What: The Business of Fashion and McKinsey & Company release their “The State of Fashion 2024” report which highlights the challenges and opportunities facing the fashion industry

Why it is important: The report provides a comprehensive analysis of the challenges and opportunities facing the fashion industry, offering valuable insights for fashion executives and stakeholders.

It predicts a modest year-on-year retail sales growth of between 2% and 4% in the year ahead. The industry is expected to face macroeconomic, geopolitical, and climate-crisis pressures, leading over 50% of fashion executives to plan price increases.

Opportunities for growth and innovation in areas such as generative AI, sustainability, and travel are identified. Consumer confidence remains fragile, and the industry is predicted to focus on new pricing and promotion strategies rather than volume increases. Climate crisis resilience, cost-saving strategies, supply chain transparency, regulations, generative AI, and brand marketing are identified as key focus areas for fashion companies.

The fast-fashion industry may face additional pressure from new regulations and increased competition. Additionally, the importance of emotional connections with customers and authenticity in marketing is emphasized.

The State of Fashion 2024: Riding out the storm Full report 

Business of Fashion Article