5 mins read
As part of our #HowTechHelps series, Joe Colvin, Sales Director Northern Europe, and Alistair Kershaw, PLM Business Consultant, recently hosted a webinar — What’s in Store after the Peak? — to discuss the current state of the retail, fashion, luxury and consumer goods industries, how retailers have been impacted by the COVID-19 pandemic, what the future will look like, and why technology is the key to overcoming future market challenges.
4 future predictions surfaced in their conversation, shedding light on what the near future will look like post-pandemic.
Online retailers like Asos have already been fueling this try-on-at-home behavior for a while now. Omnichannel retailers will most likely follow this trend even when their brick-and-mortar opens back up. “Shoppers are already used to ordering 3 different sizes of the same garment to meet the minimum spend for free shipping, and then return the ones they don’t need,” says Alistair.
“There’s turmoil in the industry and the economy in general. It has led to a lot of people being laid off, while others are worried about job security. I think this will result in a move towards more basics, different splits in the category of products regardless of how brands segment offerings, Joe added. Being able to plan different splits in categories and assortments in a flexible way is absolutely essential right now.
In our Centric Product Lifecycle Management (PLM) solution, we offer a merchandising planning tool that very quickly and easily models things like how the split of different product categories will affect the overall sales, for example.
Another question Joe brought up in the What’s in Store after the Peak? webinar is whether people will be eager to buy post-pandemic. “Will there be as much eagerness to go shopping? Or do you think it will be reserved? What will the new consumer be like after this?” he asks.
“People haven’t been able to buy because stores have been closed, so there will be a spending spree when they get back out which will lead to a boom,” says Alistair. “It will be a swing back for the economy. There is some expectation amongst some people that that’s going to happen. Although, I think that’s more likely to be the case for entertainment or licensed trade (restaurants, bars, etc).
“We’ve been seeing a lot of fragmentation in sourcing over some considerable time, particularly as the industry is trying to play closer to the market, reduce overstock, and play on-trend,” says Alistair.
Alistair adds, “Centric PLM also enables multiple-supplier sourcing with an automated way of requesting quotes and specs with built-in out-of-the-box functionalities like shipping rates, exchange rates, and duty tables. You can get a side-by-side comparison across multiple geographies and currencies, taking ethical situations and code of conduct into account.
McKinsey & Company recently released their COVID-19: Briefing Note in which they emphasize the importance of digital transformation, and how having the right technologies can be a key differentiator in surviving the current global crisis.
“In their report, McKinsey warns to prepare for what’s next and not stop investments in digital as they’re more crucial than ever before.
Below, Joe and Alistair share a chart mapping out the different technologies and innovations that are supporting brands throughout the supply chain:
Innovations such as 3D design software, which can be easily integrated with Centric PLM thanks to the agnostic Centric 3D Connect plugin, allows for rapid virtual prototyping.
“3D sketches are now replacing physical samples. Rapid 3D prototyping accelerates time-to-market because you no longer need to produce or send out samples halfway around the world. The added bonus is that it’s also greener!”
Want to learn more about how Centric Software’s solutions empower brands like Auchan, Louis Vuitton, Crocs, Deuter, Balenciaga and Cape Union Mart to react quickly and adapt to market shifts while safeguarding their margins? Download the whitepaper below!