In a would-be whirl of opulent haute couture presentations for Fashion Week’s spring 2021 season—with global fashion houses attempting to showcase collections to top the last—the runways are relatively empty, replaced instead by a cluster of virtual shows and theatrical live broadcasts.
Sure, the number of attendees has been slashed to a fifth of the size of previous seasons, but the embattled industry, despite the challenges created by the pandemic, proves that it is ready to move forward.
If there’s any indicator of why such is the case, Anton Huang, president of SSI Group, Inc., the country’s largest specialty retailer which carries luxury brands such as Prada, Gucci, Salvatore Ferragamo and Givenchy, points to the continued demand for fashion by consumers.
“The reasons behind each purchase may vary, whether it’s the need to shop for essentials, a need for an escape or a reward, or even the need to gift someone with something of value,” the retail mogul said in an exclusive interview with the BusinessMirror.
“Our core customer base has proven to be resilient, as seen in the performance of key categories in our portfolio during this pandemic,” he added.
Huang’s optimism is not without basis.
US-based management consulting firm McKinsey and Company, in the report “The State of Fashion 2020”, posited that the fashion industry is seen to regain positive growth of 2 to 4 percent in 2021, compared with 2019’s baseline figure.
For the personal luxury goods industry (luxury fashion, luxury accessories, watches and jewelry, as well as high-end beauty), it estimates a positive growth of 1 to 4 percent next year—a considerable feat considering the average market capitalization of apparel, fashion and luxury players dropped to almost 40 percent between the start of January and March of this year, according to digital intelligence firm Business of Fashion and SLI.
Recent developments also suggest fashion has not reached the end of the runway yet.
In the UK, multinational firm PricewaterhouseCoopers stated in its 2020 Consumer Sentiment Survey that despite economic uncertainty, 58 percent of consumers have disposable money and are willing to spend.
Chinese demand for luxury goods, on the other hand, is projected to grow as much as 30 percent this year as high-income mainland shoppers drive the country’s post-pandemic economic rebound.
In Italy, which has a fashion-and-textile industry worth $107.9 billion that makes up 1.5 percent of its GDP, buyers are once again flocking to stores.
Shows that premiered in Paris Fashion Week, such as Ralph & Russo’s “La Futura”, and Boss’s spring campaign shot at the Palazzo del Senato in Milan, have also been well-received by global audiences, with millions of views across digital media platforms as of press time.
In the Philippines, discretionary spending is fueling the retail demand.
“Since the launch of The Specialist, our online concierge service, and the SSI Life Viber community, we have observed that our customers’ shopping behavior toward nonessential items continues to be there,” said Huang.
There is, though, a spike in demand for certain apparel categories like loungewear and athleisure (sweat pants and sport bras).
“We see some changes in their preferences and choices in terms of styles due to perhaps the shifts in their lifestyles, such as working from home and the like,” explained Huang, adding that another thing that influences consumers’ post-lockdown purchases is revenge consumption.
“We may see a continued change in buying and spending habits [sustainable consumerism and conscientious buying] but we can also expect a surge in what we term as ‘revenge shopping’—pent-up demand to make up for the months of not being able to go to the malls and shop on a normal basis,” said Huang.
Not surprisingly, this increasing intention around shopping during the pandemic has been paired with a push to shop sustainably, and in the midst of the revenge consumption trend, there is a broader drive for sustainable consumption.
Across the country, where traditional weaves handcrafted from local textiles is experiencing a resurgence, the fashion industry goes full circle with local designers and retail brands shifting to sustainable methods.
Spanish apparel brand Zara, also included in SSI’s portfolio, have churned out an environmentally conscious program, “Join Life”, and the label Denim (WO)MAN, which uses materials like organic cotton and repurposed denim.
Last month, Tommy Hilfiger announced the launch of “Make it Possible”, an approach to environmental and social sustainability that reinforces the organization’s commitment to create fashion that “Wastes Nothing and Welcomes All”.
In practice, consumers have also already begun changing their behaviors accordingly.
In another survey by McKinsey and Company among 2,000 women in April, 67 percent consider the use of sustainable materials to be an important purchasing factor, and 63 percent consider a brand’s promotion of sustainability in the same way.
Meanwhile, 72 percent of women are willing to pay more for “quality pieces that will endure.”
Consumers have the intention to buy. Now, they just need the option. With sentiment remaining resilient, e-commerce is providing a valuable service during this period.
“Our overall move toward digital and e-commerce in 2019 has immensely helped us in adapting and pivoting to the abrupt changes we have encountered this 2020,” said Huang.
He added, “Currently, our online efforts have shown significant growth of over 300 percent increase in sales. We are very optimistic that our e-commerce business will be able to mitigate the losses the company has incurred due to the pandemic, and allow us to further expand our footprint in the digital space.”
The SSI head also shared that they will be launching a multibrand e-commerce site to complement its monobrand sites this year.
“This new multibrand site will bring together many of SSI’s brands in one premium marketplace, providing Filipino consumers with unique access to some of our most recognizable brands on one digital platform,” said Huang.
Meanwhile, brands under the SSI portfolio continue to have brick-and-mortar stores to complement its e-commerce retailing.
“All our existing brands continue to have physical stores. This puts us in a unique position to link our brick-and-mortar stores with our e-commerce platforms, providing our customers with an omnichannel shopping experience,” he said.
Huang shared that since the reopening of SSI’s full store network in June, it has seen steady monthly increases in sales, and better-than-expected sales in August, this despite the declaration of a two-week modified enhanced community quarantine (MECQ).
He added, “Of course, we are also strengthening the experience in our stores, communicating the health and safety measures that are in place, and ensuring that we continue to have relevant merchandise, coupled with selective but compelling promotions to draw shoppers into our stores.”
With economic uncertainty continuing to hover over countries globally, how is SSI Group plotting out the business landscape in the new normal?
Huang concludes: “Our main focus for the remainder of 2020 is to accelerate our e-commerce expansion and strengthen our footprint in the online space. We will continue to innovate new channels like The Specialist concierge service, through which we can get fresh and relevant inventory delivered straight to our customers, without them having to leave the safety and comfort of their homes.”
Image credits: AP/Antonio Calanni