Industry And Cluster | News & Insights

COVID-19 aftereffect on Fashion

Published: December 21, 2020
Author: Punampatel


The purpose of this project is about retaining sustainable lifestyle on COVID pandemic advocacy for the afterlife of the fashion Industry and the Pandemic Response. To negotiate the present crisis and position for business advantage in an exceedingly transformed industry, companies should approach their sustainability initiatives across the subsequent phases: that can be: An on the spot response to surviving the economic turbulence caused by COVID-19 which can be called as a Short-term inventiveness. Second can be as governments reopen and stabilize specific regions, while continuing to manage spread of the corona virus can be Medium-term initiative. The last can be as governments, health authorities, and communities move past the pandemic and industries enter a replacement era which will be the Long-term initiative.In each of the initiative the fashion businesses that take up an integrated approach to sustainability and business stability will emerge stronger. Companies may also use this point to rethink and adjust their approach to enterprise risk and business continuity, particularly with regard to environmental and social decisions.


Short-term protect to survive


As an element of the immediate response, apparel, footwear, and textile companies have reacted by that focus on protecting their balance sheets and so the security of their workers, including corporate staff and facility workers. There’s the Sustainable Apparel Coalition’s membership survey which says, 30% of fashion brands, retailers, and manufacturers were extremely unprepared for the COVID-19 crisis, with significant unplanned effort which now required weathering the disruption. For all companies liquidity and cash preservation are top of their mind. To avoid potential bankruptcy, they are optimizing assets, leveraging financing instruments to cut back short-term financial stress, and commencing to tightly manage their costs and workforce setups. This era of low demand due to the cash needed to sustain operations won’t be survivable for many brands, retailers, and manufacturers. Scale are going to be determining factor: smaller players without a healthy record, clear proposition, and established consumer equity will face bankruptcy, while mature sizable companies will have the resources to weather the crisis. Extreme polarization will occur across the market, with value and luxury retailers performing best, and mid-priced businesses facing the foremost strain. And pressures on the provision base will result in numerous closures and a decline in supplier capacities over the approaching months. There are the smaller suppliers who are going to deeply affected, then who will be in a better position to survive during the pandemic there are the large multi-country suppliers. Even while defending business and protecting core assets during this downturn there are companies with a forward-looking mindset will still maintain key social and environmental programs. Some businesses may have to refocus on fewer activities associated with their sustainability initiatives, while others will have the resources to continue their full programs. Only in rare cases should an organization add any new sustainability commitments during a period of dramatic economic uncertainty. The patrons anticipate that a brand’s ethical commitments won’t be discontinued during this pandemic. During a survey of just about 6,000 consumers in US, UK, Germany, Italy, and China, consumers indicated that they very favorably viewed brands that paid their furloughed employees, repurposed facilities to supply PPE, or donated to their communities. Additionally, environmental programs were valued by the survey consumers, especially in those regions that are already slowly showing recovery from the crisis. On condition that many shoppers face tremendous personal economic instability and strain, brands should develop consumer relationships that move beyond transactions and instead showcase how they are engaged on purpose during now. The people like the factory workers and makers who have a more fragile social safety net and few employment alternatives for them it was previously noted that order cancellations are particularly devastating. The complete apparel industry supply chain will struggle to rebound – from inability to manufacture products, to difficult supplier selection, to mistrust across industry partners Factory closures set out. There are some brands that have cancelled completed orders without advance discussion with suppliers makers for them there is a series of devastating consequences Advocacy organizations and media have begun drawing attention to, and pressuring is beingapplied through negative consumer attention. However, companies like H&M, Nike, Target, VF Corp, Inditex, and PVH have all been recognized for his or her purchase of completed orders, which is shifting expectations towards responsible communication and respect for partners across the worth chain. During this tough time, it’s essential that each one parties engage in solutions based discussions to attenuate order cancellations and adjust their planning. There are brands with strong supply chain partnerships that are ready to recover quickly as economies begin to ricochet.

It is the time to work out how agile a corporation is in reacting to new market demands.. With this angle in mind it’s time to innovate! We are able to ask questions like ‘what may be a sustainable face mask?’”

We see a transparent link between sustainability and continued commercial success the sustainability ambitions will help us stay previous customer demand after this crisis caused by the corona virus. Both our current and future customers’ need more sustainable choices in fashion. Most of the Generation consumers believe companies have a responsibility to handle environmental and social issues. By committing to sustainability, we are able to secure our long-term growth, stay relevant to our customers, and establish market-leading differentiation against our competitors.”


Medium-term Manage and Reopen

There are many predator crises in Asia before CORONA which were not completely comparable to this pandemic, which consumed strongly rebounded approximately 3-9 months after those crises. However, with COVID-19, markets will experience a phased recovery – lifting of shelter-in-place orders, modified reopening of some businesses, and incremental expansion of public gatherings as vaccines, treatments, and testing strategies for the corona virus are developed. Initial positive momentum in China can already be observed in certain areas, as Chinese city traffic within the previous couple of weeks has increased 80%, though from a really small base.

As companies accommodate a cautious reopening or rebound of business, they must still put health and safety first. In terms of customer engagement, marketing and communications teams will have to target consumer trust – sustaining or rebuilding, counting on their circumstances setting out of the crisis. Brands will have to optimize the complete consumer engagement and journey by signaling responsibility and ethical behavior in their communications, adjusting the shop experience, and catering to a greater desire for transparency, purpose, and personalized interactions. Marketing and insights teams should pay close attention to emergent consumer preferences, which can suggest new products and market segments similarly as shifts in category preferences. Consistent signals to the availability chain will be a requirement for fashion companies during this era. Decisions, which were made during the outset of the pandemic, are clarifying or revising their positions on purchasing or cancellation decisions by the brands. The suppliers and stakeholders recognize the brands positively for their corrections, as steps towards rebuilding trust within the value chain. Winning brands will review and further adjust their supplier line-up to make sure alignment on sustainability, and can also provide significantly more transparency (including traceability of materials). Within the months ahead, fashion companies also will face massive stock at hand – with most of their spring and summer lines unsold in parallel with limited demand and a shortage of money. Industries, especially those with publicly stated zero waste and circularity goals must find solutions to manage their current stock, create space as stores reopen, and manage upcoming seasons. This can be a change to figure closely with key supply chain partners: to stretch current offerings, understand how upcoming seasons are often managed, and postpone some stock in following seasons. Companies that make use of raw and already procured materials must get Collaborative solutions. In executing all of the above, industry collaboration are essential. In recent years, many companies have maintained bespoke sustainability programs, with company-specific codes of conduct, unique social and environmental assessments, and investments with the price entirely paid by individual companies. While a number of these programs are very impactful and will be continued, others may achieve the identical results with a shared approach. Industry-wide sustainability initiatives can be considered by the companies facing cost pressure. Companies can adopt more robust and holistic sustainability programs than they do on their own, sharing costs and benefits more widely across multiple partners. There is no shortage of collaborative efforts from which to settle on. For instance, rather than employing a proprietary social assessment, an organization should shift towards an industry-wide assessment, like WRAP, SLCP, SMETA, or BSCI. Likewise, an organization should engage expeditiously programs like the Apparel Impact Institute’s clean advisedly, which is funded by pooled resources from multiple companies. There are many manufacturers and suppliers who made their initial sustainability investments at the request of their brand and retail customers. So they can encourage continued investment in sustainable practices by their supply chain partners and facilities, all the brands and retailers who think about the environment even once should be consistent in their sustainability strategies. This expanded degree of collaboration must be accelerated to solidify commitments for the longer term and convey sustainability ambitions to scale.

However, the time will come to rebuild after the crisis. This moment of recovery are going to be a chance to rethink our industry and, whether or not overnight, build a replacement model important and growth. And this is often where I see our sustainability strategy and vision being more important than ever.”

Long-term: Embrace New Reality

Society and business will adapt to a ‘new reality,’ characterizedby reshaped trends and modified consumer habits as government and public health systems manage the pandemic and reduce outbreaks. By this point, fashion companies should have meaningfully incorporated sustainability and purpose into their forward looking strategies. Companies that have incorporated a shift in channel preferences for digital and personalized experience into their earlier planning will in fact be best positioned to act quickly during this ‘new reality.’ New norms are established across the worth chain, defined by better partnerships, rebuilt trust, and deeper collaboration. The experience of a worldwide pandemic will create awareness of supply chain fragility, and leaders will build flexible supply chains so as to be less smitten by one geographical region. And providing some manufacturers and facilities will face severe financial strain during the initial months of the pandemic, the recovered garment industry may feature a consolidated supply base. This offers an opportunity for more consistent collaboration across the worth chain, and a spotlight on ‘equal partnership’ between brands and these larger consolidated manufacturers. As a result, fashion business systems will move from a stress on lowest-cost to a spotlight on quality and agility also any sustainability efforts among consolidated facilities will have broader impact, more lasting effects, and offer higher technical performance. So as to enable transparency and sustainability impact at scale, brands and retailers must embrace digitalization and new technology in their sustainability programs, even as they need in other parts of their business. The new ways of measuring, managing and reporting sustainability can be Technologies like pollution sensors, real time energy monitoring and reporting, digitized and standardized social audits, and phone-based worker. The industry must upgrade its sustainability tracking and management to an embrace of standardized, scalable, comparable, digital data. Only by enabling widespread transparency to all or any of its stakeholders will companies be ready to adapt in an exceedingly rapidly changing market. Companies that successfully comply with this ‘new reality’ are positioned to appear further out on the horizon – and put their resources into the investments that may determine the long run of this industry. The experience of remote work during the pandemic will provide proof for much wider adoption of digitally-driven collaboration, which can reduce team jaunt suppliers. End-to-end digital creation and collaboration with suppliers are established as a replacement normal, further emphasizing the importance of trust and communication across the worth chain altogether directions. Promising trends in sustainability – like circular design and processes that use clean energy for production – are prepared for wider adoption, particularly as companies reassess their business at a high level. More companies will observe traceability and full lifecycle assessments as areas for investment because of the given the importance of provenance and handling materials during the pandemic. Lastly, on the patron side, within the event of a protracted recession or prolonged economic recovery, new business models in rental, resale, and sharing will help fashion brands serve new customer needs in ways in which suit the instant, while also improving environmental impact within the industry.


The pandemic has forced all folks to require a step back and reset our priorities. One key takeaway that has clearly emerged is that a brand new transparent model that showcases verified sustainable practices will have a grip over other traditional business models. The pandemic has drawn the planet into a better community. Within the process, we seem to possess become more empathetic, and realize the skies look cleaner and also the birds do chirp. I would encourage the globe at large to preserve this moment, and continue being empathetic and responsible within the future too.”


  1. of the Fashion Industry Report 2019; BCG Sustainability Survey March 2019, N=703 (US), 703 (UK), 529 (FR), 523 (BR).
  2. Nielsen Global Survey of Corporate Social Responsibility, Q1 2014. Validated through interviews with 52 fashion companies in 2019.
  3. Pulse of the Fashion Industry Report 2018 and 2019; interviews with 52 fashion companies in 2019.
  4. Collective commitments include Fashion Pact, UNFCCC Fashion Industry Charter for Climate Action, Circular Fashion System Commitment, and ACT MOU on Living Wages.
  5. analytics data. 2020.
  6. Fashion for Good and BCG Report “Financing the Transformation in the Fashion Industry.” January, 2020.





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