Despite witnessing the turmoil in the fashion industry, many of its experts are hopeful that the leading luxury brands will again find their way in the market. Therefore, brands are pointing to mainland China, where they hope shoppers that would otherwise be traveling might be convinced to spend more on luxury at home. The clothing design software will help customers of these brands to design their luxury products with the comfort of home. Online Tailoring Design Software Helps Luxury Brands to Meet the demand for newness It was observed that the share prices of LVMH and Kering have been on the up since mid-March, while Hermès is trading just marginally below where it was at the beginning of the year. That is despite notable sales declines in Q1, with the expectation those drops will accelerate during Q2. All this happened because sales in the Chinese market swing significantly toward e-commerce, and unsold inventory will be a mounting and persistent challenge for brands. Here are some of the ways fashion companies can respond to these near-term trends:
1. Capitalize on Changing Purchasing Behavior It was earlier seen that Chinese shoppers preferred buying goods from places outside the nation's borders, typically from Hong-Kong, South Korea, and Japan. But as these places are also shut down, they are now looking for options with the country's boundaries. As a result, luxury giants were rising during Q1 presentations about the prospects of recovery in mainland China. LVMH spoke of 50 percent year-on-year increases for some of its big brands, while Kering also said the less affected parts of the country were now recovering at a quicker pace. Having been the first country to shut down, mainland China is now driving close to 100 percent of luxury sales. While some are eyeing the "expansion" strategy to entice buyers to shift their spending habits, Kering outlined an expansion strategy last year to open more stores in up-and-coming urban centers. The companies, without as much of a presence in the country, may have to partner with local marketplaces. Just to catch up and make the most of these shifts. Last week Alibaba announced it was launching a luxury outlet platform to help overstocked brands shift inventory. 2. Don't Neglect E-commerce Portals Until, now it was only European countries, such as Germany and Austria, where buyers could make luxury purchases was via desktop or mobile. That remains true in most American states and many other countries around the world. Thus, it is imperative for the brands even in the Asia-Pacific region to ensure discoverability of inventory on online portals as it is more likely to become even more critical in this new age of retail. The fashion design software offers digital platform to fashion enthusiasts where they can design apparel, footwear, bags, and many other luxury products. 3. Get Rid of Seasonality Covid-19 has highlighted the fragility of the seasonal model. A massive amount of SS20 inventory is likely to remain unsold, leaving brands with a dilemma about how to distribute it best. Wholesale has been the main target of some of this criticism, with more prominent brands keen to take further control of their distribution and smaller players considering ramping up their direct-to-consumer operations. Analysts have already said that the shift is prompting brands to consider increasing their collection of cross-seasonal products. As they begin to offer more excellent protection from changes in demand as that inventory can be brought back into a store once consumers want to buy again. Conclusion- The bottom line of the blog is that luxury brands have to better prepared to balance with a demand for newness, which has been of greater importance to fashion consumers than seasons for some time now. There have already been calls for brands to use this time off to find ways to make their supply chains nimbler. This is the time to market from a creative phase to have the products delivered to customers. The clothing design software by iDesigniBuy is well equipped to meet the ever-evolving needs of fashion consumers. If you want to strike the same balance as high-end brands, Contact us today. |
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