{ "docId": "019dd923-5de0-76bd-a16a-3daf99bdaba2", "docSlug": "d226a513f9a7a03c", "documentTitle": "The State of Fashion 2025", "authorId": "McKinsey", "authorName": "McKinsey", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.333, "pageNumber": 143, "pageCount": 154, "prevPage": 142, "nextPage": 144, "slideType": "quote_slide", "function": "summarize", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide contains a large pull-quote on the right side and three columns of text summarizing industry insights.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-3daf99bdaba2/143", "deckHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2#slide-143", "components": [ { "bbox": null, "kind": "callout", "text": "For millennia, people have thought about their place in society based on what high-badge products do in terms of conferring that. The basic need we don't think goes away.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-2e38-7248-a649-070bc8635701", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.26, "x": 0.058, "y": 0.205 }, "kind": "paragraph", "text": "I will tell you our perspective: First and foremost, it's not that you need to be profitable, it's that you need to have a very strong profit formula in the business. We look at that in terms of gross margin. You need to be able to understand 'why does the business command that gross margin and can it continue to do that?' In other words, does the brand have pricing power, and if so, why and how.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "13a0a76b-8d3c-4b85-9eb6-d020afced2b9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.282, "y": 0.145 }, "kind": "paragraph", "text": "Second, the ability to be able to define and be true to your DNA. There are great brands in fashion who are building a beautiful product, but that product isn't necessarily tied into the DNA of the brand, so consumers have a difficult time identifying how this fits in with what you are about.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "41acff48-8c33-40cf-8e27-fb8fcb41f22b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.22, "w": 0.26, "x": 0.058, "y": 0.625 }, "kind": "paragraph", "text": "What characterises winning fashion companies? 'Fashion' is a loaded term, because it can imply a degree of following trends, and trends can be very difficult to call. What wins in fashion in particular is a clear understanding of your consumer, who you're targeting and why you're targeting them, where you fit into their world and what [you are] offering them.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "44f25b71-c043-49e6-add4-178181b21d7d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.26, "x": 0.058, "y": 0.071 }, "kind": "paragraph", "text": "Over the past few years, we've seen changes in what investors prioritise in companies. Profitability has become more important, for example. What will brands need to prove to investors in 2025 to win their backing?", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "490747b6-dfc3-45bd-89ad-749ed05bf31c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.26, "x": 0.507, "y": 0.12 }, "kind": "paragraph", "text": "In sportswear we've seen the rise of challenger brands successfully chipping away at the dominance of incumbents. Is that unique to sportswear, or is that something you see happening in other categories? In my opinion, it's lent itself well to sportswear because there's so much usage and the category was rising, so it's not atypical that, when you have that happen and you've got a few concentrated players, you'll have new propositions arise, because the juice is worth the squeeze. There's a market opportunity. In other categories where you haven't seen that happen, it's more because, rightly, people are asking, 'Is the effort worth it? Is there enough tailwind in those subcategories?' If we were to look across other spaces, luxury and non-luxury, certainly at beauty and personal care, you'll see similar trends.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4d40689a-24c2-4fa0-aacb-b0f0fe7147e1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.26, "x": 0.282, "y": 0.355 }, "kind": "paragraph", "text": "Luxury had been fashion's big value creator, but it slipped this year. Do you believe that's purely due to macroeconomic factors, or is the consumer's view of luxury changing? Depending on which cohort, there may be an indexing of spend that goes more towards experiences rather than product. In other cases, the dynamic is different. China is going through its first period of [its growth rate] and demand decreasing. As that's happening, the Chinese consumer is doing exactly what every other consumer does — they think about their balance sheet, and they are deferring whatever they can. At the end of the day, luxury has a fundamental place in existence. For millennia, people have thought about their place in society based on what high-badge products do in terms of conferring that. The basic need we don't think goes away.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "502be87d-dade-42c5-a980-ab9a511e7bbc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.26, "x": 0.507, "y": 0.7 }, "kind": "paragraph", "text": "Do you have a sense of what's allowing challenger brands to compete against the incumbents? Today, cohorts of consumers are consuming media from such fractionalised sources that you've got these tribes that emerge, and we live", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dbf3812f-d7a4-40c6-8ac9-4a34c0c6f622", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.26, "x": 0.058, "y": 0.44 }, "kind": "paragraph", "text": "The opposite is the watchout. How much of the brand proposition is sold on discount? Through what outlets are you selling it? As an investor, it's not just looking at profitability and EBITDA. It's looking at the resonance of this brand.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f59cfd6c-fd48-46bc-ba40-cb8d6f84d12a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.455, "w": 0.213, "x": 0.746, "y": 0.071 }, "kind": "quote", "text": "For millennia, people have thought about their place in society based on what high-badge products do in conferring that. The basic need we don't think goes away.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8c7898c3-46e3-4aa5-9aaf-0b0c9c9d1b27", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "For millennia, people have thought about their place in society based on what high-badge products do in terms of conferring that. The basic need we don't think goes away.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-2e38-7248-a649-0832040e1379", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.136, "x": 0.804, "y": 0.028 }, "kind": "title", "text": "McKinsey Global Fashion Index", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8ba5ea0e-6121-416c-80ad-14054464e733", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 154, "from": 20, "beatId": "54b19f34-d2fb-4a44-bbd4-baec035a1a11", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution (Provide relief)", "beatSlug": "problem-agitate-solution-solution-provide-relief", "evidence": "The document provides solutions and recommendations for fashion brands to address these challenges and succeed in 2025.", "position": 2, "confidence": 0.8, "parentBeatName": "Resolution", "parentBeatSlug": "resolution" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }