The State of Fashion 2018 | Australia
In collaboration with McKinsey & Company, we were delighted to last week host an industry leaders’ reception to launch The State of Fashion 2018 report in Australia. Joined by MC Clare Press, Sustainability Editor-at-Large at Vogue Australia, Jenny Cermak, Partner at McKinsey & Company, and guest speaker Jack Calhoun, Senior Adviser at McKinsey & Company, the evening saw Jack share key insights on the trends shaping the global fashion industry in 2018, as well as how the Australian industry stacks up.
The Report aims to; establish a common understanding of the forces impacting the industry, shed some clarity on the Industry's performance and, set the agenda for the topics that should be top of mind for business & creative leaders in 2018.
When interviewed ahead of the launch night by Glynis Traill-Nash for The Australian, Jack identified a few positives for the Australian industry, namely that we are in line with approximate growth predictions for developed markets of 4%.
“2016 for the industry was a pretty tough year... We just surveyed all the CEOs and they felt much more optimistic at the end of 17 than they did at the end of 16, and they’re feeling like they’re going to see growth in 2018. For the first time we’re feeling there’s a little more wind in the sails and you guys are in the middle of that path.” Jack Calhoun (See the full story here >>)
Jack expanded upon this at the launch reception, detailing the global trends set to shape our industry in 2018. In conversation with Vogue Australia's Clare Press, he identified that these are not specific to one market, they are global trends, all applicable to the opportunities for us here in the Australian market.
Some key points identified in relation to Australia, were that we are actually perceived as ahead when it comes to Sustainability. That we hold market advantage with our close proximity to Asia. That despite global competition, with the likes of Amazon entering the market, we shouldn't panic. Clare and Jack also talked on the importance of leveraging 'Uniqueness' from the Australian standpoint.
"Distinctive product wins in this industry. There is so much product out there... when you have a point of view - points of view always win... the brands that do well, today and always, are the brands that... keep it clear and precise." Jack Calhoun
The 10 trends shaping the global fashion industry in 2018.
So here they are, from Jack's presentation, the 10 trends that will shape the global fashion industry in 2018;
1) Predictably Unpredictable | Geo-political turmoil, economic uncertainty and unpredictability are the new normal.
2) Globalisation Reboot | Despite the rise of nationalism, isolationist rhetoric and re-shoring, globalisation will not stall.
3) Asian Trailblazers | Asian players will assert power and leadership even more through pioneering innovations and global scale investment and expansion.
4) Getting Personal | Personalisation and curation will become more important to the customer.
5) Platforms First | The question for fashion brands is no longer 'if' but 'how' to collaborate with big online platforms.
6) Mobile Obsessed | As consumers' obsession with mobile grows, the end-to-end transaction will also move to mobile.
7) AI Gets Real | Leading innovators will reveal the possibilities of artificial intelligence across all parts of the fashion value chain.
8) Sustainability Credibility | Sustainability will evolve to be an integral part of the planning system.
9) Off-price Deception | Off-price sector growth continues to be driven by the notion that it provides a solution to challenges like excess stock and slow growth.
10) Startup Thinking | Due to an urgent and intense need for innovation across the industry, a growing number of companies will aim to emulate qualities of startups.
More to Come!
This industry leaders reception marks the start of an exciting ongoing relationship between the AFC and McKinsey & Company to support and grow Australia’s fashion industry. We'll be sharing more on this collaboration shortly, so stay tuned.
We look forward to hearing your thoughts on the report!