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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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What Happens When The World’s 0.03% Of Diamonds Meet 131 Pairs Of Masterful Hands At QWEEN?

QWEEN Brings Together Traceable Natural Diamonds, Japanese Craftsmanship and Precision-Led Jewellery Making Through Rosy Blue and Kashikey.

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QWEEN, India’s first self-discovery, 100% natural experiential luxury jewellery brand, has detailed the strategic roles of Rosy Blue and Kashikey in powering its product proposition. Beyond being investors in the brand, Rosy Blue and Kashikey serve as QWEEN’s core supply-chain and craftsmanship partners, respectively, bringing together traceable access to 100% natural diamonds and nearly a century of Japanese craftsmanship expertise.

You know the diamond. But do you know its journey?

As QWEEN’s single strategic supply-chain partner, Rosy Blue brings over six decades of diamond expertise and sourcing capabilities to the brand. This partnership enables QWEEN’s Mine to Marvel™ initiative, allowing consumers to trace their diamonds back to their mine of origin.

At QWEEN, the story behind the stone is as important as the sparkle you see. And not every diamond makes it into a QWEEN. Only 0.03% of the world’s diamonds that enter QWEEN’s selection process meet its exacting standards.

Every QWEEN diamond is 100% natural and perfectly cut, meeting the Hearts & Arrows standard. At the QWEEN store, consumers can see that precision for themselves through specialised viewers.

“At Rosy Blue, we believe that trust must be established across the entire value chain. Our partnership with QWEEN brings together exceptional natural diamonds, greater traceability and consistent product standards, giving consumers greater visibility into the journey of their diamond and a clearer understanding of what makes it exceptional,” said Ms. Manali Jayant Parekh, Director, Rosy Blue.

But knowing the diamond is only half the story. What happens to it next matters just as much.

QWEEN’s strategic craftsmanship partner, Japanese luxury jewellery house Kashikey, brings nearly a century of jewellery-making expertise to the brand. Founded in 1928, Kashikey’s craftsmanship informs the construction, setting and finishing of QWEEN jewellery.

A QWEEN jewel is made by 131 pairs of masterful hands. From planning, cutting and polishing to setting and quality checks, every pair brings a decade or more of specialised expertise to the piece before it reaches the woman who wears it.

That attention to detail extends to the smallest elements of the jewellery. One example is QWEEN’s four-prong setting, which leaves more of the diamond visible than a conventional six-prong setting while keeping it securely held.

“For nearly a century, Kashikey has pursued beauty through precision, balance and attention to detail. Our partnership with QWEEN brings this approach to jewellery created for the modern Indian woman, where every element, from the setting to the finish, is considered to enhance the beauty of the diamond while preserving the integrity of the piece,” said Mr. Hisao Kato, Chairman, Kashikey Co. Ltd.

Amit Kumar, Co-founder and CEO, QWEEN said:

“For us, these partnerships go well beyond investment. Rosy Blue, as our single strategic supply-chain partner, gives us the ability to build traceability, consistency and rigorous selection standards into every QWEEN diamond, while Kashikey brings decades of craftsmanship and precision to how we turn those diamonds into jewellery. We wanted all of that to be part of the product itself, so women can see and understand what makes a QWEEN piece different.”

From knowing where the diamond came from to understanding how precisely it was cut and how carefully it was crafted, QWEEN is building a jewellery experience where trust is not just a promise. It is something you can see for yourself.

With Rosy Blue as its single strategic supply-chain partner and Kashikey as its strategic craftsmanship partner, QWEEN brings together diamond expertise, traceability and nearly a century of Japanese craftsmanship to set a new standard for the jewellery a woman chooses to wear.

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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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