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.
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