Fashion, in fact, is one of the businesses most vulnerable to disruption from the outbreak since it relies so heavily on discretionary spending. Experts may not always agree on exactly how the pandemic will change different aspects of the industry. But the consensus is that it will, with many large-scale shifts that were already underway accelerating in the upheaval.
The fashion brands just like other industries, have been trying to understand how long this is going to continue on for and adjusting to a new reality.
One of the biggest challenges for the industry is that the national supply chains have been disrupted. This affects the relationship with both suppliers and consumers. On one side there is the supply chains factor and, on the other side, there is the consumer confidence factor – and, obviously, the closures of stores in different countries will affect the growth and revenue of brands.
Many of the fashion brands have entered the UAE through franchise. They don’t directly operate on their own, so their international supply chains are becoming disrupted. This means that these brands will need to put more pressure on their cost structure; they might have to review their pricing strategy by using certain tactics; however, at the present moment, many brands don’t yet know where they stand. At the beginning of the COVID-19 pandemic it was particularly challenging for some brands – such as Burberry – that do a lot of business in China.
Now people have no option but to buy online. Psychology and consumer mentality will play a big part in shaping the fashion industry in the future.