We can’t deny Covid-19 is a hot topic lately. Either because people are wondering when the quarantine is going to officially end or because they’re trying to predict how the world will be when they finally are able to leave their homes.
When we move this conversation to the Fashion Industry, it’s tangible the tension and difficulties Retailers, Brands and Independent Designers are going through. The only certainty is that the expenditure is bound to be different.
Luxury brands have faced downing in stocks, and big retailers such Nike and H&M had to close stores across Europe and US. Italy was put on lockdown shortly after Milan Fashion Week, as well as France and Spain, impacting not only the stores’ sales but also the producers who depend on suppliers of these countries.
However, not all is bad. China, the first country affected by the virus, is slowly but gradually getting back on its feet. Also, many brands are engaged into helping to fight the pandemic by manufacturing masks and hand sanitizer, as well as donating to hospitals, small businesses, and their communities.
What any brand must take in consideration is that the conception of Fashion has changed and we all will have to adapt to a new consumer way of shopping. Below you can find some of the major changes we expect to come out of this new world.
1. Producing Locally
This global virus is forcing people who are contained in their homes to rethink their relationship towards the government, companies, and brands. Borders are closed and economists predict a 12% contraction into the global economy. Which implies in a re-evaluation of values and some changes in consumerism.
With retailers shutting their stores and the unemployment rate increasing, people are leaning to buy more from the small and local business. Also, accordingly to Fashion Revolution, “Bloomberg reports that about 1,089 garment factories in Bangladesh have had orders cancelled worth roughly $1.5 billion due to the coronavirus outbreak”. This means many factories are being forced to shut down and workers are sent home with little or no payment at all.
Shoppers are aware of these facts and demand to have more transparent productions which drives them to buy from local business. Also, people are asking all around the world: #WhoMadeMyClothes? Which leads many fashion brands to move their production to Europe, specially Portugal, to make sure their garments are being produced in a sustainable and fair way, avoiding economic crisis.
2. Slow-fashion + Sustainability = Sales
Every crisis moment can also present an opportunity. The isolation due to Covid-19 made people more self-aware of the environment and their responsibilities towards Mother Nature. You can see there’s a new appreciation for the outdoors and life’s simple pleasures.
There’s also a reflexion of that on the Fashion Industry, in a search for more sustainable and recycled products as well as a revaluation of the brand’s business models. People are giving more value to what they already have, seeking to customize and reuse their products as well as to increase their life cycle.
In order to survive, brands need to change the way they work and figure out new ways to get rid of unsold inventory. Whether by maintaining a non-product related community, encouraging conscious consumption and help battling Covid-19, or by seeking to invest in sustainable materials and production.
For Carla Buzasi, Managing Director at global trend forecaster WGSN, design with purpose is the ultimate aim - “If the fashion industry can embrace this then everyone will benefit: the consumer, brands’ balance sheets and the planet.”
3. Online combines forces with the Stores
The confinement also pushed to a more sophisticated and flexible use of technology. Pierre-Yves Roussel, CEO of Tory Burch LLC, believes “neither the online nor the offline can survive alone”. They need to combine forces in order to create a hybrid way of interacting with the client.
Nowadays, brands need to offer something special and unique for each sales’ channel, whilst merging them so the client can feel the urge to use more than one, without actually being forced to. For example, a physical store can be a meeting place and customer service, while an online store can create a digital community and promote ongoing transactions.
Roussel got the inspiration by the salesman’s reports of the Tory Burch store that said how clients had looked for them even more now. Some even directly by WhatsApp, talking with them like friends. He also pointed out an interesting data: 82% of their Generation Z consumers prefer to buy in person instead of online. “We are not seeing this through a channel. But through a consumer-centric perspective, this is how we are approaching them.”
Matthew Drinkwater, Head of Fashion Innovation Agency (FIA), talked about seasonal collections and how their perception will change. People won’t need to buy as much they used to. Also, the sensation of seasons is going to vary a little, which implies that brands who have strong, iconic and timeless products will be even stronger in times of crisis.
Instead of offering more, brands should think about quality! Having products with more value instead of more options. “I think people will expect more creativity, flair and imagination from their escapism” is the thought of Katie Baron-Cox, Director of Brand Engagement, Stylus.
4. New Consumers' Relationship
While many stores closed, significant Chinese e-commerce platforms kept the fashion industry working and selling, adapting their content to adjust to the new clients’ situation.
Thanks to the internet, everyone has access to information about brands and products. A brand without social media presence is fated to fail. It's through them that the clients are speaking now, specially when everyone is forced to stay home to stay safe. Clients are sending much more information and in a more regular basis.
Not only supply chains and marketing strategies are changing, but also the customer behaviour is shifting since the start of the pandemic. More than ever “timing is everything, and social media is the most reactive resource a brand can have”. Instagram can be perceived as a goldmine of consumer’s insights. Their data can tell brand how it should act; which product should be re-order; and what are the next steps the brand must do to keep its clients loyal. Analysts from Facebook reported that people are spending 70% more time at Instagram since the crisis arrived.
Still, it is important to take note that brands can’t keep unilateral marketing strategies across different geographies. With the increase of environment awareness, it grows a need to local news and the sense of community. Also, the virus situation is not the same everywhere. Brands need to update in real-time their insights and adapt ideas to local customers online rather than in store.
5. New uses of Technologies for Fashion
With the demand for social isolation, plenty of events all around the globe have been cancelled. That is the same for the Fashion Industry. Many retail events and Fashion Weeks were postponed to September or completely cancelled. Though the prognostic feels a bit depressing, fashion is looking for other ways of keeping their events, inspired through the most used screens nowadays: mobile phones.
The British Fashion Council just announced (April 21st) that the London Fashion Week is going to happen at June, as expected. However, instead of a regular catwalk show, the event will be completely online, merging Menswear and Womenswear in the same genderless platform. The stage is going to be the website Londonfashionweek.co.uk fed with lookbooks, videos, interviews, and podcasts with designers as well as virtual showrooms and webinars.
This is a trend reflected by the popularity of Instagram and YouTube lives and the new educational system of classes through online platforms such as Zoom.
Shanghai Fashion Week occurred at March 24th and it was also completely digital. They showcased new collections of 31 designers through social channels and websites. The label Shushu/Tong, for Womenswear, debuted a short film for their AW20 collection with viewers opting to live stream looks.
Summing Up
Post-Covid predictions may be uncertain for now, but we are sure there’s going to be a more sustainable and thoughtful period for fashion. It’s time to get down to business and get to know your customers’ needs based on what’s trending. Improve your social presence and hire some tech-lovers who will change the future of Fashion and give us an opportunity to rethink the way we sell and consume.
by Priscila Ponte
