This update by McKinsey&Company and BoF highlights the changes in consumer behavior and industry landscape in the light of the corona crisis.
The fashion industry’s revenue is predicted to decrease by 27-30% in 2020 and the race of the survival of the fittest has begun. The consumer landscape has shifted as they have been exposed to anxiety and uncertainty. The resulting pessimism led to 75% of consumers expecting that their financial situation is impacted negatively for more than two months.
Trends which are mentioned in previous reports, such as “getting woke”, “radical transparency” and “sustainability first”, have accelerated and are met by consumers who are cash strapped. The increasing discount mindset leads consumers turning to off-price providers that offer them the value they are looking for, in the best case with a sustainable narrative.
New innoative tools are needed to combat the fast changes and collaboration is required to share the burden and costs of the shake-up.
The coronacrisis has exposed us to these trends by highlighting the importance of combining the trends of a “discount mindset” and “sustainability first” to respond to a dramatically changing consumption landscape. Creating an efficient and scalable circular fashion industry allows us to offer items with a discount of up to 90%, while minimizing waste, maximizing the usage of items and prolonging the lifetime which minimizes the damaging effect of the fashion industry on the planet.
This also means that despite all adverse effects, this crisis allows us to re-focus and create resilient business models which are future-proof, sustainable and customer-centered.
Learn more about the rapidly changing landscape in the fashion industry: