How the Covid-19 Pandemic is Affecting theFashion Industry

                         The corona virus, which has infected 1.8 million of the world's population, has not only had an impact on the world's health. But it also attacks the joints of the economy in many countries. This condition can be seen from the closing of clothing factories in China to the closing of famous boutiques along Fifth Avenue, New York. The corona virus has also affected the sales of luxury clothing retail companies. Statistics show the deadly impact of the corona virus not only on human life, but for business and industry, especially for retail.
Launching the South China Morning Post (13/4/2020) efforts to maintain business in conditions of the corona virus pandemic will be very difficult. According to a report released by McKinsey in collaboration with Business of Fashion magazine, the world's fashion industry will experience a sales decline of 27-30 percent. Meanwhile, sales of luxury and branded goods will experience an even greater decline in 2020, which is around 35-39 percent or a decrease of around 650 billion US dollars compared to 2019. "So far the corona virus has had a very bad impact, ' said fashion expert Mario Ortelli.

The impact of store closures

This decline is a direct impact of the closure of boutiques and shops, while the impact of the obstruction of distribution networks and the psychological impact of the corona virus experienced by consumers has not been taken into account. This impact is estimated to be much more severe than when the world experienced the financial crisis in 2008. Currently, no one can predict what the world will be like after the corona virus pandemic has passed. However, one thing that is certain is that there will be several well-known fashion labels that close their business. Several labels have reported declining sales conditions, such as Burberry, Prada and Michael Kors. Indie labels are currently struggling to maintain their business. "Some labels are more likely than others to make it through this crisis," said Danielle Bailey, an analyst at L2 Gartner. "Big and well-known labels with all their resources clearly have a greater chance of surviving this crisis," Bailey said.

Meanwhile, Ortelli believes that a fashion label that already has a big name like Hermes will survive better than a label that only relies on fashion. This is due to the fact that consumers will be more likely to invest their money in products that have a clear quality. These small labels will likely not be able to survive this crisis if they do not have sufficient financial reserves. 

E-commerce helps survive

Nevertheless, there is little hope when a recent statistic in China shows that e-commerce has helped fashion labels to stay afloat. Experience labels like Allbirds, according to Bailey, can survive because they already have influence with digital consumers. Moreover, they are not burdened with hundreds of stores that are filled with inventory and eventually have to be liquidated. 

However, observers also assessed that many customers, especially those aged over 50, tend to dislike online shopping. "Luxury labels have to learn how to make their websites more user-friendly," says Paco Underhill, founder of consulting firm Envirosell and author of Why we Buy: The Science of Shopping. Read also: South Korean students experience stress from studying at home during the coronavirus outbreak How the fashion industry survives Underhill predicts that the post-coronavirus fashion world will look very different. He argues, as a first step labels must ensure to consumers that they prioritize cleanliness as a top priority. 

Fashion labels have also had to work hard to attract back customers who have seen their stock portfolios sink. Marketing must also be on the same path. "Invest in digital advertising, not print, and be careful with communication: when people are in danger, they don't want to hear about fashion, so make a charitable donation or find a way to improve the situation," says Ortelli. When this pandemic is over, Ortelli suggested labels intensify public relations and marketing. However, he also reminded him not to overdo it.