The ninth annual report by McKinsey & Co and BoF Insights, The State of Fashion 2025, reveals a challenging runway ahead. With only 20% of executives predicting improved consumer sentiment and 39% expecting worse industry conditions, brands face mounting pressure to craft creative, agile strategies. We combed through the 154-page PDF 🤓 and these are the standout opportunities to tailor your 2025 playbook:
👛 Consumer caution reigns: Shoppers are tightening their belts, with 70% of executives naming weak consumer confidence as the top challenge. Value-for-money segments like resale and dupes are thriving, and 70% of consumers plan to shop outlet or off-price retailers — even if they have extra cash.
🌏 Asia’s new fabric: As China’s growth slows, India, Japan and Korea emerge as APAC’s new stars. 63% of executives view mature APAC markets as growth hot spots in 2025.
👵 Silver linings: Over-50 shoppers are stepping into the spotlight. By 2025, this demographic will drive 48% of incremental global spending growth.
🛍️ Discovery evolves: Shoppers overwhelmed by choice want smarter solutions. Enter AI-powered curation: 50% of fashion executives see product discovery as the top use case for gen AI in 2025. It’s the personal stylist shoppers didn’t know they needed.
🌱 Sustainability stays: Only 18% of executives cite sustainability as a top growth risk (down from 29% in the 2024 report!), but climate pressures and regulations will demand action. 63% of fashion brands must accelerate emissions reductions to meet 2030 targets. Long-term investments in greener practices promise a competitive edge, even as consumers hesitate to pay a premium.
Why this matters, even if you’re not a fashion brand. Consumer expectations are shaped by the transformations this industry is going through. In the expectation economy, cross-industry benchmarks are the name of the game. And staying ahead means stitching innovation into every thread of your strategy ;)