Despite numerous measures, the fashion sales would only come back to the levels of 2019, towards the end of the year 2023, as per a forecast of a new report.The fashion industry has deteriorated with the worst possible record, where the listed companies lost money in the last three quarters due to the novel Coronavirus, according to a new report.
“As the Coronavirus pandemic shooked the world to the core, and has taken everybody aback in terms of health and economy, with millions losing their jobs and their loved ones. It has been a depressing year so far. There was a drastic shift in the behavior of the consumer, there was a disruption in the supply chains and the year went towards its end by getting hold of the second wave of the infections, according to the ‘ The State of Fashion” report by media company of Fashion Business and Management consulting firm Mckinsey. There has been a forecast of an economic profit numbering to decline of 90 percent across the industry in the year 2020.
The report also shows goes on to border the recovery predictions over the following year in two phases. Sales declining positivity between 0 to percent is the first phase in the year 2021 in comparison to 2019. The company is most likely to enter the same phase as 2019 in the year third quarter of the year 2022. The second phase is where we get to witness the decline in sales growth by 10% to 15% in the following year in comparison to the year 2019. In this regard, the virus won’t diminish and will carry on damaging the health of the people as it has been doing in the last year or so, despite the numerous measures taken to contain it. The fashion sales would come back to its normal lucrative figures in the year 2023, as per another report.
The report is forecasting a tough market and the conditions of trade into the following year. It also says that the pandemic will increase and speed up trends that were in motion before the crisis, as shopping is facilitated digitally and the consumers continue to defend fairness and social justice. For any fashion business trying to make a massive entry, these observations are to be closely looked at to establish a business model that would be dependable in the volatile conditions we face before us.
The report also emphasizes the consumer behavior changes and their impact on the demand and market trading conditions ahead. There is an emphasis on persisting digital presence. However, as digital consumption carries on its dominance and growth in 2021, the companies must advance more engaging and social experiences to induce consumers to connect. At the same time, there is an anticipation of executive teams to increase emphasis on ensuring the digital channels add a reasonable value to the bottom line, with cramped budgets and the need for efficiency and productivity.
If we advance, the industry would have to set higher sights to aim for a better normal, across stores, assortments and partnerships. At this point, the tone is set for how to report aims to assist the business leaders of the industry, with going in-depth with the views on how companies can hope for a brighter future, if they can come up with some new strategies and aspects, in comparison to the old ones.