Many brands, retailers to fight for survival: McKinsey

13 May '20

2 min read

Pic: Shutterstock

The fashion industry faces a tough 2020 as it continues to deal with the repercussions of the COVID-19 crisis on the global apparel supply chain, according to a new report by global consultancy McKinsey, which said many brands and retailers will fight for survival while suppliers in sourcing countries fight for theirs, with potentially devastating consequences for millions.

While the immediate priority is to navigate through this crisis with as few losses as possible, executives should not lose sight of the imperative to reshape sourcing practices for the long term, the report, titled ‘Time to Change: How to use the crisis to make fashion sourcing more agile and sustainable,” said.

Oversupply, trends in sustainability and digitisation will continue to change customer behaviour and disrupt traditional business models. Companies that have been slow to embark on a transformation journey may now have little choice but to embrace the changes needed to succeed in the next normal, beyond COVID-19, said the report.

Tough questions need to be asked and answered to understand exactly how this next normal looks and operates in practice. Old thinking will need to make way for new ways of working, where fashion players join hands with suppliers and invest in strategic partnerships with tech companies, it said.

As difficult as the changes may be, and as unwelcome as this tragic crisis is, the industry should not waste this opportunity to completely reshape sourcing for a demand-driven, sustainable future, the report added.

Fibre2Fashion News Desk (DS)

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