During Kornit’s “Business Unusual” live webinar event on May 20, Achim Berg, the global leader of McKinsey & Company’s apparel, fashion, and luxury group, was interviewed by Kornit CMO Omer Kulka about the impending transformation in the fashion industry caused by COVID-19. As with many discussions happening today, the main topic of conversation was the “new normal” that fashion would be facing, and what can be done to adapt and work with it.
Berg predicts a 40 to 50 percent decrease in revenue in the fashion industry for 2020. He also highlighted that many companies who adapted to the times by upgrading their websites and implementing online stores in the past decade have been able to weather the COVID-19 storm better than those who did not. As a result of the pandemic, many companies who have been putting off upgrading their websites for years have been able to complete the transition in a span of weeks, which is notable as many companies business owners thought the process would be much more difficult than it has proven to be.
Berg also spoke about how COVID-19 could spur along the “end of ownership” in fashion as a recession may encourage more companies like “Rent The Runway” to emerge. With social distancing and remote work continuing, data will be more valuable than ever, and companies can utilize this information to increase sustainability and reduce waste. While it’s impossible to know what exactly will happen as COVID-19 persists, Berg made it clear that the fashion industry will be significantly affected.