By the 25th of March, 2020, the entire world was unrecognisable. Nearly every industry was majorly disadvantaged because of the instant global lockdown, which was courtesy of COVID. The fashion industry, too, was no expectation of that rule. Read on to know the impact of covid on fashion industry
Speaking empirically, the concept of fashion when everybody was locked behind closed doors became redundant. As such, comfort and leisure wear took centre stage. However, limiting our observations to such superficial aspects would prove insufficient in highlighting the complete picture of the impact of covid on fashion industry.
Therefore, this blog will offer you a comprehensive insight into core fashion industry problems that arose during the pandemic. Above and beyond that, you will also read about the way of this magnificent industry with the rolling times!
Salient Fashion Industry Statistics
You may be unable to fully appreciate how hard this industry was hit without running a few numbers through your mind. In 2017, McKinsey published a report that acknowledged the cruciality of the fashion industry for the world economy.
It noted that in itself, the revenue generated by the global fashion industry is enough to make it the 7th largest global economy.
That indicates that the fashion industry market size represents roughly $2.5 trillion.
However, when the pandemic struck, the industry witnessed a staggering loss of 20%. Therefore, the fashion industry revenue reduced from $2.5 trillion to 1.45 trillion in 2020. Nearly every corporate system crumbled in the face of indefinite lockdowns in every corner of the world.
While the numbers themselves are concerning, we will help you gauge the severity of COVID in the fashion industry. Below, we have discussed 5 essential ways in which COVID impacted the fashion industry.
How Has the Pandemic Affected the Fashion Industry?
To begin with, manufacturing was halted. Logistics and shipments began looking like a future dream. Consumers refused to shop for clothes while they were already scrambling for essential supplies. That said, these issues paved the way for a new world order in some ways. Here are 5 radical ways in which the pandemic struck the fashion industry.
● Drastic Drop in Sales and Profit
The pandemic left no scope for people to head out to malls and shop for their favorite’s styles. On the contrary, the entire consumer market went into a whirlwind and began stockpiling essential supplies.
Amidst the rush for sustenance and protection from a deadly virus, people stopped buying clothes. Naturally, when a product stops selling in the market, the gross revenue generated by that company also reduces. While larger entities managed to survive the reduction in sales, more marginal companies simply wound up.
● An Increase in Webstores and E-Commerce Sales
Nearly the entire world migrated to the virtual world after the pandemic began. People had to adopt virtual ways of doing things because physical contact was forbidden and dangerous. Offices and educational institutions transitioned to Microsoft Teams and Zoom calls. And so did the B2C and B2B marketplaces.
Sustaining a physical location was nearly impossible because of the low customer footfall and increasing cost of living. Therefore, fashion brands, big and small, improved their online sales infrastructure. While online shopping for fashion existed well before COVID, people didn’t take to it to the extent that the pandemic forced them to.
● An Increased Focus on Fashion Industry Sustainability
The pandemic showed us the impact of many environmental issues. Naturally, the fashion industry, being one of the largest in the world, plays a major part in pollution. Unethical practices and cost-cutting attempts usually mean that fashion brands profit at the cost of the environment.
Because a lot of these unsustainable and environmentally detrimental practices were evinced, brands began to consider the fashion industry environmental impact. This also led to changes in consumer behaviour.
In trying to be more environmentally conscious, consumers began preferring the resale fashion market. Not only did it help them save money, but also reduce at least 1 wastecloth in a distant landfill.
What are the Current Trends in Fashion Industry in 2023?
The fashion industry after pandemic has recovered exceptionally well. In fact, 2023 will be witness to the following trends in the fashion industry.
● Athleisure Dominance
Athleisure will dominate the bulk of fashion industry sales. The prime reason is people’s increasing health consciousness and involvement in gyms and fitness studios. However, people also buy athleisure for the comfort and practicality they offer. With work-from-home having become a staple requirement in an employment contract, people want to be comfortable at home!
● D2C Takes Centre Stage
Even if you look at the Indian market, brands like Happenstance are cropping up at a rapid rate. This is because it allows the consumer to purchase a curated and customised product that is unique to their identity. Therefore, the direct-to-consumer product market will take Centre stage in the coming year.
● Marketing Shifts to Social Media
It is more common for us to see an Instagram model wearing a label than find a poster of that label on the streets. The olden days of restricting marketing campaigns to billboards are out the window. The future will see an increased focus on influencer marketing and social media channels.
Conclusion – The Fashionable Way Forward
The simple fact is that the fashion industry has permeated far too many aspects of human life. Therefore, the recovery from the impact of covid on fashion industry was inevitable. That said, opportunities for fashion industry will crop up in general as well as in niche areas. For instance, the COVID pandemic popularised face masks as an accessory. Today, the largest fashion brands are aggressively marketing and selling innovative mask designs.
We at the JD Institute of Fashion Technology understand the growing requirements of the fashion industry. Our ultimate duty, therefore, lies in grooming our students to be successful and capable in the fast-paced industry. Check out our undergraduate, diploma, and postgraduate courses and take a step toward a successful career in the fashion industry today!