The COVID-19 global pandemic has adversely affected the whole world. It has led to an increase in existing problems of unemployment, starvation, poverty, and homelessness.
All aspects and spheres of life have drastically changed. Talking about the fashion industry, getting dressed has lost its significance and appeal as most of the people are working from home and spending the majority of their time on their laptops.
Social distancing has led to cancellation or postponement of weddings, parties, and vacations due to which there has been a further decrease in demand for fashion and garments. As a result, according to BOF’s The State of Fashion 2020: Coronavirus Update, the average market capitalization of apparel, fashion, and luxury players dropped almost 40% between the start of January and March 24th, 2020.
The last few months have also seen fashion houses, retailers, influencers, and fashion magazines twirl in surprising ways. The Fashion Design Council of India (FDCI), for example, was amongst the first to announce a COVID-19 Support Fund for small businesses and young designers in need.
Fashion magazines also impressively adapted to the current scenario: by going fully digital.
Some brands have also rendered their services during this pandemic. Prada is contributing by making facial covers for donations. Armani is providing its services by moving to the production of surgical overalls while Chanel is making masks and gowns. Coty has increased its production avenue to manufacture sanitizers in the form of hydro alcoholic gel along with the production of masks. H&M is working to make personal protective equipment for hospitals in Europe.
This pandemic has proven to be a blessing in disguise for some brands. Bath and Body Works has increased its soap and hand sanitizer production. Chanel and Louis Vuitton also raised their prices while H&M reported online sales jumped by 36% between March and May. Moreover, Europe’s largest e-retailer Zalando estimates its earnings to reach a record of €300 million this year in online shopping.
However, there are two sides to every coin, while one side of the fashion industry is flourishing the other side has suffered due to an increase in unemployment. With the future of fashion weeks getting dreadful, design students have gotten into another kind of anxiety about how they will showcase their work. Global fashion houses have also slashed their marketing budgets by 30 to 80 percent to weather the economic fallout of the pandemic.
Luxury advertising spending has fallen — no fashion magazines are getting printed; nobody is going around looking up billboards; fashion influencers face trouble and an end to their unexpected careers. Fashion models are facing difficulties as their career and income are dependent on fashion shows, fashion weeks, and shoots for brands.
Malls, shops, and shopping complexes have been shut which has increased unemployment. Zara is reportedly closing 1200 stores and Forever 21 has closed most of its stores because of bankruptcy.
COVID-19 has affected the fashion industry terribly but every cloud has a silver lining and this pandemic has also opened a lot of doors for small scale brands and e-commerce shopping.
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