Fashion industry: how to develop online and impress Zoomers

`Survival of the fittest` is the slogan of the fashion industry in 2020. According to UN data, world losses due to coronavirus are estimated at $50 billion, 1,5% of which account for the fashion industry. This field turned out to be one of the most vulnerable during the pandemic. It had to constantly adjust to updates and react to important events in the world. Digitalization, protests, a shift in consumer needs — even not the complete list of the challenges fashion companies had to face in order to stay afloat.

Even in such conditions, the industry continued to develop and experiment. Brands took up new ways of communication with the audience, learned to speak ‘youth language’, and cast away toxic masculinity. They also had to quickly react to new behavioristic trends that came up during the pandemic.

Total fall and rescue signal

At the end of 2019, the State of Fashion report stated about 4% market growth. According to the calculations, in 2020 the industry profit was decreased by 93% due to COVID-19. Both mass market and luxury brands suffered from a sharp drop. About 80% of H&M stores were closed temporarily.

In the meanwhile, their online sales increased significantly. Inditex reported that online sales were up 74% up. The customer shift from offline to online stores gave an advantage: ASOS, FarFetch, Revolve raised their sales.

Digital clothes and avatar models

The first AR (augmented reality) projects and e-commerce had appeared even before the pandemic. However, lockdowns pushed the augmented reality market to rapid development. In 2020, the market value was $1,92 billion. It is estimated to reach $50 billion by 2024. Overall, 100 million customers used AR to shop in 2020.

ASOS has been using Zeekit and experimenting with See My Fit. This is an alternative to normal collection shootings. Thus, Vogue Italia arranged a shooting with Bella Hadid via FaceTime. ASOS also started implementing AR in order to demonstrate the item on different bodies.

The cooperation with such projects not only gives zoomers’ loyalty but also decreases clothes return by 40%. Barclaycard reports that 10% of buyers order an item to post a selfie on Instagram and get it back after.

Virtual clothes are bound to tackle the problem. Yael Vizel, the head of Zeekit, claims that during the pandemic the demand was growing so fast that they had to double the staff. The buyers using AR make purchases 5 times more often, and the return rate reached 2%.

Digital fashion weeks

As soon as the pandemic began, the majority of brands didn’t resist the reality and presented digital fashion shows. Chanel shot the collection on dancing models, Dior made a short movie, and Gucci had a 12-hour stream about look-book shooting.

Sustainability is the new black

The notion of sustainability gained popularity in 2019-2020. At Fashion Week in Copenhagen, a new plan on further sustainable development was introduced. That meant brands would be disqualified in case of not following new rules.

The effect on the environment is not the only reason for fashion brands to be sustainable. Generation Z prefers those brands that can take full responsibility for all the stages their product goes through. Indeed, Boomers’ opinion has to be considered: in 2020 they accounted for 40% of consumers all over the world. 70% of Zoomers assert it’s important whether a brand is eco-friendly or not. 69% are ready to pay more for recycled goods with a view to reducing the negative impact.

All for Zoomers’ pleasure

The specific thing about Generation Z is they seek to communicate. They choose the companies that share the views and are on the same wave. That’s why 2020 has become TikTok year for many fashion brands. Such companies as Burberry, Gucci, and Prada created a TikTok account. They make ironic videos and also broadcast fashion shows.

The slogan of 2021 is ‘less is more’: both consumer and producer now pay more attention to quality, sustainability, and ethical responsibility. Second-hand and vintage stores are getting more relevant as well. Besides, in the remote working world in which there is no dress code, clothes don’t express one’s status from now on. It is getting the tool of self-expression.