The New Normal: Digital Is Set For a Step Change

For strong players looking to accelerate demand online, staying ahead of fashion’s digital step change will mean adopting these next-level modes of engagement. People will acclimate to the wider digitisation of consumer journeys as digital content creation becomes their primary mode of brand interaction. According to a McKinsey survey, almost a quarter of US and European consumers expect to increase their spend via social channels in April 2020. As the crisis also pushes 13 percent of European consumers to browse online e-tailers for the first time, brands should take the opportunity to become not just more digitally adept, but to become digital frontrunners.

“Working from home or staying at home may well drive more non-work screen time, which would give marketers additional shots on goal,” said Simeon Siegel, managing director and senior analyst at BMO Capital. However, marketing opportunities may not translate into much-needed revenue. “Whether they convert is another story,” he said.

Indeed, the broader outlook for online is challenging. Despite the aforementioned uptick in social commerce, 44 percent of US and European consumers expect to decrease online purchases overall, which is not far behind the 49 percent who expect to decrease offline purchases as of April 2020. Though much about the pandemic’s duration and trajectory remains uncertain, businesses can expect that recovery will be a gradual process as society adjusts to the new normal, consumers continue to avoid large crowds and social distancing rules remain in force. Even after stores begin to re-open, fashion’s digital step change demands that companies change their mindset and begin to operate like pure digital players: rather than asking what benefits online can offer offline channels, players should ask how their brick-and-mortar presence can support e-commerce sales. Digital plans should be prioritised when it comes to talent, time, allocated inventory and future investments, and marketing spend should be shifted to digital channels, with ROI precisely tracked. The strongest players will quickly scale up and strengthen their digital capabilities, which will allow them to capitalise on future opportunities and protect their businesses from risks. Investing more in existing digital capabilities — such as improving the customer journey and the broader customer experience — should happen alongside pioneering new ways of engaging with consumers online. Livestreaming services, omnichannel inventory capabilities and social commerce platforms are just the tip of the iceberg.

Digital strategies should also closely inform partnerships and brand positioning at every stage. Brands should consider platforms as a way of preserving their reach and fulfilment capability, while identifying a suitable digital model that will lay the groundwork to build traffic in cost-efficient ways. The window of opportunity to invest and leap forward will not last forever. Article from BOF TEAM AND MCKINSEY & COMPANY (2020)https://www.businessoffashion.com/articles/intelligence/the-new-normal-digital-is-set-for-a-step-change