New Delhi, Nov. 22 -- The global fashion industry is set to face a "challenging" year in 2026, as most executives brace for worsening conditions amid economic uncertainty, shifting trade dynamics, and unpredictable consumer behaviour, according to the BoF-McKinsey State of Fashion 2026 report.

The report shows that 46 per cent of fashion executives expect conditions to deteriorate in 2026, up eight percentage points from the previous year, while only 25 per cent foresee improvement. The sentiment marks a shift from earlier years when "uncertainty" dominated forecasts. Now, "challenging" has become the single word defining the sector's outlook, as per the report.

Consumer confidence remains the biggest concern, with nearly eight in ten l...