{ "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": 145, "pageCount": 154, "prevPage": 144, "nextPage": 146, "slideType": "testimonial", "function": "summarize", "density": "dense", "nDataPoints": 0, "notes": "The slide is a transcript of an interview, featuring a pull-quote as the primary visual element.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-3daf99bdaba2/145", "deckHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2#slide-145", "components": [ { "bbox": null, "kind": "callout", "text": "All cohorts of consumers, both older and younger, are increasingly valuing experiences over traditional asset accumulation.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-2e38-7248-a64c-1b13cb542f49", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.022, "w": 0.13, "x": 0.829, "y": 0.948 }, "kind": "image", "text": "BoF McKinsey & Company", "attrs": null, "subkind": "logo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "883ed0ec-f41c-4c7d-ba67-1a74d1de2cdb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.012, "w": 0.125, "x": 0.057, "y": 0.953 }, "kind": "paragraph", "text": "The State of Fashion 2025", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "179ebe56-2155-4d4f-963c-e87186f27547", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.855, "w": 0.688, "x": 0.057, "y": 0.073 }, "kind": "paragraph", "text": "Given the current market environment and the backlog of overdue exits, do you see exit strategies playing out in the year ahead? It's dynamic. On the positive side, there is a much more rational set of expectations between buyers and sellers now than three, four years ago. If you're a seller, you've been through some existential risk, including the pandemic, and maybe the world that you had and the valuations you had will never come back. You're more inclined to say, 'We should de-risk, when we can, at something reasonable.' That allows you to be able to transact between buyer and seller. We also see more strategic activity. For the right brands, there will always be interest. In time, you will see financial sponsors come back into this category as well. There needs to be more category health, more predictable demand and you need to have more market participants here. But it will come back. When you look to 2025, what are the big themes in consumer behaviour shaping the firm's investment strategy? You have to know which segment, which price band, are you talking about, because they behave quite differently. We tend to focus on the top 30 to 40 percent of US households. That's where the disposable income is created. You contrast that with Asia, where you've got a rising middle class powering the consumer economy. We will also continue to think very carefully around 'who is the consumer, where does this brand fit in, what's the emotional connection the brand has?' We're looking for things that are more than just functional in terms of why consumers buy. Everything has got to be supported by some sort of secular growth driver. We're not trying to time the economic cycle. Are there any trends or shifts you think are under-appreciated by the market? All cohorts of consumers, both older and younger, are increasingly valuing experiences over traditional asset accumulation. This is particularly true for the luxury consumer. We think about luxury travel, we've seen a lot of secular growth in those categories. Two, I think as you're building brands today, the days of business models that were monolithic around trying to scale in digital and single-channel, increasingly we're seeing the need for distribution, omnichannel growth and development. Wholesalers are great partners and distributors. They help build awareness. They valorise your brand for you. We're coming back again to that world. There are parts of luxury that haven't needed to do that, because they already control the distribution. But we think for younger brands, as they grow and scale, particularly in luxury, you're going to need to get comfortable having a broader channel strategy.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "255b3c0a-b708-47b5-a2ba-c7391c2dde38", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.3, "w": 0.2, "x": 0.755, "y": 0.065 }, "kind": "quote", "text": "All cohorts of consumers, both older and younger, are increasingly valuing experiences over traditional asset accumulation.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "52937e2f-cd54-44fd-bc36-15e724c2b418", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.012, "w": 0.237, "x": 0.508, "y": 0.877 }, "kind": "source-note", "text": "This interview has been edited and condensed.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de48def8-7e02-42c4-9107-e0a5c8ceff6d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.012, "w": 0.155, "x": 0.804, "y": 0.028 }, "kind": "title", "text": "McKinsey Global Fashion Index", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "189387e6-4745-4175-95d5-fb76714382c4", "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 }