The State of Fashion 2017
The State of Fashion 2017 was created to provide a comprehen sive view of the fashion industry—one whose coverage remains fragmented and not systematically reported. Its principal aim is to lay out the interconnectedness of the entire fashion ecosystem across market segments and product categories by distilling the industry’s current and projected performance, and addressing the factors shaping and driving fashion today and in the year to come.
To accomplish this, the report relies on extensive qualitative and quantitative analyses, drawing on industry and proprietary sources, including executive interviews, the new BoF-McKinsey Global Fashion Survey, the McKinsey Global Fashion Index, which tracks industry sales, operating profit, and economic profit (value creation) and McKinsey’s FashionScope, a citylevel growth forecasting tool for the fashion industry.
The report is split into two sections: Section 1 provides a review of the industry in 2016, highlighting the industry’s performance across sales, operating profit (EBITA), and economic profit—a measure of value-add that takes into account both the explicit and implicit costs of generating income—and recapping the ten key themes that shaped 2016; Section 2 provides an outlook for 2017, forecasting for the first time expected growth for the fashion industry across market segments and product categories, highlighting the top priorities for executives, and defining the ten trends that we believe will set the agenda for the industry over the next 12 months.
In order to present a full picture of the ecosystem and bring to life the complex and multifaceted aspects of the industry, the report also includes a series of deep dives and executive interviews on some of the most exciting developments, including the growth of Russia’s fashion market, the new wave of digitisation of the supply chain, and the rise of new consumer capitals in China, the Middle East, and Latin America.