Covid has left
little sparkle in the eyes of the high street. The future of retail looks
decidedly less bright with the announced departure of some of our favourite
shops - most recently John Lewis’ warning of further store closures following losses of over £500m.
It may, therefore, come as a surprise to hear that now is still an exciting
time as ever (if not more) to work in retail. Here’s a few reasons why.
1.
An online opportunity
Lockdown may have
prevented us from browsing physical shops, but it didn’t stop us from browsing
online. While the digitisation of our shopping habits happened long before
Covid, the pandemic has certainly fast-tracked the retail tech revolution.
The need for
rapid change has provided plenty of fuel for discovery and innovation. This is
certainly true for luxury brands, many of whom took a very traditional approach
to marketing and sales prior to Covid. Iconic household names who once used to
thrive off of private social engagements and personal, in-store appointments
have now had to rethink and re-strategise to earn their custom.
Drew Elliot,
Global Creative Director of MAC, explains how brands must now take on the role
of entertainers, finding new and original methods to engage overstimulated
audiences.
“The data suggests that it is time for brands to
rethink their social media strategy. Specifically, they need to re-evaluate how
to exploit existing platforms more effectively, capitalise on the rise of new
platforms and understand how to generate direct sales through social platforms”
- The 2020 State of Fashion Report, McKinsey & BOF
2.
Fresh competition
The economic
fallout from the pandemic is certainly a cause for concern - but there’s often a rainbow
on the other side of rain. This is true for smaller brands and start-ups, who
can exploit new and emerging market opportunities. As we saw with the 2008
great recession, the financial downturn allowed start-ups like WhatsApp to
Instagram - companies that now dominate the stock market - to unlock new
audiences.
3.
Sustainability as a key driver of innovation
It is not only
lockdown and the tech revolution making companies hungry for change - the
sustainability movement itself has ignited a huge global trend towards finding
new and eco-conscious ways to market and trade products. The past year has seen
the public engage in some pretty serious conversations surrounding fast
fashion, overconsumption and waste. Brands who are not quick to adapt are often
scolded for their indifference, rendering the need for green innovation
strategy crucial.
4.
Luxury retail’s immunity to economic
turbulence
Whilst many
companies have been put on high alert, luxury retail remains resilient thanks
to brands with rich heritage and a loyal, returning customer base. Consumers
with the budget for luxury items have been stuck at home with little else to do
but invest in new pieces, preserving the market status of these powerful
flagship companies.
“High-end watches and hard luxury are a strong
category in the crisis market environment, thanks to their appeal as investment
pieces” - The 2020 State of Fashion Report, McKinsey & BOF
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