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
What Will Women’s Workwear Be Like Post-Pandemic?
Employers in the U.S. can now start planning a return to the office as, following a successful vaccine rollout, the country eases many of its Covid-19 restrictions. Data from the Centers for Disease Control and Prevention (CDC) shows that 67% of American adults aged 18 or older have received at least one dose of the […]
Gender-Neutral Fashion: On the Verge of Becoming Mainstream in Southeast Asia?
Non-binary mixed-media artist Alok Vaid-Menon once declared on BoF Voices 2019 that, “We are not a trend. We are not a moment. We are a movement.” Gender neutrality in fashion is indeed here to stay, mirroring global social changes in the 2010s. ‘They’, a pronoun preferred by non-binary individuals such as Vaid-Menon, Demi Lovato and […]
Integrate Your Performance Data With Internal Intelligence for Richer Insights
Market visibility on your competitors is great, but being able to combine this with your internal data in the same platform can be truly game-changing for your business. That’s why we’re hugely excited to announce the launch of our Internal Intelligence feature – a feature designed to help brands navigate the retail landscape of a post-pandemic […]
Market Insights Made Easy for Speed and Precision
With the recent mass digitisation of fashion retail due to the pandemic, merchandisers, buyers, and designers are increasingly relying on insights to power decision-making. The need to move away from gut feel to actionable insights is becoming more urgent given the high level of competition in online trading. For many brands and retailers new to […]
Top 5 Menswear Trends for Spring/Summer 2021
Like most things in this pandemic, the Spring/Summer 2021 menswear trends are not of the usual variety. The runway season itself was atypical, with major brands like Balenciaga and Gucci opting for virtual fashion shows to eliminate any risk of spreading Covid-19. Designers are embracing the new normal not just in the way they present […]
Product Matching: The Wings for the E-Commerce Boom
For the average customer, the entire retail world now fits into a 15” laptop or 5” smartphone. It is true you can find your preferred product for purchase across different e-commerce sites and portals. However have you ever stopped to wonder about the magic that happens behind the screen that allows you to be presented with different options for the same product, same model, and same variant?