Covid-19 changed the economic landscape around the world. People everywhere are spending less on non-essentials. That means luxury brands, in particular, are suffering. In part, it's simply because people have less money to spend. Unemployment rates are up and consumer confidence is down.
On the other hand, all the time spent at home has convinced people of the ability to minimize the amount of things they own. Some people baked bread, some learned to knit, and other organized products they no longer used and gave them a second life. This has led to a dramatic increase in the options available to shoppers at second-hand stores and sites like Vinted and eBay. Comparing 2020 with 2018, eBay sold more than a thousand percent more used itemsand nearly 200,000 percent more used designer clothing.
Supporting Local Businesses
When the problem arises, communities meet. As small retail stores were hit hard this year and, in response, consumers made a more conscious effort to shop locally. While, on the one hand, people buy more online, they also want to support their neighbors and local economies.
Be Local. Be Sustainable.
With consumers focusing more on local and sustainable fashion, retailers will need to demonstrate that they have changed over time. Retailers who can prove they meet new, more ethical consumption patterns will be able to thrive in a more conscious world.
It doesn't mean you have to have a store on your customers' corner. It's about making consumers feel that you are part of their community. It's more important than ever to look to have a strong online presence. E-commerce was growing rapidly, even before the start of the pandemic, and has increased dramatically since then. With the end of face-to-face events, entire fashion weeks go digital and retailers need to follow suit with optimized ecommerce location.