Industry experts Joëlle Grunberg, Linda Liu, Maurice Obeid, and Colleen Baum have authored a fascinating study for McKinsey & Company that has been the topic of discussion for us in the last few days with our network: is New York still the fashion capital it once was? This report names several factors including the decentralization of influence, industry consolidation, and the high cost of living and doing business in the city that are posing challenges to New York's reputation as a fashion center. Iconic multi-brand retailers Barneys New York, Henri Bendel, Lord + Taylor, and Opening Ceremony have closed. 98% of luxury segment growth is controlled by four Europe-based organizations: Hermès, LVMH, Kering, and Richemont. Instead of debuting their collections at #NewYorkFashionWeek, many American fashion labels are choosing to present at Fashion Weeks around the globe. The report also examines the importance of nurturing emerging talent - while NYC houses incredible fashion institutions like The Fashion Institute of Technology, LIM College, and Parsons School of Design - The New School, the overall educational sector could benefit from strengthening its focus on the business components of the fashion industry like finance, merchandising, and supply chain/logistics. Additionally, collaboration across industries could strengthen New York’s position in the global fashion scene - with SXSW specifically cited as a great example of a cross-industry event. The city's rich history and diverse cultural landscape, alongside strategic efforts to revive industry demand, could help reclaim its status as a leading fashion hub. Congratulations to Joelle and her co-authors for producing such an insightful and optimistic study on how New York can reclaim its position in the global fashion world. #nyfw #fashionindustry #business #mckinsey #industryinsights
Thank you Tim for sharing this. What an opportune time, in the midst of fashion week.
Partner, McKinsey & Co. | CEO - Retail, Fashion, Footwear and Luxury | Top Women in US Retail 2020
4moThanks Tim for the shout out and laying out the key highlights! Hope to catch up soon