73% of Fashion Industry Is Value-Destroying: McKinsey

The fashion industry faced a significant profit decline in 2020, with 73% of the industry now value-destroying. Resilience was seen in sectors that embraced digital channels, had exposure to Asia, and focused on sports and casual wear. The digital shift accelerated, with seven years of growth in seven months, and is expected to remain. Industry polarization increased, with a few winners and many struggling. Executives are hopeful for recovery, emphasizing digital and sustainability as key trends.

What percentage decline in profit did the fashion industry experience in 2020?

• 93%

• 90%

• 95%

• 80%

Which factor is NOT mentioned as a trait of resilience in the fashion industry?

• Increased physical stores

• Luxury focus

• Exposure to Asia

• Digital adaptation

How many years' worth of online growth was achieved in just seven months?

• Five years

• Six years

• Seven years

• Eight years

What percentage of the fashion industry was value-destroying in 2019?

• 60%

• 80%

• 50%

• 70%

Which segment is NOT identified as doing well in the fashion industry?

• Digital

• Asia

• Sports at leisure

• Formal wear

What is one of the key focuses for industry executives looking towards recovery?

• Increasing prices

• Reducing product lines

• Digital transformation

• Expanding physical stores

How has COVID-19 affected the importance of sustainability in the fashion industry?

• Made it irrelevant

• No change

• Decreased its importance

• Heightened its importance