The Impact of Digital Transformation on the Fashion Industry in the Post-Pandemic Era

Abstract

The Covid-19 pandemic has brought significant challenges to the global luxury market since 2020. The economic downturn, declining customer incomes, lockdowns in public places, and a sharp reduction in international travel have all reduced customer demand for luxury goods. On the other hand, with brands' digital sales soaring during the pandemic and a younger customer base, more luxury brands are doubling down on online channels to compensate for physical store closures or limited sales due to safety regulations and lockdowns. In this context, this study uses Burberry Group plc as an example to analyze how a traditional fashion house can gain an advantage in the post-pandemic era through digital transformation strategies. The first is to analyze the brand's status quo through financial strategy analysis to understand the epidemic's impact on luxury brands. The second is to show Burberry's strengths and weaknesses through SWOT ANALYSIS. Third, analyze Burberry's digital transformation strategy. For research methodology, this study conducted a literature analysis of books and papers and kept the case studies' Timeliness through websites, social media, and news articles. The results show that Burberry avoided the epidemic's impact through online channels and broke geographical restrictions, further influencing consumers through digital platforms and deepening consumers' impressions. Burberry's case shows that digital transformation can flexibly respond to the disruption caused by the epidemic and minimize losses, thereby helping to build its advantage. As a result, the report contends that digital transformation will be a crucial component of fashion firms' future business plans.