In 2021, the value of the top 50 investments in technology related to fashion grew 66 percent compared to 2019, reaching $16.2 billion, according to McKinsey analysis of Crunchbase data.
Having received more than half of that investment, e-commerce is believed to have room for yet more growth and innovation.
Among consumer-facing fashion tech, social commerce saw a jump in funding in 2021, driven largely by a $500 million raise by China’s Xiaohongshu. Metaverse-related investment in fashion and retail is just getting started.
The special edition of The State of Fashion report by The Business of Fashion and McKinsey & Company explores the great tech acceleration gripping the industry. Download the full report to understand the key imperatives that are spurring top brands and retailers to ramp up investments in technologies from AI to blockchain, to both address pain points and boost their competitive edge.
As the industry gets ready for unprecedented pace of technological advancements, leading brands and retailers are expected to double their spending by 2030 on everything from AI to hyper-personalisation tools to traceability. BoF and McKinsey’s new special edition of The State of Fashion unpacks what lies ahead.