LONG TERM FORECASTING
The issue:
An issue that we all are very much aware of is the pandemic caused by COVID-19. Since the start of the pandemic, the need to be outside around others has dwindled. In regards to fashion, this will change the way business owners make decisions from here on out. Faith Popcorn proclaims, “In 1981, I named and framed Cocooning, defined as ‘The need to protect oneself from the harsh, unpredictable realities of the outside world’” (2020). Cocooning has increased within the past year due to the rise of COVID-19 cases and restrictions placed on businesses and cities. Fashion business owners are now finding new ways to influence their customers.
RANK: (1) GLOBAL PANDEMIC, (2) TECHNOLOGY, (3) SOCIAL MEDIA
According to Rand, - “Younger people (those under 35) were more likely to increase their online shopping than older people (those over 55), at 30 percent and 20 percent, respectively.” - According to Seeking Alpha, - “Note that e-commerce transactions accounted for 14.3% of retail sales as of Q3 2020, compared to 4.2%” (2021). - “As another wave of COVID-19 looms, consumers continue to improve the stay-at-home experience. Home Depot (HD) and Lowe's (LOW) posted impressive e-commerce sales in Q3 2020. The same can be said for the holiday same-store sales, which are projected to continue to grow in 2021. This is mainly because there has been an uptick in DIY projects” (2021). - According to Big Commerce, - “For many of us, this trend has shifted our focus to online shopping. There are many perks to this option: You don’t have to leave your bed, you can opt for next-day delivery, you have access to more product information, and you may have a more personalized shopping experience” (2021). - “As we have seen omnichannel strategies become increasingly vital to growing companies, the leading internet companies are capitalizing on the opportunity to be leaders in the commerce world” (2021).
FORCES AND TRENDS
Since the beginning of the pandemic, there has been a trend for DIY projects and at-home activities. As we all know, COVID-19 has pushed people to work from home and refrain from engaging in group activities and environment settings with large crowds. Without surprise, this has shifted the way consumers want to receive and visualize their products. Amazon is hiring 100,000 more workers a month to keep up with their online shopping demand. This trend is going to impact the way businesses make decisions for years to come. Popcorn adds, “Today’s Corona Cocooning will forever rewrite how we seek shelter, literally and emotionally” (2020). Since people are staying indoors and attending work or school remotely, a need for newer and faster technology has presented itself. Technology is a major force in the decision-making process for businesses. With newer and faster technology, consumers are changing the way they want to buy products. People are overwhelmed with content from social media, blogs, and other internet sources. Information is literally at consumers’ fingertips; nevertheless, businesses are having to figure out how to keep up with this plethora of sources and information. Another force that is contributing to this trend is the fascination with social media. In today’s society, people are consumed with the idea of social media. Visiting a restaurant, amusement park, or another country cannot be enjoyed without documenting it for social media. This rise in online connection has changed the way consumers shop and visualize trends. Nevertheless, the need for face-to-face friendships and connections has significantly decreased due to this new form of interaction
INDICATORS AND SIGNPOSTS
Present: The global Pandemic has changed the way society works and functions. With Americans and people around the world being pushed inside, DIY projects, remote communication, and online shopping has been pushed to the forefront. We can see that many consumers are living to protect themselves and this changes the way they need and buy fashion. Instead of searching for fashion in stores, people are searching online through social media, blogs, and vlogs. Future: With e-commerce and social media growing rapidly, we can expect to see a major shift in the way businesses make product decisions. The internet alone is full of information and opinions. Social media, on the other hand, is another breed. Millions of people around the world can share pictures, videos, and stories of their everyday lives. The amount of information consumers are exposed to is insane, and somewhat scary. We can see that trends are emerging from social media platforms, rather than fashion magazines and icons. This shift in consumer exposure will change the way people continue to visualize and buy products. Why spend hours and hours in a store when you can find exactly what you want online in a matter of seconds? Though the future is uncertain, we know one thing, and that is… that it is coming FAST!