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Our consultancy group has been put to a task of advising to the fashion-retail company direction of diversification in the current pandemic situation. Right now customers are looking for different types of clothes than in typical situation. Lot of types of clothes have almost stopped selling – for example: people don’t buy as many suits or elegant dresses, because all the parties have been cancelled for months.

We suggested that the brand should focus on designing comfy sets like joggers, hoodies or tracksuits, because people are spending more time at home, working remotely, so they look for something comfortable. If it also looked nice they will be more interested in buying it. We also believe that the company would benefit from designing and selling reusable face masks of their own, unique design, because right now it is an item used on a daily basis.

Introducing those products to the market should take from 1 months to 2 months, depending on the designers and sewing workers. Releasing face masks into the market is shorter process, because first projects and types would be ready in 1-2 weeks. When it comes to the pieces of clothing, the period of preparation time would be longer, because we need more material and more demanding design to fit all sizes and the sewing process takes much more time and effort.

On the premise that the enterprise implements the above ideas on the market, they must be also prepared for the marketing and financial aspects. In these difficult times, when the future days are unpredictable and the society is changing dynamically, it may be challenging. One way to sponsor new collection of clothes is to fund it from the financial resources of the industry. The biggest advantage of this solution is stability and no additional repayments. The second most popular approach is to get credit or loan. The firm will get another installment to pay and their expenses will raise. In our consultancy group opinion in case that it isn’t necessary, we suggest to take the first option as the priority in pandemic times should be risk minimization. In order to access funding quickly the company should be profitable and secure in case of inability to make a loan repayment. This can be achieved by cooperating with a well-developed, large clothing brand. This way the company can be easily bought out by the bigger one. Another idea could be owning fixed assets such as production machines or real estate in case they need to be sold or pledged.

Martyna Kępka & Paulina Mróz & Izabela Król

Good work. Detailed and sensible solution.

Mark: 10/10