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The fall of the fashion industry due to COVID

Writer's picture: MyScoopMyScoop

Many sectors are reeling from the fallout of the COVID-19 pandemic as they stare into the abyss of the impending downturn and fashion has not been immune. But aside from economic factors, the industry is also facing lasting structural change.


During the past decade, the fashion industry was an economic success story: consistent growth, the strong performance of the Asian market and the boom of online shopping set up a bright outlook. According to Euromonitor International, in 2019 the value of the global fashion retail market was $1.78 trillion, a jump of 14 percent on the previous year.


Until the start of the pandemic, the sales forecast for 2020 looked promising. However, the COVID-19 crisis has dramatically affected the fashion industry worldwide – while many retailers are concerned about the sales figures, it is clear the wider sector faces significant structural changes, which will affect customers' behavior, the fashion calendar and even people's style.


A few Brand’s that were affected by Covid-19/Coronavirus:

  • H&M reports 50 percent drop in Q2(Q2 means the second quarter of the year)sales

  • Guess Q1(Q1 means the first quarter of the year) loss widens, revenues drop 51.5

  • Ralph Lauren posts bigger loss, revenues drop 15 percent




Writers: Harshit Parekh and Soham Davar

17/06/2020


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