- Robyn Turk |
Business of Fashion teamed with McKinsey & Company for its fourth annual State of Fashion Report, which determined pessimistic predictions.
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. 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.
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. Industry executives also anticipate sustainability to be both the single biggest challenge and the single biggest opportunity to the industry next year.
"The year ahead will require fashion companies to deliver meaningful change across the value chain and on multiple fronts while mitigating risk and managing uncertainty. But, for the fortunate few, there will also be opportunities to capture," Business of Fashion stated in the report.
It also stated that there are ten themes which will set the fashion industry's agenda in 2020, which are remaining on high alert, seeking opportunities beyond China, staying on top of social media strategies, offering local in-store experiences, prioritizing sustainability, revolutionizing materials, promoting inclusive cultures, offering B2C innovations during trade events and prioritizing a digital-first business model.