State of Fashion in 2021
We always like reading McKinsey’s State of Fashion for the coming year. Some highlights below for Fashion in 2021. You can download the full report here.
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.
1. Decision Making: Data and analytics to play an increasingly important role, helping companies to track shifts in demand across geographies, categories, channels and value segments.
2. Channel play: Companies must develop more engaging and social experiences to encourage consumers to connect.
3. Assortment Focus: Decision-makers must be bold. They must develop novel strategies for their assortments, focused on profitability, value, simplicity and downsized collections, rather than discounting and volumes.
4. Supply chain: Supply chains will continue to be under pressure. Brands should secure high-quality and reliable production capacity and make the long-overdue shift to a demand-focused model.
Whatever the positioning, stronger players will have an opportunity to seize market share from their peers and, in some cases, acquire their rivals at a bargain price.
