The Financial 411 in Fashion
14 August 2021
Author: Jasmine Waters
It’s never long before we’re brought back to all things concerning money. In the world of business, it certainly is the apple of our eye, the goal we’re always striving after. Just like much of post-lockdown life, the financial landscape is one that’s ever-changing. Here’s the news happening right now, and how we can best prepare ourselves for more turbulent times ahead.
Are online sales slowing down?
As July drew to a close, there became reason to believe that online sales accelerated by the pandemic may be slowing down. Amazon reported disappointing quarterly revenue figures, prompting the industry to acknowledge the signal to an end. But does the retail giant become the be all and end all of trend forecasts? There’s certainly no doubting the link between lockdowns and propelled e-commerce. The reality is perhaps more that many online only brands were already seeing sales level to a modest rate. Even so, online sales continue to outweigh those of physical stores heavily – growth at a slower rate remains growth nonetheless. It’s extremely like to have been inevitable. Although there’s remaining uncertainty for those that exist solely online, some have started to make the move into physical expansion. Plans must now turn to creating longevity that will outlast the pandemic rush.
Brands at risk of inflation
From another perspective, inflation – something many consumers have never had to deal with – is now fully alive and kicking. We know that product demand is sky high, while supply chains continue to struggle with COVID delays. We’re still yet to see if these effects are temporary, although some brands may choose to try and use inflation to their advantage, if they wish to rebrand themselves into the higher market. Mainstream shops on the high street have the problem of discounting, looking to wean their consumers off of them. Now consumers need a valid reason to buy from a particular place, especially if a similar product can be found at a cheaper cost elsewhere.
NFTs in Fashion
We’ve briefly discussed the gamification of fashion before, but now it’s in the early stages of making big bucks. In the wake of Ariana Grande hosting an exclusive performance – and custom avatar collection – on Fortnite, brands are continuing to ask if selling digital assets is the way forward. Now there’s the new term of “metaverse”, which is the idea that people will spend a great deal of time in the virtual world, for business and pleasure. There’s now every chance that the virtual world could become the shopping mall of tomorrow, leading some brands to begin to plan ahead for aligning immersive experiences. Right now, this metaverse doesn’t look to shift into mainstream anytime soon. But brands will need to have a future strategy in place for when virtual reality finally arrives.
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