Back in 2004, everyone was talking about the Internet of Things and smart clothing was definitely seen as the Future.
However, thanks to technological progress and the amount invested in R&D by several AI and tech companies, smart clothing is not a dream anymore.
On top of that, it’s truly a fascinating world. Smart clothing and e-textiles are at a crossroad between fashion, technology and healthcare.
What is smart clothing?
Smart clothing is a category in itself. It’s clothes that have been enhanced with technology so that it can perform a wide range of functions. They can have aesthetic or performance enhancing purposes.
Smart clothes enable better communication with other devices, analyze and sense the stimuli. They can pass on some data that can be analyzed to predict and prevent injuries, diseases and protect the wearer from future dangers.
Smart clothing vs Wearables
While there is a growing number of online searches for smart clothing on Google, many people are still unaware of the existing product offering.
On the other hand, they are quite familiar with wearables. As a matter of fact, everyone pretty much knows what a smart watch or what a fitness tracker is.
Ont could say that smart clothing is a sub-market of the wearables market. Smart clothes mostly refer to enhanced garments whereas wearables tend to be associated to high tech accessories and garments in general.
E-textiles vs Smart textiles
Smart clothes can be made using either e-textiles or smart textiles. Contrary to what one thinks, these are not exactly the same thing. Let’s talk briefly about the difference between e-textiles and smart textiles as it can quickly be quite confusing.
The term “E-textiles” stands for “electronic textile” or “electronically integrated textile”. In other words, small electronic components are embedded in the fibers of the fabrics. Your fabric becomes a sort of circuit that can then sense data, store it, transmit it and react to it.
E-textiles are always created with specific applications in mind. They are designed to act like a truc electronic product, with features and functionalities. Most smart clothes are made using E-textiles.
Smart textiles, on the other hand, are a subgroup of e-textiles. As a matter of fact, smart textile materials are environmentally sensitive. They are more passive and only react in the presence of various stimuli, like temperature, light, air or water pressure or sometimes blood circulation.
This being said, both are technical textiles that go beyond the purpose of aesthetic.
12 fascinating examples of smart clothing
Levy Strauss Commuter trucker jacket, in partnership with Google
Wearers of this connected jacket can use hand gestures like swiping, touching, and tapping to access various remote control options of their smartphones.
Hexoskin’s smart shirts that can accurately monitor health vitals
The Montreal-based company developped a high-tech shirt that monitors heart rate, breathing, activity intensity, steps, peak acceleration, sleep, and various other data points.
Athos’ smart clothes to improve the athletes’ performance
Athos is the world’s first system to deliver instant and actionable insights around athletic training load and movement quality using personalized, muscle activity data.
Ambiotex’s smart shirts to measure your stress level
With Ambiotex, you can record your vital data and determines the status of your autonomic nervous system in real-time. That way, you can monitor your stress level and take action if you need to do something about it.
Myant’s smart clothes that help you stay connected with your dearest ones
Skiin garments sense and react to your body, allowing you to understand your well-being, provide comfort and care when it counts, and stay connected to what matters most.
Siren’s Smart socks that helps Diabete patients
The Siren Diabetic Sock and Foot Monitoring System, which enables wearers to monitor foot temperature and spot early signs of inflammation that are indicative of diabetic ulcers.
Sensoria’s Smart socks that helps you improve the way you run
The Sensoria Smart Socks can detect which part of your feet are receiving the most pressure during your run and can send this data to a smartphone app.
Smart Yoga pants to accompany you in your yoga practice
Nadi X, developped by Wearable X, are smart yoga pants that use gentle vibrations to help wearers better perform exercises and correct their postures.
UnderArmour’s smart sleepwear to better sleep through the night
Under Armour’s Athlete Recovery Sleepwear absorbs heat from the wearer’s body while releasing infrared light to increase sleep quality and improve muscle recovery.
Spinali Design’s Connected gloves to kill bacterias and viruses
Spinali Design created smart gloves that can help fight bacterias or viruses like Covid-19 thanks to photocatalysis.
Owlet’s smart socks to keep the babies safe during their sleep
https://youtu.be/xcOySTHZaqk
The Smart Sock is the first baby monitor to track your baby’s oxygen level and heart rate—the best indication of baby’s health—while they sleep.
Cutecircuit’s smart clothes, a crossroad between technology, art and fashion
CuteCircuit’s smart clothes help people have new kinds of experience.
Smart Clothing: Fad or trend ?
When we think about fashion, smart clothing is not necessarily something that comes right into your mind. Yet, according to many forecasts made by different studies, the market is expected to reach US$ 4 to 5 billions in 2024 and 6-7 billions by 2027. In 2019, the market was valued US$ 1.2 billions.
Indeed, Covid-19 definitely had an impact on the projected growth. In countries such as Italy and Spain, there has been a dip in the demand for smart clothing at first and the pandemix slowed down all operations. However, the smart clothing market is likely to exhibit positive growth in post-pandemic period.
Smart Clothing market: Analysis and growth opportunities
The growing use of smart clothing can mainly be noticed in the healthcare, military, sports, and the defense sectors.
Fashion-wise, smart clothes can be used as a form of art but there isn’t a massive demand for fashionable smart clothes. Wearables, for now, are more suited to the B2C market.
As a matter of fact, at the moment, the B2B market seems to the main driver for the industry but many actors dream of turning smart clothes and textiles into a normal item of our daily lives. In Europe, people are more and more taking attention to their health. Growing consumer awareness about fitness is likely to fuel market growth.
On top of that, in several parts of the world, the ageing population and the increasing government’s preoccupation for a better and more efficient healthcare system are creating a need that smart clothes can answer.
Moreover, rising number of sport injuries in the US and at the workplace in Asia-Pacifica can also be a factor that boost the demand for such products. More and more athletes and professional sport teams in North America and in Brazil are adopting smart clothes to prevent possible injuries and improve their performances.
In the military and other public services as well (like firefighters for instance), workers are starting to use smart clothes as their uniforms. Smart uniforms that are able to identify and alert about the impacts of bullets or wounds can help prevent injuries, deaths and can help the leaders better take decisions on the grounds.
Last but not least, the advances made in the sensor technology in Asia are key drivers for the growth of the industry. Many companies invest heavily and research and development in order to grow faster and deliver better quality products.
Who are the key players ?
Some of the main players of the smart clothing market are :
AiQ Smart Clothing (Taiwan),
Athos (US),
Carre Technologies/Hexoskin (Canada),
Myant inc (Canada),
Cute Circuit (UK)
Sensoria (US),
Spinali Design (France),
Vulpes Electronics (Japan),
Wearable X (US),
Toray Industries (Japan),
Myontec (Finland),
Myzone (US),
Siren (US),
or Owlet (US).
The list is not exhaustive. Right now, the entry barriers are quite high. However, as the technology gets more accessible and industry standards get established, we will probably add more actors in the near future.
What are the main roadblocks to the development of the Smart clothing market ?
Anyone who works in fashion knows that the production chain is still quite running with old practices, despites the retail & distribution sector being so avant-gardiste and infused with the latest technologies. The thing is smart clothing is at the crossroad of technology and fashion. Therefore, roadblocks to the traditional fashion industry also apply to the smart clothing players.
Producing smart clothing is still expensive. Right now, the development of smart prototypes still require a lot of time and money for instance. On top of that, smart clothing have some extra-production steps as technologies and sensors need to be embedded within the garment. There are no real industry standards though some companies like Myant inc. or Hexoskin are working hard towards developping them.
The industry is also facing major challenges regarding the adoption of data. While big data is well adopted in the retail or the banking system, it is not necessarily the case in the healthcare or governmental sectors for instance. In addition to that, there are growing data privacy concerns. What will happen to the data that are recorded by the smart clothes ? How do you secure the privacy of such data ?
Last but not least, the vast majority of people have yet to grasp the added value of smart clothing. Right now, the most accessible smart clothe would still cost a couple of hundred dollars. Therefore, only early adopters and people very anxious about their health and shape would dive into it. So until people fully see the potential behind smart clothing, B2B will still be main venue.
Go further
Studying this clothing niche was truly interesting. It shows you that clothing is not all about fashion and that there are incredible things that can be done with garments. Smart clothing really projects you into the future. I found it really fascinating and I can’t wait to see what will happen in the future.
Are you interested into learning more about this market ? Dive into the interviews I made with some of the key players of the sector.
PS: If you are in the smart clothing sector or are an expert in this field and would be interested into giving your opinion, please contact me. I’d love to hear and share what you have to say !
Making mistakes, especially when you start something new, is normal. But some can probably easily be avoided. So, here are the top 20 mistakes new fashion startups and fashion designers tend to do.
I certainly did some of them or withness other fashion startups or designer make them.
There is power in knowing. And with this list, maybe you’ll be able to avoid the most common mistakes fashion startups do and have a smoother launch.
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Mistake #1: Underestimating manufacturing times
Manufacturing often takes much longer than expected. It’s best to assume that there is always delay and give yourself extra time to find solutions in case something happened. It can also help you avoid embarrassing situations with clients.
When you’re a young designer or fashion startup, your production is definitely the top priority of a manufacturer. If a well-know brand places a high volume order with your supplier, you can be pretty sure that this order will take priority over yours.
On top of that, raw materials, fabrics, zippers, buttons, accessories can take between 3 days to 6 months to arrive. Often times, manufacturing does not begin until all of the needed pieces have arrived.
If something is missing, whether it’s raw materials or administrative documents, don’t rely on your supplier to call you. In 90% of cases, they won’t. Most of the time, they will tell you that something is missing only when you call.
Mistake #2 : Not incorporating or choosing a legal form that doesn’t suit your needs
To place orders and be taken seriously by suppliers, you often need a professional entity.
If your end goal is building a brand, consider incorporating. This will professionalize your business and give you credibility.
Do not hesitate to seek advice from a chartered accountant, a CPA, notary or a lawyer to choose the legal form that best suits your personal situation and your ambitions.
Mistake #3 : Not investing in branding
A good logo, a nice graphic charter, good communication tools are important in the fashion industry.
In fashion, shoes, leather goods or accessories, you sell dreams. If your logo, your brand name, your brochures or your photos leave something to be desired, you will have more difficulty in retaining and getting a client to join your project.
Image plays a major role in this sector. Also, it is worth investing a little to have a professional logo, a graphic charter and above all beautiful, clear, attractive and non-pixelated photos.
Mistake #4 : Not learning the textile and fashion jargon
Finding the right suppliers is not easy. It’s even one of the hardest things when starting out.
There are also many designers who have to constantly find new suppliers because some failed them in the middle of the project or are just not skilled enough to produce the desired designs.
To convince suppliers, it is important to speak the same language as them. And when you don’t know the industry jargon, they can tell right away that you haven’t been in the business for long. Not only don’t you ask the right questions, omit important points, but you also don’t give a professional vibe.
Mistake #5 : Not negotiating with the suppliers
Just because you’re new and only have a small brand doesn’t mean you can’t negotiate.
Sometimes, you might be so happy to have found a supplier who accepts you that you do not negotiate anything at all. So, you end up with high production costs, which raise your prices and lower your margin.
Note that the price is not the only thing you can negotiate. You can negotiate deadlines, the materials or the services included.
Mistake #6 : Choosing the wrong suppliers
Trusting the wrong partners and suppliers can lead fashion startups to failures.
A poorly skilled stylist, an inadequate workshop, a supplier who never answers you can quickly lead to delays and trouble. Fashion startups have no time nor money to waste.
Before committing, remember to ask the right questions and even get a second opinion on it.
Mistake #7 : Producing large quantities right from the beginning
The first collection is often the one we have the most trouble selling. This is normal. When you don’t have any order history, you don’t have any data on what your client likes best and least. In other words, you have no idea which sizes are best selling or which styles our customers appreciate (even if you did your market research before).
And sometimes we even pick the wrong target market.
Inventory costs money, and can become a source of stress. Unsold inventory depreciates and requires storage space. Depending on how many items you have, it can get very expensive.
Therefore, when you are starting out, have as little quantity as possible made.
Mistake #8 : Listenning to everyone’s pieces of advice
Everyone loves to give advice. Your friends, family and those close to you are no exception.
However, these people are not necessarily the best mentors. Are they entrepreneurs? Have they created something in the past? If the answer is no, take what they say to you cautiously.
If they are among your target customers, listen to their opinions on your product and act accordingly. Otherwise, don’t do anything.
Mistake #9 : Projecting your limiting beliefs on your clients
You are not necessarily your customer.
Be careful not to project your own beliefs on your target customers.
The value of money, for example, can be very different from person to person. For some people, $100 is a lot while to some other, it’s like pocket money.
Likewise, what is beautiful for you may not be for your audience.
Mistake #10 : Wrongly calculating your sale price
Quite often, creators, fashion designers or fashion startups price their products depending on the market price, even before knowing what their costs are. While you could do so, it might not be a good idea all the time.
Indeed, if you do not have enough margin to cover your fixed costs and invest, you will quickly run into cash flow problems.
Likewise, if you haven’t considered and factored in some distribution costs or fixed costs, you may find yourself working like crazy for nothing.
Mistake #11 : Not thinking about the packaging experience
People like what is beautiful. In an era where we talk about eco-responsible, it may seem paradoxical to budget a lot on packaging. But, a good packaging is essential to sell.
It gives character and makes the product even more irresistible.
In addition, it is necessary to be able to give the customer a way to transport his or her newly purchased product easily,
And the more expensive the product, the more the customer will expect the packaging to look luxurious.
Mistake 12 : Believing that being a sustainable clothing brand is enough
Being ethical, sustainable, eco-responsible is a must these days.
This is an additional selling point, which sometimes helps close the sale. But that’s rarely what will attract and convince the customer.
If your product is eco-responsible but ugly and impractical, you will have a hard time selling it.
Mistake #13 : Not communicating enough
Just because you have a great product doesn’t mean it’s going to sell on its own. Communicating is important and most fashion designers or fashion startups don’t do it enough, if at all.
Communicate from day 1. On day 1, you are stress free. When you have your products, the anxiety of not selling is much more pressing and will potentially make you take bad decision.
Moreover, developing a good reputation takes time. It usually takes 7 interactions between your brand and your potential customers before they decide to buy. Also, the sooner you communicate, the better.
Mistake #14 : Spending all your time on Instagram
Having lots of Instagram followers doesn’t necessarily mean you’re selling. There are many brands that have thousands of followers and yet are not selling a lot and are not profitable.
First of all, Instagram is not the best source of traffic. Like any social network, Instagram allows you to connect with your audience. However, it is not a discovery network (unless you spend a lot of money in instagram ads). There are other channels that are much more effective than Instagram for client acquisition. It should not be neglected but do not spend all of your time on it.
Indeed, we can quickly find ourselves spending our days on Instagram. But is this really what works the most for you? Don’t get stuck on Vanity metrics.
Mistake #15 : Overpaying to be featured in a magazine
When you are a fashion creator and you do great things, the press quickly approaches you to offer you “advantageous placements” in their media.
Some will tell you how they can give you a nice quarter page in their magazine for a few thousand bucks and how this can build your notoriety. But of course, they can’t give you any stats or proofs that it works. It’s confidential and to make it work, you will need to invest some more.
Do not get fooled. If the media thinks your product is fantastic, they’ll talk about you without you having to pay.
(Warning: that doesn’t mean you shouldn’t invest in media relations. It’s something different and it’s worth it if you do it right)
Mistake #16 : Showing up poorly prepared at a tradeshow
There are several trade shows that allow you to showcase your brand to potential buyers.
Who’s next, wsn impact, First class, Lingerie fair, Home and object …
But it’s pointless to go if you don’t arrive prepared. Market stands are generally quite expensive. On top of that, you will need documentation, an impactful staging, well-promoted products and a good location. Otherwise, it’s a waste of money.
Mistake #17: Mismanaging your cash flow
Having cashflow is key especially in this industry.
You must design and prototype a collection, thus invest before you can even sell the one you have right now. R&D costs a lot and takes time.
If you don’t have enough cash, you won’t be able to scale your brand. Besides, the lack of cash flow is the number 1 reason most businesses close and go bankrupt.
Mistake #18 : Not investing enough
Conversely, if you do not invest in your brand, it will not be able to develop.
Money calls for money. To earn $1000, you have to be able to spend $10. To reach $100,000 , you have to be able to spend at least $10,000.
If you don’t invest in communication, innovation or new collections, your brand will stall and quickly fade into oblivion.
Mistake #19 : Staying alone
Entrepreneurship is not a straight line. It’s a multitude of ups and downs. It’s living on a constant roller coaster and it’s emotionnaly difficult.
In the same day, you can have one great news and two very demoralizing ones. If you are not well surrounded and have a strong mindset & drive, you can easily fall into depression and make fatal mistakes for your business.
So, try to connect with other entrepreneurs and fashion startups who understand what you are going through. You can learn from them, support each other and maybe, you will even find opportunities to work together.
Mistake #20 : Not taking care of yourself
Your primary work tool isn’t your computer or your sewing machine, it’s you.
No business, no brand is worth sacrificing your health! It’s bad for you and bad for your brand too.
Every once in a while, it’s important to take a break, have some fun and get off the hook. The world won’t stop turning because you have a night out or a weekend.
You are your most important capital. So, take care of yourself.
How to finance your clothing brand? Here are 14 funding sources you could use to kickstart your project.
Creating clothes and prototypes can be quite expensive. This is all the more the case if you use expensive, eco-responsible materials, if you manufacture in a developped country or if you include high quality details into the clothes.
If you wonder how you can make your dream of launching a clothing brand come true, this list might comes in handy.
1 – Self-financing via your own savings
Among all the available funding sources for your clothing brand, the most straightforward and obvious is self-financing.
In other words, you invest the money that you already own in your bank account. This money can come from savings you have made throughout your life, from previous jobs or contracts. It can also be money that you have inherited. (Or consolation money from a divorce)
By self-financing, you are indebted to no one but yourself. You don’t have to be accountable either – aside from your employees and the government of course.
However, the risk is entirely on your shoulders. In addition, you still need to have enough money left to be able to live because the chances of you being able to afford a salary for yourself at the start of this adventure are slim.
2 – Self -financing your brand through freelance contracts
Another way to finance your first clothing collection is to take freelance contracts in parallel with the launch / development of your brand.
If you have a skill set and can offer your services to businesses, this can also be a way to fund your collection. Freelance contracts, depending on your bargaining power, can result in a lot of money.
There are often requests for developers, community management or marketing specialists if you had another life before launching your brand. And if you’re a stylist or pattern maker, you can find great deals from fashion companies or other designers as well.
With the right kind of legal status, you may well be able to make these contracts fit into your corporation.
3 – Financing your clothing thanks to a side job
You can also consider taking a small part-time job alongside your brand to fund its expenses.
Nothing prevents you from working in the morning on this side job, and in the afternoon and in the evening on your brand. Hustling is actually quite common in the fashion industry.
You can take a job as a salesperson in a store, which at the same time allows you to understand what makes people buy this or that piece of clothing. You can become a real estate agent and do apartment tours or ou can be a host or hostess. In some cases, you can even work on your brand during downtime. Of course, this is not always rewarding, but it brings in money while saving you brainpower.
Don’t hesitate to do a quick google search or go to the facebook job groups. There are plenty of opportunities.
4 – Self-financing your clothing line while working full time
In the same line of idea, you can also (continue to) work full time and develop your brand during your evenings or weekends
The salary you have then allows you to finance your project. And since you’re full-time and potentially in a better job, you normally earn a lot more than part-time.
It takes self-discipline because you have to manage 2 jobs (the one you have and the development of your brand) at the same time. You will therefore have less energy to devote to your brand. Be careful not to procrastinate and to keep your ultimate goal in minde.
However, this allows you to try and start your clothing company without much risk. If your brand doesn’t work, you will always have a source of income to rely on.
5 – Passive income
Passive income is income that you get from a one-time job that continues to bring you money even when you sleep. It is passive because you did the job once, and it will continue to work for you afterwards.
These include, for example, the royalties for on a book you wrote, income obtained through membership or an annuity that you receive from the rental of real estate.
Of course, creating passive income requires work too, but it can help you for the rest of your life, even beyond financing your clothing collection.
6 – Love Money
Another option is to borrow money from loved ones. It’s called Love money, because these people are going to lend you money just because they know and want to support you.
You can borrow from one or more people. If you opt for this solution, it is better to tell them to consider this amount as a donation, because you do not necessarily know when you will be able to return it to them.
The advantage is that you can quickly get cash even if you don’t personally have it. However, althought you don’t have interest on that loan, it may put you in a moral debt towards these people. You might feel more pressured o than with any other funding sources.
Sometimes it is more difficult to owe money to someone you know than to an institution with which you have no affection.
7 – Find a business partner with money to invest
Another way to finance your collection is to find a business partner who can bring in capital and help you fund the collection.
Ideally, these people, in addition to having capital, have complementary skills. If you are a stylist for example, it might be interesting to partner with someone with marketing or finance skills.
Of course, the association is not to be taken lightly. In your entrepreneurial journey, your partner (s) are the people you will spend the most time with. You will also have to work together to make the decisions and they will also have a say in what clothes you want to release.
8 – Bank loans
Another way to finance your first clothing collection is to take out a loan from a banking institution.
The problem is that banks very rarely agree to finance cashflow and stocks. Banks generally prefer to invest and lend money for equipment or real estate. So if they fail, they can still get their money back by selling your machines or the walls.
Likewise, they will prefer to lend money to proven business models, such as a restaurant or a hairdresser business. It’s tangible and they have had precedents with success.
However, some organizations can act as guarantor for your loan and facilitate your application. If you also have a good relationship with your banker, you may also be successful in getting a loan by yourself.
9 – Subventions
There isn’t a lot of subventions available for new stylists and fashion designers.
They are also subject to conditions. As a matter of fact, a thorough study of your files and your business plan will surely be conducted. You must be able to provide a realistic, yet ambitious, forecast and a cash flow plan. Sometimes, you will even be asked to pitch your project.
However, don’t hesitate to give it a try. If you don’t try, you won’t know. Better have failures than regrets.
10 – Rewards from fashion or start up contests
Competitions are frequently organized to highlight the latest innovative concepts and new talents.
Participating in fashion contests or contests for start-ups can help you get the funds you need for your business
Rewards can come in the form of money, mentoring, storage or a place in a permanent boutique.
11 – Pre-order sales
Pre-ordering is purchasing an item of clothing before it is produced. Many brands (DNVBs for the majority) are created just like that. They announce their release, their project and offer their audience to pre-order and reserve the first designs for them.
Of course, especially in fashion, it’s better to have a prototype that you can show off and have someone try on. The more pictures or drawings you have that let people better see the future clothes, the better.
On the other hand, it will allow you to produce your collection without having to advance funds, to verify your market fit and to start building your customer base.
To get pre-order sales, you can use your website or use a crowdfunding platform.
12 – Crowdfunding
It is one of the most popular funding sources. Many fashion brands have started doing this.
Crowdfunding is about mobilizing a community to fund your project. In exchange for real or virtual rewards (a goodie or a product from your future collection, a thank you email or a mention on the website for example), mrs A or mr B can help you finance your project.
You can also offer preferential prices for people who pre-order through this fundraising campaign. It will attract more attention and people will feel like they also got a good deal.
On one hand, it allows you to fund your collection, verify your market fit, and your community’s enthusiasm for your product. On the other hand, for people who contribute to your project, it is psychologically rewarding because they help give life to a project they believe in.
Crowdfunding is time-limited. On top of that, depending of the platform you use, you might to need to hit a specific fundraising goal to collect the money. Keep in mind that all platforms are different and that crowdfunding requires preparations. You need to be ready to spend a whole month or more promoting, pitching your project and selling.
13 – The business angel or sponsor
You are talented or you have caught the eye of someone with a lot of money. They decide to bet on you and lend you the money you need against a share in your business.
Obviously, finding a patron or a business angel is not easy and is often a good dose of luck.
However, a business angel or patron can also be a mentor. He or she can also open up his or her networks to help you in your development.
14 – Investment funds or venture capitalists
We write it down here for your own culture, but it’s one of the funding sources that are more suitable for brand development.
Investment funds or venture capitalists are companies that bet on the success of a company and either finance their launch or their acceleration in exchange for shares.
If we say this is funding more suited to brand development, it’s because you often have to show evidence of success and benefits. The whole point of investment funds is to build wealth and they will only bet on you if they see can earn money in the end.
However, if you are looking to own a boutique, if you already have a history of successful fundraising, or have an innovative concept, you may want to explore this funding source more in depth.
Note that bringing a fund into your business is not to be taken lightly. Indeed, if you are, for example, in slow fashion or ethical fashion, capitalist logic can go against your values.
If you have not started your project yet, think well about the funding sources that you will use as it will have some impact on the way you develop your business. And if you already launched, feel free to let us in the comments which funding sources you used.
Today, I’d like to deep dive and really share concrete measures and actions that you can take if you are a fashion designer or a fashion brand to make your business crisis-proof.
Indeed, these actions are designed considering the context of the pandemic but they could totally apply whatever the crisis you might be facing in the future.
Short Term actions fashion brands and designers can quickly implement during the Pandemic
Product related actions
Organize promotional operations to liquidate dead stocks
In the fashion industry (clothes, shoes or accessories), many products are highly linked to a season. Winter coats and boots, for instance, mostly sell during fall or winter. Beachwear are more popular during summer. The ugly christmas sweatshirts are sold a few weeks before the end of the years.
Some clothing or footwear items you have might also be part of a trend that might not last long. Prints, for instance, have a short shelf span. While some fashion trends can come back, you don’t know how long they will take before they come back. How many flamingo or leopard print do you see in the street lately ?
Not only do you need to pay for storage in order to keep them, but dead stocks are also a useless weight in your P&L that drive your results down. Not really ideal if one day you need to convince a bank or an investor to lend you money.
So, if you have that kind of products in your inventory, quickly organize promotional operations to get rid of them. Here are a few things you could try :
Organize Private sales with your already engaged clients and consumers
Offer major discounts
Make Outlet sales
Sell to wholesalers
Sell on Fashion marketplaces
Group the products and sell them in Lucky bags
Run a contest and use the dead stock as the rewards
Use the dead stock to start an ambassador program and use the inventory as samples
Reschedule product and collection launches
Unless you are selling exactly what people are currenly looking for (athleisure, lingerie, pajamas and comfy clothes), you might want to reschedule your product launches.
It doesn’t mean you can’t talk about the products that should be coming. However, during a pandemic, people are not in the mood for shopping, especially if the country is under lockdown. You might be able to sell, but it might cost you more than what you initally designed in your business plan.
As an example, if you are selling clothes and people can’t come to your store to try, you might have more client returns than planned.
If your cashflow allows it, it might be better to reschedule the launches or to push collections or products that are more adapted to the situation.
Cancel or reschedule orders with suppliers
Let’s say you have a concept store. If you can’t open or can’t serve as many people as usual, you might want to reduce the number of clothes, accessories or shoes you sell.
Otherwise, you will end up with a lot of inventory. Why pay for goods you might not be able to sell ?
If you are a fashion brand that decided to push the next collection to the year after, you might want to reschedule the production or/and the delivery of the parts and fabrics needed in this particular collection. It’s a matter of cashflow management.
If you know money will not come in easily in the next months, try to negotiate with your suppliers so that your (professional) bank account doesn’t get overdrawn.
Focus on the most profitable products
In nowadays’ world, unless you invented a new kind of clothes, or shoes or you are selling luxury goods, the market also help define the prices.
As a matter of fact, some products might cost you more to produce but have less value in the eyes of the customers. One of my friends was selling leather goods. She had a brown leather purse that required a lot of manual work and stitches. At some point, she decided to launch more colorful products and came up with a red and a yellow folded purse. This specific product costed her less money and time to make but after surveying her customers, they were willing to spend more money on the colored items rather than on her timeless brown purse.
Another good example is jewelry. Especially if there are made out of copper or brass, they don’t cost a lot to make. Yet, you could have x6 or x7 margin because for customers, they seem more valuable.
If you have some items like that in your product line and you are in need for more cash flow, try to highlight these products a little more.
Communication
What should you communicate about during the Pandemic ? How do you communicate during a Pandemic ?
Communicate about all the operational short-term measures you took
Some countries took specific measures against the virus. Lockdown is one of them. Therefore, your customers or potential customers might be wondering if they can still go to your shop or order online.
What are the operating hours? If you have a physical location, can they still visit your shops or are you completely closed? Do you have employees who can answer the customers’ questions regarding that matter? If you sell your clothes online, what happen to the on-going orders and deliveries?
People would definitely want to know what they can expect.
If you have employees, quickly inform them of the measures you are taking and how they are going to affect their jobs? For example, do they need to work from home?
Be online where your customers are
Since people have nowhere to go, they spend a lot of time online, surfing on the internet or browsing social media. In 2020, according to Telegeography, average international internet traffic increased by 48%.
If you don’t already have an online and a social presence, it is high time you get on them. If they can’t go to you, just go to them.
During Lockdown, in the UK, internet users spent a record-breaking amount of time online, spending 36% more time on social media than usual, and 26% more time on news websites. Young adults between 18 and 24 spent the longest time online, that is to say, an average of 5 hours per day.
Should we also talk about the rise of Tik Tok? If your fashion brand targets young adults (15 to 25), this is the place to be. Interestingly, 47% of the tiktokers don’t use Instagram.
Remain true to your brand’s values
More than ever, stick to your brand’s values. People are looking for genuine brands.
Keep your editorial line.
Operations-wise
Create a store environment your customer feel safe in
In some countries, the government is requesting some shops to enforce specific measures so that they can remain open. Make sure you apply them.
For instance, in France, during the second lockdown, shops were asked to reserve 8 square meters per client. Social distancing and hydroalcoholic gel were still needed.
To make sure you have enough space between each client, as a fashion retailer, you might need to remove and re-arrange some clothes racks.
Customers don’t really know what’s going on with the virus so they might reassured to see that you are taking all the appropriate measures to keep them safe. Same for your employees.
Set up contactless payments and implement click and collect
Contactless payments might not enable you to do more sales but implementing it or increasing the limit will make your customers feel safer. And customers that feel safe are happier customers who might be more faithful to you.
Operationnaly speaking, contactless payments help speed up the time people spend paying for their clothes. So, that’s good in terms of safety, and you might be able in a day to welcome more customers because of those little seconds you succeeded saving. The queue will also be shorter and less frustrating.
Then, setting up a “click and collect” service could be a good way to keep sales coming in. People can shop safely from their home, quickly come get their order and happily avoid delivery fees.
Contact your retailers to understand their problems and offer solutions
If you are a fashion brand or a fashion designer who relies on a network of boutiques, quickly contact your retailers.
They might be struggling as much as you are. Be human and try to understand their own issues so that you can come up with solutions that can help you both.
You can maybe offer to give a special presentation on their social media or slightly delay your shipment. Connect with them and see how you can keep working together despites the situation.
Focus on E-commerce
This might seem obvious but sometimes, you just gotta have people tell you the obvious. Now is the moment to sell online.
The good news is : people are more and more used to buy clothes, shoes and fashion accessories online. Yes, their spending is decreasing but the number of online buyers is increasing.
Another good news is that clothes and shoes are products that can somehow easily be shipped. That’s particularly true for clothes because they are lightweigth products. Sometimes, they can even fit in a padded enveloppe.
One last good news regarding e-commerce : if you don’t already own an e-shop, there are multiple platforms that enable you to easily create one.
About your finances
Get rid of all non-essential expenses
When the business is doing great, we don’t take attention to all the small expenses that we have because they feel like nothing.
Thing is: Small expenses quickly add up. On top of that, you might be paying for services or softwares that you don’t even use and this can represent quite a big amount of money at the end of the day.
And this money can be exact sum that you need to pay your employees or fuel your upcoming collections. So check out your expense list and get rid of everything that is not useful or doesn’t add any value in the short, middle or long term.
Apply for all the government’s aids and subventions
In France, the government gave some financial help to the companies that lost 50 to 75% of turnover compared to the previous year and were partly financing the wages of the employees that were forced to be put under partial unemployment.
It may not represent a lot, but it’s worth trying and it’s better than nothing. If the government of the country you are in offers any form of subventions, apply for them.
Contact your financial institutions and renegotiate some terms
Fashion requires a lot of cashflow. You need to pay for the materials and the R&D that come with any new fashion designs. To do so, you may have requested a loan from the bank or from business angels.
If that’s the case, you might have a debt you need to reimburse. Bankers and business angels are not necessary sharks. A lot of them are quite human and can understand the issues you are going through. They should be true partners in your fashion adventure.
So, go discuss with them. They might be able to reduce your interest or delay the payments you need to make. They can also loan you some money if you absolutely need to.
Also, check whether you can get anything with your insurance. You never know.
Mid-term Actions to take to help your fashion brand better navigate during difficult times
About the products and collections
Adapt the collections to the new tastes of your target customers
When you stay at home all day long and even work from home, you definitely don’t have the same needs, fashionly speaking.
And statistics showed that people were more about buying athleisure goods, casual pieces of clothing and lingerie. They want to feel comfortable in their clothes.
People also feel like wearing more colorful tops. As a matter of fact, they spend a lot of time on zoom or other video conferencing softwares. And on these platforms, you only see the top part of the person. So wearing acolorful t-shirt or sweatshirt helps bring some liveliness to the situation.
Black, white, dark colors, despites being timeless essentials, will likely be less in demand.
Consider relaunching previous product winners
If you have some sale history, you might have launched in the past some products that really overperformed. Can you re-enact this success by relaunching them? Who says you can only launch a product once?
Think about this : you already did all the R&D. You have the patterns, the technical sheets. People were already satisfied and might have left you some good product reviews. On top of that, you might also have photos and videos you can use again. All you need is to produce the item.
It might cost you nothing to sell this product again. And you can ask people to pre-order it instead of producing ahead.
Re-evaluate fabric and raw material sourcing
Most borders were closed. In fact, many fabric or clothing factories based in Asia were unable to ship their orders to their clients.
There might be great fabric factories in your own country or at least in your neighbour countries. It might cost you more at first but reducing your prototyping and production time can be worth it.
If you used to work with Asia, by sourcing locally you might remove the language and cultural barriers that made transactions difficult. And it will give you a marketing advantage. Two birds one stone.
Find other alternatives for your production
Having several factories or ways to produce your fashion line can avoid you having frustrated or angry customers (waiting for their orders). Let’s say one of the workshops you used to work with goes bankrupt, you will still be able produce and/or launch your new collection.
But to do so, you need to test the skills of the factories and see what it feels like to be working with them. Don’t rely on just one workshop or one seamstress. Have several so that you can mitigate the risks. That’s what all other FMCG businesses do.
It will also give you some peace of mind, which is absolutely essential when you are a fashion entrepreneur.
Communication
Improve your client services
A good client service can do wonders. People are less likely to be angry at you or leave negative reviews on your social media.
They will also be more faithful to your fashion brand if they received good services. Of course, you should work on your client service from day 1. If you are a fashionpreneur, you are most likely the one answering clients’ questions and demands.
But what would be great for your fashion brand is to start structuring the way you address clients’ problems. You (or your team) can create templates and step by step tutorials that explain what to do if scenario A or scenario B show up.
Build and develop an engaged community for you and your brand
And if you are really in the pinch, you can ask your community for help. Ask them to pre-order, support you on your crowdfunding campaign or share your communication with their relatives. These are things that faithful customers or ambassadors would do.
But you don’t build trust in a day. It’s an every day effort to create authentic relationships with your community.
Communicate about your USP and what you do best
When in a doubt and when you don’t know what to communicate about, talk about your Unique Selling Point. What made you start and make you continue despites the Pandemic and all the hurdles it incurred?
How what you are doing right now is link to your expertise?
For instance, during the first wave of Coronavirus, many French fashion brands and designers produced masks for the nurses and doctors. Some also helped coordinating the workshops so that they could produce masks and blouses to help the medical staff.
Communicate with your employees and their families
If you have ever read Delivering Happiness, then you should know that employees are the first ambassadors of your brand (be it in fashion or in any industry).
In difficult times, it’s important to take care of your employees if you have any. Because when employees feel like they are appreciated and that the management care about them, they are a lot more productive and a real source of added value.
Don’t wait for them to ask you the difficult questions and let uncertainty and uneasiness install. They are probably scared about the situation. If you need to let go of them, tell them and if you can keep them, tell them as well. Communication is key to keeping a strong team together.
Distribution and logistics
Rethink your packaging, unboxing or click and collect experience
Is your packaging adapted to the e-commerce or click and collect experience? Now might be a good time to think about this.
Believe it or not: people do take attention to the way their products are packaged. Almost everyone received at least an absurd packaging in their life. I.e a freaking small product in a very huge box.
Try to make your packaging more ecological because it’s part of the customers’ expectations but also more lightweight and easier to manage. It will drive your logistic cost down. Luckily, they are some cool innovations for eco-friendly and lightweight packaging for fashion items.
Inspect other markets
We are evolving in an international world. Who said you just have to limit yourself to one country?
Obviously, each country has its own specificity and the standard body measures can be different. However, there might be some potential clients in other countries: some that share your values and fit the sizes you offer.
Finances
Review your business goals and desires
Since the world is going a lot slower than usual, it could be a good moment to do some introspection work.
Are you happy with the way the direction your fashion business is taking Does it fit the lifestyle you want for yourself? Or are you getting stuck into something that doesn’t match your life expectations? Was the business, before the Pandemic crisis, already struggling or was it doing well?
Analyze the results, adjust the business goals and align it with your own life goals.
Make sure you are tracking the right KPIs
When you are in your day-to-day operations and you have more work than you actually can do, it’s hard to strategically think about the business. And metrics are often part of the things that are overlooked by fashion entrepreneurs because the business of fashion in itself is very time consuming.
Sewing takes time. So does prototyping. Same for fulfilling orders.
But metrics help you see if you are going into the right direction and if you are investing where you need to. Some of the key metrics in fashion include:
User Acquisition Cost
Customer Lifetime Value
Profit margins per types of product and per channel
Turnover
Engagement rate…
Do you follow them? Or have someone follow them and report to you?
Renegotiate the contracts and apply for subventions and business contests or awards
A pandemic or a crisis is a good reason enough to renegotiate a contract (ideally to your advantage) with a supplier/ workshop, financial institution.
Also, fashion contests are projects that take time. If you have more time on your hands now, try to send your application. Professional recognition bring trust and can be a good communication tool.
Long term actions to make your fashion brand crisis proof
About the design and the fashion positionning
Find or strengthen your market fit
Do you already have a market fit? If not, keep testing until you find it. Survey your actual customers about the type of clothes they like or about their hobbies.
If you have a market fit, strengthen your position. Develop more by products inspired by your main line. Try offering new colors, new designs or even different type of products.
Have the right creative people in the right place
Do you know the saying : Hire Slow, Fire fast?
Is the person doing the design or giving the creative direction the right one for the task?
If you are doing it all by yourself and you feel you don’t quite have the right results, seek for external advice. And if you think the stylist or creative director is not good enough, change and find another person.
Be humane but don’t stay stuck because you are afraid of hurting people. Your fashion business can’t afford it, especially during a crisis.
Invest in photoshoots, videos, or user experience that can take your brand to the next level
When you are selling fashion, visuals have a lot of importance. They contribute to attaching values and emotions to your fashion brand. It’s the little magical je-ne-sais-quoi that makes people buy.
When a crisis happen, companies tend to cut marketing and communication first. However, more than ever, they need to communicate and innovate. That’s how you can get out of a crisis.
Adopt a transparency and traceability policy with the suppliers and customers
This is a huge project but I believe every fashion brand and retailer should do it. Not only is it good for communication, but I wouldn’t be surprised if one day it becomes part of the legislation.
On top of that, having a transparency and traceability policy makes all business relations more honest and authentic.
Long-term Communication
Create or optimize your editorial line for all communications
You probably are on multiple social networks and most likely have a website and a newsletter.
Are all the communications efficient and in line with your unique selling point and values?
If not, work on your editorial chart and optimize your content.
Offer a personalized customer experience through all channels and provide unique experiences
Online and offline technologies are getting more and more interconnected. Think about measures you can take to offer a seamless experience to your client.
For instance, if they visit your social network or are already on your newsletter, the day they come to a shop to buy one of your fashion product, you can use the data you have to do something that will make them feel special.
It could be as simple as greeting them with their first name and thanking them for being on your newsletter.
Communicate about your CSR
If you are implementing a Corporate social responsibility policy, talk about it and show the progress you make.
Changing packaging more eco-friendly ones can take some time for example. But if you communicate about this and explain why it takes time, people would understand and applause your efforts.
Invest in your corporate culture
Your employees and partners are your first ambassadors. Having a corporate culture doesn’t consist in putting some nice words on a manifest or on a flyer.
It’s about putting these values at work in the corporate everyday life. If you are all about transparency for instance, then organize monthly meeting where the employees can openly talk about the issues. For a fashion brand that encourage body positivism, pick non stereotyped models.
Long-term Distribution and logistics
Digitalize point of sales to offer new experiences in store
Have you ever heard of Augmented reality mirrors? These mirrors enable you virtually try any clothes or makeup without having to put them on. You can even pre-order clothes that are not in store.
How about equipping your sales people with tablets that they can use to show your online communication and connect with people?
What if you could use neuroscience to boost your experience in-store?
Develop and optimize for e-commerce
E-commerce is actually not a short-term or mid-term actions. Shifting to e-commerce tend to reshape completely a business.
In the long term, if the business has a big volume and if you don’t have it already, you could consider outsourcing all the logistics.
There are many good logistic centers that can take care of the storage, packaging and shipping of the products.
Implement demand forecast and demand sensing tools
That has always been the core issue with fashion. As a matter of fact, the more you produce, the less a product is going to cost.
But what if a collection or a specific color in the fashion line doesn’t sell? You are stuck with a lot of inventory. However, there are now demand forecast and demand sensing tools that can help you mitigate the risk. Check it out.
Deliver single view and access to your inventory across channels
How many items do you have in each retail location and in your logistic center? If you don’t know that, that could be an issue in the future.
If all your channels you have are connected and you give a precise idea of the exact inventory you have left, not only will you save time but you could also better promote your offers.
About your overall strategy
Create processes and implement tools that can help you get real time metrics
We talk about the importance of following the right metrics earlier, but having them real time could be equally important.
Being able to operate fast and in real time is crucial and will give an edge towards your competitor.
Evaluate your business risks and plan for them
No one could have expected a pandemic. But now you have a plan in case it happens again. Don’t forget to download our Pandemic management cheatsheet if you need a reminder.
There are, however, other business risks that you can anticipate and prepare your business for :
the launch of a new fashion competitor
a supplier bankruptcy
Lost shipped products
Quality issues with your fashion clothes or accessories
Social scandals…
Have contingency plans and allocate some emergency funds you can use in case they happen.
Review your capitalistic investment and your development strategy
If you want to develop an international scaled fashion brand, you need to think about having a capitalistic investment and development strategy.
Fashion requires a lot of funds. And if you want to accelerate and scale your business at some point, your organic sales might not be sufficient.
Invest
Last but not least, no business can resist if they don’t invest at some point. And that’s particularly true when facing a crisis.
The question is: what are the smartest investments you can make?
The Fashion industry is one of the sectors that got severely hit by the pandemic.
In 2020, more than 48 countries were put under lockdown. In most places, all the non-essential businesses remained closed and unable to operate. Fashion retailers and boutiques, being considered as non-essential, were closed which resulted in huge losses of sales and an accumulation of inventory.
Covid-19 definitely had an economic impact on the fashion industry but also contributed to reshape the way we work in Fashion. Things are changing and so shall we. Let’s see how.
How did the Pandemic affect the clothing industry throughout the world ?
Covid-19 is a global phenomenon that involves almost all countries in the world. While the impact is not similar in each country, there are some global trends that we can notice here and there.
Many Fashion brands and retailers are closing or going bankrupt
When you are a fashion retailer, you have huge fixed charges: the rent and all the costs affiliated with running a shop like the employees’ wages or the electricity. You also have inventory and taxes to pay. In other words, everyday you don’t sell, you are losing money.
Similarly, a fashion brand may have employees they need to pay, some fixed costs linked to production or logistics and investments to make for the next season.
With that being said, it’s no wonder why the number of bankruptcies and closures increased these past months. As a matter of fact, even if you can benefit from the governments’ subsidies, if you are in a just-in-time distribution logic and cash flow doesn’t come in, it’s hard to keep the business afloat.
In the USA, many brands and retailers filed for bankruptcy : Century 21, Muji, Brooks Brothers, Aldo, J Crew, True Religion. In France, historical actors of the clothing and shoe industry, Naf naf, Camaieu, la Halle and André also filed for bankruptcy. The fashion men brand, Celio, closed down most of its stores in Europe.
Zara, Guess, H&M and even the luxury brand, Diane Von Furstenberg, are shutting down stores across the world.
The supply chain is also suffering from this pandemic
A lot of factories had to close down because of Covid-19. The Pandemic started in China, so it’s natural that this country was profoundly impacted.
According to Apparel Resources, China’s market share in the US apparel import market alone fell to a mere 21.3% this February. Many factories were forced to close. They couldn’t operate and couldn’t even ship the garments that were ordered.
And it’s not only the case in China. The same situation has been seen in Europe or in the Usa. Many brands failed to show their new collections because the fabrics didn’t arrive in time or the prototypes were just stopped.
On top of that, many buyers, seeing the situation, canceled orders or didn’t pay for orders that didn’t get shipped. And when retailers and fashion brands are struggling to survive, they are unlikely to invest massively in research and development. When the distribution is suffering, so is the production.
It also takes time for a factory to restart. It’s like a vicious circle where everything is intertwined and has a sort of ripple effect.
A wave of discounts
Obviously, every actor of the clothing industry accumulated inventory. Covid-19 was unexpected and no one predicted that shops would completely have to close.
Clothes are not a necessary item in your daily life. On a daily basis, you need new food, new electricity but do you need new clothes every day? Statistics show that people wear only ⅓ of their closet and some garments are bought and will never be worn.
Since people were confined at home, they didn’t need to change clothes. And when life is uncertain and you are not even sure you will have a job tomorrow, you just avoid making unnecessary expenses.
So during the lockdown, sales plummeted.
As a result, many brands and shops were left with most of their winter/ spring/ summer inventory. To get rid of the stock, many actors massively discounted the items. On the internet, you could see ads, during the whole spring summer, promoting a -50 or -70% discount.
However, the flash promotions didn’t always translate into conversion as consumers were bombarded with the same types of ads during this period of time.
How can you, as an independent fashion designer, navigate and survive through this pandemic?
As we could all see, the clothing industry overall is not doing so well. And if it’s the case for major brands, what can smaller fashion brands with less media power do? Does it mean it’s over and we should shut down our brands? I don’t think so.
We just need to assess the situation, understand the changes and take the appropriate measures.
The pandemic and its consequences might last longer than we think/ and would like to
As we can all see, no one really knows how long it’s going to last. As a matter of fact, most countries are undergoing a second lockdown. The virus was said to die during summer but apparently it did not and it came back stronger.
So, we must now live with the “new normal”. In other words, we can’t just pause and think it will pass. It might not. We might have to live with this situation longer than we’d like to.
Given, it’s not easy because we must think both short term and medium term. In the short run, we need to think about what we can do to survivre right now. But, we also need to think on the medium term about what we need to implement in case the situation lasts longer.
For example, If the shops are closed, it might be time to rethink the distribution and the logistics. We might have to train the sales people how to reassure clients regarding the new practices. Finally, we might need to implement stricter sanitary measures in our process.
Consumers’ tastes changed
Working remotely has become common practice in many companies. Some workers are already asked to work from home until the end of the year. Meetings now take place on Zoom or Teams. Finally under lockdown, people are not supposed to leave home or meet with friends.
Obviously, you won’t have the same needs if you are to stay at home all day. Why wear a suit when you don’t need to physically see your managers or your clients? Because they were at home, people tend to favor comfort over looks. They were looking for coziness. Casual clothes, jogging, pajamas, sleepwear were pieces of items that were in demand during the pandemic.
Two other fashion segments were on the rise this year. The first one is athleisure, because people were working out at home in order to relax and release the stress and fear from the situation (and because they didn’t have much to do).
The second is lingerie. During the pandemic, people, influencers, brands and retailers were promoting the importance of self-care and wellness. There was a sort of “cocooning effect” that gave people the desire to treat themselves. Lingerie definitely responds to that need as you mainly buy lingerie to feel better.
The power of digital
The web traffic has never been as high as during the pandemic. With the rise of social distancing, people are seeking to connect with friends and family one way or another. The use of video chat and social media has increased exponentially. So more than ever, it’s time to be online. If clients can’t come to you, just go to where they are : online.
Of course, this pandemic benefited a lot to the GAFA. These giants are digital born and have all the logistics and communication power to easily capture clients online. As a matter of fact, Amazon doubled its profits in the second quarter and they said that third-party sales increased by 53%.
However, it’s never too late to start building a community that will favor you over Amazon, Asos or Zalando. If you are clever in the way you communicate and act, people will stick with you. That leads me directly to the next point.
Having a clear, coherent and distinct message is key
Competition online is really big. People are bombarded with promotional messages. It takes at least 7 messages to get a potential client online and you only have 3 seconds to grab someone’s attention.
And when you are an independant fashion designer going online, you are not only competing with other fashion brands but also retailers, marketplaces and other types of brands and services like food delivery, cosmetics or home decor.
So it’s vital to differentiate your brand and to make sure that the message you are showing is:
easy to understand,
can be explained within 3 seconds,
and is original enough to stand out of the crowd.
Adapting the communication
Social distancing and media is definitely provoking fear, stress and anxiety to many people. Therefore, having a reassuring voice (in terms of message and tone) in your communication is crucial. No need to add fuel to fire.
More than ever, people needs dreams and transparency. They are either looking for something that will help them evade from their dark day-to-day or for honest and reliable brands.
If sustainable development was not part of your strategies, it should now be. Ethical practices are rarely the trigger for a purchase but it could be a good additional argument to close a sale. More and more consumers want to know where their clothes are made and how they were made.They want to back brands that pushes for positive messages and values. Beyond clothes, people are buying a philosophy and a way of living.
Is mid-range clothing still a positioning to consider?
That is just my analysis but I believe that the mid-range market in the clothing industry might suffer the most from this pandemic. People fear the future and many are being dismissed because of the lack of business and sales. In some cases, the crisis is just an excuse to get rid of somebody. Whatever the reasons, uncertainty and anxiety is in the air. And generally speaking, middle-class spending tends to slow down during this kind of situation. People prefer to save rather than to spend.
In my opinion and in regards to this situation, there are 2 ways people can react. They will either go for very low-priced products or high-end ones. Low-priced because they want to treat themselves but can’t afford making unreasonable purchases considering the situation. Expensive pieces because people would rather buy something they think will last or that they truly love than low quality products.
In addition to that, you need to have sufficient cash flow to resist the crisis and make the necessary investments that will help you get out of it as fast as possible. When you are selling low-priced clothes, you can count on the volumes that will be generated by the sales. And when you have highly priced clothes, you have the margins that make it up.
However, the in-between is not the most comfortable place because you are always tight on money to pay your suppliers or even your employees. Production costs are still high because you don’t have the volume, yet, the margins aren’t that great either. You are in survival mode all the time and that can be tiring over time.
Reevaluate the distribution channels
Knowing what we know, are all business models still valid? Is going wholesale still an option? Does having your own boutique still a good strategy? How would you approach your retail strategy if the situation lasts longer? What about next year’ events? Should you participate in trade fairs? Are you investing enough on digital channels? What products or assets are more profitable right now for your brand?
Now, more than ever, is the time to ask ourselves (and our team if we are lucky enough to have one) the right questions.
Business models and strategies are not supposed to stay frozen. What was true yesterday might not be true today. The context and the needs changed. So, it’s important to remain flexible and to adapt the strategies.
Pandemic Management cheatsheet
What doesn’t kill you make you stronger
Again, I’m not an expert but this is my humble point of view regarding the situation.
As far as I am concerned, I believe that crises are always an opportunity to shine. You might need to reevaluate yourself and to undergo many changes (in your life or your business) but if you keep working hard, great things will eventually arrive.
