[Report] The State of Fashion 2025: Challenges at Every Turn – Business of Fashion

The ninth annual State of Fashion report by McKinsey & Company and BoF Insights, The Business of Fashion’s data and advisory team, reveals that economic and geopolitical challenges, combined with shifts in customer values, will define a turbulent year ahead.

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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.

In 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.

Consequently, 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.

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Read the full article via this link: https://www.businessoffashion.com/reports/news-analysis/the-state-of-fashion-2025-bof-mckinsey-report/

Read the full report: https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion