Pandemic, fashion retail and e-commerce
The COVID-19 pandemic has changed the lives of retailers in just a few months. Experts note that the e-commerce market is growing and will continue to grow. An increase in the volume of online purchases has been noticed in all areas of retail, including business from the fashion industry.
Online is here to stay
Large clothing and footwear retailers that already had the tools to trade online had an easier time weathering the coronavirus crisis and offline store closures. For example, the world leader in clothing retail Inditex (owner of the brands Zara, Pull&Bear, Bershka, Massimo Dutti, Stradivarius, Oysho) noted a 50% increase in sales through e-commerce channels in the first months of 2020 and 95% at the peak of the pandemic in April . On average, other retailers in the industry saw a 14-25% increase in online sales.
The COVID-19 crisis has hit hard for manufacturers and brands that do not have an online presence or have a weak online sales channel. These retailers have realized that running a profitable business as before, without the introduction of tools for online trading, will no longer work even after all the restrictions caused by the pandemic are lifted.
The priority tasks for both categories of companies are the promotion of e-commerce platforms, the adaptation of the warehouse and offline stores for the sale of goods via the Internet. It is possible that e-commerce may become a key sales channel for fashion retailers in the near future.
Returns – the main “headache” of retailers
The main advantage of offline clothing and footwear stores is the ability to try on things and buy only what exactly fits. There are also returns in offline trading, but their number is not as large as in online trading.
Consultants of the audit company KPMG note that about 25% of goods purchased in online stores are returned to the seller for one reason or another. In the field of fashion retail, this figure reaches 30%. Some companies have their own warehouses dedicated exclusively to incoming returns.
Providing a return option on the one hand is beneficial for the retailer. A customer is more likely to make a purchase if they know that an item that doesn’t meet expectations or doesn’t fit can be returned. On the other hand, reverse logistics adds complexity to business management.
Tools like Generic E-logistics Pack help entrepreneurs manage returns efficiently and avoid risks that reduce the profitability of online sales. The solution has functions that provide fulfillment for an online store of clothes, shoes, accessories. It combines the features of the classical WMS and additional options focused on e-commerce: integration for master data, orders, balances, etc.
COVID-19 has shown that during a crisis, only those companies that easily adapt to changes and quickly implement innovative solutions win. Logistics automation solutions from Generix Group help to rebuild business processes in accordance with external factors, improve the quality of order picking and service. All this has a positive effect on consumer activity, reduces logistics and operating costs.