At the end of 2018, Business of Fashion and McKinsey & Company released their annual State of Fashion report. The lengthy document breaks down 10 trends for fashion in 2019, with each trend placed in one of the following categories: Global Economy, Consumer Shifts or Fashion System. Don’t want to read the full report (its 108 pages!)? I got you covered with a summary of what you need to know, starting with 2019 Global Economy trends.
Part 1: Global Economy
- Caution Ahead– After years of worldwide economic growth; rising interest rates, warnings of a potential financial bubble in China and static manufacturing productivity are causing economic forecasters to predict a global slowdown.
What does this mean for fashion? Simply put, people are going to spend the same amount or less on fashion but the cost of fashion will remain consistent – meaning no growth for the fashion sector. The report predicted this will push the industry to increase productivity in an attempt to bring down the cost of goods.
- Indian Ascent- While the rest of the world starts to slow down, India is entering a period of dramatic growth. Propelled by a growing middle class that will outpace that of China’s, the country is going to be full of young people ready to spend.
The State of Fashion 2019: A year of awakening
What does this mean for fashion? Well, it means “proceed with caution”. It is clear that all signs point to India, but the region is far from simple: the population is extremely diverse, traditional malls are few in number, infrastructure is challenging, and e-commerce is accelerating. It is imperative that companies understand the region before entering the market.
- Trade– Trade Policy is a loaded topic but the report makes it pretty clear: get ready for change!
What does this mean for fashion? Changing trade policy means a lot of things for the fashion supply chain. The “ingredients” that go into making and selling a garment come from all over the world. If the price and process to acquire these “ingredients” change, the entire supply chain will be affected.
Want to read more about these trends? Check out the full report here. Stay tuned for part 2 of this series to see BOF and McKinsey & Company’s forecast of consumer shifts in 2019.
