The fashion industry has reached its lowest point in consumer spending, and now it is ready to go back on track. What it’s crystal clear, however, is that the expected growth would not be comparable to the one witnessed in recent years. For the future, it is to be expected a growth at a rate of 2-2.5% according to McKinsey’s latest report “The State of Fashion 2017” commissioned by fashion blog BoF (Business of Fashion). What is certain is that the fashion industry, in all its segments (not just the luxury) and in all its product categories, is now worth 2.3 trillion euros. If it were a state, fashion would sit in the G7. For its report, McKinsey surveyed more than 1,600 officials from different companies: 40% of the responses provided an optimistic forecast for the year ahead (compared to only 19% in 2015), a group of pessimists (37%) and of a 23% which does not foresee big changes. “If we look back, we see that there have been two decades of strong acceleration due to geographical dimension: the US in the nineties and China in the new millennium” explained one of the authors of the research during the presentation of the study in London whose quote was reported by Affari & Finanza. “Existing geographies, however, have all an aura of dullness” continued the same author. According to the report, luxury product consumers are embracing less demanding purchases. This attitude will be beneficial for brands such as Michael Kors and Tory Burch. Two-thirds of the respondents agreed on the deterioration of trading conditions and profits, while those on the high-end products spectrum shun the idea of a quick comeback. McKinsey underlined the need to take into consideration the change of Millennial purchasing style who prefer online buying and the purchasing of an experience not as something purely commercial but as an experience.
According to a McKinsey’s report, the fashion compartment is cautiously set to grow in 2017
