{ "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": 6, "pageCount": 154, "prevPage": 5, "nextPage": 7, "slideType": "executive_summary", "function": "summarize", "density": "dense", "nDataPoints": 2, "notes": "The slide uses a hand-drawn illustration of pointing fingers as a visual motif.", "elementsJson": [ "paragraph", "other" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a16a-3daf99bdaba2/6", "deckHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2", "deckJsonHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a16a-3daf99bdaba2#slide-6", "components": [ { "bbox": null, "kind": "callout", "text": "Just 20 percent expect improvements in consumer sentiment in 2025, while 39 percent see industry conditions worsening.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-2e38-7248-a63b-697a99e8448f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.65, "w": 0.25, "x": 0.67, "y": 0.25 }, "kind": "image", "text": "Hand-drawn pointing fingers illustration", "attrs": null, "subkind": "illustration", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "21a9d0da-b6ec-4340-9b56-2d10ac3e8b36", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "revenue growth: 20%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-2e38-7248-a63b-6d52142599d6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.65, "w": 0.58, "x": 0.058, "y": 0.275 }, "kind": "paragraph", "text": "Though hard to predict even in the best of times, the fashion industry is in for a particularly tumultuous and uncertain 2025. A long-feared cyclical slowdown has arrived. Consumers, scarred by the recent period of high inflation, are increasingly price sensitive. There is also the surprising rise of dupes, the acceleration of climate change and the continued reshuffling of global trade. Regional differences, which came into focus in 2024, will become even starker in the coming year.\n\nIn short, the negative environment predicted by many in the fashion industry this time a year ago has now manifested. There is still growth to be found, but economic uncertainty, geographic disparities as well as shifting customer behaviour and preferences mean seizing it will require navigating a maze of compounding challenges at every turn.\n\nConsequently, 2025 is likely to be a time of reckoning for many brands. The upshot is that there is still opportunity to be found for brands that move nimbly and are quick to adapt to upheavals in a chaotic marketplace.\n\nSluggish Growth Continues\nJudged purely by the topline, the fashion industry’s outlook for 2025 appears to be a continuation of the sluggishness seen in 2024: revenue growth is expected to stabilise in the low single digits. While luxury has led in value creation in recent years, the McKinsey Global Fashion Index forecasts that in 2024, it is non-luxury that will drive the entirety of the increase in economic profit for the first time since 2010 (excluding Covid-19).\n\nFashion leaders polled in our annual BoF-McKinsey State of Fashion Executive Survey were just as pessimistic as last year. Just 20 percent expect improvements in consumer sentiment in 2025, while 39 percent see industry conditions worsening.\n\nThe geographic drivers of revenue and economic profit are also undergoing historic shifts. In particular, the industry will benefit from falling inflation and increased tourism in Europe, the resilience of high-net-worth individuals in the US and new growth engines in Asia to counteract uncertainty around consumer spending in China, which is still recovering from the pandemic. China will remain the region’s centre of gravity, but as the country is buffeted by macroeconomic headwinds, brands will pivot focus to other Asian markets, most notably Japan, Korea and India.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9e752626-13a8-438c-b3c8-7ecd700625db", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.215, "x": 0.058, "y": 0.075 }, "kind": "title", "text": "EXECUTIVE SUMMARY", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "30854721-2ce9-41e8-b7d1-199165e26a56", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.45, "x": 0.058, "y": 0.125 }, "kind": "title", "text": "Challenges at Every Turn", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c63b1de5-6c84-44e4-bd46-d938331a0e40", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 9, "from": 1, "beatId": "6d1af82b-265c-4ce8-8a20-1fa50991ed94", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Problem (Identify pain)", "beatSlug": "problem-agitate-solution-problem-identify-pain", "evidence": "The document identifies challenges facing the fashion industry, such as uncertainty, low growth, and changing consumer behaviors.", "position": 0, "confidence": 0.8, "parentBeatName": "Complication", "parentBeatSlug": "complication" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }