Evolving business mindsets during coronavirus
Jun 5, 2020
It is not only consumers and creatives who have undergone a radical shift in mindset, businesses are also having to adapt, not only to vastly different consumer demands but to the practical challenges posed by the pandemic. Facing a tough time ahead, the old ways of doing business will no longer be effective or engage with consumers. To survive, businesses will need to re-evaluate their structures and declutter their organisations to maximise their limited resources.
Trendstop invites FashionUnited readers to discover the ways in which business models will have to adapt to survive and thrive in a post-COVID marketplace.
Direct to Consumer
As brands look to build new resilience systems to manage demand fluctuations, there will be an acceleration to compress and streamline the distribution chain and increase connectivity with the end consumer. Removing unnecessary links from the chain helps to offset the manufacturing cost rises and margin squeezes with the 'middle men' set to become either redundant or minimised.
A digital first approach
The focus for brands and businesses is moving towards building effective digital-first approaches as many have gained fresh new digital-only audiences during the lockdown. Necessitating a rapid re-crafting of their business models, many CEO’s are saying that Direct-to-Consumer has been either their saving grace, or their biggest regret in cases where there has been a lack of investment and improving Direct to Consumer will be key to company success.
Brick and mortar
Both luxury and high-street brands are looking to cut through the 'noise' and streamline their businesses. Bricks-and-mortar stores will still be relevant, but these models need to be significantly revisited, and fast. Increased investment in online platforms could see physical stores become the front-of house showcases or product ordering and collection points in order to maintain their usefulness in a socially distanced climate.
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Trendstop.com is one of the world's leading trend forecasting agencies for fashion and creative professionals, renowned for its insightful trend analysis and forecasts. Clients include H&M, Primark, Forever 21, Zalando, Geox, Evisu, Hugo Boss, L'Oreal and MTV.