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Luxury

The State of Fashion: Luxury

Macroeconomic headwinds, shifting customer preferences and a deteriorating value proposition continue to weigh on the global luxury sector in 2025. Companies need to review their strategic priorities — investing in talent development, product excellence and finding new ways to engage with clients. Download the special Luxury edition of The State of Fashion report by BoF Insights and McKinsey & Company to understand the strategic imperatives for luxury executives in the years ahead.
The State of Fashion: Luxury cover
Illustration by Marie Victoire de Bascher for BoF. (Marie Victoire de Bascher)
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Over the past five years, the luxury industry experienced a period of exceptional value creation. Between 2019 and 2023, unprecedented demand for personal luxury goods — fashion, handbags, watches and jewellery among them — combined with a deep well of supply allowed the sector to achieve a 5 percent compound annual growth rate. Luxury brands outperformed global markets and achieved new profitability records.

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About the author
Imran Amed
Imran Amed

Imran Amed is the Founder, CEO and Editor-in-Chief of The Business of Fashion. Based in London, he shapes BoF’s overall editorial strategy and is the host of The BoF Podcast.

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