Fashion under Covid-19: The measures brands can take

Key takeaways

• Covid-19, the virus which first appeared in China in December 2019, has now affected about 400,000 people, and governments around the world are taking action to combat it.
• The pandemic hit the global fashion industry hardest since this year’s Fall Winter 2020 Fashion Weeks, and brands and consumers are shifting their behaviors in response. 
• Heuritech can provide brands with the tools they need during this particular time to adjust their marketing and stock strategies with accurate consumer insights from social media.

First appearing in Wuhan, China in December 2019, Covid-19 has since spread to 147 countries on 6 continents with nearly 400,000 cases as of March 25th. Governments have taken measures including but not limited to restricting travel, performing health inspections on travellers, and enforcing lockdowns. Many sectors have been affected, and new means of coping are being trialled each day the pandemic continues.

But what does this mean for the fashion industry specifically, and what can be done about it?

Breaking down Covid’s impact on the fashion industry thus far

Over the last 3 months, the pandemic has already hit fashion, luxury, and retail. This year’s FW20 Fashion Weeks proved to be the turning point of the virus, despite only 2% of Instagram posts mentioning coronavirus at the time. To have a clear understanding of the virus’ trajectory, here is a timeline of the major impacts in fashion at the time of this writing.

• January 21st: Luxury stocks in Asia take their first dive of $15 billion USD amid concerns
• February 5th: Retailers such as Nike begin to close stores in China
• February 10th: Fashion Weeks in Asia begin to be postponed: Shanghai, Seoul, and Tokyo
• March 9th: Italy put on lockdown shortly after Milan Fashion Week, where many events had already been cancelled or carried out in private such as the Armani runway show
• March 16th: H&M begins to close stores across Europe and US, serving as an example for other retailers
• March 17th: France put on a nationwide lockdown, the second largest after China

Today, many countries are currently under lockdown or have closed their borders to non-citizens. Some of these countries are, of course, China and Italy, but also Denmark, Spain, New Zealand, Germany, Qatar, and several more. Governments, businesses, and consumers alike are all in the same boat: waiting for the virus to phase out while taking the correct measures in the meantime. 

The good news: Brands move forward in solidarity

China, the first country hit by the virus, is already getting back on its feet. Slowly but surely, provinces are announcing dates for school reopenings, lockdown procedures are being steadily lifted in Wuhan, and less and less cases arise by the day. Major e-commerce platforms like Tmall and Alibaba have softened the blow for the fashion industry after thousands of store closings, and influencers have managed to modify their content to cater to their followers’ new situation. Popular WeChat influencer GQZHIZU, for example, finds the silver lining: “Publishing fewer commercial articles gives influencers a much-needed opportunity to create more and better editorial content.”

In addition, many brands are currently doing their part to aid in battling the pandemic. Nike and Amazon, for example, are among the growing list of companies joining to fund research about the virus. Due to the shortage in masks in most hospitals and clinics, Saint Laurent, Balenciaga, and Gucci are beginning to manufacture masks for health workers. LVMH, along with producing 40 million masks for French health workers, is also producing hand sanitizer in its facilities. Many brands have likewise donated to help hospitals, small businesses, and communities stay afloat during this period: Moncler, for example, donated €10 million toward the construction of a new hospital in Milan.

What’s been postponed so far?

Evidently, solidarity is the word of the moment, as many brands extend a helping hand to the fashion and medical communities. The fashion industry has been affected in a unique way, partly because the pandemic hit hardest during this year’s Fall Winter 2020 Fashion Weeks. Each sector is experiencing the pandemic differently:

• Houses and brands will feel the effects into Summer 2020. For example, Chanel has postponed its Métiers d’Art shows in Beijing and London, and cancelled its cruise 2021 show in Italy scheduled for May 7. It also halted production in its facilities in Italy, France and Switzerland for the next two weeks.
• Many fashion weeks have already been cancelled. Among them are Beijing, Seoul, Tokyo, and Australia Fashion Weeks. 
• Conferences and big events are being postponed, and some cancelled altogether. Baselworld, Copenhagen Fashion Summit, and the Hyères Festival are some of the events that have been postponed, and the Association nationale pour le développement des arts de la mode, or ANDAM, has pushed back its application deadline for its 2020 Fashion Awards.
• Sales and stocks are taking a slight dip. For example, Tapestry Inc., which owns Coach, Kate Spade and Stuart Weitzman, said it may lose $200 million to $250 million in sales in the second half of the year, and its earnings may take a hit of up to $124 million.
• Fashion stores have been perhaps the most visibly affected, with brick-and-mortar stores around the world closed down until the end of the virus. Some of these include Neiman Marcus, Chanel, and Nordstrom. E-commerce has taken a slight dive in Europe, as well.

It is evident that Covid-19 will not leave us as we were before. Fashion players, producers and consumers alike, are already looking at themselves in the mirror, reassessing what can change, what should change, and what should remain as it is. But how to answer these big questions? Let us weigh in. The fashion industry is a worldwide community, and during this very particular time, helping thy neighbor is more appreciated than ever.

To discover solutions during this particular time in fashion, read the full article on our blog.