After nearly two years of disruption, the global fashion industry is once again finding its feet. Companies are adapting to new consumer priorities, and digital is providing a nexus for growth. Still, the industry faces significant challenges amid supply-chain disruption, patchy demand, and persistent pressure on the bottom line. With the majority of companies struggling to turn a profit, growth will be a key priority in the year ahead.
Supply-chain issues, patchy demand, pressure on the bottom line: these may not be the first “fashion trends” that spring to mind for you, but they’ve certainly made an impression on the industry. While fashion is beginning to find its feet again, the sector has faced an undeniably challenging stretch of disruption. For example: Revenues and margins declined from 2019 to 2020, and over two-thirds of companies in the McKinsey Global Fashion Index were value destroyers. So as 2022 approaches and the recovery continues, growth will be a key priority. Want more on what’s ahead for the industry? Don’t miss The State of Fashion 2022—download the free report, written in partnership with the Business of Fashion, or check out the executive summary for insight on the most important dynamics shaping the landscape.