As part of ‘The Fashion Economy‘ report published by Raconteur in The Times, our MD, Andrea Menè discussed the impact COVID-19 has had on fashion brands.
Since the arrival of the coronavirus pandemic, fashion businesses have suffered enormous operational and financial strain. Lockdowns worldwide have mandated an overhaul of daily processes, eliminated exhibition opportunities and curtailed essential sales routes.
For smaller brands, the initial shift was towards home working and managing disparate workforces. Andrea Menè, managing director at the fashion technology business Zedonk, describes that process as “a big challenge for fashion brands whose businesses were driven by face-to-face interactions”. He adds: “In terms of maintaining core processes and working together efficiently, it’s certainly been a difficult transition for many, but made easier for those who implemented technology early on.”
Traditional fashion shows and sales channels have also been heavily impacted by lockdown rules. “The wholesale landscape has completely changed with no physical shows or presentations,” Menè explains. “Consumer sales routes have also been changing – with brands needing to sell remotely and online using systems such as Zedonk. More effort has gone towards direct models, but as lockdowns ease, they’ve simultaneously needed to work on getting back to excellent bricks-and- mortar experiences.”
With coronavirus likely to remain a factor in all our lives, brands now need to harness future-proof ways of working that are supported with powerful technology. For smaller fashion firms, many of which still manage their operations from spreadsheets, it is imperative to consider enterprise resource planning software hosted in the cloud to provide adaptability, affordability, and optimal process efficiency.
“ERP is essential in allowing each department to fulfil its role without disruption, saving time and money by streamlining processes, and cutting out costly manual mistakes,” notes Menè. The technology also boosts a brand’s efficiency by automating repeated steps, and allowing status and performance reports to be downloadable in seconds.
Over 1,000 small and medium-sized fashion brands across 45 countries work with Zedonk’s cloud ERP system to manage growth and prepare for the future. The system is modular, so it covers different sizes and types of business, and seamlessly integrates development, sales, production, inventory, allocation, logistics and reporting functions. It also contains a new virtual selling module that allows brands to showcase collections, communicate with retailers and receive orders. By being dedicated completely to the fashion industry, the quick-to-integrate ERP system allows brands and designers to run daily operations without disruption, in contrast to generic alternatives that require extensive customisation.
As countries look towards a ‘new normal’, Zedonk is ensuring it remains at the forefront of change in the fashion industry by constantly engaging with fashion firms, business incubators, industry associations and education institutions. “Brands are adjusting to the new ways of working and seeking to ensure they are future-ready,” Menè concludes. “Using a dedicated, efficient ERP system that meets their needs will be essential to success.”
Our CEO, Luca Tonello also talked about the enormous demands fashion brands face to improve their environmental and ethical credentials. Check out the full Q&A.
