BCG & FFG | Financing The Transformation, 2020 {Report}
Financing the Transformation in the Fashion Industry: Unlocking Investment to Scale Innovation
Innovations emerging in the fashion industry in response to sustainability pressures present unprecedented investment opportunities, which Boston Consulting Group (BCG) and Fashion for Good estimate at $20 billion to $30 billion annually, according to their report, Financing the Transformation in the Fashion Industry: Unlocking Investment to Scale Innovation.
Boston Consulting x Fashion For Good recognizes the fashion industry’s top agenda towards sustainability. In this guide, the two forces provide their key model to unlocking investment to scale innovation in fashion in order to achieve a sustainable operating model.
The report includes the following findings:
1.Only a fraction of all available capital has been invested in fashion and textile technology, leaving many innovators stuck in a financing gap.
2.In fashion, nearly half of the $20 billion to $30 billion annual financing opportunity lies at the beginning and the end of the value chain, where raw materials and end-of-use solutions have the highest impact potential.
3.Innovators struggle to bridge the “missing middle” of finance between early venture capital and late-stage funding
4.Orchestration and consortiums are essential to help innovators find the right support and financing, to give brands faster access to scalable technologies, and to offer investors better opportunities.
5.In return for helping innovators develop and increase their chances of commercialization, brands benefit through off-take agreements, pilot projects, and direct investment.
6.Financing will flow into the fashion space if all people involved build toward conditions that promote attractive returns and measurable impact with manageable risk.
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