Agenda-setting intelligence, analysis and advice for the global fashion community.

Consumers Want Brands to Prove They’re Worth It

Macroeconomic pressures and rising prices have driven fashion shoppers to adopt cost-conscious behaviours. To capture customers’ share of wallet, brands will need to prove their value, finds the BoF-McKinsey State of Fashion 2025.

Value Shift Lead — Customers are turning to off-price retail, resale and dupes in the search for value. (Shutterstock)

09 January 2025

In 2022, consumer confidence indexes in the US, Eurozone and China hit their lowest levels since 2005, and confidence in China once again neared record lows in August 2024. Across markets, shopper uncertainty about macroeconomic conditions remains. In the first half of 2024, consumer confidence was about 10 to 30 points below 2019 averages across the Eurozone, US and China, though confidence levels in the Eurozone and US are ticking up slightly from 2023.

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The State of Fashion 2025: Challenges at Every Turn

The ninth annual State of Fashion report by McKinsey & Company and BoF Insights, The Business of Fashion’s data and advisory team, reveals that economic and geopolitical challenges, combined with shifts in customer values, will define a turbulent year ahead. Download the full report to understand the 10 themes that will shape the industry and the opportunities for growth in 2025.

Ralph Lauren: Selling a Dream at Every Price

The American brand is seeing rising sales even as consumers rebel against high prices. For the BoF-McKinsey State of Fashion 2025, CEO Patrice Louvet spoke about how pricing and merchandising strategies have set up the company for success in uncertain times.

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