Impact of COVID-19 on Fashion Industry

Global business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY..............................................................................................................................3
The impact of the pandemic on the fashion industry..................................................................3
Porter’s 5 Forces.........................................................................................................................4
PESTLE analysis.........................................................................................................................5
SWOT analysis............................................................................................................................6
Opportunities and challenge in the fashion industry...................................................................6
Company have been able to adapt better to changing the business environment.......................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The global environment can be termed as the surrounding that can be defined as the
surrounding of different factors. It can be classified into the external environment and internal
environment of the organisation. At present time there are millions of MNC's that operates at
various levels to determine the social environment(Aigbogun, Ghazali, and Razali, 2017). The
management consider in this report is Next Plc. It is an international clothing, footwear and
home products retailer company, as its headquarter at Enderby, England. This report include the
impact of the COVID-19 pandemic on the fashion industry and various opportunities and
challenges that the fashion industry has faced. And at present time companies are adapting new
techniques and methods in business surrounding.
MAIN BODY
The impact of the pandemic on the fashion industry
The fashion industry has been negatively affected by the COVID-19 as globally hence,
government shut down fabrication industry and retail stores and international level events to stop
the outspread of the corona virus. The Next Plc shut their doors down and motivate the
consumers for online shopping, because the government forcing people to stay at there home
during the pandemic situation. In result to the pandemic situation, many fashion brands and
retailers are cancelling their offline orders and hold the payments for their orders that are already
got placed and also for them whose work has been completed without taking responsibility for
the impact on the people(Andresen, and Bergdolt, 2019). The fashion industry has taken a hard
action to collect a support monetary fund for small business and young designers during the
pandemic situation. Next Plc has announced that they will maintain their budget as according to
their sales in international and domestic market. As there are various section in fashion industry
where the pandemic affected closely that are as follows:
 Manufacturing: It involves the lack of fabric that are available and orders are getting
cancelled but brands that prepared originally as importing fabrics. Hence, they have
stored at the safe place to safe it from the pandemic.
 Distribution channels: At retail shops got close and people stay at home hence, it
motivates to purchase the things from online(Buranatrakul, and Swierczek, 2018).

Customers getting increase to utilising the services as on digital platforms in manner to
be in the market.
 Sales: Many people stay at their home and selling their things by their own conveyance
but various of the items get cancelled or postponed hence, it will affect the sale of items
in market.
 Events: Designers have adapted various techniques for producing and displaying their
products to consumers in a typical format(Del Giudice, Carayannis, and Maggioni,
2017). They also phrased the orientation to figure out the perception of demand.
Porter’s 5 Forces
 Competition in the industry: It is the first force, that termed to the number of challengers
and their quality in the market to shredded the company. Suppliers and buyers of Next
Plc look for the company's competition if they are capable to offer them better deal or
lower cost. In the market place where lots of competitors are there and by which suppliers
and buyers can go other place where they aware that they are not acquiring a good deal
from them in the pandemic of COVID-19.
 Potential of new entrants into the industry: The company of Next Plc power is also get
affected by the force. As with less time and cost the competitor can enter in market to set
their position in the pandemic situation(Eniola, and Entebang, 2017). An industry with
powerful obstacles to entry is perfect for present organisation in the sector. Hence, the
business would be able to manage the higher prices and go through with better terms.
 Power of supplies: It get affected by the various suppliers that having the inputs of a good
or services to know how unique these inputs are phrased. It also phrased that how much it
could value of business to switch to another supplier in the pandemic situation. As there
are many suppliers or low shifting values between competitors of suppliers. The Next Plc
company might keep their input costs lower and ensure the profits.
 Power of consumers: It involves the consumers that forms the prices as lower on their
level of power in the pandemic situation(Horner, 2017). It is affected by how many
purchasers or consumers of the Next Plc company has significant of each consumer is
mannered and how much it could cost a business to find new consumers or markets for
the output.