Around the world, a record 69% of fashion companies delivered losses in their annual filings, dragging down overall industry performance. Fashion industry’s recovery is likely to be V-shaped, as performance in the first half of 2021 points to a possible return to positive economic profit by 2022
Like it did for many other industries, the proliferation of covid-19 variants in the first half of 2021 pushed consumer sentiment to a record low and disrupted fashion industry suppliers in India, finds a new report. While spending has rebounded in urban areas, supply chains remain hit amid ongoing factory closures, said fashion news company The Business of Fashion (BoF) and McKinsey & Company’s ‘The State of Fashion 2022‘ report.
India, the report said, also saw increased uncertainty around job security and working conditions due to factory shutdowns and impact on the supply chain. Like in India, supply chain pressures have also been identified as the main challenge for the industry globally, posing a risk to the pace of the recovery with 67% of businesses expecting to increase prices next year.