Around the globe, we expect more than 20 percent annual digital growth in 2021 (with 30 percent in Europe and the United States) compared with 2020.3McKinsey analysis. Summers biggest trend is a little freaky shoe known as the mesh ballet flat, with your toes coyly peeking out from a thin layer of fabric. But fast-forward a few months, and fashions outlook has gotten dramatically and suddenly bleaker. 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 noted in our previous articles on getting woke, radical transparency, and sustainability first, the consumer mindset was already showing signs of shifting in certain directions before the pandemic. His favorite semi-sheer pieces available now? This unforeseeable humanitarian and financial crisis has rendered previously planned strategies for 2020 redundant, leaving fashion businesses exposed or rudderless as their leaders confront a disorienting future and vulnerable workers face hardship and destitution. The ones that will succeed will have come to terms with the fact that in the new paradigm taking shape around them, some of the old rules simply dont work. And while that has become more than just a seasonal trend, its a good example of how market research of customer habits has influenced the trajectory for Lululemon as a brand. Trend Credit: Shopbop. Shop the best linen dresses from Reformation, COS, and more, all tested by a fashion editor. In contrast to the apocalyptic settings the fashion industry went through in 2021-2022, the current fashion trends in 2023 unveil digital fads and TikTok-driven aesthetic clothing trends like never before. That said, the past years experience shows that consumers are resilient and that as economies recover, demand will follow suit. Which Fashion Trends are Currently Popular? People always want to know about the colour of the season, and while fuchsia is still having its moment thanks to the Barbie movie there's no doubt Trend Any number of lifestyle, health and economic factors can influence trends, and trends can be forecast across almost every single aspect of your day to day life. Executives are bracing for a tough 2023; leading brands will deploy realistic but bold strategies that combine careful cost control with strategic investments in skills growth. Here are some that I recommend: Fashion Forecasting Services - These companies create a curated collection of seasonal trends. The MGFI forecasts that growth will slow to 3 to 4 percent in 2020, slightly below the predicted rate for 2019. (Stay tuned for more when And Just Like That continues to flit its way through our summer viewing) The TikTok reels of swimsuit idols like Kendall Jenner, Gabrielle Union, and Hadid sisters are equally influential. Have you ever wondered how practically every brand understands and implements the same seasonal trends? Meanwhile, some of the shifts we will witness in the fashion system, such as the digital step change, in-season retail, seasonless design, and the decline of wholesale, are mostly an acceleration of the inevitablethings that would have happened further down the road if the pandemic had not helped them gain speed and urgency now. Inflation is at the top of executives minds for the coming year, according to results from the annual Business of Fashion and McKinsey State of Fashion Survey. The authors wish to thank McKinseys Johanna Andersson and Dale Kim, as well as the Business of Fashions Robb Young, for their contributions to this work. 2023 Hearst Magazine Media, Inc. All Rights Reserved. So consumers expect it all: convenience, quality, values orientation, newness, and price. Economically, we see a number of trends that will shape the industry, including fashions response to intensifying volatility, continued challenges in China, and the rise of urban centers. Decision makers have their work cut out to manage the demands of digital, sustainability, and the supply chain. We live in L.A. We see celebrities and cool girls wearing their fabulous black swimsuits with denim all the time. After a challenging stretch, has fashion turned the corner? These are some of the findings from The State of Fashion 2022, written in partnership with the Business of Fashion (BoF). At the same time, we are likely to see more nuanced assessments of store ROI based on a combination of digital and physical lenses. Just as you can analyze a movie, book, or painting, you can also analyze a trend and understand the underlying reasons for why it has become popular. Note that some of these may have an online option as well or be online only! Imran Amed is the founder, editor-in-chief, and CEO of the Business of Fashion and an alumnus of McKinseys London office, where Anita Balchandani is a senior partner; Sarah Andr is a consultant in the Paris office; Achim Bergis a senior partner in the Frankfurt office; and Felix Rlkens is a partner in the Berlin office. Collage by David Vo. Coming out of the pandemic, formal dress codes remain disrupted, pushing brands to rethink office and special occasion attire. The war in Ukraine, which started in February, triggered a string of events, including an escalating energy crisis across Europe. We expect a period of recovery to be characterized by a continued lull in spending and a decrease in demand across channels. Navigating this uncertainty will not be easy for fashion leaders. Chlo. 4. Tara Gonzalez is the Senior Fashion Editor at Harpers Bazaar. To address consumer behavior, players will have to learn to serve shrewder and more-demanding customers and adjust to a shifting demographic profile. By Rebecca Grant Published: Jun 23, 2023. Literally, I told Knix, they need to look amazing and they need to be easy to throw in the wash. Some brands over the past year expanded into the digital metaverse, rolling out virtual stores, gaming, and digital events. Given the standout performance of digital channels in the current environment, we expect digital to remain kingin 2021. Yet fashion, because of its discretionary nature, is particularly vulnerable. In that scenario, we would see markets such as China recovering strongly. Indeed, recovery is at the top of executives minds for the coming year, with 75 percent of luxury-segment executives, 61 percent of midmarket executives, and 50 percent of value executives expecting better trading conditions. Trends And finally, brands will need to be more creative in marketing to attract customers through bold, differentiated content that cuts through a crowded digital environment in which data targeting is no longer effective. The Spring 2023 Trends on Vogue Editors Shopping Lists But don't expect I have three kids. Product categories are expected to grow in line with the overall industry average, but the biggest winners will be those companies with coherent channel strategies and clear value definitions. Its practical and a little bit sexy, with all of the makings of an outfit that wont make you sweat but still makes you want to walk everywhere, so everyone can see it. Trade Shows - Attending trade shows allows you to see upcoming trends from suppliers and get access to curated presentations. Its against this backdrop that McKinsey has teamed with the Business of Fashion to shine a light on the fragmented, complex ecosystem that underpins this giant global industry. I dont love that, says Shannon Savage, a co-founder of the swimwear brand Left on Friday. Meanwhile, geopolitical tensions, specifically around the ongoing war in Ukraine, have disrupted supply chains and created an energy crisis that 58 percent of executives also believe will weaken the fashion market. Performance will vary depending on the individual dynamics of specific market segments and categories. Bulbous, bubble-like shapes started trending early in the lockdowns. Hava Nagila, the Jewish Folk Song, is a Hit at Clubs, Bars and Even The proportion of value destroyers (companies generating negative economic profit) has thus fallen to its lowest since 2013. Our survey of 290 global fashion executives and interviews with thought leaders and pioneers have helped us identify ten key themes that will set the agenda in the year ahead. Market Research - Analyzing your own customers buying trends can help you make informed decisions for the next season. Terrorist attacks in France, the Brexit vote in the United Kingdom, and the volatility of the Chinese stock market have created shocks to the global economy. All things considered, we expect fashion-industry growth will increase to 2.5 to 3.5 percent in 2017, although the days when the industry outpaced GDP growth by as much as two percentage points seem over. Achim Berg is a senior partner in the Frankfurt office. Another is that Indiais on the riseits growing middle class, powerful manufacturing sector, and increasingly savvy tech have made it an essential destination for fashion companies. This is consistent with their compound annual growth rate (CAGR) over the past three years, which has been 9 percent for affordable luxury and 6 percent for value, the highest of any segment since 2013. Trend Forecasting is a type of Fashion Research that analyzes market trends and buying habits to make educated decisions on how to move forward on designing a new I think its okay., "Her beauty and her brain go not together." Once the dust settles on the immediate crisis, fashion will face a recessionary market and an industry landscape still undergoing dramatic transformation. There is little doubt that 2021 will continue to be tough for many as the COVID-19 pandemic tracks an uncertain trajectory. The industry was already on high alert, and executives expressed pessimism across all geographies and price points in our annual report, The State of Fashion 2020, released late last year. Reflecting in-depth research and numerous conversations with industry leaders, it reveals the key trends likely to shape the fashion landscape in the year ahead. We expect that the slowdown is likely to continue through 2023. Alongside public companies, we also identified a group of hidden champions. These privately owned gems often dominate their category areas and generate significant revenues. Sexy Grunge, Maxi Skirts And Tom Fords Gucci: The Trends Tipped To Take Over In 2023. WebTrend boards allow for visual presentations that are created as a result of a cursory research of the fashion market, fashion trends, and fashion forecasting. Even before the coronavirus disrupted financial markets, upended supply chains, and crushed consumer demand across the global economy, fashion-industry leaders were not optimistic about 2020. Based on McKinseys analysis of fashion forecasts, the luxury sector is expected to grow between 5 and 10 percent in 2023, driven by strong momentum in China (projected to grow between 9 and 14 percent) and in the United States (projected to grow between 5 and 10 percent). Attendees stayed on dress code with some over-the-top interpretations for the annual event, which paid homage to the late designer. This database of more than 500 companies allows us to analyze and compare the performance of individual companies with their peers, by category, segment, or region. Every product on this page was chosen by a Harper's BAZAAR editor. Brands can re-evaluate regional growth priorities and hone their strategies so they are more tailored to the geographies in which they operate. The 16 percent year-on-year rise came largely from improved operating margins driven by cost cutting. Additionally, the print (even in neutral hues) evokes a sense of creativity, fluidity, and freedom of expression - all things that people are desperate for in a time of confinement. Saskia Hedrich is a senior knowledge expert in the Munich office. Deteriorating macroeconomic and geopolitical conditions have weighed heavily on the industry in the second half of the year and continue to leave fashion executives on edge as they look towards 2023. Fashion companies that can adapt to the increasing complexity by updating their operating models and adjusting their strategies for supply chain, sales channels, and digital marketing will be best placed to weather the upcoming storm. Perhaps unsurprisingly, investors this year had more confidence in the top 20 than in other companies, and super winners were less badly hit by the April stock market sell-off than their peers were (26 percent from December, compared with 33 percent on average). Despite the As we dog-paddled ashore, I asked her if the $1,200 suit was somehow exempt from the labels dry clean only advice. Imran Amed is the founder, editor-in-chief, and CEO of the Business of Fashion. The Story Behind Australian Fashions Decline, All the Fashion at King Charles IIIs Coronation, Explained, At the Met Gala, Karl Lagerfeld Was the Evenings Star, The 10 Themes That Will Define the Fashion Agenda in 2023. To grow, brands will likely need to diversify their channel mix, including wholesale and third-party marketplaces, alongside DTC. Honestly? Although the fashion industry appears to be turning a corner, the rebound is not being felt evenly across the globe. Must-have pieces include picnic-appropriate dresses, flowy linen pants, head scarves, espadrilles, woven Digital-first companies such as Alibaba, Amazon, Net-a-Porter, and Zappos continue to force fashion companies to provide an even more premium experience. For an exclusive group of Super Winners, the sun is shining (Exhibit 3);17To view exhibit, refer to The State of Fashion 2020. by economic profit, these 20 companies added more to the industry bottom line in 2018 than all others combined. All rights reserved. The authors of this article are Imran Amed (founder, editor in chief, and CEO of the Business of Fashion, and an alumnus of McKinseys London office), Anita Balchandani (a partner in the London office), Jakob Ekelf Jensen (a consultant in the London office),Achim Berg (a senior partner in the Frankfurt office),Saskia Hedrich (a senior expert in the Munich office), and Felix Rlkens (an associate partner in the Berlin office). This is consistent with its 10 percent CAGR of the past decade, driven by consumers more active lifestyles, the rise of athleisure, emerging brands in the high-end segments, and product innovations. When you go about researching trends, know that its not always smart (or best for your brand) to implement a trend into your line. Athletic wear is the only category where record growth rates look to slow down slightly in 2018, as the athleisure trend has reached its peak in some mature markets. In search of summer inspo for pool parties, seaside hangs, and grad trips? 20 Best Linen Dresses, Tested & Reviewed by a Fashion Editor 2023 WebSee how 2022 Shopping Trends is trending on Google right now. Aje Paradiso Linen Blend A-Line Dress. JADE Swim Mia Bikini Top. Fashion leaders are also watching global headlines closely in the year ahead, as macroeconomic and political uncertainties continue to obstruct business operations and escalate reputational risk. Athletic wear is set to become the absolute category champion, maintaining 6.5 to 7.5 percent sales growth, although it will be unable to reproduce the double-digit growth of the past. 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. "The lace trend is beginning to spark this season," with "high search volume at 68k average weekly searches," Becker shares of recent Trendalytics data. The authors wish to thank Sandrine Devillard, Jolle Grunberg, and Michael Straub for their contributions to this article. Humanitarian repercussions are expected to outlast the pandemic itself. That means focusing on an omnichannel perspective, of course, but also emphasizing the importance of sustainabilitythrough the value chain. Fashion He spoke about his approach to the role . As our ten trends indicate, new markets, new technologies, and shifting consumer needs present opportunitiesbut also risks. Its also hitting three trends at once: Theres revenge dressing, the practice of wearing the flirty vacation outfits we can finally flaunt sans masks; mermaidcore, the Ariel-inspired beach looks from the recent movie; and the Mugler-ian bodycon movement that upgrades the humble tankini from country club staple to nightclub must-have. A growing number of publicly traded and private companies have become value destroyers. The midmarket in particular is in the doldrums, generating negative returns for shareholders. Hava Nagila, the Jewish Folk Song, is a Hit at Clubs, Bars and Even Emerging markets remain a crucial source of this growth; indeed, in 2018, for the first time, more than half of apparel and footwear sales will originate outside Europe and North America. In response, more and more companies are expanding their sustainable assortments and working to boost the sustainability of their supply chains. Brands, suppliers, contractors, and property owners should also find ways to share the burden. Gender-fluid fashion is gaining greater traction amid changing consumer attitudes towards gender identity and expression. Trend forecasting focuses on telling a story through trends in silhouettes, design details, colors, fabrics, and trims. In the light of all this change, the performance gap between frontrunners and laggards continues to widen: from 2005 to 2015, the top 20 percent of fashion companies contributed 100 percent of the industrys entire economic profit; in 2016, the top 20 percents contribution had increased to 144 percent. When Wales Bonner released a lookbook of models wearing a metallic sambaits three classic stripes reimagined in a delicate doily-esque lacethe internet declared it the shoe of the summer. Learn what that means for you and for me. Trends In all other regions and segments, executives are notably pessimistic, reflecting the potential challenges ahead (Exhibit 1).19To view exhibit, refer to The State of Fashion 2019. 3 Glastonbury inspired fashion trends we are obsessed with for 2023 Download The State of Fashion 2022, the full report on which this article is based (PDF14MB). We see brands rethinking store formats and leveraging data and analytics to predict footfall, manage assortments, and built personalized offerings. Trend Forecasting The report, the fifth in our annual series, drills down into the major themes affecting the fashion economy and assesses a range of possible responses. Combined with the McKinsey Global Fashion Index (MGFI) analysis, which found that 56 percent of global fashion companies were not earning their cost of capital in 2018, we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months. On a less serious note, tie-dye is also a lighthearted and fun print that you can create yourself at home! After the riseliterally and figurativelyof the Miu Miu miniskirt, the William Shakespeare, .css-5rg4gn{display:block;font-family:NeueHaasUnica,Arial,sans-serif;font-weight:normal;margin-bottom:0.3125rem;margin-top:0;-webkit-text-decoration:none;text-decoration:none;}@media (any-hover: hover){.css-5rg4gn:hover{color:link-hover;}}@media(max-width: 48rem){.css-5rg4gn{font-size:1rem;line-height:1.3;letter-spacing:-0.02em;margin:0.75rem 0 0;}}@media(min-width: 40.625rem){.css-5rg4gn{font-size:1rem;line-height:1.3;letter-spacing:0.02rem;margin:0.9375rem 0 0;}}@media(min-width: 64rem){.css-5rg4gn{font-size:1rem;line-height:1.4;margin:0.9375rem 0 0.625rem;}}@media(min-width: 73.75rem){.css-5rg4gn{font-size:1rem;line-height:1.4;}}Pharrell Williams LV Debut Is Just the Beginning, Its Not Just a Denim Maxi SkirtIts a Movement. All this elevates the importance of brands marketing strategies. Fashion companies that double down on strategy, align with key trends, and reflect an evolving consumer landscape are likely to emerge from the crisis stronger, leaner, and ready to thrive in the next normal. In North America, while overall consumer confidence is strong, the impact of policy changes is uncertain, and markdown pressures, market corrections, and store closures continue. In the meantime, domestic markets are set to continue their recent strong performance. As fashion brands invest in new digital applications, they must work harder than ever to protect their systems, partners, and customers. We may earn commission on some of the items you choose to buy. These forecasts are reflective of inflation and are calculated in local currencies, meaning that the real impact for the sector could be more negative than these figures suggest. Sustainability, which breaks into our respondents list of the most important challenges for the first time, is evolving from a tick-box exercise into a transformational feature. Read full article > Our first report, last year, laid the foundation for rigorous in-depth research and analysis, focusing on the themes, issues, and opportunities affecting the sector and its performance. In some cases, it can even be its own experience.
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