Luxury brand leaders remain optimistic about 2019, despite the expected slowdown in fashion industry’s growth.
According to the newly released The State of Fashion 2019 report, luxury brand executives are the most optimistic about the coming year, while other segments are more wary of the economic outlook.
“Optimism in the luxury [segment] is aided by their strong performance in 2018 and is fuelled by fast-growing Asia-Pacific economies and the continuing boom in global travel,” said Achim Berg, senior partner, leader of the apparel, fashion and luxury group at McKinsey.
This year, luxury segment constituted the majority of the top 20 companies, which accounted for 97 percent of total profits for the whole industry.
In the next year, the growth of luxury fashion brands is expected to reach 5.5 percent, an improvement from 2018’s 4.5 percent. On the other hand, the industry in aggregate is forecast to grow 3.5 to 4.5 percent in 2019, a slight dip from 2018 figures.
“We predict that 2019 will be a year shaped by consumer shifts linked to technology, social causes, and trust issues, alongside the potential disruption from geopolitical and macroeconomic events,” the report said. “Only those brands that accurately reflect the Zeitgeist or have the courage to “self-disrupt” will emerge as winners.”