Make it fashun
Among the industries struggling with the fallout of the pandemic is the fashion and retail industry. A McKinsey report found that the average market capitalization of apparel, fashion and luxury players dropped almost 40% between the start of January and March 24. They also said that “a two- to three-month lockdown will cause financial distress for 80% of European and North American fashion businesses.” Despite the threat that looms, many brands have responded to the crisis by shifting production to create much needed personal protective equipment (PPE) or donating to those in need. For example, H&M, Zara, Prada, and Kering are arranging their supply chains to produce PPE, particularly masks, while others are donating on average 20% of proceeds to various organizations.
On the other hand, brands have also had to rethink how they connect with and appeal to consumers during this time. According to Heuritech, “by shifting campaign strategies, providing virtual entertainment and producing useful products for consumers, fashion brands can build deeper connections with their customers and ensure positive returns in the long run.” Examples include Bella Hadid’s Jacquemus campaign shot at home through FaceTime, trivia games on the Instagram Stories of Salvatore Ferragamo or stylist Jessica Mulroney encouraging Canadian moms to share their feelings about quarantine life and matching the number of comments to the number of her Shoebox Project donations to women’s shelters. Those brands that embrace the spirit of charity and good deeds are those that will come out on top.