Hey guys, welcome back to my blog. So, today’s blog post will discuss my latest reading, The State of Fashion 2022. If you guys are wondering, The State of Fashion is an annual report written by the Business of Fashion in collaboration with McKinsey & Co, discussing major themes of the fashion economy accompanied by in-depth research and numerous conversations with industry leaders. I started reading this report last year, and I found it very informative, especially if you want to build a fashion brand or fashion-related business.


Uneven recovery

Logistics gridlock

Domestic luxuries

Wardrobe reboot

Metaverse mindset

Social shopping

Circular textiles

Product passports

Cyber resilience

Talent crunch

Since I am interested in sustainable fashion topics, I will discuss circular textiles more in this blog post and a little bit about product passports as there is a connection with sustainability.


In the circular textiles section, we will find that the fashion industry is currently focusing on developing a closed-loop recycling system. A closed-loop recycling system recycles materials continuously so that they will remain in constant circulation. Currently, less than 10% of the global textile market comprises recycled materials, and most of them are largely the product of an open-loop recycling system, such as PET bottle waste. Unfortunately, this can be problematic as it disrupted the closed-loop system built for plastic bottles. In addition, it also does not address the material and waste from the fashion industry.

To address problems such as the difficulties of sorting and collecting waste, policymakers in some countries are starting to support the development of a closed-loop recycling system to support the circular economy as well as to alleviate the pain of the sorting and collecting process. Several countries also began implementing extended producer responsibility schemes, making brands and retailers responsible for post-consumer waste.

However, the recycling process can also be challenging when it involves various types of textile fibres, especially since a high proportion of clothing is made from material blends, such as cotton and polyester. Here is where innovation is needed. Some companies and non-governmental organisations are currently working on large-scale projects to develop a closed-loop recycling system. Indeed, this recycling process should not contribute to more wastes than the materials themselves.

Another challenge is the proximity between the recycling facilities and the collecting sources. Frequently, businesses have to ship the materials from Asia to Europe to be recycled, which leads to significant emissions from long-distance transport. Yet these businesses also intend to build more facilities in other parts of the world so that the materials can be transferred to closer plants in the long run. Indeed, a huge investment will be playing a major role in this development, particularly when small businesses still can not afford to build their own recycling facilities. However, as the number of fashion players committing to circular business increases, scaling will reduce prices and boost the demand for sustainable garments.


Now, let’s move on to the next topic: product passports. These digital passports link information valuable to both customers and partners to individual products by integrating technologies, such as blockchain and RFID, QR codes, and NFC. This innovation accommodates consumers’ concerns when buying products, such as counterfeiting and transparent business practices. This is meaningful progress in the fashion industry, as this new technology will provide more information, such as materials use, sources, emissions, working conditions at the manufacturers, than a physical tag.

Apart from increasing transparency and traceability, product passport also support sustainable fashion initiatives like resale and recycling. For example,  consumers will be able to identify product authenticity and track product history when buying products in the secondhand market. Meanwhile,  it will also make the sorting and collecting process of garment recycling much easier in the future.

I think that’s all for today, if you guys want to read the whole report. You can simply click this link, “The State of Fashion 2022”and it will redirect you to McKinsey’s website. I also hope that you will find this blog post informative. Don’t forget to check out my Instagram account @iamhendrawand I’ll see you guys next time. Have a great day 🙂

the state of fashion 2022 business of fashion bof mckinsey

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