The industry should grow at a rate between 3% and 4%, which isn’t stagnation, but it is less than what it thought it would be and was budgeted. The fashion industry is concerned for 2020. According to The State of Fashion 2020, the report crafted by the collaboration of McKinsey & Co. and Business of Fashion, “the prevailing mood for fashion leaders is of anxiety and concern”. That’s what emerged from the 290 surveyed executives of the fashion industry. “If one end there are various business transformations that represent growth opportunities – reads the report -, the global economy is in fact slowing down and competition is more intense than ever”.
To find some confidence one must travel to higher-end goods (in the East). The premium/luxury segment is the one where the highest percentage of optimists for 2020 can be found: 12% expects a growth year. The feeling is much worse in the other segments. In the “mid-market”, for example 97% of those that answered the survey believe that 2020 will either be in line with 2019 or worse. With regards to geography, only Asia is said to have a little more energy: 14% of executives based in Asia believe they can close 2020 with incremented sales in comparison to 2019.
The market, after all, is overly polarized. While many suffer, there are some (deservingly) lucky ones that sprint forward. Among the 20 groups identifies in this 2020 edition of The State of Fashion, there are those with the best performances (as well as being the same ones that polarize the marketplace). These include brands known for their leather products. First is Nike, followed by Inditex and LVMH. Kering is in fifth place, while Hermès is in sixth. Swiss Richemont is tenth, while Burberry makes it in the top 20 most elite global brands with its twentieth position.
Picture from McKinsey.com