Covid-19 and the “New Normal” for Fashion Retail

BRICK-AND-MORTAR STORES IN THE FASHION RETAIL INDUSTRY FACE NEW CHALLENGES

Covid-19 is creating a “new normal” for fashion retail. Consumers' new expectations and needs are driving rapid change in the retail industry, and accelerating trends that existed before the crisis. Even before the crisis, brick-and-mortar stores had to contend with digital retail giants like Amazon. In response to the crisis, many retailers are rapidly changing in-person shopping experiences to meet customers’ needs for safety and convenience by scaling up their online to offline (O2O) operations. Although retailers have used O2O approaches for years, retailers are increasingly relying on O2O to provide safety and convenience for shoppers. Covid-19 is driving innovation in the retail fashion industry, and It is likely that many of the newly adopted retail industry practices will continue even after the crisis ends.

CONVENIENCE AND SAFETY ARE CRITICAL FOR CONSUMERS

Mckinsey's Consumer Data Report shows that Covid-19 is shaping how consumers make purchases, and what they buy. The data show that more consumers are shopping online, or using contactless services like curbside pickup than before the crisis. Consumers are spending more carefully, opting for essential purchases, and looking for greater value in their purchases. When consumers shop in brick-and-mortar stores, consumers are looking for visible safety measures like masks and physical distancing. The data also suggest that changes in how retailers and consumers interact are here to stay for the long term.

INNOVATIVE SOLUTIONS TO NEW CHALLENGES FOR FASHION RETAILERS

Fashion retailers will have to work hard to adapt to meet health-and-safety regulations, while providing the kinds of experiences consumers expect from retail shopping. A recent Cotton Incorporated survey indicated that consumers are excited to shop in stores, but remain concerned about Covid-19. Although 60 percent of people surveyed reported they look forward to shopping in stores, 61 percent of people reported they are concerned about Covid-19. Retailers need to rapidly adapt their approaches to meet the safety and convenience needs of consumers.

FASHION RETAILERS ARE SCALING UP THEIR ONLINE TO OFFLINE APPROACH

Increasingly, retailers are using O2O to make in-store purchases safer and more convenient. Many fashion retailers are now offering contactless payments, curbside pickup, and virtual styling appointments through apps and websites to increase customer convenience and safety. Apps like the HangRr app allow customers to create virtual styling appointments, ensuring customer convenience by limiting the potential to wait for a dressing room, and safety by allowing retailers to limit the number of people in stores. Scaling up O2O operations is one approach that fashion retailers are taking to adapt to the new challenges presented by Covid-19.