Market review summary 2020
How the COVID-19 has affected the fashion business and what might be the influence and benefits for the business.
The study draws an overview on the impacts that global fashion industry has faced with, scanning the differences in economic, technological, and social shifts in fashion that might transform the entire system of fashion business. The research is necessary for fashion tech companies like Sizey to re-assess their operational environment and re-align if necessary, to benefit from the prevailing changes in the industry.
Trade war between the US and China, as well as the existence of Brexit, have increased uncertainty in the global economy, restraining the collaboration among countries in all aspects. Adding to this year, the COVID-19 pandemic has delivered a biggest and broadest value chain shock in recent memory. Global growth for 2020 was reviewed and projected at -4.9% compared to 2019. As such, global consumption growth has tilled to the downgrade side for most of countries as they have faced a larger disruption to domestic activities; a larger adverse aggregate demand shock from social distancing and lockdowns; a rise in precautionary savings; and subdued investment from firms.
The global fashion industry is one of the hard-hit industries in almost every region, especially in North America, mature Europe and in emerging Asia-Pacific with drastic decline rate in sales. The market is now forecast to contract by 27% to 30% in 2020. From consumer point of view, the behaviours, preferences and shifts in mindset that people have adopted during the pandemic will lead to permanent changes, including bifurcated spending, accelerated adoption of e-commerce, and increased demand for purpose-driven brands and sustainable fashion. More consumers worldwide will either trade down to lower-priced goods or trade up to premium brands they may perceive as providing more value, leaving midrange-priced brands to feel the pinch. Rising demand for switching from store-based shopping to a contact-free-economy, related concerns about data privacy is therefore on the growing trend among e-commerce consumers.
– Summary and Market Review written by Ms. Thao Nguyen – Copyrigt Sizey Ltd