The combination of today’s volatility, changing growth areas, and new technologies disrupting the global economy have given way to a more connected and discernible global-fashion consumer than ever before. As the pace of industry change accelerates, having innovative and sustainable business models is increasingly important.
Our pioneering expertise and global network enable our apparel, fashion, and luxury clients to drive change and flourish in a fast moving and unpredictable industry.
What we do
We advise all services along the value chain: consumer insights, value proposition, strategy, product creation, supply chain, channels, and stores.
Digital strategy
We cocreate digital strategies with our clients to identify value down to e-commerce subchannels; achieve growth through personalization; set up omnichannel experience and direct-to-consumer acceleration programs; manage data and advanced-analytics transformations; and lead projects into successful execution with pilots and digital roadmaps for implementation. Our workshops tap into proprietary solutions and tools to pressure test outcomes through interactive formats like wargaming.
International growth
We assess international growth potential through initial market screening, value-proposition creation and selection, detailed market-entry plan development, and regional-country organization design. Our global network of experts works with proprietary solutions and tools to generate in-depth consumer insights from both qualitative- and quantitative-research methods.
Pricing and promotions
Our pricing approach is grounded in both our extensive apparel experience along with our application of repeatable analytics. One way we do this is through our proprietary solution, Periscope Price Advisor, which is used to guide apparel companies through the forecasting, markdown, pricing, and promotion decisions they need to make throughout a product's life cycle to maximize margin.
Speed and merchandising
We help accelerate end-to-end product creation and increase in-season response by redesigning the product-creation calendars. This helps streamline processes and clarify roles and responsibilities within an organization. Through process digitization and consumer-data analysis, we apply insights to merchandising and right-sizing of assortments to ensure consumer centricity. On top, we build actionable, consumer-centric merchandising frameworks and help embed capabilities.
Omnichannel-supply chain
We help organizations define and implement an omnichannel supply-chain strategy that balances four key tradeoffs—agility, flexibility, sustainability, and value—and is anchored in the consumer and customer experience. These focus areas include assessing end-to-end omnichannel readiness; optimizing integrated business-planning processes and capabilities across merchandising, allocation, supply chain, and finance teams; redesigning the physical distribution center and store footprint; and transitioning technology infrastructure to service and achieve a segmented omnichannel strategy.
Sourcing
We use a multiphase approach—from diagnosis to implementation—to help clients make their sourcing decisions, increase end-to-end productivity of value chains, build strategic supplier partnerships, and integrate sustainability into their practices. To do this, we tap into our network of global sourcing centers, international design-to-value labs, and our Innovation & Learning Centers that focuses on textile manufacturing.
Transformation
Through our restructuring work, we support companies in distress or crisis by optimizing cash and liquidity, addressing balance-sheet issues, and implementing rapid strategic and operational improvements. For our transformation work, we apply a proven recipe to significantly improve both performance and health. This includes holistically applying a full-potential mindset across top- and bottom-line levers, building capabilities, and putting the requirements in place to enable relentless execution.
Postmerger management
Postmerger, we help companies identify and tap into the right synergies, build capabilities, shape new corporate cultures, and streamline integrations. With value creation as our primary goal, we tailor the integration approach and pace it according to each client’s unique needs by assessing and aligning organizational compatibility to minimize any potential pain points along the way.
Sustainability
We combine in-depth knowledge about the fashion industry and environmental, social, and governance topics to help our clients identify the most impactful levers toward sustainable business operations from product design, sourcing, and garment manufacturing to circular business models. Our dedicated team publishes extensive research on sustainability and the circular economy and works on providing new assessments and reports for the industry to track and follow the latest developments.
Featured capabilities
Design-to-Value
In an environment of increasing consumer demands and complexity, design-to-value (DtV) 4.0 drives bottom-line impact. Digital assets consider customers, products, and supply base. Advanced analytics enable deeper insights scaled across the business, and execution is sustained and accelerated through capability development.
Digital Capability Center
Our Experience and Capability Centers for advanced operations can help your company advance to the forefront of operational excellence.
Ignite
Our expert-led diagnostic solutions provide C-level executives a holistic view of the value at stake and actionable recommendations to accelerate impact.
B2C Pricing Optimization
Make informed pricing decisions using real-time data and market analyses to increase profits
Knowledge Partnerships
Business of Fashion (BoF)
Since 2017, we have partnered with the media company Business of Fashion to provide a comprehensive view of the forces shaping the fashion industry. Together, we publish the annual State of Fashion report that offers an in-depth look at the leading global trends for the coming year, provides an update on industry sentiment based on the BoF–McKinsey global fashion survey, and contains the McKinsey global fashion index—a metric that estimates industry sales and tracks operating profit and economic value creation. Additionally, the McKinsey Apparel, Fashion & Luxury team is a knowledge partner for the BoF VOICES conference, a leading industry event. We are pleased to announce the release of the 2025 edition in November 2024.
The World Federation of the Sporting Goods industry (WFSGI)
Many sporting goods executives are looking to 2024 with more optimism. But in the year ahead, they will need to adapt to shifting consumer preferences, revisit planning practices, embrace ecosystems, and take action on sustainability.
Featured Experts
Gemma D’Auria
Senior partner, global leader of McKinsey’s Apparel, Fashion & Luxury sectorMilan
Supports retail, fashion, and luxury brands in driving transformations for higher performance and health
Sandrine Devillard
Senior PartnerMontréal
Leads McKinsey's European consumer and retail sectors with a focus on consumer goods, apparel, fashion and luxury, and commercial...
Anita Balchandani
Senior PartnerLondon
Leads our apparel, fashion, and luxury work in EMEA, with deep expertise in multichannel and digital transformation
Joëlle Grunberg
PartnerNew York
A leader of McKinsey’s apparel, fashion, and luxury group in North America with a focus on growth strategy, international expansion,...
Fernanda Hoefel
PartnerSão Paulo
Member of the consumer group in Latin America, working with retail and consumer clients, and shopping malls, to drive value creation...
Daniel Zipser
Senior PartnerShenzhen
Leads McKinsey’s consumer and retail work in Asia; advises Asian and multinational companies on growth and performance,...
Featured Insight
Report
The State of Fashion 2024: Finding pockets of growth as uncertainty reigns
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Fashion companies will face economic headwinds, technology shifts, and an evolving competitive landscape in 2024. However, shifting consumer priorities will continue to offer opportunities.
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