Many sectors are reeling from the fallout of COVID. The crisis has ushered the global economy into a recession, and the fashion industry has not been immune. Before the pandemic, the 2020 forecast looked promising but the COVID-19 crisis has dramatically affected the fashion industry. Fashion brands have been forced to re-evaluate their business models during the pandemic.
“The close linkage of the textile industry to agriculture (for raw materials such as cotton) and the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries of other countries”.
- The Indian textile industry is estimated around 108 billion dollar and expected to reach 223 billion dollar by 2021.
- The textile industry is also one of the largest contributors to India’s export with approximately 13.5 percent of total export amounting 42.24 billion dollars.
- Revenue in the Fashion segment is projected to reach US$664,474m in 2020.
- Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 9.4%, resulting in a projected market volume of US$953,049m by 2024.
- The market’s largest segment is Apparel with a projected market volume of US$445,338m in 2020.
- In global comparison, most revenue will be generated in China (US$284,311m in 2020).
- In the Fashion segment, 24% of total market revenue will be generated through online sales by 2023.
The COVID pandemic has had an unfortunate impact on the retail and fashion industry worldwide. This pandemic has forced the world of fashion to take a hard look in the mirror. Here’s all you need to know.
- The future of fashion shows
- Losses mount for big brands
- The shutdown of Retail Shops
- Booming of Online Shopping avenues
Retailers are quickly trying to read which way the wind is blowing. Changing consumer trends and stumbling footfalls will demand a fresh look at what sells, and how it will be sold in the months to come. It’s likely more brands and retailers will offer discounts as time goes on
In early April, McKinsey & Company sounded the alarm for the fashion industry and reported that the status of the fashion industry will go from high-alert to red zone. McKinsey’s analysis approximates that 80 percent of publicly listed fashion companies in Europe and North America will be in financial distress after COVID-19. The situation isn’t any different in India.
When we asked the very famous Astro Strategist Hirav Shah, about his opinion on the future of the fashion industry post-COVId, he said that no matter what we say, we all are scared and anxious about what lies ahead. No one can predict that to absolute precision. Current times are definitely tough and testing for all of us on one level or the other. The Healthcare industry is a concern and is being unable to manage the outburst of Corona cases. All other industries, be it restaurants, malls, manufacturing, service industry or education are suffering and facing an all-time low. All brands and institutions are just struggling hard as to how to make a comeback and sustain themselves. The situation is new and grave for everyone.
Hirav Shah says that everything does look vague at the moment, but a few drastic changes are for certain. Venus and the Moon play major roles in the fashion industry. 2022 adds to 6 = Venus that’s the year with BIG BANG for FASHION INDUSTRY.
- Minimalism would trend high, keeping up with the trends might not be the trend anymore
- Fast Fashion would be out; focus would be on the Classics
- Online shopping will soar high and retail outlets might see a decline in numbers
- There might be the rise of some new styles and trends popularized due to the global pandemic
- Masks, Gloves and Protective gear would become a necessary part of our dressing up
- With Work from Home being the new norm, the sales of formal wear would definitely go down
- Fashion weeks and fashion shows would not be as grand as before
- Wedding fashion would be deeply affected
With the coronavirus pandemic leading to events being postponed or cancelled, people in the fashion world have been finding creative new ways to use technology.
Many companies create immersive mixed reality experiences and use computer generated models to display the clothes.
The future of fashion weeks is uncertain due to travel restriction and social distancing rules. Big brands are abandoning the traditional catwalk and going digital. Online streaming of catwalk and no guest might become a new normal for the fashion industry.
US apparel and textile could shrink by more than 50% in 2020 due to the coronavirus outbreak.
Fashion retailer Zara will shut down up to 1,200 stores, mostly in Asia and Europe. The Spanish fashion Behemoth reported its first loss since it went public in 2001.
Will Diwali bring back the joy for Fashion Retailers?
After corona, designers see a huge shift in consumer behaviour. Fashion retailers are planning to push their spring-summer collection till pre-Diwali to clear their inventory. Retailers have decided to skip pre-fall clothing and instead plan autumn-winter collections.
According to Hirav Shah, Diwali could be a time for the revival of business fortunes and consumer spirits.
Booming of Online Shopping avenues
But online sales have jumped 95 per cent YoY in April alone. The retailer now wants to go big on online shopping.
Retailers are quickly trying to read which way the wind is blowing. Changing consumer trends and stumbling footfalls will demand a fresh look at what sells, and how it will be sold in the months to come. It’s likely more brands and retailers will offer discounts as time goes on.
Humans are amazingly adaptive, and we are sure the creative minds running behind these brands and labels will certainly figure out an innovative way to get out of all this, and that too keeping up in style explains Hirav Shah.
Stay home, Stay safe