According to the Third annual State of Fashion Report, co-published by McKinsey & Company and Business of Fashion, US will cede its position as the world’s largest fashion market to China in 2019. The McKinsey Global Fashion Index forecasts growth of 3.5 to 4.5 percent next year, which will come in slightly below the predicted 4 percent to 5 percent growth for 2018.

The report emphasises in the coming year, companies need to take an active stance on social issues, satisfy consumer demands for ultra-transparency and sustainability, and, most importantly, have the courage to ‘self-disrupt’ their own identity and the sources of their old success in order to realise these changes and win new generations of customers. They also need to invest in enhancing their productivity and resilience, as the outlook is increasingly uncertain. External shocks to the system continue to lurk around the corner, and growth cannot be taken for granted.