Introduction
McKinsey Global Fashion Index analysis shows fashion companies posted an approximately 90 percent decline in economic profit in 2020, after a 4 percent rise in 2019. The State of Fashion 2021 (“SoF”), a joint report from Business of Fashion and McKinsey & Company, explained, “For the fashion industry, 2020 was the year in which everything changed. As the coronavirus pandemic sent shockwaves around the world, the industry suffered its worst year on record with almost three quarters of listed companies losing money. Consumer behaviour shifted, supply chains were disrupted, and the year approached its end with many regions in the grip of a second wave of infections.”
