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IMPACT OF COVID 19 ON WORLD APPAREL INDUSTRYMr. Shashank Patidar
BBA Student, Daly College of Business Management, Indore Mr. Tapas Upadhyay
Asst. Professor, Daly College of Business Management, Indore
Abstract- Understanding how consumers have changed their clothing consumption during the global covid 19 pandemic is necessary for apparel brands and companies to determine what values consumers seek which can help brands and companies to identify opportunities for growth. This study intends to draw a portrait of the evolution of consumer clothing consumption during the pandemic crisis. We conducted a survey using Google Forms and out of 300 people to whom we conducted the survey, 180 valid responses were received. Our study shows that covid 19 has changed the world view point of the people and how crisis like covid 19 can affect the consumer behavior and how the fashion brands and companies have evolved during the times of crisis.
1. INTRODUCTION
As per Discovery world, Humans started to don clothing 1,70,000 years ago. Early humans needed clothing to survive the last ice age. But with time clothes are used by human to express themselves. In today’s world individual’s culture, personality and references are reflected by the apparels they carry on themselves. It has been observed that fashion trends change with seasons, popularity of designers and attire of famous personality.
World has seen difficult phase since December 2019 due to Coronavirus Pandemic (covid-19 pandemic). First existence of covid 19 was seen in December 2019 at Wuhan city of China. Public Health Emergency of International Concern was declared by The World Health Organization on 30 January 2020 and as a pandemic on 11 March 2020. Every business and every sector have been hit by pandemic in some or the other way.
In India textile and apparel industry contributes 5% to GDP, 7% to industry output in value terms and 12% to country’s export earnings. Textile and apparel industry provides direct employment to 45 million people in India and having 60 million people in allied industries. For the year 2019-20 Indian textile and apparel industry stood at $108.5 billion and $75 billion was consumed domestically and $28.4 billion was exported to remaining world. At times when every industry was suffering through pandemic, apparel industry was also facing tough times. When whole world was going through lockdowns, people staying home having work from home jobs to people getting unemployed, everything has suffered.
Due to which people’s behavior towards the clothes, they wear, how they carry themselves everything has changed. Pandemic has changed the way people lived.
The study will help us understand change of consumer’s behavior before covid 19 and during covid 19 towards the apparel industry.
1.1 Global Consumer Behavior during Covid 19
Mckinsey and company did a survey on consumer behavior during covid 19. That survey explains that customers have shifted to value and essential things, are choosing digital and omnichannel options for shopping, covid 19 become obstruction in supply chain management and this made people try new brands if their preferred product was not available. People bought products of those companies more, that have healthy and hygienic packaging and safe work environment.
Mckinsey researched found consumers shifted to mindful shopping.
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Source: McKinsey & Company, COVID-19 Consumer Pulse surveys, More people looking for digital shopping during covid phase than before.Source: McKinsey & Company, COVID-19 Consumer Pulse surveys,
If customers went for offline or in store shopping, they looked for few signs of cleanliness and safety.
Source: McKinsey & Company, COVID-19 Consumer Pulse surveys,
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2. REVIEW OF LITERATUREAs per Indian Consumer Protection Act, 2019 “consumer” is defined as a person who buys any goods and hires or avail any service for personal use and does not include a person who buys with a motive of resale of goods and service for commercial purpose. This include both online and offline transactions. Covid 19 hit hard to everyone. Ahmed Masood (2021) in his research concluded that covid pandemic has changed the world view and has created a demand for new work culture, reaching customers directly at their home and providing them service and product. Businesses need to adopt with new culture, technology, change in infrastructure and safety norms for remaining progressive and resilient. Every industry has been hit by pandemic. Mishra and Singh (2020) concluded that readymade garment industry has faced huge losses during pandemic due to challenges like cash stream limitations, supply chain interruption and consumer assessment. Liu, Xia, Lang (2021) mentioned in their research that fashion clothing business may consider to go back to basics and identify new values their customers are seeking. Work from home culture has made consumers realistic towards fashion. Consumers prefer more comfortable outfits rather than stylish. This type of clothing consumption can become habit in long term due to pandemic. And even customers are more likely to go for online shopping channels, thus fashion businesses should develop their infrastructure in such a way that they can meet the changes in the consumer behavior and meet the change in needs, wants, desires for clothing of consumers.
Koschate-Fischer (2018); Lee (2001); Mathur (2003); Liu and Black (2011) Liu (2012) have studied the change in consumer behavior and consumption pattern due to expected life events and transitions and unexpected such as natural disasters and social crisis. They found that stress due to such events made consumer do impulsive and compulsive buying to manage their emotional state, restore their sense of self. Financial stress also tends to affect purchasing behavior. Customers restrict themselves from purchasing anything without discussing their purchase decision with their family, friends which makes consumers wise and knowledgeable before taking any purchase decision as concluded by Liu, Xia, Lang (2021).
3. RESEARCH METHODOLOGY:
3.1 Rationale of the Study:
This research paper is an attempt to study the impact of Covid-19 on the apparel industry.
This will help to understand the change in perception of people regarding the fashion and their clothing options. Fashion today is changing at a very fast pace like never before. This research will help to find the shift of customer taste and preferences.
3.2 Objective
1. Major objective is to understand how covid 19 pandemic affected apparel industry.
2. To Understand the impact of Covid-19 on customer taste and preference on the basis of their Age, Gender, Income and Occupation.
3.3 Research Design:
To conduct extensive research, a survey was conducted using Google formsin Indore, Madhya Pradesh, aging from 18-50 years of age to get a clear understanding of the change in their preferences in clothing before and after covid-19 situations. The Google forms were shared with200 respondents in a period of 8 days. This helped in gathering the demographic data and to understand how the apparel industry got affected after covid-19.
The respondents were asked 12 questions which were mandatory to be filled by the respondents. The questions were ranging from basic questions to the questions related to their tastes and preference changes in fashion, shopping etc. to get the results.
4. ANALYSIS AND DISCUSSION 4.1 Sampling
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A google form questionnaire was shared with 200 people, to know the changes covid 19 has bought in their consumption and purchasing behavior of clothes. The responses received were used for analyzing the changes and behavior of people.4.2 Analysis
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There were 180 responses received out of which 82 Females and 98 Males ranging from the age group of 18-65 years. In these respondents 67% were working in service sector and doing job while 33% were business owners. The annual income was ranging from under 2.5lakhs to 10 lakhs. Due to covid-19 whole world has faced lockdown at some stage. Which made people stay home and so it was found that of 180 responses received majority of people I.e., 132 people have been going through work from home phase. 28 people were going to their office and 16 were having field work.
180 people responded to the question impact of covid 19 on shopping and buying behavior. And it was found that out of 180, 88 were buying only survival necessities things which is 48.9%. 52 people responded as they were buying everything needed and 40 people claimed that they had no change in their shopping and buying behavior.
Apparel is something people buy for some occasions and few times in a year. And hence response received for the question how often did you bought apparels before covid 19? And response was out of 180, 150 people bought apparels occasionally and 30 people bought it very often.
Next question in the form was “How do you think your expenditure on apparels will change due to pandemic as compared to past?” And 92 out of 180 said it will be a little change, 60 responded by very much change and 28 by no change in apparel buying expenditure.
“Types of apparel you used to wear at work before covid” was the next question and 144 people said they used to wear formal wear before covid at their work place and 36 people used to wear casuals.
But it changed as we asked “Types of apparel you used to wear at work during covid” and responses were that 92 people used to wear casuals at work during covid phase. And 88 used to wear formals.
And of 180, 92 people says that they strongly agree to the fact “type of clothes you wear play's important role at your work place” and 80 agree to the fact and 8 disagree.
Covid 19 has made people stay at their home and majority of people had work from home. During work from home phase people used to wear casuals and leisure clothing.
Covid has affected people financially as well everyone tried to save in some way for necessary survival needs and people saved more for any medical uncertainty. In country like India which is a country of festivals and occasions, where every function, occasion is celebrated with full joy, lockdown and covid made people celebrate occasions with their family members. Government imposed guidelines for number people can gather on events like parties, marriage functions, which made hosts celebrate with only close family members. No other guest was allowed. So, people had a thought about why should they buy apparels in times of uncertainty, when they can’t go anywhere and had to work from home only.
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Apparel industry is one of the industries, where we can see rapid and fast changes as fashion and trend changes. People had a thought that if they can’t wear the apparels anytime now as everyone prefers casuals at their home, why they should spend on them now. And till the time everything comes to normal there may be new trends.4.3 Indian Fashion Industry during Covid
Indian Fashion Industry is evolving and going through a change face.
1. Online Domination – During second half of lockdown people started online shopping and for every brand online recognition has become must to succeed.
2. Vocal for Local- social media helped local fashion brands gain recognition and generate business opportunities for local brands.
3. Boom of Sustainability- People looking to buy consciously from brands which have purpose and mission and doing good for some part of society.
4. Change in Style- Due to covid and lockdowns people have shifted to leisure wear and comfortable cloths.
5. Being futuristic- People have seen life is unpredictable and thus brands as well as customers are going to grass roots of Indian tradition to make more productive future.
6. Customer Intimacy- For brands it has become necessary to make their customers stick to them and for that communicating with them has become effective tool.
New Direction- It has become necessary to understand it is all about survival and thus everyone be it customers or brands, are looking to survive in these difficult times by doing something new that can help them survive in this phase.
4.4 How apparel brands can survive covid 19?
Customers are choosing online shopping over offline; hence brands can consider registering themselves on internet and gain recognition online through social media and digital marketing, as people are avoiding crowded and public places.
Customers looking for bulk discounts for volume purchase, this makes brands to understand needs of customers and may find a way to attract customers with new schemes, discounts and offers.
Consumers spending more time on mobile, this means consumers are active over phones and brands need to target their customers on the platform where they are most active, I.e.
phone and social media.
Consumers preferring online payment, due to covid 19 people are trying to avoid touch with unknown thing and thus this has made online payment mode as an option where money is transferred digitally. And people have shifted to online payment methods, so customers will go towards brands which have efficient online payment system.
Consumers demanding No contact delivery, means customers are avoiding direct contact with anyone, even delivery guy.
5 CONCLUSION
With the help of study, it can be concluded that covid 19 has changes things for both consumers and products and service providers. People have shifted to mindful and online shopping with considering safety first. Covid has disrupted the supply chain and this led to many brands loosing their customers and many gaining new customers. Brands and companies can survive during and after covid phase by keeping modern consumer needs like by gaining online recognition over social media, using online payment methods, doing something good for sections of society and developing products with a message for society.
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