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Retail and business management consultant Wazir Advisors have released a report that outlines a sharp fall in apparel consumption in the USA and European countries. Globally, new COVID-19 cases are projected to reach the acme between the time frame of end-April to mid-May. In line with this, the Boston Consulting Group, in its Epidemic Projection released on March 26, 2020, has revealed that Covid lockdown in most parts of the USA and EU will last at least till mid-July. This means that stores across these countries will have to remain shut for a total of 3-4 months. As stated earlier, staples, medicine and grocery will be on the priority list, the desire to flaunt fashion will take a back seat chiefly because of uncertain economic scenario and lack of occasions to go out.

Wazir Advisors have outlined that this will result in a drop of apparel consumption in the otherwise largest fashion markets of the world, the USA and EU by 40 and 45 percent, accounting to about US$ 300 billion.

“The USA, as a society, is more consumerist compared to Europe. Younger population with a habit of regular spending will cause US to maintain a tad higher consumption than EU during the lockdown period; and more importantly, faster return to normal consumption levels,” the report states.

It estimates 37 percent less consumption due to store closures in the US market, and the country’s GDP shrinking by 3 to 4 percent. Expected net impact would be 40 per cent lower apparel consumption in 2020.

Moreover, the McKinsey & Company’s new Global Health and Crisis Response report highlights that in Europe and the US, more than 65 percent of consumers expect to decrease their spending on apparel, while only 40 percent expect to decrease total household spending.

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One of the few successful sustainable marketing campaigns was the 2011 “Don’t Buy This Jacket” ad from Patagonia, which urged consumers to buy less and keep it for longer. It implies that consumers wanted to invest in something high-quality that lasts a long time. Some indicators point into the direction that a sustainability claim works in combination with a high-quality message.

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Fashion business means change, the key product remains the same but how you present it to the consumer needs to change. A pair of denim is classic but adding a twist to that pair becomes imperative since consumers are always on the lookout for something exciting or new. Fashion over the last 10 years has become less restrictive, consumers open to fast fashion. While mixing of fabrics was difficult in the past to create a new look, it is possible now, both because of technology and consumer acceptance. It’s all about pushing the boundaries to create an interesting product which also needs to be liked by people.

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Some say the most important thing in fashion is a great product. Do you agree or not?

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What does innovation stand for you and how is your company working on giving new innovations in the market?

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Experiential Ability – The ability to create an experience out of fashion.

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