Possible Apparel Business Model After COVID-19

Purpose of this Article:

1. Research to get an idea about the model of the global apparel business after COVID-19

2. Some possible steps to “How buyers can resilience post COVID-19 critical situations”.

3. How Washing plants can be resilient post-COVID-19 critical situations.

Part-A: Impact of COVID-19 on Global Apparel Business

According to my assumption after COVID-19 below area will be impacted in the “Global Apparel Business Model”.

1.  Sale: Garment sales will be severely reduced after COVID-19 because maximum people will fall into financial crises, people will give priority to food and medicine. They will try to wash and wear their old dresses. So, there is a possibility of a 50% sale reduction for a certain period.

2. The priority of Low-Price Garment: Buyers will give priority to low price garments rather than style and fancy products. Just people will give priority to fundamental needs, not fashion.

3. Possibility of closing a specific business: If the critical situation of COVID-19 persists for a long time, some retailers have the possibility to close clothing for a certain period of time or dismiss the clothing business and look for new ones.

4. Possibility of Job Loss: There is a possibility of manpower reduction because manpower is directly related to the sales and supply chain of the apparel business.

5. Raw material crisis: There is a possibility of raw material crisis due to a prolonged lockdown in the supply chain of the garment business. Many countries will give more priority to food cultivation instead of cotton or other natural fiber.

6. Less Competitor: One positive thing is after COVID-19 some small retailers will stop their business. so, there is the possibility of more business for those who stay in the market.

Part-B. How buyers can be resilient in post-COVID-19 critical situations?

As per my assumption, the buyer can give more focus on the below areas after COVID-19

1. The priority of Low-Price Garment: Need to give priority to low price garments rather than style and fancy products. Just people will give priority to fundamental needs, not fashion.

2. Cost Minimize (Over Head): Management need to minimize overhead cost (building cost, Utility cost, traveling cost, raw material cost, process cost, manpower-salary)

3. Product Cost: The buyer can give more focus on low price simple styles and the need to produce a garment with low cost considering the minimum quality.

4. Product Diversification or New Product: As per market demand It can introduce a new product like surgical & PPE etc. and sanitary product also has huge demand right now

5. Talent utilization/New Recruitment: Need to utilize talented people by giving multi-task and will stop new recruitment for a certain period.

6. Partnership with Maker: In some cases, the buyer can start a partnership business with the maker.

7. Raw Back/materials: Need to pay more attention to the supply chain of raw materials.

8. Priority on online sale and wholesale: Analysis of the market and giving priority to the online and wholesale business.

9. Focus on Shareholder/Bank Loan: More focus to hold and increase shareholders to ensure financial stability.

10. Competitor Analysis: Business is one kind of competition in the market so we need to analyze competitor product and their activities.

11. New Sustainable Process: Usages of recycling water, Nanobubble tech., Zero bleach, Cleankore fabric, Pentek minimal shrinkage fabric, color denim, etc.

12. On-time Shipment with Quality Product: Need to ensure on-time shipment to grip the market quickly.

13. Closely Follow up with Maker: Follow up with the maker each step in terms of quality and production.

Part-C. How laundry can be resilient post-COVID-19 critical situations?

After COVID-19 every retailer and buyer will try to produce or buy garments with minimum cost. In a crisis situation, laundry will face some challenges to adopt or continue their business. To overcome these challenges laundry can pay more attention to the below areas to minimize the overhead cost of the washing plants.

1. Manpower or Talent Utilization: Laundry can redesign working organogram or layout to utilize existing manpower by giving more responsibility or multi-task. It helps to stop new recruitment for a certain period.

For example, one operator can operate at a time 3 washing m/c, 3 Hydro and 3 dryers, etc.

2. Ensure optimum usage or running time of machine by preplanning and make sure advance ready of wash load or others require feed material (Chemicals, dyes, water, stone, auxiliaries, etc.)

3. Control rewash/reject/wastage: Laundry can reduce rewash and rejection rates by careful preventive actions. Example-Risk analysis, Color coding, lab test at the blanket, or 1st batch stage.

4. Auspicious Chemical Use: Laundry can reduce the number of dosages of chemicals by selecting good/best chemicals available in the current market.

5. More Focus on Sustainable Process

I. Chemical saving: Avoid unnecessary chemical use in washing, like- lycra protector, using aimless anti back staining and fixing agent, etc.  

II. Water-saving: Doing possible two processes in the same bath. Avoid extra rinse and maintain the exact L: M ratio. Focus on Nanobubble technology. Usages of recycling water.

III. Power/Energy Saving: Utilize boiler and steam. Keep stop boiler steamer when not required. Laundry can shut down all lights, AC, and others when completed work. Avoid over-drying of the garment, use automotive m/c.

IV. More Focus on Lean Recipe/Kornerstone: To avoid the cost and save the above-mentioned water, energy, and chemicals laundry need to be more focused on lean recipe and the Kornerstone project. 

V. Avoid conventional wash/dry Process-Every laundry already has a laser machine -So laundry can use a laser machine to save manpower-extra dry process tools-chemical, water, time, and by laser we can get good quality consistency in bulk products.

vi. More Focus on Risk Analysis and Lab Testing: Initial risk analysis and lab testing can help to prevent rewash, reject, and on-time shipment.

vii. More Focus on Time Management: Laundry must need to follow a timeline to provide on-time shipment with good quality.

viii. New Business: To utilize extra manpower laundry can open in-house glossary shops and they can cultivate agricultural things for a certain time. They can also make a team and provide support to the farmers.

ix. Monthly Discussion on Laundry Overhead Cost: it helps laundry to preplan and minimize extra costs.