Fashion industry’s growth will reduce between 3.5% and 4.5% during the next years in all markets but the Asiatic one, which will continue to grow.
China outweighs the United States. The Asian country is the region where fashion industry is experiencing a bigger growth. By 2019, its market will be the biggest one in the sector for the first time in history, according to the new report The State of Fashion 2018 carried out by consultant McKinsey.
The document predicts that the fashion industry will slow down its growth between 3.5% and 4.5% in all regions during the next year. However, whilst Europe and the United States register a lower growth during 2019, it is quite likely that China will register a greater rate.
The report points the Asian country as the one in the world in which the fashion market will be granted with a greater growth. China’s role in the sector is evolving towards a more modern production and an improvement in the manufacture of clothing items. Furthermore, the country’s incipient middle class is also influencing that the expense in fashion registered in China impacts consumption directly.
On the other hand, The State of Fashion 2018 also points out polarisation as a reality in the fashion industry. A 97% of the total economic profits obtained by the whole of the sector is solely focused in twenty companies, most of them from the luxury segment. Among these long-haul leaders are groups such as Inditex, LVMH or Nike, who have doubled their profit in the last ten years taking away the leadership from department stores groups.