The fashion industry has seen a strong recovery emerging from the pandemic. According to The State of Fashion 2023 conducted by The Business of Fashion (BoF) and McKinsey & Company, global industry revenue in 2021 grew 21 percent year-on-year, and continued to climb in the first half of 2022. However, a number of unprecedented challenges chipped away at any gains and slowed progress as the year progressed.
The war in Ukraine, which began in February, sent shockwaves through the industry and triggered an energy crisis across Europe. Industry leaders have had to navigate an increasingly fragile global economy, with serious repercussions for the industry in 2023. According to the report, 85 percent of fashion executives predict inflation will continue to be a challenge next year.