One question many people are asking is how fast fashion will survive the retail apocalypse. However, it is quite obvious that Fashion Nova has done more than survive – but is very much thriving – during this period.
Before we go into how Fashion Nova is uniquely qualified to survive the retail apocalypse, let’s look at what the retail apocalypse means – and how it has progressed over the years.
What is the Retail Apocalypse?
The retail apocalypse is the closing of numerous brick-and-mortar stores across a wide array of industries, and all over the world.
Brick-and-mortar stores have always been popular. People go to purchase various items ranging from electronics to kitchen utensils and clothes. However, since 2010, these stores have been closing around the world.
Mall visits declined by about 50% between 2010 and 2013. In 2017, retailers shut down 102 million square feet of storage space. That was when the term ‘retail apocalypse’ was coined and people talked about it for a while in articles and thinkpieces. Business Insider called it the “Amazon effect.” They calculated that Amazon cashed out on the apocalypse, generating massive amounts of revenue while their competitors lost big.
In 2019, 9,302 stores were closed in the United States, a whopping 59% drop from the number of stores closed in 2018.
The coronavirus pandemic will even result in more store closures in 2020 and for years to come. People are no longer going to shop for goods in physical stores when they can get what they need online and delivered straight to their homes.
Let’s take a look at some of the causes of the retail apocalypse.
Causes of the Retail Apocalypse.
The growth of e-commerce:
This is the major reason for the retail apocalypse. As technology grows even further, people are finding it easier to shop online than to buy from retail stores.
Apart from that, e-commerce is also very competitive in terms of promotions and pricing. So, if they can get the same price or even cheaper online, why be at the brick-and-mortar store?
Too many malls:
The growth of malls in the United States between 1970 and 2015 was twice the population. Also, when people visit malls, they prefer to spend their money on restaurants and movies than actually buying items. As a consequence, people selling products barely make any gains.
The decline of middle-class customers:
Large retail stores like Macy’s and Sears closed down as a result of decreasing numbers of middle-class customers. Because they were unable to compete with larger chain stores that cut down their price to keep their customers, they lost in the end.
Bad retail management:
If retails stores were properly managed, maybe some people would have stayed and continued shopping as usual. But this isn’t the case. Cases of poor retail management include debt accumulation and lack of accurate inventory, which results in underperforming merchandise or, worse, a lack of merchandise that people want to buy.
Now that we know what the retail apocalypse is, let’s see why Fashion Nova is qualified to survive in the chaos.
Why Fashion Nova Will Survive the Retail Apocalypse?
In less than 15 years, Fashion Nova became one of the top fashion brands in the world, with a footprint bigger than designers brands including Gucci, Louis Vuitton, and Dolce and Gabbana – all of which have decades of history behind them.
There’s something unique about this brand:
They do not have many retail stores.
They only have 5 brick-and-mortar stores in Los Angeles, and that’s all.
While other brands are busy trying to sell in stores and get people to view expensive, high-budget fashion shows to keep their customers, Fashion Nova doesn’t do either – and they likely never will.
With almost no retail presence, how do they do so well?
They sell online.
All customer orders are placed on the Fashion Nova website, with as many as 600-900 new designs made available each week.
People close to LA can get items they need from one of the retail stores, or even have their order delivered same-day via Postmates. But, since there are only 5 retail stores, even if all retail across the United States shut down altogether, Fashion Nova’s business would be almost entirely unaffected
The retail apocalypse has caused many large stores to drop the prices of their products in order to compete with online businesses. In order to cover rent payments and franchisor agreements, they’ve had to put large discounts on some of their products. Macy’s didn’t survive because they weren’t able to do this.
Fashion Nova, on the other hand, has products set at prices that can withstand the test of time and circumstance.
You can get great shoes for as low as $30 and you will find dresses that cost only $28, with the most expensive items priced not much higher than $50.
So, because the prices are already affordable, people are less likely to stop shopping with the brand. Instead, they have experienced a robust and fast-growing customer base as shoppers leave other brands behind.
Good marketing strategy:
Fashion Nova’s solid marketing strategy will keep them safe from the retail apocalypse and the changing landscape of fashion sales.
They have a huge influencer network of over 3,000 fashion and lifestyle bloggers with thousands of followers. So, as they release over 500 new styles weekly, people are readily available to buy their pieces.
Also, Fashion Nova uses high-profile celebrities like Cardi B, Nicki Minaj, and Kylie Jenner to market their products. According to the CEO, Richard Saghian, one post from Kylie Jenner can generate about $50,000 in sales.
Fashion Nova has thrived so far, and will even wax stronger in the coming years as their customer base grows.