Shares in online fashion retailers Zalando and Asos jumped on Thursday after the former said it expects a big increase in second-quarter sales and operating profit as lockdowns accelerate a shift to ecommerce.
Zara, H&M and Gap may be slowly reopening their stores but the coronavirus epidemic has had a devastating financial impact on the fast fashion sector, which needs a radical overhaul if it is to recover, experts say.
Zara owner Inditex unveiled a 2.7 billion euro (£2.4 billion) investment in technology on Wednesday to make it easier for customers to track the items they want, blurring the lines between online and in-store shopping.
Inditex made its first ever net loss in Q1 as the pandemic hit it hard. But the firm has been busy during the lockdowns and its updated strategy will see it emerging as an even stronger omnichannel operation.
In 2016, the Danish rainwear specialist challenged Zara in court in Denmark, accusing the fashion retailer of copying two of its models. In May, the court ruled in Rains’s favour for the label's domestic market.
While no major fashion firms have been spared, Japan's Fast Retailing, owner of the Uniqlo brand and not far behind the world's No. 2 H&M in sales, looks well placed to cope with the crisis better than rivals.
With Covid-19 forcing brands and influencers to take on a more responsible role in relation to consumers, a recent study from Launchmetrics analyses the future of the sector and highlights top quarantine trends.