OVERVIEW OF THE INDUSTRY BEFORE THE NEW NORMALITY
It is evident that the Covid-19 has caused a humanitarian crisis from which the fashion industry is not exempt, our industry is on "red alert". While many businesses face an uncertain future, workers face unemployment and serious hardship. That is why we must find our “new normal” as soon as possible.
The pandemic that humanity is experiencing today could cause the biggest economic contraction since World War II, affecting all sectors, from finance to hospitality. The humanitarian repercussions are expected to outlast the pandemic itself.
Fashion, before the pandemic, generated 2.5 trillion dollars annually globally, today, it implies unemployment or financial difficulties for people throughout the value chain, from those who harvest the fibers used to make textiles to the dependents who sell the product of finished fashion. Revenues from the global fashion industry (apparel and footwear sectors) are estimated to contract between 27 and 30 percent at the end of 2020, although the industry could recover positive growth of 2 to 4 percent in 2021 .
The pandemic is causing a crisis and the crisis is obviously affecting our daily lives, anxiety and uncertainty are on the minds of almost everyone. In fact, consumer pessimism about the economy is widespread, with 75 percent of shoppers in the US and Europe believing their financial situation will be negatively affected.
It is indisputable that the fashion industry is only at the beginning of its struggle, we must recognize that the duration and severity at the end of the pandemic is unknown, as this has caused a storm for the industry. A spending freeze is compounding the supply-side crisis; Widespread business closures for an industry that relies on offline channels, coupled with consumer instincts to prioritize necessities over discretionary ones, hurt brands' bottom line and deplete cash reserves. It should be noted that online sales are increasing, between 5 and 20 percent in Europe, between 30 and 40 percent in the United States and between 15 and 2 percent in China.
The fashion system is undergoing multiple changes that will lead it to the "New Normal" and it will have to adapt to two seasons and not four as has been happening, in addition to the fact that design without seasons and the decline of wholesale trade will become important. Although it may not seem like it at the moment, the coronavirus also fashionably presents an opportunity to completely reset and reshape the industry's value chain.
Navigating this uncertainty will not be easy for fashion leaders. The protagonists of this industry must immediately implement recovery strategies to emerge with renewed energy. This crisis that is shaking fashion is an indicator for it to change; this is the time to prepare for a post-Covid-19 world.