Strategies to Mitigate Businesses Risks In a Pandemic

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.

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.

Break even chart - Fitness Clothing Store

Written by Bianca Tutia