Simran Bherwani
Introduction
The onset of COVID-19 brought about drastic changes in not only the lives of people but also, left a huge impact on industries spanning over different arenas. Even with lockdowns lifted, life will never be the way it was before the pandemic hit. While everyone was affected from monetary losses, certain brands managed to scratch and claw their way through and were able to get up after rubbing the dust off their shoulders. In this context, it becomes essential to analyse the causes behind what may be called success.
Domino Effect
The COVID-19 Pandemic inadvertently created the domino effect. With the damage caused to the economy, people experienced a loss of disposable income i.e. the income which a consumer is left with once all the bills are paid. This would naturally lead a rational consumer to cut costs and hence, not spend money on clothes. Another repercussion was that the pandemic inhibited outdoor visits and naturally, people stopped buying outfits. But a lifestyle change in the pandemic caused a big boom in the fashion industry vis a vis casual wear. Casual wear, which was not as prominent as other types of clothing witnessed a surge in the pandemic. Therefore, with the increased demand of casual wear, brands as a result, started producing more of it and made the most by adapting to the existing market conditions. This was one of the main strategies followed by leading brands.
Overchoice Effect
In order to understand the overchoice effect, caused as a result of brand proliferation, one needs to understand the current fast fashion trends of the industry. What does a consumer of the fashion industry do in today’s world? The answer is simple: walk into a mall and buy clothes from the likes of Zara, H&M or Forever 21. This has become the new normal and is the way the world has been functioning ever since the popularisation of these brands around the late 1990s in the world and the past 10 years in India.. However, it must be noted that these brands are the flagbearers of fast fashion. It can be defined as a design, manufacturing, and marketing method focused on rapidly producing high volumes of clothing. Fast fashion has become mundane to the extent that consumers would not have it any other way. To put into perspective, the generation before us often used to buy material and get their clothes stitched from the tailor. While fast fashion trends are the cause of environmental damage and various human rights violations, the focus today is going to be upon another consequence of fast fashion i.e. brand proliferation. Brand proliferation is the concept of launching and managing a plethora of brands by one company. This has resulted in the overchoice effect. The overchoice effect is a psychological process which often affects consumers, especially in the fashion industry. It refers to the situation of having a multitude of options available for similar products. This problem existed in the industry since before the pandemic and the situation only exacerbated it.
Blessing in Disguise
One of the main consequences of the pandemic was an expansion of the digital world. Several consumers have shifted their preferences to online shopping, with 53% reporting that their purchasing habits have shifted permanently as a result of the pandemic. The onus that fell upon brands was to create a shopping experience as pleasant as one in an actual store. Resultantly, several brands adopted creative strategies in order to enhance the online shopping experience. Burberry and Gucci, two luxury brands, conduct personalized video consultations to boost sales through the launch of video services. Consequently, these brands ensure exclusivity and uniqueness and succeed in creating an authentic shopping experience. Such strategies result in increased sales and instil a sense of trust in the brand. Taking this idea one step ahead, certain brands such as Herschel have employed the usage of augmented reality to give the consumers a chance to see the product placed in the showroom. This further helps them get a clearer idea of the details of the product and hence, revamping the entire online shopping experience. In this scenario, brands which successfully adopted the e-commerce model coupled with unique strategies have succeeded while those who failed to do so faced severe losses.
The pandemic also brought about a major shift in consumer behaviour. Hence, companies which employ brand proliferation need to cut down. This will result in a minimised overchoice effect and lead to increased consumer satisfaction. However, minimising the overchoice effect while maximising the inventory turnover ratio is a herculean task. The brands which make losses for the companies can be dropped. A utilitarian approach to design was taken coupled with small-scale production by brands such as Ura. The approach further involved the creation of clothing which lies on the intersection of comfort and design. This way, people remain loyal to the brand which serves their needs.
Conclusion
The pandemic has proven to be a turning point in the history of fashion. The fashion industry can never return to its pre-pandemic stage. E-commerce is currently, the base on which the industry is built.Recognising the shifts in consumer behaviour and implementing ideas in order to cater to the same was one of the foremost reasons certain brands made it out of the pandemic unscathed.
