MCKINSEY: "THE STATE OF FASHION 2023".

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Date of Publishing: 2023.
No. of Pages: 127.

Fashion companies will need to rethink their operations. Many will update their organizational structures, introducing new roles or elevating existing ones to target key growth opportunities and respond more effectively to risk. Brands may also choose to see the next year as a time to team up with manufacturing partners to sharpen their supply chain strategies. This may involve nearshoring to better respond to fast-shifting consumer demand or leaning more heavily on data analytics and technology to manage inventory efficiently.

Distribution channel mixes are also ripe for reassessment. As e-commerce growth normalises after its pandemic boom, the sheen has started to wear off the direct-to-consumer digital model that propelled many brands over the past decade. As lockdown restrictions lifted, shoppers have made it clear that although they still value online channels — particularly within luxury, where online DTC and third-party platforms will continue to drive growth — shoppers also want brick-and-mortar experiences. Brands will also need to factor in the continued return of international travel to pre-pandemic rates, which will be buoyed by a strong US dollar. Wholesale and physical retail have a new role in revamping customer journeys, requiring brands to look beyond tier-one cities to be physically closer to consumers.

Brands will have to work hard to remain attractive to consumers, given the tough economic environment. Consumer behaviours in 2023 will depend greatly on household incomes. While higher-income households will be less affected by economic pressures and look likely to continue shopping for luxury goods, as in previous downturns, lower-income households will likely cut back or even eliminate discretionary spending, including apparel.

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Contents:

1. EXECUTIVE SUMMARY.

2. INDUSTRY OUTLOOK.

3. GLOBAL ECONOMY.

3.1. Global Fragility Managing Inflation for Growth.

3.2. Regional Realities Chalhoub Group: Capturing Fashion’s Growth Potential in the Middle East.

4. CONSUMER SHIFTS. 

4.1. Two-Track Spending Tapestry: Connecting With Customers ‘Is Not Just About Price’.

4.2. Fluid Fashion How Gen-Z is Propelling Gender-Fluid Fashion.

4.3. Formalwear Reinvented Hugo Boss: Reclaiming the Formalwear Space.

5. FASHION SYSTEM.

5.1. DTC Reckoning Allbirds: Conquering the New Multi-Channel Landscape.

5.2. Tackling Greenwashing A New Approach to Scaling Innovative Materials Puma: Moving Sustainability Beyond Marketing.

5.3. Future-Proofing Manufacturing MAS Holdings: Deconstructing Supply Chain Risks, and Rewards.

5.4. Digital Marketing Reloaded How Web3 Is Shaking Up Digital Marketing.

5.5. Organization Overhaul.

6. MCKINSEY GLOBAL FASHION INDEX.

7. THE STATE OF LUXURY 2023.

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