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$20-30 bn opportunity to transform fashion industry

22
Jan '20

Pic: Shutterstock

Innovations emerging in the fashion industry in response to sustainability pressures present unprecedented investment opportunities, which Boston Consulting Group (BCG) and Fashion for Good estimate at $20 billion to $30 billion annually, according to their new report, Financing the Transformation in the Fashion Industry: Unlocking Investment to Scale Innovation, which is being released today.

The fashion industry has historically engaged in a cost-driven race to the bottom, giving little attention to radical new technologies. However, a perfect storm of innovation and opportunity is now forming, and investors and companies that can capitalise on sustainability and impact-driven innovation will transform the industry. The study calculates that transitioning toward sustainability yields a $20 billion to $30 billion financing opportunity per year to develop and scale disruptive innovations. The latter case requires innovation to emerge at a faster pace before 2030, which in turn calls for investments to increase by a factor of three or more over their current levels.

With its $2 trillion market size, the fashion industry offers major untapped opportunities for investors and companies. But to bring the necessary solutions to scale, all players—fashion brands, supply chain partners, investors, and others—need to step up to accelerate innovation. The clock is ticking for the industry to advance, and companies and investors that act boldly and rapidly will lead the transformation and ultimately win.

To read more, subscribe to February 2020 issue of Fibre2Fashion

Fibre2Fashion News Desk (RKS)

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