The coronavirus pandemic is likely to cost the apparel and footwear industries across the Asia-Pacific region US$95.4 billion in lost sales this year.
The impact on the broader global industry will be a massive US$395.6 billion in lost sales, according to analytics firm GlobalData, which represents a 19.5-per-cent decline on last year’s figures. The sector will account for 29.1 percent of the total $1.3617 trillion impacts of lost revenues by the retail industry during the period.
The figures are the result of an industry examination undertaken by GlobalData, which found that the apparel sector is still the worst affected by the outbreak, continuing to be hit by store closures and poor consumer demand. Rising unemployment and a possible recession is likely to worsen the situation for players in the industry.
According to research conducted by the firm, 60 percent of consumers surveyed said that trustworthiness, risk-free and familiarity are factors currently influencing their choices of products/services.
“Brands need to continuously engage with consumers through social media channels and personalized messages to stay in contact and engage with their customers,” said GlobalData Retail analyst Vijay Bhupathiraju.
“They should continue to build trust by delivering messages addressing Covid-19 and social responsibility and advertise the safety and hygiene measures taken during the manufacturing process and in-stores to drive more consumers to the stores.”