The Effects of Covid-19 Pandemic On The Fashion Industry
Coronavirus Impact on Fashion
The COVID-19 Pandemic has spurred the biggest economic and humanitarian crises around the world. No matter how stable the economy is it's getting shaken with every passing hour. Effecting thousands of industries and sectors, the pandemic is leaving its drastic influences on the fashion industry which is of its discretionary nature is showing a gradual downward graph and a stressful future awaits.
Drop In the Revenues Of The Global Fashion Industry
The decline of the global fashion industry is too steeper than expected. The market capitalization dropped by 40% starting from January till March 2020. Before the pandemic, the annual revenue generation of the fashion industry globally was around $2.5 trillion. However, now the turnaround is expected to get shrink casing a huge rate of unemployment for the workers.
In 2020, the footwear and clothing brands are expected to squeeze up to 30%. Whereas, the personal luxury jewelry and other goods industry is expected to contract up to 35%-40% in revenue generation. What more devastating is that if the lockdown in all the major countries extended for another two months than the renowned brands of North America and Europe will all going to face huge economic crises.
Moreover, according to the McKinsey Global Fashion Index (MGFI) analysis, many companies and brands are about to go bankrupt in the coming times. Only those having a sound stability in the industry before the pandemic is going to somehow make it out of the pandemic while the rest already struggling with financial instability are going to face severe consequences due to the sudden shutdown of the marketers globally.
Not only are the offline but the online sales have toodisrupteddue to the pandemic. The decline of 20% to 25% in china has been observed and a huge decline of 40% in most parts of Europe and the US.
The Impact Of Interconnecting Between Countries
As the countries are all interconnected with each other when it comes to supply chain demands and needs is also leaving negative influences on the progress of the fashion industry. When governments are busy making massive investments in the healthcare, which is evident through the globally spending statistics on health reports, some of them have surpassed the deadly times on handling Coronavirus like most regions in China. But due to the interconnection the progress is not going to open any new avenues of business in the industry as UK and US are getting buried under the COVID-19 crises.
Contribution Of The Fashion Industry During The COVID-19 Crises
Fashion is not just a singular industry but it stems from multiple aspects of the industry. From makeup artists to designers, photographers to model there are a huge variety of professionals all working under the singlehood- Fashion. Even though fashion is a necessity and a universal commodity as well. But during this crisis, the use and significance of fashion are gradually fading away. Nobody is focusing on enhancing the fashion style or opting for the most high in demand clothing line.
No matter what happens life has to move on and one needs to find out alternative measures to bring a change and so is the fashion industry. As it’s a call for global support, celebrities, brands and suppliers are all coming together to make their contribution.
Repowering the Supply Chain
Considering the severity of COVID-19 the need to have facemasks, gloves and hazmat suits is increasing around the world. Along with this, sanitizers and head nets are in massive demand as well. Not just the doctors but everybody is instructed to put these things on when stepping outside their homes. This gives opportunities to the fashion industry to make their contribution. Now many leading brands from Gucci to Prada are manufacturing thousands of suits and sets to be supplied to people around the world. This created a smooth supply chain demand and has created a tiny avenue to make revenues for the industry.
Peter Dundas stated that, "e are set to make masks with our suppliers. We are using our own fabrics together with safety-approved fibers, so you can wear something cheerful that helps keep you and others safe. I think everyone is concerned about stocks, cash flow, and what comes next,” He further stated that making such products is at the top in his priority list.
According to the National Council of Textile Organizations, around 10 companies including Parkdale Inc., Fruit of the Loom, American Giant, and Los Angeles Apparel, are al contributing to making masks and suits.
The Charity Rallies
Apart from manufacturing masks and other necessities, many designers and celebrities are giving away their dresses to collect donations to be invested in hospitals. Celebrities like Anna Rosa Vitiello and Bettina Looney are all uploading pictures of their wardrobes to be purchased by their followers. All the collected amount is being transferred for the welfare of the patients.
Among the prominent brands Versace, Moncler and Dolce & Gabbana have donated huge sum of money to the public health sectors.
Investing in Tomorrow
“Fashion is about moving forward and not looking back,” as stated by Rachel Zoe even in the pandemic the designers are hunting for motivation to stay encouraged to work efficiently. Even though designers around the globe can't launch a new fashion line but they can surely work on the future fashion catalogues.
The creative thinkers are all burying themselves online with their team to come up with stylish and affordable fashion clothing lines. Not only this, companies and brands are preparing themselves to practice the safest manufacturing techniques that can ensure a more hygienic working environment. The pandemic of COVID-19 has been an eye-opener to motivate the brands around the globe to stick to using hygienic measures and to be more emphatic towards their workforce.
We have a very visceral reaction to clothes, and for that reason alone, fashion still matters.” As rightly as it's said so does its worth mean to the people. Despite the outbreak of such an uncontrollable disease, many still crave to get something new to put on. Sticking to the old clothes for the last couple of months is depressing and it is frustrating. Therefore, to give something creative to the people, celebrities are stepping forward with their cool DIY techniques to recycle old clothes.
Many influencers on social media platforms and renowned celebrities are all making efforts to keep the fashion lovers motivated. Whether it's about recycling the old jeans or matching different dresses to make a classic combination, the designers are all sharing advice to guide their customers.
Creating a source of income and to keep the teammates employed is also a vital step in contributing to the Pandemic crises. So, designers and fashionistas around the globe are making efforts to contribute to working from home. They are managing the supplies within the regions and focusing on other essential aspects of their business along with keeping the entire production team connected online.
Claudi Li shared her work from home experiencing by stating that, “I would be lying if I said that we are fine. Because there’s such uncertainty. Financially, everything has been affected, from sales to press to production. I’ve applied for some funding and grants, but all we can do right now is strategize and plan the finances out very carefully for the coming months. As for my business in particular, all of my employees and interns are minorities; a lot of them are Asian. We were already facing problems on the daily doing business, even before this happened. Now I’m extremely concerned for their safety, and mine, due to recent events.”
Even if the pandemic ends, the recovery phase will be much longer than six months. Designers will have to come up with the recovery strategy after analyzing the market condition and to introduce innovative solutions to speed up their sales. Not only will the Fashion industry, but also every other sector is going to get a 360-degree fresh start. Only those with the uncanny abilities to identify the most potential avenue will be able to overcome the crisis.