The spanish fashion It has been one of the sectors that has suffered the most during the pandemic, a critical period that has driven an unstoppable transformation throughout the chain. In this context of constant change, ID Logistics, one of the main operators in contract logistics at an international level, it analyzes the challenges that the textile industry will face this year.
2022, the year of recovery
In Spain, during the first months of 2021, the commercial activity of fashion establishments fell by around 45%, compared to the same period of the previous year, when the impact that COVID-19 would finally have was not yet known.
Almost two years later, the recovery of the industry is beginning to be glimpsed. The results of the first and second half of 2021 show positive results, with sales increases above 25%, according to the latest data released by the sector at the International Fashion, Textile, Footwear and Accessories Fair (Momad), and with a truly optimistic estimate for the second half of the year. The outlook is positive and everything indicates that 2022 will be a year of growth and, to a great extent, of consolidation for the brands.
The e-commerce revolution
The physical closure of stores during confinement boosted the growth of e-commerce in Spain, compared to the traditional channel, a transformation of the market, which had already been a solid trend in recent years and is here to stay. It is estimated that this acceleration represented a vertiginous advance of 5 years in the forecasts of business volume.
The online channel gained 2.7 million customers and penetration currently reaches 43.4% of the resident population in the country, according to data from the Online Fashion Report in Spain. The rapid development of the offer, the growing confidence of customers in payment systems and the rise of mobile devices have also contributed to making online sales the focus on which the future of companies has turned.
The lack of demand during the confinement produced large accumulations of stock. According to data from the report prepared by the consulting firm McKinsey, the industry began 2021 with 25% of its inventory unsold, whose economic value was between 140,000 and 160,000 million euros worldwide.
This fact has led to structural changes within the sector that is looking for new formulas that allow it to establish a closer production, more flexible supplies, shorter, more basic collections and less subject to the seasons.
Physical stores are reconverted: a new Retail model
Multiple brands and companies have started or announced their reconversion plan caused by the rise of e-commerce and the consequences of the health crisis. In some cases, these plans include the closure of physical stores and the conversion of many of these points into interactive showrooms, much more linked to electronic commerce.
Spaces to be inspired, see and touch the product, but with a new approach. Points of sale that serve as prescribers and drivers to the online channel. In this way, the fashion sector adapts to changing customer behavior and needs in order to remain competitive and maintain long-term business sustainability.
The effects of the logistics and supply crisis
The textile sector is now with another important stone on his way to recover the levels of sales and profitability prior to the pandemic. The logistics crisis and the supply of products from Asia, especially China, India and Pakistan, are having a strong impact on the sector.
Only the companies that had wider local production margins have been able to maintain their forecasts for business volumes, this has led some companies to plan in 2022 to transfer part of their production to Spain or to neighboring countries such as Portugal or Moroccobetting on other value-added factors: closer proximity, management of local suppliers, improvement in its sustainability models and, in many cases, higher product quality.