There is no doubt that since the advent of Covid-19 life has changed for all businesses, and the lingerie manufacturers and retailers whose raison d’être is to provide an intimate, highly personal and expertly fitted product (often in an intimate one-to-one environment), could be forgiven for thinking that they are amongst the hardest hit. So, what will the future hold? This is of course uncharted territory for all of us and the answer to that question does not come easily. One thing though is for sure – life for lingerie businesses will not be the same again.
As UK lingerie retailers approached the end of their first month of trade after the national lockdown, business consultant Helen Masters, of Pudding Lingerie Consultancy, took to the streets (and of course to Zoom) to find out how lingerie, swimwear, nightwear and hosiery brands and retailers are adapting in order to survive, and hopefully thrive, post Covid-19. Helen interviewed a range of British intimate apparel brands and retailers thereby discovering what the new normal might look like for the lingerie world, and over the course of the week Underlines will share the key survey* findings (click here to read part one and part two of this four-part feature).
The manufacturers’ perspective
How are you coping and managing to adapt operations post Covid?
75% of manufacturers who rely on large scale retail report cash flow or sales issues. Bigger manufacturers report a significant change to operations with social distancing measures leading to extended supply chains and longer lead times as well as factories operating at half capacity. Many larger operators are having to reorganise operations, consolidate into fewer suppliers and reduce complexity, and still cannot hit their pre Covid turnaround times.
Lise Charmel
At the same time orders have reduced significantly or been cancelled and manufacturers have had to be fleet of foot to adapt to quickly changing circumstances (orders cancelled one day and reinstated the next while retailers find their feet) as well as embracing the online channel (online fashion shows, top notch online imagery and descriptions to a far higher level of detail and accuracy than ever before) to support direct business and retail stockists who need to shift sales online. Most small manufacturers report little or no material change, and many have simply seen the positive impact of an increase in online sales.
Have you added more remote services to engage with retailers /consumers and to support stockists since Covid?
Two thirds of manufacturers report adding more remote services such as stronger, more precise imagery and descriptions for online sales to both boost sales and minimise returns, better B2B systems, drop shipping, and online fashion shows. Half of manufacturers have moved towards more remote engagement with their stockists in showing new collections (e.g. by phone/zoom/email/post) and the other half have retained the face to face approach to showing collections, albeit in a socially distanced way.
What customer feedback have you had?
Feedback is very much mixed with half of participants reporting that they have worked well with stockists to manage cashflow and delivery issues and maintained strong relationships, and the other half having been in conflict with customers over cancelled orders and unpaid bills and criticism of being unsupportive. Many smaller manufacturers who have quickly adapted and offered support such as lower MOQs and drop shipping have received positive praise and thanks from retailers as well as an increase in orders.
What has been the trend in sales?
80% of the larger global brands who traditionally feature strongly in bricks and mortar stores have seen a significant drop in sales with a lack of new orders, in particular for new fashion lines, and cancellation of current season orders. Most manufacturers are seeing orders scaled back and seeing their stockists adopting the ‘little and often’ approach to buying, falling back on continuity lines and selling to order. Many say this presents a challenge for future product offerings: “If we don’t get orders, we can’t produce and nobody will have anything new to sell when things start to calm down.” Manufacturers all report an increase in direct online sales and a shift towards more unstructured styles including non-wired bras and loungewear, as well as active styles and sexier lingerie which peaked in lockdown. Both bridal and swimwear sales have suffered significantly and demand for discounted stock has increased. The only manufacturers to report increases in sales are the smaller online brands for whom a larger proportion of sales are to the consumer directly.
How will the buying cycle change?
Half of smaller manufacturers report that they are less likely to attend trade shows in future and more likely to continue to engage with customers remotely and via samples. The bigger names see trade shows as here to stay however and 90% will be returning to them as early as September this year, however there is a general view that seasonal buys will become less important as fashion cycles become flatter, allowing for a more sustainable anti-fast fashion focus, as recently championed by Gucci.
What is your top tip for success as a lingerie manufacturer post Covid?
Lucy May Lingerie
“We are currently building a new ‘Covid friendly’ manufacturing unit and studio/showroom and we are recommencing our production in September. We will continue to be totally self-sufficient. The less we rely on external resource, the better.” Natalie Moseley, Lucy May Lingerie
“Work in partnership with stockists and talk – communication is key. Embrace the future – make sure your online toolkit is strong, don’t expect to sell in-season as before but equally provide newness – people still want something different and lingerie has proved itself to be recession proof in the past – get ready for the post lockdown baby boom!” Gwendolen Bridge, Lise Charmel
What is the key feedback you’d give to lingerie retailers nervous of buying post Covid?
“Look at buying less ‘specific fit’ products. We are going to see more of a focus nightwear, cami sets, loungewear and non- wired styles for an easier sell.” Natalie Moseley, Lucy May Lingerie
“Concentrate on being ‘special’ and a specialist – offer non-main stream product that makes you a destination shop and keeps the customers curious – make sure you have permanent collections available on your website – not to necessarily to generate an online sale but to allow customers to browse the brands and types of products you stock and from this they can call you for a consultation and a sale. Use the website as a tool to support your role as a personal shopper and be proactive – the stores who continue to supply newness and market it to their customers in a highly tailored and personal way, with the website and social media to support that. And if you have a problem – talk to us, we don’t want to see people go under – we won’t give up on you if you don’t give up on us!” Gwendolen Bridge, Lise Charmel
Click here to read parts one, two and four of this four-part feature.
*Survey carried out across UK online retailers, bricks and mortar retailers and manufacturers during July 2020 – specific results remain anonymous in line with requests for anonymity from some participants.
