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Agenda-setting intelligence, analysis and advice for the global fashion community.

How Fashion Can Weather Economic Turbulence

The State of Fashion 2023 explores the levers fashion brands can pull to realise profitable growth even even amid rising prices and economic uncertainty.

Shoppers on Bond Street, London, UK — Consumes are pulling back on discretionary spending amid a tough economic environment. (Getty Images)

By

Emily Reasor, Aaron Rettaliata, Jesse Nading and Jad Hamdan (McKinsey & Company)

09 December 2022

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Industry earnings statements over the recent period have made for bleak reading. Cost pressures have impacted nearly all categories, putting increased pressure on margins and volume, and making any return to pricing “normalcy” feel far off. Indeed, secondary effects mean prices are rising through the value chain, and wages are following suit — in the US they are rising twice as fast as in 2019. Meanwhile,

Further Reading

The State of Fashion 2023: Resilience in the Face of Uncertainty

The seventh annual State of Fashion report by The Business of Fashion and McKinsey & Company reveals the industry is heading for a global slowdown in 2023 as macroeconomic tensions and slumping consumer confidence chip away at 2022′s gains. Download the full report to understand the 10 themes that will define the industry and the opportunities for growth in the year ahead.

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