Fashion Retail During A Recession: Navigating A New Environment
Once we eventually emerge from the coronavirus pandemic, fashion retailers will be operating in a highly different environment.
Back in 2008, when the financial crisis hit the globe, the retail industry wanted to quickly return to normalcy – even though the supply-led market had resulted in a vicious cycle of overstocks and discounts.
“We’ve done everything to such excess that there is no consumer for all of it,” Marc Jacobs told Vogue, as reported by The New York Times. “Everyone is exhausted by it.”
But now, retail is forced to innovate. Today, demand, not supply, leads the controlling force. This means consumers are increasingly in control of market shifts, as evidenced by the rise of loungewear and activewear during the pandemic.
Every step of the value chain is evolving as consumers become accustomed to the new normal of social distancing. Old processes are rendered obsolete, and in order to ensure business continuity, retail must adapt to the digital revolution and fix the challenges now.
Challenges in Fashion, Accelerated
Fashion had a vulnerable system.
The industry once strictly adhered to a four-season calendar, fuelling overconsumption to maximise revenue and profit. Legacy retailers relied on brick-and-mortar sales and allowed age-old practices to take precedence when trading was smooth-sailing.
That has since changed. Past trends are obsolete; future trends are uncertain and seasonal trends are becoming irrelevant. Now, legacy retailers are cracking under the pressure, finding more ways to go digital, emboldening digital natives like Boohoo PLC.
With a global shift towards e-commerce, the end-to-end fashion value chain needs to evolve. From product development to customer service, investment into digitisation must be prioritised.
Historical sales data is not reliable nor relevant for analysing consumer behaviours and forecasting revenue. While social media shares popular trends, it does not validate the opportunities presented. In today’s demand-led market, it’s of crucial importance to have access to real-time insights to create consumer-driven collections that meet the market’s needs.
This is the exact purpose of fashion market insights – a data-driven approach that enables greater visibility on consumer behaviour.
How Omnilytics Can Help
Omnilytics is a fashion analytics company that helps brands and retailers, such as Zalora, The Iconic and Adidas – powering business decision-making with deep and actionable insights.
We monitor over 400 retailers and more than 75,000 brands in 49 countries, every single day, tracking every change in product price, availability and newness.
These data points are processed daily utilising a combination of keyword analysis, object detection and image recognition before they are transformed into visual elements for best-in-class user experience.
We pair deep industry expertise and ground-breaking technical innovation to help buyers and merchandisers in the…
- Validation of trends
- Building an effective pricing strategy
- Spotting opportunities in assortment planning
- Expanding into the right online retailers
In a world with Omnilytics’ accessible, actionable and unique insights, opportunities are seized, gaps are closed and risks are minimised with confidence and speed.
Omnilytics will advance its position to become the global leader in analytics solutions for the fashion retail industry during the Covid-19 crisis, driven by the need for speed, increased awareness of analytics tools and the expansion of a brand’s total addressable market, fuelled further by our growing network and expert advisors.
You might also like
Back-to-School Retail Fizzles Under Pandemic Pressure
As one of the biggest shopping periods in fashion, back-to-school harboured hopes of an economic boost for many retailers. Last year, back-to-school saw consumer spending surpass $80 billion, second only to the holiday season. But uncertainties in the new schooling calendar and weak consumer spending will likely result in a more muted affair than retailers […]
Holiday Retail 2020: Predictions and Demand-driven Strategies with the Parker Avery Group
This year’s holiday retail will be unlike any the industry has ever experienced. As the biggest annual shopping period, the holiday season accounts for 20% of retail sales each year. But for this year, after a tumultuous period of economic downturn, a boost in consumer spending is highly anticipated. That said, retailers have to exercise […]
The Evolution of The Luxury Fashion Market
The luxury fashion market is in for a demographic transformation. As consumer behaviours are shifting towards a more digital and experiential trend, luxury brands are realising the need to reinvent themselves. Just a mere decade ago, the premium market was dominated by baby boomers and Gen X – those born after the World War through […]
Fashion’s New World Order Powered by Tech
The pandemic has had repercussions far beyond retailers’ revenues. During the lockdown, nearly every facet of the fashion industry was brought to a standstill. From manufacturing to media, social distancing threw a major wrench in fashion’s roadmap. Unlike other industries that have been quick to adopt tech innovation, fashion had grown accustomed to the conventional […]
How to Remove the Guesswork from Trend Forecasting
Before Covid-19 upended the world, the industry often resorted to the same fashion trend analysis methods to gauge market demand. Trend forecasting services like WGSN are typically used to guide the fashion design and buying processes, leading to the homogenised state of the fashion landscape. There are also other common methods used, such as… Historical […]
Top Global Online Fashion Marketplaces
The increasing convenience of online shopping paired with the new social distancing norms has culminated in the rise of online fashion marketplaces. In a time where many retailers are struggling to survive, marketplaces like Asos and Amazon have emerged even more profitable than before. Asos announced it had surpassed $1.2 billion in revenue after experiencing […]