Fashion Business Module 4.1 Overview

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Questions and Answers

What primarily replaced the consumer demand for luxury and aspiration fashion items?

Trend-setting apparel

Essential wearables (correct)

Luxury accessories

Seasonal fashion collections

Which fashion category experienced a significant decline due to the prevalence of working from home?

Lounge wear

Casual wear

Active wear

Formal wear (correct)

What global event initiated a recovery in the fashion industry in 2021?

Increased online shopping

Economic recession

Spread of a new virus variant

Availability of COVID-19 vaccines (correct)

What impact did social distancing have on consumer fashion demands?

Restriction of fashion options Signup and view all the answers

How did global fashion hubs respond to the challenges posed by the pandemic?

Suspended or delayed growth activities Signup and view all the answers

Which category of fashion saw reduced sales due to the shift to online schooling?

School uniforms Signup and view all the answers

What became a significant focus for big fashion players during challenging times?

Sustainability and social responsibility Signup and view all the answers

What aspect of consumer behavior changed profoundly after the initial lockdowns?

Shift from 'aspiration' to 'need' Signup and view all the answers

What was the global fashion industry's estimated value prior to COVID-19?

$3 trillion Signup and view all the answers

How did COVID-19 primarily change consumer shopping behavior?

There was a massive shift to online shopping Signup and view all the answers

What impact did COVID-19 have on the sales of non-essential items, including fashion?

Sales declined sharply Signup and view all the answers

What was one of the main factors contributing to the disruption in the global fashion industry during COVID-19?

Imposed travel restrictions Signup and view all the answers

What is one significant benefit of using AI in the fashion industry?

Improved sales systems Signup and view all the answers

What do the forecasts from IMF suggest about the global economy for 2022?

It is projected to grow by 4.9% Signup and view all the answers

What was one consequence of the lockdowns imposed during the pandemic on retail environments?

Closure of markets and shopping malls Signup and view all the answers

Which technology is commonly used to enhance the customer experience in fashion retail?

AI chat technology Signup and view all the answers

What is the projected value of AI in retail by 2027?

$19 billion Signup and view all the answers

How did the pandemic affect the global fashion industry's supply chain?

Inventories were held up throughout the supply chain Signup and view all the answers

What was a significant psychological impact of COVID-19 on the global population?

Normalization of online interactions Signup and view all the answers

How has the pandemic influenced the adoption of technology in fashion retail?

Accelerated adoption of AI and online operations Signup and view all the answers

What function does virtual reality serve in the fashion industry?

Enabling virtual try-ons for outfits Signup and view all the answers

Which collaboration illustrates the emerging trend of e-wardrobe in fashion?

Ralph Lauren and Bitmoji Signup and view all the answers

What has become a major focus for retailers during the rise of omnichannel shopping?

Enhancing the combined shopping experience Signup and view all the answers

What is a primary outcome of integrating virtual try-on technology in fashion retail?

Higher customer engagement Signup and view all the answers

What is the expected impact of material shortages and rising shipping costs on the fashion industry?

It will increase input costs by approximately 3 percent. Signup and view all the answers

How did the luxury market change as a result of the COVID-19 pandemic according to the provided content?

It underwent rapid growth and a shift towards inclusivity. Signup and view all the answers

What strategic action is suggested for luxury brands to take before the international tourism fully revives?

Focus on expanding local market share. Signup and view all the answers

What is indicated as a future trend in the luxury fashion market?

Rapid growth will align with a shift in consumer values towards inclusivity. Signup and view all the answers

What was a notable effect of the pandemic on the luxury retail sector in 2020?

A significant decline due to lockdowns and travel restrictions. Signup and view all the answers

What does the recovery of the fashion industry rely on as it approaches the end of 2021?

Flexibility and resilience in supply chain models. Signup and view all the answers

What is expected to be a transformational change for luxury brands based on consumer trends?

Becoming enablers of social and cultural change. Signup and view all the answers

What role does Artificial Intelligence (AI) have in the future of the fashion industry?

AI will streamline and enhance various aspects of fashion. Signup and view all the answers

What is a major factor contributing to the growth of mobile commerce?

Advancing technology Signup and view all the answers

What trend has been observed in consumer behavior post-COVID regarding fashion?

Greater inclination towards sustainable fashion Signup and view all the answers

What percentage of internet users is projected to access the web through smartphones by 2026?

72 per cent Signup and view all the answers

Which apps are mentioned as replacing traditional avenues for selling second-hand fashion?

Vinted and Depop Signup and view all the answers

What is indicated as a common practice for the fashion industry in the future?

Focusing on timeless fashion pieces Signup and view all the answers

What do current market reports suggest about the textile market?

Less than 10 per cent of materials are recycled Signup and view all the answers

What responsibility will brands have towards sustainable fashion in the future?

To recognize and reduce environmental impact Signup and view all the answers

What is a significant barrier to the scalability of closed-loop recycling technologies in the fashion industry?

High implementation costs Signup and view all the answers

Study Notes

4.1 Fashion Business

Principles of retailing, Semester III, B.Voc Fashion Design, Module 4.1.3
COVID-19 significantly impacted global economy, social life, and fashion in 2020 and 2021.
Global economic growth projected at 5.9% in 2021 and 4.9% in 2022, a positive outlook after the 2020 decline.
Lockdowns, travel restrictions, and social distancing disrupted fashion retail globally, impacting sales, profits, jobs, and the entire fashion ecosystem.
The $3 trillion global fashion industry makes up 2% of global GDP.
Consumers increasingly shifted to online shopping.
Essential items only were allowed for online sale, restricting non-essential items like fashion.
Supply chain disruptions, including transport issues, reduced fashion sales and increased costs.
Fashion demand narrowed to essential wearables due to the work-from-home trend.
2021 saw some recovery with vaccine availability, new strategies, and adapted operations within the fashion industry.
Input costs are projected to increase by 3% (materials, shipping, etc.).
Luxury fashion experienced a mixed recovery, with some brands experiencing a positive turnaround in the third quarter of 2021, despite initial pandemic impacts on wealthiest consumers.

What Changed in 2021?

Increased vaccination rates globally aided the recovery.
Fashion businesses adapted to new realities, implemented new strategies, and developed robust responses, whether in product development, consumer behaviour, supply chain, or operational models.
There are also new developments in digital styling that is becoming personalised.
An increasing trend towards sustainable fashion and conscious consumerism.

Artificial Intelligence

AI is transforming the fashion industry in areas like manufacturing, marketing, selling products, and understanding consumer behaviour.
Increased use of chatbots in stores for customer service and product suggestions.
AI in retail is expected to reach $19 billion by 2027.
Optimisation of fashion designs through better AI usage.

Virtual and Augmented Reality (VR/AR)

Increased use of VR/AR in online shopping and retail.
Enabling customers to virtually try on outfits.
Using customised measurements for a more accurate virtual try on experience.
Omnichannel improvements, with online and in-store experience integration.

Mobile Commerce

Growing number of smartphone users globally.
Mobile devices are the primary means for accessing websites and online shopping experiences.
Mobile commerce market is growing rapidly, with greater preference of purchasing online over in-store.

Sustainability

Consumers are more inclined towards sustainable fashion and eco-friendly alternatives.
Sustainable fashion is a significant development in the future
The industry is moving towards reduced seasonal production and ramping up closed-loop recycling processes.
Rapid production runs contribute to textile waste, urging a shift to slow fashion.

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Description

This quiz focuses on the impact of COVID-19 on the fashion business, particularly in the retail sector. It covers economic trends, changes in consumer behavior, and how the fashion industry adapted during and after the pandemic. Suitable for Semester III B.Voc Fashion Design students.