From the disruption of the Fashion Week circuit to delays in products, retailers across all sectors are bracing themselves from the now inevitable impact. The coronavirus has affected every point of the fashion industry’s critical path – businesses reliant on China will be impacted the hardest with expected delays right across the supply chain.
Here Underlines takes a look at the challenges and some possible strategies to minimise impact. Firstly for most retailers, the 2020 brand and product assortment may not look like you thought it would – delays to arrivals (either forced or requested) and supply chain issues. There are a number of challenges that will face virtually all retailers going forward:
- An impression of newness;
- Future assortment;
- Discounting strategy;
- Consumer engagement;
- Marketing plans and strategy.
Impression of newness
Consumers will still demand products but your product offer may be limited. Ways to combat this are it is just as important how you promote your stock as the stock you have (and remember it is unlikely that your customers have actually seen everything you have to offer!). Strategies could include creating ‘hero’ pieces of abundant styles, focus on stay at home or staycation stories and of course a real move to home and loungewear (rather than just pyjamas!).
Future assortment
With the future performance of the market in uncertainty, retailers need to tighten their operations to cancelling or delaying orders to keep assortment to a minimum – flexibility is key in quickly downsizing and upshifting when markets start to recover. Tried and tested silhouettes are important with different categories becoming more important (e.g. loungewear and softer underwear styles) and if able, spread the risk across various suppliers.
Discounting
With no end date for the coronavirus pandemic, retailers really do have to plan for the worst case scenario. Over the past few years, the proportion of retailers’ assorted stocks on discount has been on a steady upward trend. This year is different – the larger department stores have not pushed mid-season sales but the emphasis is now discounts on selected items online (an opportunity to clear older stock). Key is deciding to retain margin on stock that is still relevant and moving on stock that is ‘too’ seasonal. It seems very likely that sales patterns will return to the more ‘traditional’ end of season sales event in July & August. And one thing to remember, discounts don’t have to be drastic to entice consumers – ‘spend more, save more’ can work well too without huge discounts on any particular product.
Consumer Engagement
Without direct contact at the present time, it is essential to keep your customer engaged. Of course online activity is the key tool – and this does not mean you have to have a transactional site. Community through Facebook, Instagram and even TikTok to create both a feeling of inclusiveness and fun. Blogs can work better now as those on furlough or working at home will have more time to read and to engage. If you can use a delivery service, people will be more tolerant to any delivery delays and home deliveries in your local area will be cherished and remembered.
Marketing plans
Your customer service is bound to be impacted (especially in the lingerie fitting sector) but it is even good to share your challenges with your customers – they will have empathy and goodwill towards your local business. Everyone is constrained in some way: admitting a few weaknesses at this stage will be understood. The most important thing is to keep communicating (even if you are not tech proficient there are many ways to reach out to your customers – on your closed shop window, by email or newsletter and social media such as Facebook and Instagram). Including them in a specific group on Facebook is also a possibility with your own shop ‘club’ or allying yourself with other local businesses who are facing much the same challenges.
All in all this crisis has been a serious wake-up call for the entire retail industry. For sure retailers need to seriously invest in both time and technology, working with their suppliers for more efficient stock management in the future. It is a tricky process – balancing the need to engage with customers with ways to manage the upcoming economic downswing and loss in profitability. This though is where smaller independent retailers have the most flexibility and capacity to survive. The retail landscape of the British High Street (already diminished during the ‘Brexit’ years) will take a further battering as some of the larger department stores will open up only some of their properties when they are allowed to and in fact, close down those which were already least profitable pre-COVID. It is not inconceivable that we will lose some of our longstanding department chains altogether.
Reference: edited.com
