Where Do We Go From Here?
Informa held an extremely important presentation today about The State Of Fashion in 2020 after the COVID19 pandemic created unprecedented circumstances while ripping off the lid of the inevitable long been avoided in the fashion industry.
After COVID19 hit, the fashion industry across the board was left in the red, sales plummeted more than 80 percent, businesses went under, bankruptcies occurred, and brands still standing pivoted to digital once and for all, but not without kicking and screaming.
Much to the chagrin of Dua Lipa and her hit single “New Rules”, the fashion industry’s new rules in and out of COVID must proceed cautiously….
First Rule is survive, make your recovery plan by looking at your domestic options, networking with your contacts, and ways to grow with the profitable you have while seeking out new avenues to profit.
Second Rule is your discount mindset because consumers are wary to go out because of catching the virus or spending whatever disposable income they have left if they’re jobs are in jeopardy or out of work already, mid-market brands and retailers while weeding out weak sectors will need to discount according to economic climate, and luxury brands are expected to bounce back immediately with consumers paying full price for quality product.
Third Rule is digital escalation which is unavoidable at this point, it’s said too that physical spending is more profitable that digital spending, but since COVID disabled physical, the digital experience must cutting-edge and worth click on, so spending must be done on a model that prioritized digital for brands and retailers according to what works for them.
Fourth Rule is Darwinian shakeout, you will unfortunately see loads of brands and businesses lose out big time on business and existence if they’re not provided any type of lifeline from consumer or government, retailers and brands will adapt a winner takes all model to stay in business and maximize profits.
And the fifth and final rule is innovation imperative, since stores are either social distancing or even still closed, brands and retailers must figure out ways to be creative in the virtual world, but they must plan it into their short and long term strategy for COVID and even post COVID.
Another crippling effect on the fashion industry is travel, it’s said that a great deal of fashion’s button line are based on purchases made when the customer travels for business or vacation, more so than in their local markets; the way for fashion to deal with their new state is to seek growth and survival according to how consumers respond while the COVID19 pandemic continues, as we come out of COVID19, as the recession continues once COVID is gone, and the moment recovery and a true return to economic normalcy pre-COVID19 in the next 2 to 3 years.