Source page: McKinsey & Company
Commentary
Fashion industry's profits hemmed in by the COVID-19 pandemic
COVID-19 | Retail
December 11, 2020 – The fashion industry’s economic profit rose year-on-year by 4 percent in 2019. Our calculations suggest that it will fall by 93 percent this year, according to our latest State of Fashion report, written in partnership with the Business of Fashion.
To read the report, see “The State of Fashion 2021: In search of promise in perilous times,” December 1, 2020.
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Visual form
Vertical bar chart showing a short yearly time series.
Layout / body structure
The chart is a single chart with five columns for 2016 through 2020 and a large right-side callout that summarizes the change from 2019 to 2020. Read the bars left to right first, then the bracketed callout on the far right.
What is being compared
It compares the global fashion industry’s total economic profit across five consecutive years, with the pre-pandemic rise set against the pandemic-year collapse.
Measurement system
The y-axis uses an index where 2016 equals 100, so the reader is tracking relative profit levels rather than raw currency. The columns sit against a 0 to 200 scale, with the 2019 and 2020 bars explicitly labeled 169 and 11.
Visible structure inside the graphic
Four dark columns show the climb from 2016 to 2019, and a final light-blue column marks 2020 as the break in pattern. A dashed baseline at 100 anchors the index, while a vertical bracket and large minus-93-percent annotation on the right connect the 2019 peak to the much smaller 2020 bar.
Main takeaway from the visual
The chart shows a steady build in profits through 2019 followed by an abrupt collapse in 2020. The last bar is so small relative to the earlier columns that the pandemic shock reads as a break in the whole trend rather than a mild dip.
Key standout values or extremes
The clearest anchors are the 2019 index value of 169, the 2020 value of 11, and the stated 93 percent drop from 2019 to 2020. The series starts at the 2016 baseline of 100 and never comes close to that level again once it reaches 2020.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.