The advent of coronavirus affected humanity in ways that were not expected. Many nations around the world suffered the adverse effect of the pandemic, and their revenues plummeted. Several industries were not left behind, too; as of March 2020, the fashion industry had suffered a 34% decrease in sales globally.
An industry with a revenue of over $2.5 trillion in revenue annually and over 600 million direct and indirect employees undergoing such an awful decline will surely mean a lot of bellies will not be fed.
Some workers will definitely have to go home when their wages cannot be paid. This is to show that the fashion industry is not left out in the trend of happenings.
Every stage of production and sales has gone down the slope in the last eighteen months, from designing to retailing and marketing. The reason for this decline isn't farfetched: many people are not leaving their homes due to lockdown, and the new trend of working from home is being encouraged. This corroded the idea of buying clothes since there is no use for them. This saw the diminishing of many fashion brands' market value and many families losing their means of livelihood.
For an industry that gets over 80% of its sales from physical retail, when physical transactions have been limited by restrictions and conditions in the last year, such industry must develop innovative ways to get their items sold. Some fashion brands have responded to this challenge by selling at a slashed price to encourage purchase, but this has not met their intended desires. The idea of price slashing has led to a reduction in profit margin, and some companies are barely surviving.
The question begging for an answer is what can be done to salvage this situation that looks like it's getting out of hand? Even when frenzy COVID-19 brought along subsides, what will be done to give the industry a facelift?
If these questions are not properly answered in the coming months, there might be a serious economic problem, even greater than the one during the coronavirus outbreak. Governments of different countries have begun to roll out plans to stimulate the economy by injecting more money. Has that solved the problems or created more?
One of the most innovative ways the fashion industry can get ahead in sales and relevance is marketing through e-commerce websites and social media platforms.
Another thing to note is that this is the time for the fashion industry to reflect on coming up with a sustainable solution to the industry's problems, massive carbon emission. Sustainable fashion trends in terms of design and cost should also be thought of by the industry actors.
Things will get better for the industry in the coming years, and when it does, the fashion industry must be ready for the new challenges ahead and the benefits that will follow suit.