The State of Fashion 2024 released
©BOF
The fashion industry faces an unprecedented blend of challenges in the wake of geopolitical turmoil, climate adversities, and persistent inflation, creating a turbulent market landscape. The recently released State of Fashion 2024 report, jointly developed by McKinsey & Company and Business of Fashion (BoF), delves deep into the impacts of these dynamics and anticipates the upcoming trends and hurdles.
The report pinpoints ten crucial areas for the industry, derived from extensive global surveys involving both fashion executives and consumers. Forecasts showcase a divided perspective among industry experts, with 26% envisioning improvements, 37% expecting the status quo, and 38% predicting deteriorating conditions. The estimated growth hovers modestly at 2 to 4 percent, with factors such as a potential upsurge in global tourism by 10% surpassing 2019 levels and the emergence of generative artificial intelligence (gen AI) offering opportunities.
Notably, the climate crisis emerges as a pivotal pressure point for the industry in the upcoming year. With extreme weather events surging in 2023, companies are poised to fortify their resilience against climate impacts in 2024. Extreme weather occurrences already endanger fashion workers' lives and livelihoods, and unless addressed, they might jeopardize an estimated $65 billion of apparel exports by 2030.
Key Insights from the Report:
Industry Outlook: Predicted 2 to 4 percent retail sales growth but with divided expectations among industry experts.
Climate Impact: Increasing climate pressures and extreme weather events threaten apparel exports and workers' livelihoods.
Consumer Confidence: Fragile post-pandemic confidence affecting markets differently across the US, Europe, and China.
Focus Areas and Strategies:
Resilience Needed: Brands urged to fortify climate resilience and navigate supply chain disruptions effectively.
Regulatory Impact: Anticipated regulations on sustainability necessitate aligning business models with new standards.
Technological Leaps: Embracing generative AI for creativity and addressing talent gaps in implementation.
Consumer Engagement: Shifting towards emotional brand connections and innovative influencer collaborations.
Travel Resurgence: Brands gearing up to engage with returning travelers and anticipating increased outdoor wear demands.
Conclusion:
The State of Fashion 2024 underscores a challenging yet transformative year ahead. Brands must prepare for uncertainties, focus on resilience, comply with sustainability standards, and adapt to evolving consumer behaviors to thrive in this dynamic landscape.
