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DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS As only McKinsey can Fast fashion’s future In the news • Fast fashion’s new era. Following the boom in luxury retail in recent years, with some brands posting annual revenue gains of more than 20 percent, fashion incumbents now face tougher times, the Business of Fashion’s editor-in-chief shares with Fast Company. Fast-fashion players continue to shake up the industry, with some Chinese apparel and consumer goods giants developing flexible production cycles that enable them to factor in consumer demand before deciding what to produce more of. [Fast Company] • ‘Slow fashion.’ For many, buying a garment from a fast-fashion retailer may come with a side of guilt, as the environmental and human implications become more apparent. The slow-fashion movement supports the use of finer materials and a streamlined supply chain that doesn’t include flying items all around the world, a sustainable-fashion expert explains. Developing sustainable-shopping habits can start with an annual wardrobe audit to determine what to keep, give away, and sell, a stylist suggests. [National Geographic] According to a Business of Fashion and McKinsey report, 40% of US consumers and 26% of UK consumers have shopped at Shein or Temu in the past 12 months. On McKinsey.com • Bigger wardrobes. Fashion is serious business. The global industry was estimated to be worth $1.7 trillion in 2023. From 2000 to 2014, clothing production doubled and the number of garments purchased per capita increased by about 60%. This is due, in part, to the rise of fast fashion. Fast-fashion retailers compress production cycles, enabling shoppers to expand their wardrobes quickly and cheaply. • Focusing on sustainability. For all the growth it generates, the fast-fashion industry is also responsible for considerable waste. For every five garments produced, the equivalent of three end up in a landfill or are incinerated each year, McKinsey senior partner and managing partner of McKinsey in France, Clarisse Magnin-Mallez, and coauthors explain. Explore four ways that fast-fashion leaders can make their business models more sustainable. Get up to speed on fast fashion —Edited by Belinda Yu, editor, Atlanta Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007