Brazilian Fashion Industry Projections: Post-Pandemic

The closing of non-essential stores due to the pandemic made the online search for fashion […]

The closing of non-essential stores due to the pandemic made the online search for fashion products in Brazil escalate. According to a report from E-commerce Brasil, published in April, online sales revenue for the fashion industry increased 63%. This new current scenario gives room for a lot of Brazilian fashion industry projections, especially considering the new surging trends and returning of commercial activities.  

Growth Disparity

This increase is not equally distributed throughout the Brazilian fashion industry, though. Another online research showed that 71% of small fashion businesses claimed that the revenue income was lower than in 2019, before the pandemic. The average loss was about 34%. In Brazil and the whole world small businesses were the most affected by the pandemic, and Brazilian small fashion businesses were not an exception.    

On the other hand, department stores are soaring. The same research has shown that three department stores alone hold 20% of the whole Brazilian fashion industry income. With this data, it is clear that bigger players of the Brazilian fashion industry were the most benefited by the growth of the industry.       

New Trends 

Despite small businesses taking the bigger part of the bad impacts brought by the pandemic as mentioned before, the industry still saw a great improvement and it was obviously felt by all. The pandemic also forced all non-essential businesses, whether big or small, to implement new and socially distanced practices. This adjustment made not only new trends appear, but also helped to establish practices and habits that were already common. 

Obviously, online shopping became even stronger. According to Nuvemshop, an e-commerce development platform, the fashion e-commerce revenue in Brazil was 134 million reais (local currency), and online sales increased by 244%. This trend does not point to a complete migration to the virtual world, though, but rather to an online-offline integration that is being called now as omnichannel. 

Additionally, brands have also started to invest more on loungewear since consumers are spending more time at home. With home-office becoming permanent for a lot of them, people have started demanding more comfortable, yet stylish, clothing. Other projections for the Brazilian fashion industry include online fashion shows and sustainable clothes. Thrift shopping and looking for environment-friendly brands are well established consumer habits now, and brands have started to deliver accordingly.    

Change helps businesses remain relevant in the market, as well as to improve product and service quality. We are big advocates of that, because we know just how beneficial and important innovation is for all sides. The world and the market change constantly, and it is our role to provide all the information possible for our partners to smoothly navigate it all. That way, they will be able to make the wisest decisions to bring more growth, quality, revenue, and any other desired goal.