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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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Education

The New-Age Jewellery Professional: Why Tech Education for Jewellery Industry is the Biggest Growth Driver

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The jewellery industry is no longer defined by craftsmanship alone. Today, it sits at the intersection of design, technology, sustainability, finance, branding, and global trade. As consumer expectations evolve and competition intensifies, structured education and continuous skill development are emerging as the most powerful growth catalysts for the sector.

For a dynamic industry like India’s jewellery market, education is not optional — it is strategic.

From Karigar to Knowledge Professional

For decades, the backbone of the industry has been generational craftsmanship. While this legacy remains invaluable, modern jewellery businesses now demand professionals who understand:

  • Gemology and diamond grading
  • CAD and 3D jewellery design
  • Retail management and consumer psychology
  • Digital marketing and brand storytelling
  • International trade compliance and tariffs
  • ESG and sustainability frameworks

Institutions such as the Gemological Institute of America and the Indian Institute of Gems and Jewellery have played a key role in formalising education pathways, helping transform traditional artisans and retailers into globally competitive professionals.

Trend Watch: Rise of Tech-Integrated Learning

One of the strongest education trends shaping the industry is technology integration.

  • CAD & CAM Training: Digital prototyping reduces costs and speeds up product development cycles.
  • AI in Retail Forecasting: Data-driven inventory planning is replacing intuition-based buying.
  • Blockchain Awareness: Traceability in diamonds and coloured gemstones is becoming a compliance requirement rather than a luxury.
  • Lab-Grown Diamond Expertise: As lab-grown diamonds gain market share, understanding grading, pricing dynamics, and consumer positioning has become critical.

Educational programs now increasingly blend online modules with hands-on workshops, enabling faster upskilling for working professionals.

The Bridal Economy & Consumer Education

India’s bridal jewellery segment continues to drive demand, but the modern bride is informed and research-oriented. She compares:

  • Natural vs lab-grown diamonds
  • Hallmarking standards
  • Ethical sourcing claims
  • Design originality

Retailers who invest in staff education see higher trust conversion rates. Well-trained sales professionals are no longer “salespeople” — they are consultants guiding life-defining purchases.

Financial Literacy in Jewellery

Another emerging area is financial education within the industry itself. With gold functioning as both adornment and asset, professionals must understand:

  • Gold monetisation frameworks
  • Hedging strategies
  • Commodity price cycles
  • Working capital management

Structured knowledge helps businesses move from being inventory-heavy traders to strategically managed enterprises.

Sustainability & Responsible Sourcing

Global buyers increasingly demand proof of ethical sourcing and environmental compliance. Education around responsible mining practices, supply-chain transparency, and ESG reporting is becoming central to export competitiveness.

Industry bodies such as the Gem & Jewellery Export Promotion Council regularly conduct seminars and workshops to align Indian exporters with evolving global standards.

The Future: Hybrid Skills Will Win

The next generation jewellery professional will not be defined by a single skill. The future belongs to those who combine:

  • Design sensibility
  • Technical expertise
  • Business acumen
  • Digital fluency
  • Ethical awareness

For a sector contributing significantly to India’s exports and employment, education is the bridge between heritage and high growth.

Knowledge is the new luxury. As the jewellery industry transitions into a more organised, tech-enabled, and globally integrated ecosystem, continuous learning will determine who leads and who lags. The sparkle of the future will not just come from diamonds — it will come from informed minds shaping the industry.

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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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