{"id":990884,"date":"2024-02-09T18:30:22","date_gmt":"2024-02-09T15:30:22","guid":{"rendered":"https:\/\/lonca.com\/?post_type=sektorraporlari&p=990884"},"modified":"2024-02-09T18:44:10","modified_gmt":"2024-02-09T15:44:10","slug":"modanin-durumu-2023","status":"publish","type":"sektorraporlari","link":"https:\/\/lonca.com\/en\/sektor-raporlari\/state-of-fashion-2023\/","title":{"rendered":"The State of Fashion 2023"},"content":{"rendered":"
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Fashion companies will face economic turbulence, technological shifts, and intensifying competition in 2024. However, changing consumer priorities will continue to create opportunities.<\/span><\/div><\/div><\/div><\/section>
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Storm clouds are gathering,<\/strong>\u00a0but the experiences of recent years show how the fashion industry can overcome the challenges ahead. The McKinsey Global Fashion Index showed once again the sector\u2019s resilience in 2022, indicating that it nearly matched the record economic profit of 2021. Repeating the model of the previous year, the luxury segment performed better, with a 36 percent increase in economic profit that offset weakness in other segments. Yet even the non-luxury segment remained above its long-term average. Strong margin performance meant that in 2022 the sector, except for one year, generated more than twice the economic profit of any year between 2011 and 2020.<\/p>

In 2023, the industry faced both persistent and deepening challenges. Regionally, Europe and the United States experienced slow growth throughout the year, while China\u2019s initially strong performance lost momentum in the second half. The luxury segment also started the year well, but began to feel the effects of weak demand in the second half, leading to a slowdown in sales and uneven performance.<\/p>

Looking ahead to 2024, the most prominent sentiment among fashion industry leaders is uncertainty, reflecting the likelihood of weak economic growth, persistent inflation, and weak consumer confidence. In this environment, businesses will struggle to identify value pools and unlock the key drivers of new performance.<\/p>

According to McKinsey\u2019s fashion forecast analysis, the global industry is expected to record revenue growth of 2 to 4 percent in 2024, with differences at the global, regional, and country levels. Once again, the luxury segment is expected to take the largest share of economic profit. But even there, companies will face a difficult economic environment. As consumers curb spending after post-pandemic volatility, the segment is expected to grow globally by 3 to 5 percent, compared with 5 to 7 percent in 2023. While growth is slowing in Europe and China, growth in the U.S. is expected to recover after weakness in 2023, reflecting a slightly more optimistic outlook there.<\/p>

Beyond luxury, parallel to the probable outcome of 2023, the rest of the sector is expected to grow by 2 to 4 percent next year. Compared with Europe\u2019s growth of 5 to 1 percent in the second half of 2023, the European market will likely expand by only 1 to 3 percent. Weak consumer confidence and reduced household savings are expected to be the most likely reasons for constrained spending. The U.S. non-luxury sector is expected to grow by 0 to 2 percent. China is also expected to face growth of 4 to 6 percent; although this would be a slight increase compared with the end of 2023, historically it would still be slow.<\/p>

These are just a few of the findings from The State of Fashion 2024, published by\u00a0The State of Fashion 2024<\/em>\u00a0, published by Business of Fashion (BoF) and McKinsey. The eighth report in the annual series analyzes the forces shaping the fashion economy and evaluates the sector\u2019s potential responses. Drawing on in-depth research and many conversations with industry leaders, it identifies the key trends that will shape the fashion landscape in the year ahead.<\/p>

Uncertainty in the Face of the Wind<\/h2>

Because of conflicts in Europe and the Middle East and tense international relations elsewhere, fashion industry executives\u2019 number one concern heading into 2024 is geopolitics, followed by economic volatility and inflation. In the survey conducted in September, about 62 percent of executives said geopolitical instability was the biggest risk to growth. Economic volatility was cited by 55 percent, and inflation by 51 percent (compared with 78 percent last year). Global average inflation is estimated to fall from 6.9 percent in 2023 to 5.8 percent (still high by historical standards).1<\/sup><\/a><\/span><\/p>

In a difficult economic environment, executives\u2019 views on the future of the sector are more divided than in any year since the BoF-McKinsey Executive Survey began in 2017. While 26 percent of respondents said they expect conditions to improve year over year, 37 percent and 38 percent said conditions will remain the same or worsen.<\/p>

Uncertainty in the sector reflects the broader economic environment despite regional differences. Heading into 2024, pressure on household incomes is expected to reduce apparel demand and decrease cross-category spending. Even so, some geographic bright spots may provide relief. One of these is India, where consumer confidence reached its highest level in four years in September 2023.2<\/sup><\/a><\/span>\u00a0According to executives based in India, the country is improving. McKinsey\u2019s\u00a0Global Economics Intelligence survey<\/a>\u00a0shows that 85 percent of respondents expect conditions to improve over the next six months.3<\/sup><\/a><\/span>\u00a0China faces economic challenges, but consumers there still show more willingness to shop for fashion in 2024 than consumers in either the U.S. or Europe.<\/p>

10 Themes for 2024<\/h2>

Preparing for challenges and staying alert to opportunities will likely lead top fashion companies to prioritize urgent scenario planning for the coming year. One of the main themes will be companies that accelerate growth while managing prices carefully and tightly controlling costs and inventory. Brands and suppliers can expect an increasingly competitive environment. Yet opportunities will also come from consumers\u2019 discovery of new styles, tastes, and priorities; all of these present ways to create value. As in previous years, this year\u2019s report highlights ten new themes that will sit at the top of leadership agendas.<\/p>