COVID-19 Brings Innovation To Fashion E-Commerce Market – And Runways As Well, With Puppets For Models!
With traditional runway shows taking a backseat at fashion shows this year due to the restrictions during the pandemic, Moschino collaborated with Jim Henson’s Creature Shop to present its collection for the Milan Fashion Week with the use of puppets! Alongside creative approaches to release new items on the runway, The Business Research Company finds that the fashion e-commerce industry is also using technological innovations to survive this period. Companies in the market are adopting new technologies such as artificial intelligence (AI), barcode scanners, virtual reality outfits, and e-commerce automation tools that offer highly personalized and relevant consumer experiences. Moreover, many fashion companies are launching new apps to sell their products online in order to reach a large consumer base.
Italian brand Moschino’s fashion designer, Jeremy Scott, joined forces with The Muppet’s Jim Henson’s Creature Shop and miniaturized his garments to fit marionettes that were filmed to ‘walk the runway’ at the Milan Fashion Week this year as a unique endeavor to maintain social distancing norms. The designer’s creations – both outfits and accessories – were made to fit 30 inch puppets that went down the catwalk in front of even more puppets as their audience. While several other brands hosted their shows digitally, taking caution against COVID-19, the Moschino show has received lots of praise for its ingenuity.
The clothes will of course be available in the Spring/Summer 2021 collection, sized for humans, and what better way to continue the safety measures than to purchase them online? The fashion e-commerce market consists of sales of fashion goods and related services through online channels. Fashion goods include fashion accessories, clothes, shoes, bags, jewelry, cosmetics, and other luxury goods. The market comprises of revenue generated by the establishments using several online platforms and tools for trading fashion products.
According to Global Market Model estimates, the global fashion e-commerce market is expected to decline from $531.25 billion in 2019 to $485.62 billion in 2020 at a compound annual growth rate (CAGR) of -8.59%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing and remote working, and the closure of industries and other commercial activities. The entire supply chain from production to international trade has been impacted. The market is expected to recover and reach $672.71 billion in 2023 at a CAGR of 11.48%.
Besides the coronavirus impact, rules concerning website content and safety of consumer information are predicted to limit the growth of the market as well. The rules and regulations for companies about the content of the website make it difficult for players to manage their businesses. A major concern is to mandate the use of local languages on their website, as in countries with more than one local official language, resulting in a higher cost for the companies dealing with online retailing. Weakening brand trust and loyalty and high return rates are other major concerns for the growth of the fashion e-commerce market. The decline in brand loyalty can be due to several factors including product quality, a lack of selection options, or better prices elsewhere. On the other hand, extensive increase in use of internet and smartphones is expected to contribute to the expansion of the fashion e-commerce industry.