Will Cinema industry survive during quarantine?
It is known
that art has a relevant role in our lives. Through the history, theater had
fostered people to be calm and distracted during wars and past pandemics. The
current situation of COVID-19 made this industry close to the public for an unexpected
time, on the other hand people still can watch movies through streaming
channels. So once again, this kind of art is nurturing humanity well-being. It
turns out that streaming channels are increasing their profit while cinemas are
trying to make ends meet. How will this industry avoid a recession and
stimulate its economy?
First, a
part of fund must be invested in digital media resources and popular trends,
transmitting information about our theater, engaging the followers, stimulating
users to interact with the posts, challenges to instigate their art passion and
concede them a chance to feel in a movie and maybe develop their own extra
scenes to their favorite film. Next, an online platform should be developed,
where movies can be rented to watch, another option is to promote a partnership
with some of the streaming channels which we could debut movies for a symbolic
price. Then all the collections developed will receive an exclusive piece that
will be sold on our website. Prepare new sales and announce new programs in our
cinema, such as a Kids’ Room and a Corporate Card.
Finally,
when the quarantine ends, we must keep that online engagement and stimulate our
economy with all kinds of extra programs we can offer to the public. Such as
low our ticket and snacks prices.
In spite of
all the economic downturn, Curzon CEO Philip Knatchbull said that “Cinema has
survived wars, pandemics and a host of technological changes. There is
something elemental about gathering together in a dark room to watch a great
film. The reopening of cinemas will be a cause of huge celebration.” The
theater will overcome the lock-down and keep fostering people’s well-being all
around the globe.
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Written by Maria Gabriela B Q Souza |
Coronavirus
impacts and solutions - Fashion Industry
The
Coronavirus outbreak has not only caused a crisis in the health system, but
also an economic crisis, which has been catastrophic for all economic sectors
worldwide. Big companies are struggling to make a profit during the pandemic,
due to the decrease of sales, a characteristic impact of the social isolation,
that affects small businesses even more intensely, since they are more
susceptible to file for bankruptcy.
The sectors that have been facing the major economic problems
brought by the Coronavirus outbreak are those called “non-essential” (such as
restaurants, pubs, movie theaters, cosmetics stores, clothing stores, among
others), which were required to
remain closed, to prevent contamination between the customers.
The fashion industry, according to Imran Amed (CEO of The Business
of Fashion), has been facing an “existential crisis”, due to the new working
requirements during the pandemic, the magnitude of the impact can be explained
by the fact that 80% of the transactions made in name of the fashion industry
happen inside physical stores, which are required to remain closed.
The fashion industry has been negatively affected by the coronavirus
pandemic, different areas of the industry are suffering the impacts, the
production has ceased, retailers have closed and demand has decreased. Clothing
sales plummeted by 34% in March, the
season previously known as the beginning of the research for summer outfits in
the North hemisphere. The sales of clothing and footwear in the UK alone are expected to
decline by $13.06 billion, the Primark owner endorsed that closing all 376
stores around the world would cost his company a loss of $751,5 million of net
sales per month.
However, the
lockdown isn’t the only issue faced by the fashion industry currently, another problem
is that the products are stuck in the stores, and as time passes by they go out
of style or seasonal collections can’t be used anymore.
The lack of interest is also something that concerns the fashion
business owners, “no one wants to buy clothes to sit at home in” claims Simon
Wolfson, the Next’s CEO. It can be concluded that people are predominantly
focused on
purchasing essential items to survive during the lock-down, clothes
have conceded their place as a priority in society to other items.
Considering the low sales, some orientations are needed to keep
stimulating the economy, besides the difficult times the fashion industry is
undergoing.
In order to keep selling, at least a minimal amount of products,
during the lock-down is essential to dominate the sources that the internet can
offer, such as message apps to talk to the clients and social media to promote
your products; the fashion designer Giorgio Armani, for instance, live-streamed
his fashion show in the Milan Fashion Week to promote his new collection,
proving that it is possible to engage your sellings online.
Delivery is also
a good way to hand in the product to your client, mitigating the risk of
contamination. Online selling and delivery are very convenient for the customers,
therefore, these kinds of services can be a different aspect of your store,
helping you to bring more clients even after the pandemic.
To face the
problem of clothes built up in the stock, stores should sell basic clothes for
all seasons or even exchange products with the stores located at the opposite hemisphere, preventing the
product from going out of style and redistributing them according to the
climate. This strategy could also apply to the scenario after the outbreak,
considering that people won’t be able to focus on fashion due to the economic
situation, so the demand for flamboyant clothing will, probably, decrease.
Focusing on the lack of interest for bold clothing choices, big
clothing brands are now offering sales for comfort-wear, due to the quarantine,
period that requires comfortable clothing to stay home. Moreover, investing in
comfort-wear is a safe investment, the demand for this style of clothes will
remain steady after the quarantine, due to its versatility.
It can be concluded that to avoid bankruptcy is extremely important to plan solutions for problems that might happen during and after the pandemic because once you could maintain your business during the crisis, the next step is to overcome the issues left by these types of situations, and a good tip is to develop visionary solutions, that embraces the situation during and after the crisis, all at once.
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| Break even chart - Fitness Clothing Store |
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| Written by Bianca Tutia |
