Pulse of The Fashion Industry

TAKING THE PULSE OF THE FASHION INDUSTRY

The fashion industry has a major opportunity to secure a prosperous future. The industry is facing a rapidly growing demand worldwide, and at the same time many companies are stepping up their work toward more environmentally and socially responsible practices. But this is not enough. To put fashion on a path to long-term prosperity financially, socially, and environmentally, much more must be done.

The Pulse of the Fashion Industry report is published by the Global Fashion Agenda, in collaboration with The Boston Consulting Group. The report follows the strong belief that the environmental, social and ethical challenges the industry faces today are not simply a threat, but instead an immense untapped value creation opportunity.

In the first edition from 2017, we made an in-depth assessment of the industry’s environmental and social performance and revealed where the industry stands.

THE PULSE OF THE INDUSTRY IS STILL WEAK

In the past year, the Pulse Score of the fashion industry improved from 32 to 38 (out of 100), confirming that sustainability is rising on the corporate agenda. Of the executives polled for the Pulse Survey, 52% reported that environmental and social targets acted as a guiding principle for nearly every strategic decision they made – an increase of 18 percentage points from last year. While encouraging, these results also speak to the need for still more movement toward increasingly responsible practices. This year’s progress came almost entirely from the mid-price segment. Their average Pulse Score increased by 10 points. Given this segment accounts for half of the industry by revenue, progress here is particularly encouraging.

SUSTAINABILITY IS GOOD BUSINESS

The 2017 Pulse report measured the financial consequence of not taking action on sustainability. This year’s Pulse report measures the financial gain of taking action. As a matter of fact, new data and calculations show that investments in resource efficiency, secure work environments and sustainable materials boost profitability by up to 1-2 percentage points in EBIT margin by 2030.

GUIDANCE FOR A BETTER FASHION INDUSTRY

This year’s report aims to give guidance to companies looking to start or find further advances toward more responsible ways of doing business. For the first time, the report includes a Pulse Curve enabling companies to measure their performance against other industry players and a Roadmap to Scale, an inspiring guide for the industry – built on proven best practices with industry players ­– offering concrete actions for businesses to immediately embark on their sustainability journey.

CREATING SYSTEMIC CHANGE THROUGH COLLABORATION

To put fashion on a path to long-term prosperity financially, socially and environmentally, the 2018 Pulse report stresses the urgency of collective effort to go beyond what is available and possible today. No individual commitments or actions can drive this transformation. To achieve lasting impact at scale, the industry needs systemic change through leadership, innovation and collaboration. A number of promising, disruptive innovations are emerging to move the industry – but fashion companies must join forces with suppliers, investors, regulators, NGOs, academia and consumers to create an ecosystem that supports transformational innovation and disruptive business models.

DOWNLOAD THE pulse 
of the fashion industry
 2018 REPORT

DOWNLOAD THE pulse 
of the fashion industry 
2017 REPORT

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If you have any questions regarding the Pulse of the Fashion Industry report, please contact pulse@globalfashionagenda.com.