There’s no doubt about the crippling effect the Coronavirus has had over every industry in the world. As and when the pandemic spread, companies were led to keep their employees at home to keep them safe from the virus. When it came to choosing between their lives or their livelihoods, businesses and their employees chose to go with the former. While this was a good decision, it also severely impacted the industry, especially big fashion brands.
With their factory workers and their supply and logistics workers at home, big fashion brands suffered a drastic drop in their revenue and incurred heavy losses. Now, most of them are left with no other choice but to downsize their companies and close numerous international stores.
Basics are the new norm
Many companies announced the closing down of their stores somewhere amongst the beginning of many lockdowns.
With numerous companies shutting down their stores – whether to follow government orders or choose to safeguard employees – business has taken a hard hit! A record low number of people are venturing into fashion retail stores to buy clothing. Moreover, the underlying threat of trying on an item previously tried by a potential virus carrier has kept people from even considering shopping in stores. This trend has followed suit on e-commerce stores as well. With unemployment on the rise and people looking to spend discreetly, buying fashion items is the last thing on everyone’s minds.
A Big Drop in the Apparel industry is expected to shrink even further!
Another reason contributing to this shrinking industry is the disruption to its supply chain. With government orders in place, restricting the transportation and movement of goods across borders, big fashion brands are finding it increasingly difficult to keep up with the business or pay their employees. Meanwhile, there is a rise in laying off employees and it’s rapidly growing.
With the pandemic still going strong and businesses continually struggling with generating demand, the fashion industry of the past and future fashion brands are expected to suffer further. Unless solid business plans both flexible and adaptable are put into place, fashion brands will continue to lose business and shrink.