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Has the Covid19 global pandemic levelled the playing fields with smaller brands gaining market share?
49% of consumers shop online more now than they did pre-COVID-19 and 62% more new Shopify stores were created from March 13 to April 24 than the previous six weeks as locked-down retailers rushed online.
The pandemic has accelerated shopping’s shift online, start-up brands and global groups were among hundreds of thousands of brands moving online to sell directly to customers - cutting out middlemen.
So as stores close and small/medium businesses accelerate their ecommerce and digital strategy we ask whether this marks a levelling of the playing field in fashion retailing?
As we have more time to spend browsing online, the competition in terms of product offering, user experience grows.
With the closure of stores, what may have been a wonder down New Bond St and the new Vuitton bag grab your eye, you’re now responding to whoever appears strongest in your Instagram feed or inbox.
Where you may have shopped with a larger brand “because they were there”, without the option it may now force you to look into innovative, newer brands, younger upstarts like Staud.
Jacquemus and By Far have fast been gaining popularity online with no store of their own. Furthermore, online searches for “Gucci” have dropped 19% in the past 2 years.
Today’s generation of customers have come to expect a higher standard from the online shopping platforms of the brands they love, this has only expedited this - improving service. In the same way that Tesla shook up the automotive industry with its complete rethink of how cars are sold, maybe now it’s the turn of smaller, lower-budget non-traditional brands to impact the fashion and luxury industry.
Shop local is a big initiative during these Covid19 times and customers are wanting to support local businesses, This is encouraging smaller local businesses to ensure their ecommerce site and digital strategy is up to par to gain market share of the digital space allowing the customer to receive the user experience they have grown accustomed to with the bigger brands.
Check out our review on the landscape of luxury jewellery HERE and our thoughts for the future of digital ecommerce jewellery.
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