This #BoFLIVE event was based on the seventh annual ‘The State of Fashion 2023’ report. Click here to read our full analysis.

Looking ahead to 2023, global fragility from this year will be top of mind for fashion executives, with 78 percent of those surveyed in BoF and McKinsey & Company’s State of Fashion 2023 survey predicting inflation will continue to challenge the market. Meanwhile, the butterfly effect from the Ukraine War and supply chain disruptions are also top of mind for fashion executives, with 66 percent suspecting that geopolitical instability will weaken the fashion market.

On the latest edition of BoF LIVE, BoF founder and chief executive Imran Amed and Achim Berg, senior partner and global lead of the apparel, fashion and luxury group at McKinsey & Company, unpack those numbers and more findings from the seventh annual State of Fashion report and discuss opportunities and challenges that will define the industry in the coming year.

“I think the general outlook is we expect low growth overall for the fashion industry,” said Berg. “We also believe that luxury is doing relatively better [than] non-luxury but I think we shouldn’t fool ourselves, luxury is currently driven by the top end.”