Covid 19 – Effects of Pandemic on Retailers
It is astonishing to see that e-commerce is the only option for consumers. Still, there are wider repercussions of the pandemic – from the changes in the dramatic lifestyle to financial insecurity – there has been a lack of demand.
In the report, there has been a 30% decline in online fashion sales from March onwards. Meanwhile, ONS( Office for National Statistics) has also added that online clothing sales went down to about 16% in March compared to February.
Based on the analysis of online fashion retailers from the UK, USA, Germany, France, and Sweden, a 21 % increase in e-commerce sales from April.To this increase of 9%, the growth of 30% and the average conversion rate to about 12%. The main reason behind the rise is the heavy discounting offered by the retailers. And the decline of average order value by 3%, some consumers do get lured by these discounts and end up buying clothes.
It’s undoubtedly the fact that online fashion retailers have resorted to massive discounts throughout the past month; companies like Nike and Ralph Lauren have been extending spring sales.
Discounts are likely to play a more significant part in the strategy for many fashions e-commerce. Even luxury brands are using their tactics to combat excess inventory. According to analyst Krista Corrigan, the balance of luxury goods getting on discount at the end of the financial year was up to 29%, which turns out to be a clear sign of the high level of unsold stock.
Ecommerce is turning out to be the crux of all kinds of retailers at this very point, with specific categories turning out to be far better than the others. However, consumers’ experience and focus are the only keys to sustaining the momentum going forward delivery, and fulfillment is undoubtedly a critical factor in customer loyalty. Still, it has now turned out to be complicated. Customers unquestionably want the fastest and most convenient delivery option. However, they may wish to be reassured about safety first.
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