JB Insights
The State of Fashion:Luxury 2025
McKinsey & Company and BoF Insights report
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.
JB Insights
Mastering Communication, People Skills Across The Jewellery Value Chain
Industry Depends On Education and Training That Prepares People To Communicate Well, Develop Emotional Intelligence, and Adapt To Change
Communication and people skills are a core part of jewellery education because jewellery work is not only technical; it also depends on how well students explain ideas, understand clients, collaborate with teams, and teach or guide others. Industry guidance highlights the need for effective verbal and written communication, patience with different backgrounds and learning styles, and the ability to work with many stakeholders across the jewellery field.
Why these skills matter
In jewellery education, communication skills help learners present design ideas clearly, discuss materials and craftsmanship, and respond professionally to feedback. People skills matter just as much because jewellery careers often involve client interaction, teamwork, sales, training, and relationship building. Resources on jewellery careers also note that the future of the industry depends on education and training that prepares people to communicate well and adapt to change.
Key skills in jewellery education
- Clear verbal communication, for explaining design concepts, techniques, and project choices to classmates, teachers, clients, and employers.
- Written communication, for documenting design notes, production details, and feedback in a professional way.
- Listening and empathy, for understanding client preferences, customer concerns, and team input.
- Patience and adaptability, for working with different learning styles and backgrounds in a classroom or workshop setting.
- Teamwork and relationship building, for collaborating in studios, retail environments, manufacturing, and training roles.
Role in classroom learning
Jewellery education often includes hands-on practical work, so students must communicate during demonstrations, critiques, and group assignments. Good people skills make it easier to ask questions, accept corrections, and work safely in shared studio spaces. Training-focused jewellery roles also require educators to give feedback clearly and create a positive learning environment.
Role in careers
These skills are especially important in career pathways such as design, retail, manufacturing, sourcing, and education. A jewellery professional may need to explain a custom design to a client, coordinate with suppliers, or train others on tools and processes. In these settings, strong interpersonal ability can directly affect trust, customer satisfaction, and long-term success.
Student readiness is required across specialised career tracks
The jewellery and luxury industry demands far more than technical expertise—it requires emotional intelligence, creativity, communication precision, and commercial acumen tailored to diverse professional pathways. student readiness is required across specialised career tracks: Retail & Boutique (B2C), Design & Atelier (Creative/Technical), and Supplier, Wholesaler & Manufacturing (B2B), benchmarking development from foundational to advanced professional competency.

In Retail & Boutique roles, the focus lies on a student’s ability to connect emotionally with consumers through luxury storytelling, active listening, and objection handling. Success in a client-facing environment depends on transforming technical product information into meaningful narratives, understanding hidden emotional motivations behind purchases, and confidently reframing objections around craftsmanship, rarity, and long-term value rather than price alone.
The Design & Atelier track assesses how effectively students translate creative concepts into practical, manufacturable outcomes. Students are evaluated on their ability to articulate design inspiration, communicate technical specifications with precision, collaborate seamlessly with production teams, and respond constructively to feedback. Advanced performance reflects a balance between artistic vision and realistic execution, ensuring design integrity while managing client expectations.


For Supplier, Wholesaler, and Manufacturing roles, the emphasis shifts to operational excellence, negotiation, and supply-chain responsiveness within a B2B ecosystem. Students are assessed on communication accuracy, commercial negotiation strategies, and crisis management under pressure. High-performing candidates demonstrate professionalism through precise documentation, margin-conscious negotiations, and proactive problem-solving during disruptions.
Collectively, this competency framework provides a structured assessment of how students evolve from developing professionals into industry-ready talent capable of thriving across the jewellery value chain, where technical proficiency must be matched by emotional intelligence, strategic thinking, and collaborative excellence.
Communication and people skills should be treated as essential, not optional, in jewellery education. Alongside technical craftsmanship, they help students become better designers, stronger team members, and more effective professionals in a customer-facing industry.
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