The Covid-19 pandemic has caught the world and the apparel, footwear and
textile industries unprepared and the resulting societal and economic
shutdowns present unprecedented challenges. While sustainability
initiatives were becoming the norm in the industry across varied segments
such as luxury, sport, fast fashion and value retail, the crisis now
strains the commitment of brands and retailers to sustainability. However,
it is more relevant than ever as a recent study finds that the current
crisis “simultaneously demands that companies accelerate their progress on
sustainable initiatives in order to be competitive in the market that will
emerge after the pandemic”.

The study “Weaving a better future: Rebuilding a more sustainable
fashion industry after Covid-19,” published by researchers of the Boston
Consulting Group (BCG), the Sustainable Apparel Coalition (SAC) and
technology company Higg Co, known for their Higg Index for consumer goods
industries, sets out to prove how crucial it is for fashion brands,
retailers and other industry stakeholders to continue following
sustainability goals during the coronavirus crisis and beyond.

Why rebuilding a more sustainable fashion industry after Covid-19 is
crucial

“The metrics we use to measure the health of our businesses should also
include the health of our planet. All of us have to double-down on
sustainability, reducing environmental impacts and increasing social
justice,” explains Rick Ridgeway, vice president of public engagement at
Patagonia.

While the fashion industry is trying to absorb the blow it has been
dealt by retail businesses being temporarily closed, declining customer
spending and workers in countries like India, Bangladesh and China being
furloughed because of reduced or cancelled orders and an impending economic
crisis that is expected to wipe out more than 30 percent of the industry’s
business in 2020 according to a BCG scenario analysis, concerns ranging
from sustainable materials sourcing to carbon reduction and workers’ rights
have been relegated to secondary considerations at best in favour of
managing short-term economic distress.

“However, surveys with key stakeholders, study of prior global crises
and analysis of economic trends and consumer sentiment make it clear that
fashion risks irrecoverable self-inflicted wounds if it abandons
sustainability and value chain partnerships in the face of Covid-19. While
sustainability is in danger in some areas of the industry, companies that
embrace it will be among the leaders of a resurgent fashion industry on the
other side of the pandemic,” cautions the study and identifies four areas
to avoid backsliding on progress and to actively prepare for a changing
industry.

1) Protect critical assets to survive the economic crisis

Fashion companies have to concentrate on their assets and make sure to
safeguard workers, employees, capital, value chain partnerships, channels
and the trust and support of their customers. “This moment is an
opportunity to remove unnecessary complexity and costs, in order to prepare
for reinvestment,” advises the study.

“The priority now has been to maintain cash flow as our facilities have
not been able to operate and our customers stores are also closed. Since
the commencement of the pandemic we have focused on addressing the social
needs of our associates. We have also been gearing up our facilities with
the health and safety requirements that will now be necessary,” shares
Nikhil Hirdaramani, director of the Hirdaramani Group, his experiences in
the current situtation.

2) Solve immediate inventory challenges in partnership with
suppliers

Part of protecting one’s supply chain involves acknowledging contracts
and paying for complete and near-compete orders and acknowledging
cancellation without consultation or collaboration as an unacceptable
practice. “Leaders will recognize the importance of open dialogue and
constructive partnership across the value chain in order to find shared
solutions for protecting worker livelihood and sustaining trust,”
recommends the study.

3) Integrate sustainability throughout business recovery strategies

“Sustainability will be an imperative for strong companies after the
crisis. Leaders will make sustainability central to post-pandemic
decisionmaking, while laggards will view sustainability as an effort to
resume once convenient,” finds the study. In fact, in a recent BCG Covid-19
consumer sentiment survey of almost 6,000 consumers in US, UK, Germany,
Italy, and China, consumers indicated that they very favorably viewed
brands that paid their furloughed employees, repurposed facilities to
produce PPE or donated to their communities.

As something that is worn close to the skin, the standards for clothing
will not only include durability and good quality but will also become
products that are closely associated with trust, well-being and the
collective good. “Covid is no excuse to back off from sustainability.
Moreover, sustainability will be among key product priorities, together
with quality and durability,” confirms Luis Casacuberta, managing director
women’s & kids’ at Mango.

4) Accelerate transparency while increasing sustainability
ambitions

When taking advantage of digitalisation, innovative business models and
end-to-end solutions, transparency will play a central role for companies
“in order to assess and demonstrate positive environmental and social
impact to stakeholders”.

“The pandemic has forced all of us to take a step back and reset our
priorities. One key takeaway that has clearly emerged is that a new
transparent model that showcases verified sustainable practices will have
an edge over other traditional business models,” states Sanjeev Bahl,
founder and chief executive of Saitex.

The study closes by acknowledging the three kinds of companies there are
in terms of sustainability – those that have not yet prioritized
sustainability, those further along the journey and trailblazers – and how
they can succeed in maintaining their sustainability programs and
commitments to gain a durable business advantage once the covid-19 crisis
end. While those merely starting out in the field of sustainability must
use this moment to transition to establish competitive advantage, those
companies further along on the sustainable journey have to safeguard
progress, maintain essential practices and recommit to central goals. The
trailblazers who encourage collaboration and lead industry-wide
sustainability initiatives, should continue to be role models as their
vision and actions will hasten transformation within the entire sector.

“We see a clear link between sustainability and continued commercial
success. Our sustainability ambitions will help us stay ahead of customer
demand after this crisis caused by the coronavirus. Both our current and
future customer base are calling for more sustainable choices in fashion.
Nine out of ten Generation Z consumers believe companies have a
responsibility to address environmental and social issues. By committing to
sustainability, we can secure our long-term growth, stay relevant to our
customers and establish market-leading differentiation against our
competitors,” states Kate Heiny, stustainability director at Zalando SE.

“While the road ahead is not yet clear and open questions remain as
governments and society navigate the pandemic, a major lesson of the
Covid-19 era will be that health, safety and prosperity are intrinsically
collective pursuits rather than individual ones. And the apparel, footwear,
textile and fashion industries are no different. It won’t be easy to manage
a once-in-a-generation economic crisis while taking aggressive action on
behalf of environmental and social concerns. But leaders who successfully
weave sustainability into their business strategies will leave a lasting
legacy: that of a rebuilt and more sustainable fashion industry,” concludes
the study.