'Business of Fashion' Reports Industry Suffered 90% Profit Decline in 2020
Due to the coronavirus pandemic.
Business of Fashion has released its annual report on the state of the fashion industry, revealing a sharp decline in profit over 2020 as well as predicting the future of the sector.
Created in partnership with McKinsey & Company, the report anticipates that, due to the pandemic, companies will post a 90 percent drop in profit by the end of 2020 (in 2019, profits rose four percent). Envisioning two scenarios, one in which COVID-19 is successfully contained and one in which the virus continues to wreck economic havoc, BoF predicts that 2021 could see global fashion sales decrease anywhere from zero to 15 percent compared to 2019. In either case, the industry will continue to experience high levels of bankruptcies, store closures and job cuts. Trends on the rise even before the pandemic hit — such as a shift to digital shopping and consumer interest in social justice — will continue to gain momentum.
Head to the Business of Fashion website to read the full State of Fashion 2021 Report and check out the video above for a summary.
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