McKinsey’s Gemma D’Auria on Luxury’s Pullback and Fashion’s Resilience in 2026

Luxury is in retreat; but fashion, in general, is resilient. Gemma d’Auria, head of the global fashion and luxury practice at McKinsey & Company, has analyzed the situation of the industry worldwide in the framework of the fourteenth edition of the Barcelona Fashion Summit, which brings together more than five hundred executives at the Palau de la Música Catalana.

In a presentation entitled Consumption forecasts and major trends, D’Auria has put on the table the delicate situation facing the luxury industry since 2023, with a sharp drop in its economic contribution to the market. On the other hand, fashion, in general, is falling, but at a more contained pace.

“The fashion industry is creating tremendous value and is proving very resilient” in the face of situations such as the pandemic or the global geopolitical situation, D’Auria insisted. In fact, he believes that “geopolitical turbulence will have the greatest impact on the fashion industry in 2026”.

“The fashion industry is not among the most advanced in the use of Artificial Intelligence, but it has some catching up to do quickly.“

The expert argues that, at the height of an intense U.S. tariff policy, fashion companies that have based their growth on price have suffered the most. In recent years, “the sector’s growth has relied mainly on price rather than product policies,“ said D’Auria. And now, with tariffs, “it has been the end consumer who has paid the bill”. On the other hand, this situation has benefited those companies that are in an average position. The expert cited the example of Spain’s Inditex.

D’Auria also talked about Artificial Intelligence (AI). Data indicates that the fashion industry “is not among the most advanced in the use of AI, but it has to catch up quickly,“ she argued, because the purchase of products through AI is growing, “not only to search and contrast, but also when it comes to closing purchases.“ Despite this factor, the professional maintains that companies are still “too cautious” with its implementation.

In the fashion industry, value creation remains highly concentrated among the best-performing companies. This highlights the traditional industry dynamic: the winner takes it all. In fact, according to McKinsey data, “70% of value creation is supported by just 20 companies, led by Nike”.

“The only way to grow significantly in the next fiscal year is going to be through acquisitions, buying stakes in other companies.“

On the other hand, if there is one player gaining more and more weight, it is jewelry. McKinsey data indicates that this sector is positioning itself as “a way of expressing the consumer’s personality and is replacing leather and footwear.“

Sentimental value towards brands continues to be one of the central factors for companies to develop. In this sense, while China continues to be the territory that arouses the most negative emotions, North America is positioned as the territory that is falling the most in terms of popularity. He also argued that, in such a broad industry, “the only way to grow significantly in the coming year will be through acquisitions, buying stakes in other companies”.

As for artificial intelligence, the expert stressed that “we don’t know what impact it will have, but the speed at which it is taking off is unprecedented. It is not only about brand discovery, it is something that directly affects the entire shopping experience”.

Barcelona Fashion Summit, the largest professional meeting of the fashion industry in Spain, celebrates today in Barcelona its fourteenth edition, with the sponsorship of Bleckmann, Splio and TikTok, the support of Comerzzia, Mixer&Pack, Moinsa, Nextail and Reveni, as well as the impulse of 080 Barcelona Fashion. Throughout the day, more than five hundred executives from Spanish and international companies will gather at the Palau de la Música Catalana, in an edition of the Barcelona Fashion Summit entitled Crossroad. Making fashion in a world that trembles.