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The State of Fashion 2022: McKinsey
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The State of Fashion 2021 - McKinsey
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The State
of Fashion 2022The State
of Fashion 20225
CONTENTS
EXECUTIVE SUMMARY 10?11
INDUSTRY OUTLOOK
12?17GLOBAL ECONOMY
20?3901: Uneven Recovery
How the Global Wealth Gap Is Impacting Fashion
02: Logistics Gridlock
Li & Fung: Facing up to Vulnerabilities in the Supply ChainCONSUMER SHIFTS
40?6303: Domestic Luxuries
JHSF: Betting Big on a Permanent Shift to Local Retail04: Wardrobe Reboot
PVH: Harnessing Creativity to Cut Through the Noise05: Metaverse Mindset
Gucci: Testing Luxury"s Opportunities in the MetaverseFASHION SYSTEM 64?111
06:Social Shopping
Snapchat: Enhancing the Social Shopping Experience 07:Circular Textiles
Novetex: Encouraging Brands to Raise Their Game on Circularity Time for Fashion to Raise Its Sustainability Ambitions to Deliver on COP26 08:Product Passports
Aura Blockchain Consortium: Uniting Rivals to Make LuxuryGoods More Traceable
09:Cyber Resilience
Five Imperatives to Protect Fashion Businesses from Cyber Risk 10:Talent Crunch
Farfetch: Adapting to the New Talent War
MCKINSEY GLOBAL FASHION INDEX
112?121
THE STATE OF BEAUTY 2021
122?129
MGFIBEAUTY
2022GLOBAL
ECONOMYCONSUMER
SHIFTSFASHION
SYSTEM
6The State of Fashion 2022
SASKIA HEDRICH
Saskia Hedrich is a global senior expert
in McKinsey's Apparel, Fashion &Luxury group. She works with fashion
companies around the world on strategy, sourcing optimisation, merchandising transformation and sustainability topics and publishes regularly. Additionally, she is involved in developing strategies for national garment industries across Africa,Asia and Latin America.
CONTRIBUTORS
ACHIM BERG
Achim Berg is a senior partner in
McKinsey's Frankfurt o?ce, and leads
McKinsey's Global Apparel, Fashion
& Luxury group. He is active in all relevant sectors including clothing, textiles, footwear, athletic wear, beauty, accessories and retailers spanning from value to luxury segments. As a global fashion industry and retail expert, he supports clients on a broad range of strategic and top management topics, as well as on operations and sourcing- related issues.IMRAN AMEDImran Amed is one of the global fashion
industry's leading writers, thinkers and commentators, and is founder, chief executive and editor-in-chief of TheBusiness of Fashion
(BoF), a modern media company and the authoritative voice of the global fashion and luxury industries.Imran holds an MBA from Harvard
Business School and a B.Com from McGill
University. He was born in Canada and
holds British and Canadian citizenship.Previously, Imran was a management
consultant at McKinsey & Co.ANITA BALCHANDANIAnita Balchandani is a partner in
McKinsey's London o?ce, and leads
the Apparel, Fashion & Luxury group in EMEA and the UK. Her expertise extends across fashion, health and beauty, specialty retail and e-commerce.She focuses on supporting clients in
developing their strategic responses to the disruptions shaping the industry, particularly accelerating digital growth and delivering customer-led growth transformations.JAKOB EKELØF JENSENfi
Jakob Ekeløf Jensen is an associate
partner in McKinsey's London o?ce, and is part of the leadership of McKinsey'sApparel, Fashion & Luxury group. He
works with fashion and luxury companies as well as investors in the industry acrossEurope, China and the US on topics such
as e-commerce, strategy, value creation, operating model and M&A. MICHAEL STRAUBMichael Straub is an associate partner
in McKinsey's Hong Kong o?ce, and co-leads the Apparel, Fashion & Luxury practice in Greater China. He partners with global luxury, fashion and beauty clients in defining their growth and go-to- market strategies for China and otherAsian markets.
7FELIX RÖLKENS
Berlin o?ce, and is part of the leadership
of McKinsey's Apparel, Fashion &Luxury group. He works with apparel,
sportswear and pure play fashion e-commerce companies in Europe andNorth America on a wide range of topics
including strategy, operating model and merchandising transformation. ROBB YOUNGAs global markets editor at
The Business
of Fashion, Robb Young oversees content from Asia-Pacific, the Middle East, LatinAmerica, Africa, the CIS and Eastern
Europe. He is an expert on emerging
and frontier markets, whose career as a fashion editor, business journalist, author and strategic consultant has seen him lead industry projects around the world.LEILA LE MERLE
Leila Le Merle is an engagement manager
in McKinsey's London o?ce, and is part of the Apparel, Fashion & Luxury group. She works with fashion and luxury companies across Europe and the US on topics such as e-commerce, strategy, value creation and operating model.PAMELA BROWNPamela Brown is a partner in McKinsey's
New Jersey o?ce, and is part of the
leadership of McKinsey's Apparel,Fashion & Luxury group in North
America. In this dynamic industry, she
partners with brands and retailers across categories and price points to tackle topics ranging from M&A strategy to growth acceleration and organisational transformations.HANNAH CRUMP
As associate director, editorial strategy
atThe Business of Fashion, Hannah
Crump contributes to the execution of
special editorial projects, ranging from case studies to in-depth market reports.With an extensive editorial background
in B2B and B2C publishing, she partners with industry experts to develop, edit and produce data-driven research and analysis for professionals in the global fashion industry.AMANDA DARGANAs director of strategy at
The Business of
Fashion, Amanda Dargan manages the
execution of special projects and strategic initiatives spanning the company's creative and commercial divisions. With a background in private equity, she partners with internal and external stakeholders to identify and develop new business opportunities and optimise key internal operations. 8The State of Fashion 2022
9ACKNOWLEDGEMENTS
The authors would like to thank Emma Bruni and Dunja Matanovic from McKinsey's London and Oslo o?ces respectively for their
critical roles in delivering this report. We would also like to thank Abhishek Goel for his significant contribution to the MGFI article
this year.A special thanks to all members of
The Business of Fashion
and the McKinsey communities for their contributions to the research andparticipation in the BoF-McKinsey State of Fashion 2022 Survey, especially the many industry experts who generously shared their
perspectives during interviews. In particular, we would like to thank Claire Bergkamp, Daniela Ott, Daria Shapovalova, Geraldine
Steven Whitehead and Susan Scafidi. We'd also like to thank StyleSage and Lyst for their invaluable data sharing for this report.
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