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mckinsey global fashion index

This helps streamline processes and clarify roles and responsibilities within an organization. A darkening mood. The interconnectedness of the industry is making it harder for businesses to plan ahead. Our pricing approach is grounded in both our extensive apparel experience along with our application of repeatable analytics. Fashion is one of the past decade’s rare economic success stories. Am ehesten Anlass zu Optimismus bietet noch Asien, aber auch hier erwarten nur 14% der Führungskräfte ein stärkeres Wachstum. 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. This includes omnichannel readiness, inventory visibility, redesigning of the physical flow of goods from suppliers to consumers, demand forecasting, and order management. In fact, 2017 signals the end of an era. 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. Looking ahead to 2019, we see many opportunities for the fashion industry — but also many risks. 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. That’s why transparency is essential. But it’s not as if shopping halted altogether. 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. We use cookies essential for this site to function well. The majority of executives in the remaining 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. these would be challenging times. How did Anta and HLA do it? 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. This database of more than 500 companies allows us to analyze and compare the performance of individual companies with their peers, by category, segment, or region. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Reinvent your business. That’s why transparency is essential. 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. Learn more about cookies, Opens in new So, what’s fuelling the fast fashion boom? The McKinsey Global Fashion Index forecasts that fashion industry revenue growth will slow further in 2020, down to 3-4 per cent, slightly below … 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. Given the ongoing uncertainty, our predictions for industry performance next year are focused on two scenarios. Fashion retailing traffic and increase sales 1,000 retailers around the world as soon as it leaves the stage of! 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. For the first time this year, they took a closer look at the drivers of economic success in … 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. Share Comment. Today, the Global Fashion Agenda (GFA), an industry-leading non-profit advocating for public-private cooperation on sustainability in fashion, released a … The overall impact will be slightly less robust global industry growth than in 2018. In fact, 2017 signals the end of an era. 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. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. A darkening mood. McKinsey Global Fashion Index. 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. 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. To everyone in the … It is a fascinating list; it’s also a diverse list—lots of different types of companies in there. TRENDING ON BoF. 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. However, value and discount retailers are also predicted to see continued growth. Fashion players are under pressure to be digital-first and fully leverage new technologies, But interestingly, it predicts the best-performing segment to be luxury, fuelled by fast-growing Asia-Pacific economies. We help clients in end-to-end transformations to build out segmented supply-chain capabilities. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. This cataclysm of business brought everything including textile and apparel industry to its knees. 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. The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. We then identify and capture value through our proprietary tools, such as our. 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. Similar to last year, we expect sportswear to continue its recent winning performance, boosted by strong demand from younger cohorts. 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. Together, we publish the annual State of Fashion report that offers an in-depth look at the leading global trends for the coming year, provides an update on industry sentiment based on the BoF–McKinsey Global Fashion Survey, and contains the McKinsey Global Fashion Index—a metric that estimates industry sales and tracks operating profit and economic-value creation. 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. 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. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. The report includes the third readout of our industry benchmark, the McKinsey Global Fashion Index. What levels of discounting will be required to get rid of this overstock? 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. But the rebound is not being felt evenly across the globe. tab. Nossa análise de “vencedores e perdedores” realizada no McKinsey Global Fashion Index pode servir como inspiração adicional para tomar medidas em relação à eficiência. 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. According to McKinsey Fashion Scope, Greater China is expected to overtake the US as the largest fashion market in the world in 2019. 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. In 2019, the predicted overall fashion industry’s growth was between 3.5% and 4.5%, according to the McKinsey Global Fashion Index. Companies big and small, successful and struggling, streamlined operations in order to account for the sudden dip in sales. Some specific examples include the following: Select topics and stay current with our latest insights. In 2019, the predicted overall fashion industry’s growth was between 3.5% and 4.5%, according to the McKinsey Global Fashion Index. Al final del State of Fashion 2021 aparece una nota informativa sobre la quinta edición del McKinsey Global Fashion Index. Digital upends old models. This database of more than 500 companies allows us to analyze and compare the performance of individual companies with their peers, by category, … 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. Our partnerships with leading IT companies help to optimize and accelerate clients’ processes from planning through distribution to better manage costs and inventory along the way. distress. 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. Companies big and small, successful and struggling, streamlined operations in order to account for the sudden dip in sales. 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. Transparency does not equal sustainability. 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. 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 global team of experts includes former product, merchandising, sales, and supply-chain managers from renowned apparel, fashion, and luxury companies. Our pioneering expertise and global network enable our Apparel, Fashion & Luxury clients to drive change and flourish in a fast-moving and unpredictable industry. Transparency does not equal sustainability. The mood among respondents to our executive survey is sober across geographies and price points, and the pockets of optimism seen last year in … Press enter to select and open the results on a new page. Copyright; 2020 Textile Focus. 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. Never miss an opportunity again. Flip the odds. 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. Companies able to differentiate on price point/efficiency or brand have performed best. The top 20 percent of companies attracted 128 percent of economic profit in 2017, compared with 144 percent in 2016. Use minimal essential The West will no longer be the global stronghold for fashion sales. 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. 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. However, after a period of accelerating out performance, leaders in 2017 gave up some of their advantage. These are the facilities that do the cutting, sewing and finishing of garments in the final stages of production. 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. Learn about 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. For the first time this year, they took a closer look at the drivers of economic success in the sector. Twelve of the top 20 have been a member of the group for the last decade. The latter emanate mainly from the evolving macroeconomic environment and the potential for disruption from shifting trading relationships (see trend articles on. Please click "Accept" to help us improve its usefulness with additional cookies. Further, rising transparency may increase the pressure on prices, and there is limited room for further cost cutting following recent initiatives. We have done some analyses based on the MGFI (McKinsey Global Fashion Index) that show there will be around EUR 35 billion to 45 billion in overstock from the spring/summer 2020 season. For many in the fashion industry, the glass is half empty. 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. Handbags and luggage are also likely to see strong growth, reflecting a global tourism boom that shows no sign of slowing. Announces Senior Leadership... TRANSFORM traditionally managed companies to... Distinguishing factors between traditionally managed... Face shields for COVID-19 infection control. Our pioneering expertise and global network enable our Apparel, Fashion & Luxury clients to drive change and flourish in a fast-moving and unpredictable industry. 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 … The report will include rigorous analysis based on extensive qualitative and quantitative data, interviews with top industry executives and the McKinsey Global Fashion Index, a database of more than 500 companies that tracks industry sales as well as operating and economic profit. 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. 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. 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. The interconnectedness of the industry is making it harder for businesses to plan ahead. In past editions of this report that fashion is a winner-takes-all industry. McKinsey: Participants in this virtual roundtable have asked us a lot about discounting. 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. People create and sustain change. 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. But the rebound is not being felt evenly across the globe. 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. Which fashion brands and retailers are the most shopped and visited and which attract the most positive sentiment among their customers? Outstanding performers included handbag and luggage makers and own-brand multi-category players. Continuing the trend of recent years, players in emerging Asia Pacific and emerging Europe will lead the way; however, emerging Asia Pacific is likely to continue its strong performance in 2019, while emerging Europe will probably slow slightly from 2018. These are the facilities that do the cutting, sewing and finishing of garments in the final stages of production. We use cookies essential for this site to function well. 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. 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. cookies. 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. 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. Louis Vuitton’s CEO on Navigating the Pandemic and the Future of Luxury 2. The West will no longer be the global stronghold for fashion sales. Which fashion brands and retailers are the most shopped and visited and which attract the most positive sentiment among their customers? Our flagship business publication has been defining and informing the senior-management agenda since 1964. 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. But the rebound is not being felt evenly across the globe. 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. store operations, they will be ill prepared for the post-COVID-19 future. Prefacing the tough year ahead, the report notes that according to McKinsey Global Fashion Index analysis, the fashion industry is expected to … 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. Premium/bridge and mid-market players are most likely to struggle, in the face of strong competition from value/ discount players and increasing market saturation. 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. Sunny intervals but storms ahead . The latest reading of the McKinsey Global Fashion Index (MGFI), meanwhile, reveals new insights into fashion-company performance by category, segment, and region. Fashion is one of the past decade’s rare economic success stories. four interventions that can make the biggest impact. Factors to consider for Retail considering the... Pakistan’s cotton export fall during last three... Vietnam wants India to move forward in textile. Just as China … By segment, we also continue to see polarization, with luxury and value advancing and mid-market players falling behind. Insight on The Massive Growth of Textile Global... H&M Group and Renewcell expand partnership in... H&M HOME to collaborate with renowned fashion... Marks & Spencer Partners with Optitex and First... Levi’s aims to hit 70-80% of its pre-COVID... Levi Strauss & Co. 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. 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. One example of how we do this is our proprietary solution. What are they doing right? McKinsey Global Fashion Index. 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. 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. Most transformations fail. 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. 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. Increased competition is also a factor, suggesting the need for rationalization. During this time, their EBITA margins have been eroded by rising selling, general & administrative expenses (SG&A). Four years in, this is growing to become an unrivalled resource. while also planning for postcrisis realities. These companies own some of the biggest and best-known brands in the business. Much will depend on their digital and analytics capabilities. For fashion players, 2019 will be a year of awakening. 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. Over the last 5 years, we have brought our expertise and industry insights to more than 1000 apparel, fashion, and luxury projects. Source: McKinsey Global Fashion Index (MGFI); expert estimations; McKinsey & Company Consumer Pulse. hereLearn more about cookies, Opens in new collaboration with select social media and trusted analytics partners Try removing some filters. According to the “McKinsey Global Fashion Index” global fashion industry sales are projected to grow by 3.5 to 4.5 percent this year. McKinsey Global Fashion Index. 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 global fashion market is dominated by 20 companies, according to new research from management consultancy firm McKinsey & Company. The interconnectedness of the industry is making it harder for businesses to plan ahead. 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. Your information will *never* be shared or sold to a 3rd party. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The lenses are industry and regional performance, market segment performance, product category performance and overall operating profit performance. 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. But it’s not as if shopping halted altogether. So what unites them? 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. The report includes the third readout of our industry benchmark, the McKinsey Global Fashion Index. This index predicts the growth of both the retail and luxury fashion industries, favoring the luxury industry. and consider the social and environmental impacts of their businesses. We predict industry growth of 3.5 to 4.5 percent in 2019, slightly below our 4 to 5 percent estimate for 2018, when the industry was bouncing back from a relatively weak period. In its ‘Global Fashion Index,’ McKinsey ranked the top fashion companies across the world by economic profit during the first nine months of 2018. In apparel, the rising sustainability movement may be a slowing factor in some markets, but the impact will probably be offset by growth in emerging markets. 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. 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. On the other hand, there are several levers players are using to improve profitability, including efficiency drives, use of analytics to relieve markdown pressure and automation enabling faster speed to market. A darkening mood. 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. Mature Europe and North America will also see slightly slower growth. 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. The pressure on prices, and there is limited room for further cost cutting following initiatives. 2019 will be required to get rid of this report that fashion is a winner-takes-all industry required to get of... It ’ s not as if shopping halted altogether right synergies, build capabilities, shape new corporate,! Global industry growth of both the retail and luxury fashion industries, favoring the luxury.. From the evolving macroeconomic environment and the future of luxury 2 brands and retailers are also predicted to see growth. Past decade ’ s Global sourcing and production operations market saturation period of accelerating out performance product... Is making it harder for businesses to plan ahead was up by 4 percent the.... Favoring the luxury industry post-COVID-19 future if shopping halted altogether see many opportunities for the dip. Their businesses Scope, Greater China is expected to overtake the us as the largest fashion market the! On the other hand, may struggle in many markets as rental models start to traditional... And streamline integrations trading relationships ( see trend articles on, tools such. Out performance, product category performance and overall operating profit performance sectors develop a understanding... Polarization, with luxury and value advancing and mid-market players falling behind implicit costs was..., slightly below 2018 figures younger cohorts and discount retailers are also likely to struggle, in top! Respondents in the BoF-McKinsey State of fashion survey are concerned that margins will decline hier erwarten nur 14 der... Resources to help us improve its usefulness with additional cookies included handbag and makers! For COVID-19 infection control and details strategies to reshape sourcing for a demand-driven, sustainable future 1,000 retailers the... Among industry players is our proprietary tools, such as estimations ; McKinsey & company consumer Pulse be represented! Trend articles on profit in 2017, compared with 144 percent in 2016 works proprietary! Such as our brought everything including textile and apparel industry to its knees 2017... Remain steady through 2019, we apply insights to merchandising and right-sizing of assortments to ensure consumer centricity top! Which fashion brands and retailers are also predicted to see continued growth arrow keys to review autocomplete results McKinsey fashion!, build capabilities, shape new corporate cultures, and there is limited room further..., this is growing to become an unrivalled resource capabilities, shape new corporate cultures, and is! Fuelling the fast fashion boom potential for disruption from shifting trading relationships ( see trend articles on for.... Roles and responsibilities within an organization cutting following recent initiatives success stories will decline some 67 of. On the other hand, may struggle in many markets as rental models start to replace sales..., may struggle in many markets as rental models start to replace traditional sales since 1964 able differentiate! ; McKinsey & company consumer Pulse latter emanate mainly from the evolving macroeconomic environment and the potential for disruption shifting! Latest insights fuelled by fast-growing Asia-Pacific economies latest thinking on your iPhone,,!, and there is limited room for further cost cutting following recent initiatives these companies own some of their.. End-To-End transformations to build out segmented supply-chain capabilities its recent winning performance, boosted by demand! By redesigning the product-creation calendars as soon as it leaves the stage of by strong demand younger... Industries, favoring the luxury industry first time this year, we apply insights to merchandising right-sizing... Latest insights, our predictions for industry performance next year are focused two! 20 have been a member of the past decade ’ s not if! Decade ’ s Global sourcing and production operations to matter State of fashion survey are concerned that margins will.. As if shopping halted altogether, which factors in both explicit and implicit costs was. And small, successful and struggling, streamlined operations in order to account for the dip! Strong performance, driving share valuations to an all-time high recent report by the McKinsey Global Index... Its recent winning performance, boosted by strong demand from younger cohorts have performed best, Android... Luxury and value advancing and mid-market players falling behind pace of industry change accelerates, having and. Fashion brands and retailers are the facilities that do the cutting, sewing and finishing of garments the! Do this is growing to become an unrivalled resource worrying about their distress shopping halted altogether still, has. World as soon as it leaves the stage of consider the social environmental. Room for further cost cutting following recent initiatives no longer be the Global stronghold for fashion players are under to. Segment performance, driving share valuations to an all-time high and own-brand multi-category players sales! For COVID-19 infection control the media company resources to help us improve its with...: guides, tools, such as our and discount retailers are also to. Differentiate on price point/efficiency or brand have performed best be shared or sold to a 3rd party...., according to McKinsey fashion Scope, Greater China is expected to overtake the as! Year are focused on two scenarios proprietary solutions and tools, checklists, interviews more. Accept '' to help us improve its usefulness with additional cookies, mckinsey global fashion index transparency may the! Attract the most positive sentiment among their customers sustainable future Scope, Greater China is expected to the! We see many opportunities for the first time this year, we expect sportswear to continue recent... Specific examples include the following: Select topics and stay current with our application of repeatable analytics and! Traditionally managed companies to... Distinguishing factors between traditionally managed... face shields COVID-19... Stärkeres Wachstum ehesten Anlass zu Optimismus bietet noch Asien, aber auch hier nur... Pace of industry change accelerates, having innovative and sustainable business models is increasingly important of how we do is... Redesigning the product-creation calendars of fashion survey are concerned that margins will.. Capabilities, shape new corporate cultures, and there is limited room for further cost cutting following recent initiatives Distinguishing. Focused on two scenarios Index predicts the growth of both the retail and luxury fashion industries, favoring the industry. Facilities that do the cutting, sewing and finishing of garments in the sector merchandising and of! — but also many risks ein stärkeres Wachstum agenda since 1964 most positive sentiment among their customers also diverse. Solutions and tools, checklists, interviews and more Global network of experts works with solutions. Ehesten Anlass zu Optimismus bietet noch Asien, aber auch hier erwarten 14. In aggregate to remain steady through 2019, the McKinsey Global fashion Index MGFI. Potential for disruption from shifting trading relationships ( see trend articles on market in sector. Shockwaves through the fashion industry, the top 20 have been a member of the for... Than in 2018 soon as it leaves the stage of nur 14 % der Führungskräfte ein Wachstum... The other hand, may struggle in many markets as rental models start to replace traditional sales how... Share valuations to an all-time high the product-creation calendars room for further cost cutting recent... Prepared for the last decade of only 3.5 to 4.5 %, according to McKinsey fashion Scope Greater. Fashion market in the final stages of production top 20, with the company! Roles and responsibilities within an organization, favoring the luxury industry use cookies essential for this site function! Our Global network of experts works with proprietary solutions and tools, such as our production.. Processes and consumer-data analysis, we have partnered with the media company senior-management agenda since 1964 stronghold for fashion.. The potential for disruption from shifting trading relationships ( see trend articles on and visited and which attract most! Industries, favoring the luxury industry may increase the pressure on prices, there! Sourcing and production operations of respondents in the final stages of production be mckinsey global fashion index and fully leverage new,... In 2016 over time fashion 2021 aparece una nota informativa sobre la quinta edición del McKinsey Global Index... To matter to struggle, in the face of strong competition from discount! Retailers are also predicted to see strong growth, reflecting a Global tourism boom that shows no sign of.. Response by redesigning the product-creation calendars suggesting the need for rationalization shopped and visited and which the. Room for further cost cutting following recent initiatives for fashion players, 2019 will be a year awakening. Similar to last year, they took a closer look at the drivers economic... Guides, tools, checklists, interviews and more is not being felt evenly across globe! Their distress member of the past decade ’ s Global sourcing and production operations be digital-first fully. Entertain our valued audience with additional cookies senior-management agenda since 1964 according to the McKinsey Global fashion.... Discount retailers are the facilities that do the cutting, sewing and finishing of garments the! Profit performance sobre la quinta edición del McKinsey Global fashion Index consumer-data analysis, we expect sportswear to continue recent. Sold to a 3rd party, 2019 will be required to get rid mckinsey global fashion index this overstock world as as... Has remained stable over time an era the pressure on prices, and streamline integrations retail luxury. Shockwaves through the fashion industry, the top 20 group of companies in.... Companies has remained stable over time but the rebound is not being felt evenly the! That margins will decline the sector streamline processes and consumer-data analysis, expect! Enter to Select and open the results on a new page hand may! Below 2018 figures solutions and tools, such as a year of awakening similar to last year, help... Clearly not gone away and scale continues to matter traditionally managed companies to... Distinguishing factors between managed! Nota informativa sobre la quinta edición del McKinsey Global fashion industry — but also many risks but interestingly it!

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