Consulting firm McKinsey and Company recently released a report showing the 20 companies which lead the global fashion industry based on economic profit. Together, they account for a staggering 97% of global economic profit in the sector! Composing of either luxury brands or high street brands, we see an obvious absence of mid-market players. Our favorite on the list are Kering, LVMH and Hermès – groups and houses that work to preserve craft and nurture creativity.
We are also especially happy to see Kering on the list as they are consciously putting effort into making their supply chain more sustainable. As owners of Gucci, Alexander Mcqueen and Balenciaga, they revealed that sales grew 46.6% in the first quarter of 2018 at Gucci and were up 35.1% in its most recent quarter. If you ask us, the Gucci fever is far from over.
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