hereLearn more about cookies, Opens in new Imagine if we could then take those innovations and circular business models to scale. McKinsey is a thought leader when it comes to digital transformation. our use of cookies, and Please use UP and DOWN arrow keys to review autocomplete results. Something went wrong. Today, as H&M Group’s global sustainability steering and development manager, Rothschild and her colleagues work to define and achieve the company’s sustainability goals, which include using only sustainable materials by 2030 and having a “climate positive” value chain—one that reduces more greenhouse gases than it emits—by 2040. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The present working paper summarizes selected findings of the macro-economic simulations conducted as part of the study "Shaping the digital transformation in Europe", which assess the potential impact of disruptive digital technologies on the economy and society in the EU and its member states. By. Digital refashioned: Why post Covid-19 digital transformation will be a gift to fashion brands and their customers. Most of the changes we’re seeing right now are major transformations; they are new lifestyle behaviors rather than just short-term trends in the market. People create and sustain change. McKinsey: Your job title is quite long. Michael Krigsman: I'm excellent. Flip the odds. Unsere weltweit etablierte Präsenz sowie unser umfassendes globales und lokales Netzwerk aus Branchenexperten sind dabei einzigartig. We define a successful transformation as one that, according to respondents, was very or completely successful at both improving performance and equipping the organization to sustain improvements over time. McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Another example of material innovation and recycling technology is Renewcell, which is a company that H&M Group has invested in. Vanessa Rothschild is the global sustainability steering and development manager at H&M Group. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. Digital Transformation: McKinsey’s Take. Mehr als 1.000 Digitalisierungsexperten arbeiten Digital Labs und unterstützen unsere Klienten in der digitalen Transformation der Grundlagen, des Kerngeschäftes und auch beim Aufbau neuer Geschäfte. Another bold prediction: through increased focus on environmental issues beyond climate change—biodiversity, for one—the fashion industry will become a force for change in other industries. This interview was conducted by Karl-Hendrik Magnus, a senior partner in McKinsey’s Frankfurt office, and Monica Toriello, an executive editor in the New York office. McKinsey Global Institute. Part of our role is to find the convergence between the digital shift and the circular shift—to make them come together so that it becomes very, very easy for the customer to adopt new ways of behaving and of using fashion. My definition of circular fashion is an industry in which resources and products stay in use for as long as possible before being recycled or regenerated into new products, again and again. Vanessa Rothschild: I believe the pandemic will have a transformative impact on society; the economic, social, and psychological effects will be felt for generations. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries, The future of fashion: Sustainable brands and ‘circular’ business models. How do you foresee consumer apparel-shopping preferences changing postpandemic and over the longer term, and what will that mean for circular business models? A digital and analytics transformation is typically an 18- to 24-month journey, requiring an ambitious aspiration, a clear plan, and concrete milestones. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. McKinsey: That sounds like a difficult job—particularly because, in many parts of the world, H&M is still associated with fast fashion rather than sustainable fashion. Unleash their potential. Use minimal essential Digital communication with customers is key to fashion companies’ survival COVID-19 Digital Retail May 22, 2020 With their customers increasingly online, fashion companies need to engage them with authentic messages over email, social media, and other digital channels—even while most people aren’t currently spending. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. What does it mean? Rothschild spoke with McKinsey’s Karl-Hendrik Magnus and Monica Toriello about the future of sustainable fashion. hereLearn more about cookies, Opens in new Learn about Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. May 22, 2020With their customers increasingly online, fashion companies need to engage them with authentic messages over email, social media, and other digital channels—even while most people aren’t currently spending. We strive to provide individuals with disabilities equal access to our website. Fashion is one of the past decade’s rare economic success stories. Michael Krigsman: What's the next step beyond digital transformation? According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. Learn more about cookies, Opens in new Mode-Unternehmen müssen sich 2019 in einem schwierigen wirtschaftlichen Umfeld bewähren. James recently discussed the ingredients of a successful digital transformation with McKinsey’s Barr Seitz. One way H&M Group is already doing that today is through Treadler, a B2B service that allows other companies to benefit from the knowledge, experience, local presence, and sustainability expertise of H&M Group’s supply chain. Please click "Accept" to help us improve its usefulness with additional cookies. For example, algorithmic commerce, or using AI to understand consumer needs in order to produce only the right products in the right amounts and allocate them to the right place, will take us far. Fashion’s digital transformation: Now or never 7 —A focus on getting to a minimum viable product (MVP) within two to three months— a rapid timeline that allows the company to iterate while generating value, avoiding large up-front investments. For circular supply chains, at the most basic level we need to produce only what we can sell; we need to adjust supply and demand. Vanessa Rothschild: Within H&M Group’s Global Sustainability Department, we’ve been working a lot on integrating sustainability into the business. One example McKinsey pointed to as proof of this is European insurer Axa, which invested €950 million in digital transformation over just two years. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; a… Seine ganze Leidenschaft gilt der Fashion- und Luxusgüterbranche und in beiden Bereichen bringt er umfassende Expertise mit. Digital upends old models. Vanessa Rothschild: I think we can play a central role in both of those. Laut McKinsey Studie „State of Fashion 2019“ ist nun Zeit für Aufbruch. Global Digital Transformation in Fashion Market Research Report 2020 carries in-depth case studies on the various countries which are involved in the Digital Transformation in Fashion market. Vanessa Rothschild: I see three main parts making up a circular ecosystem within the fashion industry: circular supply chains, circular products, and circular customer journeys. Most transformations fail. The… Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. The panelists included Maximilian Bittner, chief executive officer of Vestiaire Collective; Stefan Edl, head of Trans/formational Retail & Fashion DACH at Facebook; Boris Ewenstein, … Third, partnerships will be even more important in 2030 than they are today. Please try again later. Here is a summary of some of their most important advice around this topic: Digital transformation is a Trojan horse. Jessica Murphy-22nd May 2020 . How do you see the fashion retail landscape evolving between now and 2030, and what role will sustainability play in that landscape? The “development” part means that my team works on raising awareness of circular business models and setting up the ambition so that we can drive those business models into the core of H&M Group’s business in a strategic and truly integrated way. Use minimal essential So inclusion and diversity are crucial preconditions for all of this to happen. Hey, Ari. Never miss an insight. Foto: McKinsey. One concrete example is the Looop, our garment-to-garment recycling machine, which is now in one of our Stockholm stores. The industry is moving to digitally transform along with the rest of the world. Renewcell is developing a new material called Circulose, made by gently recovering cotton from worn-out clothes. And, more important, what will it take to shift consumer behavior? McKinsey: To that end, what are some of the most innovative or highest-impact circular initiatives at H&M right now? There have certainly been shifts in consumer behavior over the past several months: people doing much more of their shopping online, buying more loungewear and less office wear, and so on. Flip the odds. The report is segmented according to usage wherever applicable and the report offers all this information for all major countries and associations. To read the article, see “Fashion’s digital transformation: Now or never,” May 6, 2020. Our flagship business publication has been defining and informing the senior-management agenda since 1964. tab. Reinvent your business. Das sind Erkenntnisse aus dem Coronavirus-Update zum „State of Fashion 2020“-Report. Consumers are also expecting comfortable, friction-free shopping. Artificial intelligence (AI) and 3-D technologies are helping us take huge leaps in that area. The company, which operates some 5,000 stores in 70-plus countries, believes it has both the responsibility and a tremendous opportunity to change consumer behavior. We use cookies essential for this site to function well. We're talking about digital business. McKinsey Quarterly. Most transformations fail. The sharing and resale market will become an even bigger business than the retail market. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. our use of cookies, and In other words, the fashion industry will become a net-positive contributor to the environment and play a crucial role in the transformation of our society into a circular way of living. At H&M Group, we’re testing circular models through a variety of initiatives such as COS Resell, a digital space for buying and selling preowned items. cookies, Back to Charting the path to the next normal, McKinsey_Website_Accessibility@mckinsey.com, Fashion’s digital transformation: Now or never. The casual workweek is here to stay. How are you? Anyone interested in the subject would be wise to listen to their advice. Digital transformation as a Trojan horse. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Reinvent your business. Vier von fünf Verbrauchern (80%) in Deutschland, Spanien, Frankreich und UK glauben, dass ihre finanzielle Situation für mehr als zwei Monate beeinträchtigt wird, 38% von ihnen planen ihre Haushaltsausgaben zu kürzen. I think the big winners in the future will be those fashion players that can embrace circularity and digitization at the same time. In surveys, about 80 percent of consumers tell us that they are shifting toward more casual wear, street wear, and loungewear; office wear is declining. The following are edited excerpts of the conversation. Second, it will be a much more cocreated market. 22. Select topics and stay current with our latest insights. In addition, consumers are making more conscious choices about what they wear, and that’s where we see them starting to embrace circular business models. cookies. What are your primary responsibilities? Fashion’s next normal will be “ownershift” rather than “ownership.”. Today, we have the same kind of responsibility, and also the opportunity, to make “circular fashion” just as attractive or even more attractive. Today, just 26 percent of respondents […] Press enter to select and open the results on a new page. At: mckinsey Insights - Get our latest thinking on your iPhone, iPad, or device. They ’ fashion digital transformation mckinsey become interconnected initiatives that form the core of our.. It might be possible to make new products out of carbon emissions disabilities equal access to our.... You see the fashion industry registered the equivalent of six years ’ growth online. 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