CO's Strategy In The Face Of Covid-19
By Tamsin Lejeune - CEO, Common Objective
Like most businesses, over the last two weeks, the CO team and leadership have been focused on our forward strategy in response to the coronavirus pandemic - alongside supporting our global members and supplier network, affected by the crisis.
In the last month, Covid-19 has changed the face of the fashion industry. As retailers and High Streets close their doors in response to lock downs, orders are cancelled, and millions of factory workers lose their jobs, it has become clear how fragile and how unequal the industry is.
The vast majority of the risk - and the impact of cancelled orders - has landed on the shoulders of suppliers in the developing world. These factories have minimal margins - having already made investments in fabrics, and without access to wage support schemes from government, they have no choice but to end employment for their workers. For thousands of these workers, who live on the breadline, losing wages will have a devastating impact for years ahead, for themselves and their families.
For the team and leadership at CO, this crisis has motivated us to redouble our efforts. Our mission has always been to create a platform through which great business is done - business that maximises benefits to people and minimises impact on the environment, from one end of the supply chain to the other. Fashion business, done well, is transformative, creating inspiring products and sustainable, fulfilling jobs, grounded in fair practices between buyers and suppliers.
As an active global community of now 30,000 members, we have the privilege of being able to see and predict emerging and future trends in our industry.
We are seeing evidence of three clear trends in the industry catalysed by C-19:
1. Sourcing is going to increasingly move online
We are already seeing a spike in engagement by suppliers and supplier bodies in CO. Having lost orders, they are looking for alternatives - and planning their sales and marketing strategies post Covid-19. With physical trade events likely to be cancelled to the end of the year, the shift to sourcing and selling online is being accelerated across the industry.
2. The SME sector has the potential to grow and thrive
Some of the fashion businesses which have been least affected, and are able to continue to operate during Covid-19, have been SME’s that manage their own production processes. Businesses that design, produce and sell their products in a single operation, and that sell online, have been able to continue to trade - taking advantage of the millions of people locked into their houses, working online (and easily distracted by compelling fashion products…).
At the same time, lay-offs and furloughs are prompting hundreds of entrepreneurs to pursue their ambitions in setting up fashion businesses. For many, CO has been their first port of call for suppliers and sourcing intelligence. Having lost orders, suppliers of all types are more open to working with any type of buyer - including start-ups - making it easier for start ups to build relationships with suppliers and take ranges to market quickly.
3. Sustainability is going to be increasingly equated with mitigating risk
The Covid-19 pandemic has brought home just how devastating unsustainable and unethical business practices can be for businesses at both ends of the supply chain. The crisis in itself has its roots in the exploitation of our environment and the mass farming of animals.
Post this crisis, businesses will increasingly recognise that operating sustainably is no longer an option - it is a necessity.
"Shocks such as disease outbreaks and natural disasters often expose global companies to vulnerabilities in their supply chains. This current epidemic is likely to result in companies taking a more proactive approach to managing risks in their supply chains. Identifying areas of vulnerability and ensuring potential disruptions are dealt with promptly will be taken more seriously in boardrooms.” - Eco Business
“There is a correlation between suppliers who lean into the sustainability agenda and an ability to manage macro risks.” - Chartered Institute of Procurement and Supply
“We’ll have a reassessment of our human needs, whereby ethical and more mission-oriented companies will gain revenues.” - Aera founder, Tina Bhojwan
CO's strategy in response to Covid-19:
As the leading sustainable sourcing and information network for the fashion industry, CO is well-placed to build on these three trends.
Over the next 6 months, while the industry manages the crisis and prepares to emerge from it, at CO we will be focused on building our supplier base, and further developing our product so that we are in a position to create unrivalled value for fashion industry suppliers seeking to rebuild their buyer networks.
Through this ruthless focus, we aim to set up CO - and the thousands of businesses we support - to thrive post Covid-19, in a world in which SMEs will source and do business primarily online, and in which sustainability becomes a licence to operate.
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