Recovery in a post-COVID world will require an online, omni-channel approach

The fashion and luxury sector will have to rely on digitalization and a greater focus on customers to survive the pandemic – and we’ve got the data to prove it.

You’d be forgiven for thinking that the fate of the fashion & luxury sector has been somewhat determined by COVID-19 this year. But after analyzing the situation more accurately, it appears the sector may be able to avoid closing the financial year with a loss.

The situation in Italy and Europe

According to Euromonitor International’s global forecast, the luxury goods sector will shrink by 18% this year. Analysis in Italy initially appears to confirm this global trend, and the situation seems to be fairly consistent throughout Europe, too.

According to a survey conducted by Eurostat, retail sales in Europe dropped significantly in March, and the fashion sector hit was the hardest, with sales falling by 41.7% compared to March 2019.

Despite these potentially discouraging statistics, a few innovative tactics have proven successful, and hint at an imminent recovery, including virtual fashion shows, digital catwalks, designer avatars and social media posts featuring products for purchase.

The Internet takes center stage

Although forecasts are somewhat lacking in positivity when it comes to the fashion industry, the situation developing online paints a very different picture indeed.

Luxury Society reports that the number of buyers purchasing luxury goods online for the first time increased by 181% in April 2020 compared to the same time last year. No other area of the retail sector has performed so well. And while we’re on the subject of buying luxury goods online, compared to last year, add-to-cart rates increased by +102% and sales went up by 82%.

The best ways to reinvent the fashion & luxury sector

Luxury brands have the potential to survive the current crisis, and Luxury Society has summarized a few key points to aid this recovery:

1. Relevance – brands need to employ a 360° customer strategy
2. Customer focus – the luxury sector needs to focus on what consumers actually want in an intuitive, personalized and technology-focused way
3. Having a goal – companies with specific goals tend to be more resilient when faced with unexpected situations, and more inclined to support innovation and sustainability
4. Digital – the digital world will play an increasingly important role in consumer shopping experiences
5. Empathy – establishing and maintaining an empathic relationship with customers will become increasingly necessary

In short, the fashion industry must turn its attention to the Internet and employ a multi-channel approach if it wants to build valuable relationships with its customers.

Specialized in IT solutions for the retail industry, and with thirty years of experience in the fashion & luxury sector under its belt, Bizeta is the perfect partner to guide brands through these changes and to assist their recovery in a post-COVID world.