The pandemic has been a nightmare for retailers with big department store chains going into bankruptcy. This year, the global retail industry faces a 30 per cent drop in revenue as retailers continue to close stores and lay-off employees, says a report by Business of Fashion and McKinsey & Co study.
Returns rate to spike as stores remain closed
As per Be Global Fashion Network magazine, though brick and mortar stores may eventually reopen and offline operations resume, retailers will face significant hurdles in maintaining social distance and ensuring safety of products and environment. Made-to-measure (MTM) businesses will face more challenges as they provide perfectly fitting garments, which require multiple personal fitting sessions with customers. Studio and store closure have made personal fitting sessions impossible. MTM players can’t ask customers to measure themselves as there is no room for inaccuracies in their businesses. Hence, they expect a spike in garments return rate.
Safety, economic concerns affect business
Many countries have advised retailers to keep fitting rooms closed and limit fitting sessions. However, even if these restrictions are relaxed, retailers are not confident of customers returning to stores soon. A recent survey by predictive analytics company First Insight finds less than 45 per cent consumers feel safe returning to physical stores due to COVID-19.
Also, consumers are likely to pull purse strings in due to economic uncertainty. Experts expect consumer spending on high end garments to contract 39 per cent with MTM businesses being the worst hit. Bespoke brands may also suffer on account of extended lead times due to factory closures and lack of raw materials. These issues will make it difficult for brands to increase their customer base.
Affordable MTM tools to ensure smooth operations
Though the fashion industry has woken up to innovative design, manufacturing and sales technologies few are beneficial to MTM businesses as they are expensive. Also, MTM brands lack the technical knowledge to implement these solutions. These solutions require the knowledge of working in 3D design environments, building fabric and trimming libraries, and using 3D across pattern fit. To benefit MTM businesses, these technologies need to be affordable and simple.
The tools and technologies that the fashion industry currently has access to, fail to address specific needs of MTM sector. A digital process doesn’t require costly hardware or hiring, outsourcing developers. It enables bespoke fashion businesses to operate entirely online through new tools such as 3DLOOK’s Mobile Tailor. The tool was built to address the needs of smaller businesses. Its contactless technology allows MTM businesses to provide additional in-store benefits, such as virtual try-ons. These tool also provide contactless in-store fitting process that combine the safety of a digital process with the convenience of having expert tailors at hand.
Deloitte estimates a strong demand for personalized clothing amongst 41 per cent consumers, majority of who belong to Generation Z. It advises MTM retailers to collect accurate and safe body measurements that would help them provide memorable shopping experiences to customers.