Coronavirus Will "Reset and Reshape" the Fashion Industry

Luxury brands and indie designers alike will face imposing challenges.

By
Fashion
29,121 Hypes 25 Comments

The fashion industry, like so many others, is still struggling to come to terms with the new reality enforced by the coronavirus pandemic, as retailers, designers and employees alike strive to reclaim the normalcy of only a few weeks ago. The Business of Fashion, along with McKinsey & Company, have now suggested that even if a plan of action is put in place, a “normal” industry may never exist again, at least how we remember it.

Currently, sportswear companies are shiftingto produce masks and protective equipment as luxury houses join the cause and donate funds. However, these noble efforts are aimed to stem COVID-19, not provide a long term solution to the financial crisis caused by the disease. BoF and McKinsey’s report looks to the future of the industry, considering the likeliest outcomes and changes inflicted by coronavirus.

Importantly, the report predicts a post-crisis recession, which will dull consumer spending. Bluntly, “the crisis will shake out the weak, embolden the strong and accelerate the decline” of struggling companies. No one will be safe from shrinking revenues and costly ventures will be cut. The silver lining is that despite widespread hardship, the industry will be granted opportunities to embrace sustainability in rebuilding its supply chains, prioritizing innovation as old wares are discounted.

Coronavirus Fashion Industry Impact Report business of fashion mckinsey company research interview effect covid 19

Justin Fennert/Hi Omaha

Gloomily, “we expect a large number of global fashion companies to go bankrupt in the next 12 to 18 months,” the report explains. These range from small creators to luxury giants, which often depend on revenue generated by wealthy travelers. Of course, developing nations will be hit even harder, as employees of manufacturers located in areas like “Bangladesh, India, Cambodia, Honduras and Ethiopia” cope with shrinking job markets. Meanwhile, 75-percent of shoppers in America and Europe expect their finances to take a turn for the worse, meaning fewer fast-fashion shopping sprees and opulent splurges.

Instead, the report expects consumers to engage in what Mario Ortelli, managing partner of luxury advisors Ortelli & Co, describes as cautious consumption. “It will take more to justify a purchase,” he notes. Expect more online shopping in second-hand and rental markets, with customers particularly seeking out investment pieces, “minimalist, last-forever items.” Retailers and customers able to tailor digital shopping experiences and dialogues to their clientele will fare best. Customers “want their sales associates to really talk to them, think about the way they dress,” explained Capri Holdings‘ chief executive, John Idol.

Perhaps the best way to lessen the overall damage is through collaboration. “No company will get through the pandemic alone,” the report asserts. “Fashion players need to share data, strategies and insights on how to navigate the storm.” The burden must be balanced by all involved to stave off at least some of the imminent turbulence. Similarly, embracing new technologies will ensure that companies are better suited to survive post-pandemic. For instance, digital meetings shave off the cost of traveling for conferences and flexible working hours aid in tackling new challenges. There was already an 84-percent rise in remote working and a 58-percent boost to flexible working hours before coronavirus, meaning that these traits may not be entirely new, but they are worth perfecting and practicing.

Read Business of Fashion and McKinsey & Company’s coronavirus impact report for the full findings, expectations and interviews, encompassing everything from the beauty industry to the virus’ different effects on the global market.

Before the crisis is over, however, America’s CDC health agency has created a video demonstrating how to make your own face mask at home.

Read Full Article

What to Read Next

HUMAN MADE Spotlights Breezy, Lightweight Layering for SS20
Fashion

HUMAN MADE Spotlights Breezy, Lightweight Layering for SS20

Linen deck pants, cotton graphic T-shirts, and more.

Nike Kyrie 6 Joins the "Planet of Hoops" Pack
Footwear

Nike Kyrie 6 Joins the "Planet of Hoops" Pack

With an (unintentionally) eerily “There Is No Coming Back” graphic.

J Balvin's "Gris" Music Video Is a Gloomy Homage to Lost Love
Music

J Balvin's "Gris" Music Video Is a Gloomy Homage to Lost Love

Another standout visual from his ‘Colores’ project.


More Nintendo Switch Consoles "Are on the Way" Amid Global Shortages
Gaming

More Nintendo Switch Consoles "Are on the Way" Amid Global Shortages

Reserved consoles, including the ‘Animal Crossing’ variant, will arrive this week.

Mick Rock Releases Rare Prints of Kate Moss, David Bowie & More
Arts

Mick Rock Releases Rare Prints of Kate Moss, David Bowie & More

As part of West Contemporary’s fundraiser to provide FFP3 masks for NHS staff.

COMME des GARÇONS CDG Issues Spring 2020 Essentials and Accessories
Fashion

COMME des GARÇONS CDG Issues Spring 2020 Essentials and Accessories

Ranging from a garment-dyed hat to the classic collaborative Novesta sneakers.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.

Help Support Us

We need ads to keep the lights on and to continue providing free news to our readers. We’d appreciate your support by whitelisting HYPEBEAST on your ad blocker. That way you can keep reading all the great stories for free.

If you have already whitelisted us, simply refresh this page. To find out how to whitelist us, click the button below.

Back

Add Us to Whitelist

We appreciate your support in allowing HYPEBEAST ads. Most ad blockers have similar whitelisting steps and settings. If you need assistance, please contact us.

Adblock Plus

  1. Click on the red ABP icon in the upper right corner of your browser.
  2. Click “Enabled on this site” to disable ad blocking for the current site. In Firefox click “disable on HYPEBEAST”.
  3. Refresh the HYPEBEAST page that you were viewing.

Adblock

  1. Click the AdBlock hand icon.
  2. Click “Don’t run on pages on this domain”.
  3. A new “Don’t run AdBlock on…” dialog may be displayed in the middle of the screen.
  4. Move the “Site” slider to the right. After that, click “Exclude”.
  5. Refresh the HYPEBEAST page that you were viewing.

uBlock

  1. Click the uBlock icon.
  2. Click the large blue “power” button in the menu that appears to whitelist the current website.
  3. Reload the HYPEBEAST page that you were viewing.

Firefox Browser

Firefox Tracking Protection may activate our whitelist notice, which can be disabled temporarily for a browsing session by clicking the shield icon in the URL bar and following the instructions.

Disconnect

  1. Click the Disconnect icon.
  2. Click “Whitelist site”.
  3. Refresh the HYPEBEAST page that you were viewing.