The past few years have been great for the fashion industry as technological advancements helped in marketing the products. Professional designers were enhancing the fashion trends and adding a new direction to the people’s outlook on fashion. But as soon as the Covid 19 pandemic arose, everything came to a standstill.
Covid 19 has hit many industries across the globe. And it is of no surprise that fashion is one of them. The cancellation of events, sales, and new orders had a drastic effect on the manufacturing and sales process. All of these things have created an economic and structural imbalance in the fashion industry. Some of the retail businesses have even shut down due to the financial crisis. The majority of daily wage workers, small businesses, tailors, and weavers are facing many problems due to Covid 19.
The government has started taking steps to uplift the economy by bringing back the businesses in action. Looking at the fashion industry’s business style, people prefer buying online products rather than offline products. It gives a clear perspective on how Covid 19 will affect the fashion industry in the future. In this article, we will examine the repercussions of Covid 19 that will change the fashion industry.
Manufacturing On Demand:
Considering the lower purchase orders, manufacturers would probably prefer the on-demand manufacturing process. This is because when we see the traditional manufacturing process, the manufacturers are left with excess stock. This same thing happens with retailers when there are fewer orders. Unfortunately, after some time, they have to markdown the products as no one shows interest in buying the apparel that is out of fashion. Hence, many manufacturers, wholesalers, and retailers have to deal with the loss.
When we look at the on-demand manufacturing process, it ensures that the apparels are produced only as per the confirmed orders and supplied to the wholesalers or retailers. This helps everyone to cope up with the financial barriers and lowers the inventory risk. It also creates a control over the wastage of raw materials and power as the manufacturers are working only for limited orders. Hence, Covid 19 can encourage the fashion industry to opt for the process of manufacturing on demand.
Discounts On Outfits:
As the apparel’s shopping has slowed down due to Covid 19, the fashion companies would come up with new strategies to bring back the customers. They will have to look for different ways to clear up the old-stocks and introduce new styles to entice them. Some would prefer offering high discounts while the others would carry contests, season sales, or engagement offers.
Hence, the strategies to gain the customers would ultimately become beneficial to both the customer and the seller. Although the fashion industry has lower sales in the current time, it is believed to grow at a faster pace after everything starts coming back to normal.
Online Sales vs. Offline Sales
Covid 19 is creating a positive impact on the digital market. We are already observing the power of digital marketing as fashion companies are growing their online reach. The reason behind this is customers are finding it more accessible to purchase the outfits from online stores because of the closed shops. Even after the lockdown ends, there will be a high demand for online shopping of apparel where people can shop conveniently without being at the risk of social contact.
It is also seen that people who have never opted for online shopping are now learning to use shopping apps. They are trying to redefine their fashion goals by shopping online. Contemplating all these things, it seems that the fashion industry will likely be more powerful through online sales than offline sales.
As the Covid 19 arose, all the events and shows, including the fashion weeks, were canceled. At the same time, some of the famous fashion brands took the opportunity of digital technologies to showcase their products or presentations. Even the influencers revealed their quarantine fashion trends through social media handles, which kept other people inclined towards the fashion world.
In the future, the travel restrictions in some parts of the world would make it impossible for people to plan or attend fashion shows. Thus, it may be of no surprise to know that the fashion week would opt for online streaming. Additionally, it will help the audience to stay away from the risk of physical contact.
The Business of Local vs. Global Fashion Brands
Many global brands are unable to deliver the outfits in different corners of the world due to the travel restrictions. This issue has made it difficult for them to meet the customer’s fashion requirements. Even after everything comes back to normal, the global brands would increase the shipping charges or other costs to fulfill their sales gap.
When we look at this situation, if the local fashion brands implement the on-demand manufacturing process and deliver high-quality apparel to its customers in no time, then people will continue purchasing from them even in the future. Nowadays, some of the local fashion brands have already used this pandemic as an opportunity to cripple the bottleneck and started gaining more customers.
New Opportunities for the Fashion Industry
The Covid 19 pandemic has forced the industries to change their business models. The change from traditional to online shopping methods, stopping cash on delivery to preferring online transactions, and many such things are becoming the need of the hour. In the same way, fashion brands have many other ways to enhance their businesses once the lockdown is uplifted.
For example, fashion brands can supply high-quality face masks that match with the apparel’s designs. Additionally, they can start producing ethical and sustainable fashion outfits that are durable, recyclable, and repairable.
Even though the Covid 19 pandemic has created industrial problems for everyone, it has introduced new opportunities for the fashion industry. The flexible and strategic business model that helps in running the company without any difficulties will help in the long run for both its consumers and the producers.