are concerned. Transparency (think: Everlane) is rapidly rising to the top of the younger generations’ demands of fashion companies. In Q4 2018, 20 companies still held 97% of economic profit in the fashion industry. As these companies seek greater opportunity within the subsets of their markets, they are forced to stay agile within their own models. Other forces at work include India emerging as a manufacturing giant while its consumer base grows; rising e-commerce competition and potential risk in trade; Greater China emerging as the world’s largest fashion market; and Intidex (holder of Zara) and LVMH continuing to acquire assets (LVMH acquiring Belmond Hotels).
However, 2019’s report highlights that uncertainty in the global economy paired with potential trade disruptions and implications of Brexit may act as destabilizing forces as growth slows 3.5-4.5% from 2018. So as the year of awakening opens eyes, we may see some closing wallets at the same time.