Coronavirus sweeps the world, U.S. clothing retailer J. Crew Group files for bankruptcy protection; Cath Kidston permanently closes all British stores; Spanish fast-fashion retail Inditex has closed 3785 stores worldwide. The grim situation of Coronavirus, even multinational companies may face major crises. The current fashion business model is not immune to this endemic damage.
How do companies continue to operate in the economic recession? They need to change their sales methods to enable consumers to increase their purchasing power.
Clothing is a non-essential expenditure, consumers simply are not interested in buying clothes under the Covid-19 epidemic. The fashion industry has faced an existential crisis, companies must refresh their business model and implement crisis response. Zara, GAP, and Uniqlo take online shopping centers which can pick-up in-store, try it on, modify the cloth length, and even exchange it immediately.
Digital reform has brought new ways of consumer interaction, which let consumers get used to using digital tools. Even after the epidemic, digital reform can cooperate with physical stores to develop the stay-at-home economic market.
The model on the cover page of a fashion magazine is no longer well-dressed meticulously. Instead, the medical staff or home quarantine taking epidemic prevention selfies. Model in Harper's Bazaar magazine took photos of daily life without makeup and hair during the home quarantine period.
The social impact of the magazine is incalculable. Continuous Coronavirus related reports or photos may cause panic among the home quarantine people, affect their mentality and pessimistic thinking. Therefore, reports and photos in this area are not suitable for a long-term journal publication.
Beverage fashion, the first one to think of - Starbucks. It represents not only personal taste in life but also a popular fashion accessory. The blockade caused damage to the whole world, Starbucks was streamlined personnel and save leasing cost to reduce the cost. Starbucks announced that it would close 400 traditional stores in North America, and opened 300 new takeout shops, including an unmanned store and drive-through service, which will be integrated with the Starbucks App.
The takeout model and fast food pick-up service may attract different consumer groups. But for market target, sales locations, price positioning and combine with promotional activities that can grasp the new business opportunities in this epidemic to become a sustainable business enterprise.
Boutique brands have also been involved in epidemic prevention. LVMH converted its perfume factories to make hydroalcoholic gel hand sanitizers that given for free to French authorities and hospitals in Europe. GUCCI announced stopped manufacturing luxury goods and instead produced masks and medical protective supplies. Prada group has produced medical coverall and masks, donated to the intensive care unit to support medical staff.
Nowadays, many brands and factories that produce masks have gained the necessary status, turning to production may be the only way to survive this crisis and get lucrative government contracts while increasing their brand awareness. This is also another successful advertising marketing method.
Coronavirus causes economic impact, but also bring opportunities for transformation. Although the government is unlocking towns and cities in various countries, the Coronavirus cannot be taken lightly. With the spread of the epidemic, leading brands in the fashion industry must rethink their product positioning and marketing strategies. Whether you can grasp the opportunity and have resilience is the first step to get the dominance back.