The trending topic of the week was a news article title stating that a store in Guangzhou, China made US$2.7 million in one day after it reopened following the coronavirus lockdown.
Some sources are stating that it’s due to “revenge spending” which refers to a buying binge by shoppers emerging from lockdown, which could potentially resuscitate businesses that have been struggling since the outbreak of the coronavirus. (cna Luxury)
The question though, that concerns Europe the most with the upcoming reopening of economies in mid-May is: Will consumers spend their money in fashion after Covid-19? We certainly can’t categorise all consumers in just one category. Some people will go back to their normal lives, while others won’t.
As the feeling that the retail era is falling apart still lingers, we’ve rounded up some opinions and forecasts from places where non-essential services have close their doors around the world.
According to Lucien Pagès, founder of Lucien Pagès Communication, “Brands who were struggling might disappear, especially independent and young designers. It could change the map of fashion. Big brands might want to get back to business but it’s a question of how long this goes on for.” (Highsnobiety)
Pierre Mahéo, creative director of Officine Générale talks about what he hopes will be the future of consumerism after the pandemic: “I hope we will not go back to where we were. I’ve been fighting for buying less but buying better. I think it will allow for better quality products, which are better for the wallet and the world. I hope there’s going to be a shift in how customers are going to buy when we’re back on track, but we are human; maybe we will go back to normal.” (Highsnobiety)
According to Thomai Serdari, a professor of luxury marketing and branding at New York University’s Stern School of Business, “I think that a lot of people are going to realize that they don’t need as much — we have missed an entire month already that we’re never going to get back. And people are pressured financially because they’re losing their jobs and preparing for a recession. On the other hand, the social distancing and deprivation is really intense — perhaps the restaurants and bars will be the first to recover. We will all be craving a bit of entertainment, which is what shopping has always been.” (Retail Dive)
Daniel Binder, a partner at Columbus Consulting, who managed Asia-based supply chains during the SARS and H1N1 pandemics states, “What retailers will have to figure out is how to bring a sense of structure and calm… That includes making it obvious how clean a store is”, he says. “There will be hand sanitizer everywhere you go, payment options that don’t involve touchscreens or cash. Just not having to touch something that is also being touched by multiple people. This will pass, there will be a return to normal, and the DNA of the brand is still going to be critically important.” (Retail Dive)
Whatever happens, one thing is for sure: there will be change. There will be the need for creative minds to come together to discuss this ongoing global situation. Brands will need better strategies and ways to communicate with their clients. I hope people will realise after this time, the importance of thoughtful shopping, that they will choose quality over quantity, that they will find ways of reinventing their style without splurging on more than they could afford and I do hope we will all change and reinvent and reset our lives during and after this crisis.