Mckinsey Explains The Performance Of Fashion Industry In 2016 And 2017.

Recently, McKinsey released a report called The State of Fashion 2017 (looking forward to the fashion industry in 2017). The report, together with the fashion media BoF, has tracked the valuable sales data of the fashion industry, visited the CEO of 1600 global fashion brands, and announced the McKinsey Global Fashion Index. The most important thing is to summarize the development rules of the fashion industry from macro to micro. Although the name is looking forward to 2017, the 92 page report also used a large number of words to sum up the fashion industry in 2016.

　　 1. macro political and economic uncertainties

The uncertainty of macro political and economic environment is a worry for fashion companies. McKinsey interviewed 1600 CEO brands in the world. They are worried about terrorist attacks, slowing economic growth in China and changes in the European community. In addition to the impact of terrorist attacks on tourism consumption in some areas, it may also promote cross-border electricity supplier transactions. According to McKinsey's forecast, about 940 million consumers of online shopping spend 1 trillion dollars on cross-border electricity consumption in 2020.

　　 2. China's economic slowdown

This is a euphemism of "China's market is very important". In short, the consumption capacity of other countries has not been strong since the global economic crisis in 2008, but the Chinese have been buying and buying. Therefore, China is regarded as an important emerging market of fashion industry. But according to the National Bureau of statistics in April this year, China's GDP grew by 6.7% in the first quarter, compared with 7% in 2015 and 10% in 2010. The slowdown in the Chinese economy has made fashion companies worry that the consumption power of the Chinese market is weakening.

What's worth mentioning is that McKinsey has also studied the rapidly changing consumption habits of Chinese consumers: first, Chinese consumers are becoming more and more picky about spending money on shopping; second, they are willing to spend more money on the service and experience of lifestyle products.

　　 Three Discount culture Rise

Consumers today demand not only customized products and services, but also discounted consumption. The North American market is a typical commodity discount market. So far, 2016 of the clothing sales in all channels of the North American market have been discounted sales of 75%. Some traditional retailers have begun to make outlets, discount stores, and so on.

In other markets, such as Oteri J, China, the discount shop is booming and will double in the 2020 year. Similarly, other countries in Britain, Germany and Europe have similar situations. However, the discount strategy may bring effect in the short term, but in the long run it will damage brand value and is not conducive to the development of fashion brands.

　　 4. consumer habits are changing

The lifestyle of consumers continues to evolve. In 2016, there were 4 main forms:

1) as consumers pursue leisure culture, sports and leisure wear products are growing rapidly.

2) from the fashion category, gender consciousness is gradually blurring. For example, Zara launched the sex free series in March of this year, while department store Selfridges opened the new concept retail space of The Designer Studio in July. All the products are not classified according to the brand, nor are they displayed by men or women.

3) the big code fashion has been taken seriously. In the market, there has been a special brand of big code fashion, and not only some brands have only added large yards.

4) the demand for fashion in the Muslim world, especially in the Middle East and South Asia, has been emphasized. For example, Uniqlo and Dolce & Gabbana have made products for this purpose.

　　 Five Digital upgrade

Consumers can find promotional information and discount products relying on new technologies. They are also accustomed to buying on the electricity supplier. In addition to the topic of "increasingly important business channel", the application of VR technology in fashion industry is also a digital upgrade. Although fashion companies often use VR when they are using the Dior - Tommy Hilfiger store, they use VR technology to reproduce their scenes in fashion week.

　 6. creativity crisis

The production cycle of fashion industry is changing, for example, the appearance of buy and sell mode. Some brands will publish 6 series of works every year. This is equivalent to putting pressure on the creative directors of Christian Dior, Lanvin, Calvin Klein and Saint Laurent. This is not limited to the luxury market, but also the mass consumer goods market. Fast fashion companies are also adjusting their pace to adapt to shorter fashion cycles.

Another change is that designers can't push their products to the market in an arbitrary manner. They need more feedback from the retail team to decide the direction of design.

"The market in 2016 was full of turbulence and uncertainty. McKinsey believes that the market will ease this turbulence and uncertainty in 2017, and the market will grow by 2.5% to 3.5%. The growth of high-end consumer goods (luxury goods) is unlikely.

　　 The outlook for the fashion industry in 2017 has the following priorities:

1. "uncertainty will be a new normal".

In the 2017 forecast, McKinsey's report put the macro political and economic environment on the first point. Moreover, this content is similar to the analysis of 2016 years, and also refers to terrorism and Britain's political withdrawal from Europe. However, a new view is put forward: "this turbulence situation will be a new normal for the fashion industry (yes, the word" New Normal ").

　　 2., the important Chinese market is still given priority, but the consumption power of this market is revival.

In fashion business, Chinese consumers play a very important role. Mccann CEO, a fashion company interviewed by Xi Yue, believes that the consumption of this market is weakening temporarily because there is a growing middle class group and a growing consumption of mobile phones. McKinsey believes that in 2015 - 2025, the number of the upper middle class in China will account for 28% of the world's total, while the United States will only account for 3% of it.

　　 In the 3.2016 year's conclusion, there is no "urbanization" factor.

Urbanization is a trend. In emerging markets, a number of new fast-growing cities are becoming richer, and consumers are providing shopping centres for the first time to become the center of fashion development. For example, over the past 30 years, 4 hundred billion Chinese have moved to cities, and they have provided new opportunities for the development of fashion companies.

　　 4. unpredictable smart consumers

In the 2017 year, consumer demand and consumption habits will become more and more complex, and will be more and more influenced by technology. They become more astute and have deeper ties and more demands.

This also encourages retailers to think more about how to build future stores, how to create consumer experience, and how to create consumer experience through all channels. Brands need to have a global perspective to understand what consumers want, what they like, what they do not like, where they like to shop, how to shop and so on. What fashion companies need to do is to divide information and seize market segments. Mansur Gavriel, which is famous for selling bucket bags, is a good example.

　　 5. the business of young people is very important, but we should also pay attention to the older generation. Consumer

Intergenerational correlation is an important issue. There are two consumer groups that are important. One is the millennial generation, the other is the retired elderly in developed countries. In the next 15 years, the number of elderly people will increase by 1/3, from 164 million to 222 million. By 2025, the number of people over the age of 60 will account for 30% of the total population of developed countries, accounting for 13% of the population of developing countries. These will be transformed into consumption power in cities.

Another important problem is that fashion companies should not only focus on the age of these two groups, but their values.

　 6. health is indeed a bonus, but what fashion brands do now is still on the surface.

Consumers now pay more and more attention to fitness. This new way of life has also brought some new business opportunities to the fashion industry. They have also released their own sports and leisure production lines. Not only that, they are trying to attract consumers' attention, such as Nike's running clubs, Reebok has made CrossFit gym, etc.

However, McKinsey's report argues that the idea that fashion brands now want to relate to consumers' fitness is isolated and superficial. Some brands focus on storytelling. Some brands are designed with organic fabrics. "Health should be a person's overall sense, and psychological, physical, emotional and so on. The more a brand can relate to all these aspects, the more it can be associated with consumers. " The report reads.

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