“Fashion activists”Ĭreated in 2009, Vestiaire Collective is part of the so-called “circular fashion” trend. The shift to online shopping is also likely to accelerate, it said. The Covid-19 crisis will translate into heightened environmental, social, ethical and price consciousness among consumers, the consulting firm forecast recently in a report. The company said online sales have been accelerating, but it didn’t specify to what extent, as total sales fell 15% in the first quarter.Ĭonsulting firm Bain & Company estimates sales in the luxury sector could fall by as much as 35% this year. LVMH, the world’s biggest luxury goods conglomerate and owner of makeup chain Sephora and brands including Louis Vuitton, has warned that its full-year earnings will be impacted - especially if life doesn’t return to normal by summer.
Many have also been forced to shut down production sites as confinement measures aimed at containing the Covid-19 multiplied.
Store closings in capitals from Paris to Tokyo, limited international travel and consumers wondering about their own financial prospects have hurt sales in the past month at fashion and luxury giants. The consultancy estimates that if stores stay shut for two months, no less than 80% of publicly-listed fashion companies in Europe and the US will be in financial distress. Those trends started emerging before the coronavirus outbreak, but they’ve amplified since, and only the companies that have adapted will survive. The coronavirus crisis is also accelerating the shift in spending habits towards cleaner products and purpose-driven businesses, and “growing antipathy toward waste-producing business models”, according to McKinsey. Within a general trend of declining revenue in the fashion space, consumers in confinement are shifting any shopping they do online. Existing shareholders, including Eurazeo Growth, Bpifrance and Conde Nast, reinvested. The 11-year-old company raised from new investors, including Korelya Capital, Vaultier7 and funds managed by Fidelity International.
“Consumers are becoming increasingly resourceful and looking to their wardrobe as a way to raise funds, and on the buying side they’re looking for quality products at accessible prices.” “We’ve seen an increase in interest in accessible price points on the platform, along with a strong uplift in deposits,” says Bittner.
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