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The State of Fashion:Luxury 2025

McKinsey & Company and BoF Insights report

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Global fashion faces challenging landscape

The ninth annual State of Fashion report by McKinsey & Company and BoF Insights highlights the challenging landscape the global fashion industry faces in 2025. With economic uncertainty, changing consumer behaviors, and evolving market dynamics, the year is expected to be a critical juncture for many brands.

Overview

Economic Challenges: 80% of executives foresee no improvement in the industry, and only 18% rank sustainability as a top concern, down from 29% in 2024. Consumer confidence and spending remain major issues.

Key Drivers: Price sensitivity, the rise of dupes, climate change acceleration, and reshuffled global trade create a difficult environment.

Geographic Shifts: Growth engines in Asia, particularly India, Japan, and Korea, are becoming pivotal as China faces economic challenges.

Themes Driving the Agenda

Trade Reconfigured: Brands are diversifying sourcing to align with evolving trade policies and sustainability targets. Nearshoring and political alignment are critical considerations.

Asia’s Growth Engines: While China slows, India, Japan, and Korea are emerging as vital markets for growth.

Discovery Reinvented: AI-driven curation in e-commerce promises to help overwhelmed shoppers navigate abundant choices.

Silver Spenders: The growing over-50 demographic offers new opportunities for incremental growth, emphasizing the need for inter-generational appeal.

Value Shift: Resale, off-price, and dupe markets are flourishing as consumers seek better value amid persistent economic pressures.

The Human Side of Sales: Enhancing in-store experiences by empowering well-trained sales staff can drive demand for physical retail.

Marketplaces Disrupted: Online non-luxury marketplaces face existential challenges, struggling with declining demand and rising customer acquisition costs.

Sportswear Showdown: Challenger brands are rapidly gaining market share, driving competition in the dynamic sportswear segment.

Inventory Excellence: Advances in inventory management and agile supply chains are key to addressing margin pressures and meeting sustainability goals.

The Sustainability Collective: Collective action is essential to meet decarbonization goals despite consumer reluctance to pay premiums for sustainable products.

Looking Ahead

The industry’s outlook remains sluggish, with revenue growth stabilizing in low single digits. Luxury’s dominance in profit creation is challenged by non-luxury segments for the first time since 2010. Brands that act nimbly to address geographic shifts, demographic changes, and technological innovations will find opportunities amid the turbulence.

Growth in the jewellery sector will be fueled by rising demand from ultra-high spenders and continuous investment from luxury houses in technology and expertise.

The new playbook for 2025 emphasizes adaptability, localization, and sustainability, while redefining value and consumer engagement. The fashion sector must innovate, embrace technology, and prioritize long-term resilience to navigate this period of reckoning successfully.

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JB Insights

The Evolution Of Men’s Jewellery In India

By Suresh Krishnan, VP – Sales, PNG Jewellers

Changing Lifestyles, Rising Fashion Consciousness and Demand For Self-Expression Are Driving The Rapid Growth Of India’s Men’s Jewellery Segment.

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For decades, men’s jewellery in India limited itself to gold chains gifted by parents, a wedding ring, or a religious pendant. Today, the modern Indian man is embracing jewellery as a form of self-expression, personal style, and achievement. What was once considered a niche category has evolved into one of the most exciting growth segments in the jewellery industry.

We have witnessed a notable shift in consumer behaviour over the past few years. Men are increasingly purchasing jewellery not only for weddings and festive occasions but also to celebrate personal milestones such as promotions, entrepreneurial success, anniversaries, and birthdays. This transformation is being driven by a younger, style-conscious demographic that draws inspiration from global fashion, digital media, and celebrity culture.

International luxury houses have expanded their men’s jewellery offerings substantially, while Indian consumers are becoming more comfortable experimenting with bracelets, platinum bands, signet rings, pendants, cufflinks, tie pins, and customised accessories. The rise of men’s jewellery is also closely linked to changing workplace and lifestyle preferences. Today’s professionals prefer versatile pieces that transition from boardroom meetings to social gatherings. Lightweight gold bracelets, sleek chains, and minimal diamond-accented jewellery have emerged as strong performers across urban markets.

Alongside gold and diamonds, silver jewellery has emerged as a significant growth category for men. Rising precious metal prices and evolving fashion sensibilities have encouraged younger consumers to explore silver bracelets, chains, rings, and pendants as stylish yet accessible options. Silver has increasingly positioned itself as an entry-level luxury category, particularly among consumers in the 20-30 age bracket who seek design-led products for everyday wear. The growing popularity of men’s silver jewellery globally has further accelerated acceptance in India.

One of the most significant developments has been the growing popularity of jewellery gifting for men. Father’s Day, in particular, is emerging as an important occasion. Consumers are increasingly seeking meaningful gifts that carry both emotional and intrinsic value. Unlike conventional gifts, jewellery offers longevity, sentiment, and the potential for appreciation over time.

Another noteworthy trend is the growing demand for customisation. Men are looking for pieces that reflect personal stories, whether through engraved initials, symbolic motifs, family emblems, or bespoke designs. This shift mirrors a broader global movement towards personalised luxury.

While gold remains the preferred metal for many Indian consumers, platinum, silver, and diamond-studded jewellery are gaining prominence among younger buyers. Contemporary styling, lighter weights, and innovative designs have helped make these categories more accessible and relevant.

Looking ahead, the men’s jewellery category is poised for sustained growth. As societal perceptions continue to evolve and consumers become more confident in expressing their personal style, jewellery will increasingly become an integral part of the modern man’s wardrobe.

The evolution of men’s jewellery is not merely a fashion trend. It reflects a deeper cultural shift where jewellery is being recognised as a symbol of identity, achievement, and self-expression. This Father’s Day, that makes jewellery one of the most meaningful gifts a family can choose, celebrating not just tradition, but the individual behind it.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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