Impact of COVID-19 on Luxury Fashion Sales & Engagement

The impact of covid-19 on the customer engagement and sales of the luxury fashion products. A case study of marks and spencer.

Introduction-

Background of the research-

The research is been concentrated towards the effects of covid-19 and pandemic on the sales of the luxury products and also the effects of covid-19 on the consumer engagement done by the company in their working (Rana and Shankar, 2020). As directed by the experts of the fashion industry, the consumer engagement is the most essential part of the working in the fashion industry. It can be said that the organisation must have the capability to interact to the customers. Before the covid-19 pandemic the sales and the customer engagement of the company was really good but due to the pandemic and its effects of the income of the people, the things and even the demand of the customers have changed. The sales of the company have also rapidly decreased due to covid-19 pandemic.

The topic of the report is essential to be studied as it examines the change in the needs and wants of the consumers after the covid-19 pandemic in relation to the luxury products. As marks and spencer is the highly effective and fashion trend Setter Company in the market United Kingdom it was the best company to take as for the case study (Fortuna et al., 2021). In the fashion business, customer interaction is the most important aspect of working in the sector. It may be claimed that the company needs to be able to communicate with customers. Prior to the Covid-19 epidemic, the company's sales and customer involvement were excellent, but as a result of the pandemic and its consequences on people's money, everything has changed, including client demand.

Figure 1 Marks and Spencer Logo

When it comes to the fashion sector, Marks and Spencer is considered as a key market holder. It may be argued that the brand is one of the largest sellers and has a significant effect on the country's emerging fashion trends. The corporation was formed in 1884, exactly 138 years ago, and its headquarters were initially in London, England. Clothing, food, home ware, Ocade, and much more are all available from the firm (Hoekstra and Leeflang, 2020). With the support of additional stores and 100+ websites operating all over the world, the firm also offers a wide choice of items to clients in a number of countries. The company has a total of 1509 sites across the world. To deliver additional M&S branded services, the corporation has partnered with other businesses. Insurance, mortgages, and credit cards are among the financial services provided by the organisation.

Problem statement-

The main problem that is to be covered in the report is that many of the companies have been struggling to be more effective while the covid-19 pandemic but at the same time are losing their contact with their consumers. The sales of the company have also rapidly decreased due to covid-19 pandemic (White, 2020). Consumer interaction, according to fashion industry experts, is the most important aspect of working in the fashion business. It may be claimed that the company needs to be able to communicate with customers. Prior to the Covid-19 epidemic, the company's sales and customer involvement were excellent, but as a result of the pandemic and its consequences on people's money, everything has changed, including client demand.

Research question-

• What are the key challenges faced by the company in relation to the sales during the covid-19 pandemic?

• What is the impact of covid-19 over the sales of the organisation?

• What is the impact of covid-19 over the customer engagement?

• What are the things that can be done by the company in order to be more effective in sales and customer engagement while the covid-19 pandemic and after that?

Research aim-

The main aim of the research is to look into the impact of covid-19 on the customer engagement and sales of the luxury fashion products.

Research objective-

• To identify the key challenges faced by the company in relation to the sales during the covid-19 pandemic.

• To determine the impact of covid-19 over the sales of the organisation.

• To analyse the impact of covid-19 over the customer engagement.

• To identify the things that can be done by the company in order to be more effective in sales and customer engagement while the covid-19 pandemic and after that.

Literature review-

The key challenges faced by the company in relation to the sales during the covid-19 pandemic-

According to the Nyame-Asiamah and Ghulam, (2019), of the fashion industry, the consumer engagement is the most essential part of the working in the fashion industry. It can be said that the organisation must have the capability to interact to the customers. Before the covid-19 pandemic the sales and the customer engagement of the company was really good but due to the pandemic and its effects of the income of the people, the things and even the demand of the customers have changed. The sales of the company have also rapidly decreased due to covid-19 pandemic. The fashion industry needs to have a huge loss in their working and be seated less effectively in their work as they has no choice and be quite and face the pandemic.

As per the researcher Watanabe et al., (2022), it can be said that the main challenge for the company that came along with the covid-19 pandemic made it difficult even for the high-profile luxury fashion brands to sell their products and the services to their people. the shift in customer requirements and desires in respect to luxury goods following the covid-19 epidemic Marks & Spencer was the perfect firm to choose as a case study since it is a very effective and trendy trend setter company in the UK market. The most crucial component of working in the fashion industry is interacting with customers. It may be argued that the business must be able to interact with its consumers. Prior to the Covid-19 outbreak, the company's sales and customer participation were good, but everything has altered, including client demand, as a result of the pandemic and its financial ramifications.

The impact of covid-19 over the sales of the organisation-

Barua, (2021) stated that when looking at the impact of covid-19 over the sales of the organisations and specially the luxury high and fashion industry it can be said that the majority of the industry was not able to sell the products to the consumers and were born to made set quiet for the pandemic to get over. It can be said that the pandemic made it difficult for the organisations to sell their products as there was no availability of the stores to open for a period of time and also the security of the employees as well as the consumer was on the Hike not the sales of the organisation. The consumers of the luxury fashion brands were too scared to come up and buy any of the product from the market as they were afraid of catching the covid-19 disease and so the company was not able to offer their product to the consumers (Piskunova, 2021). This also made it difficult for the the organisation to sell their products as they were not able to communicate to the consumers and were not able to approach them in the first hand.

Piskunova, (2021) pointed out that as the consumers of luxury fashion companies were too fearful of contracting the covid-19 sickness to come up and buy any of the products on the market, the firm was unable to present its products to the public. This made it difficult for the company to sell its products because they were unable to engage with customers and could not approach them face to face.

The impact of covid-19 over the customer engagement-

As per the Gogoi, (2021) Covid-19's impact on company consumers engagement, especially in the luxury goods and fashion sectors, may be summarised as follows: the majority of the industry was unable to sell things to clients and was compelled to keep quiet until the pandemic was over. It may be argued that the epidemic made it difficult for companies to sell their products since storefronts were inaccessible for a period of time, and the safety of employees and consumers came first. Luxury fashion firms were unable to exhibit their items to the public because their consumers were too afraid of catching the covid-19 illness to come up and acquire any of the things on the market. Because the firm was unable to contact with clients and approach them face to face, it found it difficult to sell its products.

Behrmann, D. M., and Brunotte, (2020) argued that in the fashion business, customer interaction is the most important aspect of working in the sector. It may be claimed that the company needs to be able to communicate with consumers. Prior to the Covid-19 epidemic, the company's sales and customer involvement were excellent, but as a result of the pandemic and its consequences on people's money, everything have changed, including client demand. The company's revenues have also dropped dramatically as a result of the covid-19 epidemic. Because they have no option but to stay quiet and confront the epidemic, the fashion sector must suffer a significant loss in productivity and be seated less effectively in their work.

The things that can be done by the company in order to be more effective in sales and customer engagement while the covid-19 pandemic and after that-

Watanabe, (2022) stated that the effect of Covid-19 on business sales, particularly in the luxury goods and fashion industries, may be summarised as follows: the bulk of the industry was unable to offer items to customers and was forced to remain silent until the epidemic was finished. It may be claimed that the pandemic made it difficult for businesses to sell their goods since storefronts were unavailable for a period of time, and the security of staff and customers took precedence above business sales. Because the customers of luxury fashion companies were too fearful of contracting the covid-19 sickness to come up and purchase any of the products on the market, the firm was unable to present its products to the public. This made it difficult for the company to sell its goods since they were unable to engage with customers and could not approach them face to face.

Methodology-

Research philosophy-

Different research philosophies, such as positivism, realism, pragmatism, and interpretivism, might be used in the study. The positivist philosophy is employed in this study because it asserts that knowledge exists outside of the issue under consideration. This philosophy is used in the study to analyse hypotheses and research topics. The ontology of the study looks at how the whole solution is classified or explained in the paper. The inquiry is based on real-world examples. Because all of the data gathered and utilised is based on real-life observations and facts.

Research approach-

A deductive method is employed to conduct this study because the focus of this technique is on developing hypotheses based on existing theories and then constructing a research plan for hypothesis testing (Hughes and Barlo, 2021). With the aid of this technique, the probable interconnections among variables and ideas relevant to digital transformation in organisations will be discussed. Data is gathered, evaluated for patterns, and then utilised to generate hypotheses in an inductive research technique, while deductive research employs social theories, which are then categorised as implicative or non-implicative for the search. After that, the data is analysed before being utilised to construct the ideas that will be put to the test.

Methodology-

In this study, a mono-method approach is employed, which includes both quantitative and qualitative data collection (Nayak, J. K., and Singh, 2021). secondary data is collected using a survey, while qualitative data is gained from secondary sources such as articles, books, and research papers. With the use of mixed-method research, the researcher may get a wealth of knowledge on the study topic.

Research techniques-

The benefit of employing a questionnaire is that it allows for considerably easier data collection since participants are not worried of being overheard while discussing the organisation (Tabuena et al., 2021). The secondary data is been collected with the help of newspapers journals and articles. These are that data that is been taken from authentic sites an also been referenced from the same, in order to make the work more authentic and acceptable. Secondary data, all information obtained from the internet was correctly referenced and labeled with proper citations. Authentic sources will be used during secondary data collection for attaining the study objectives.

Data collection-

In order to obtain the necessary data, this research employs both primary and secondary data collecting methods. Secondary data will be gathered from current sources linked to digital transformation and personnel churn (Chen et al., 2021). In addition, essential data will be acquired via the perspectives of participants, which will aid in the improvement of study quality. Frequency analysis is the data analysis approach that will be utilised here to successfully evaluate primary data. This strategy is the best suited for analysing numerical data. In this research, the data acquired from secondary sources is analysed using the mastic analysis approach.

Sampling method-

This approach relies on a sample gathered using a survey method. In this research, the convenient sampling strategy was used since it includes the notion of having a pre-determined pool of participants who reflect a variety of persons in a population. This study collects data about individuals from a group of people who are impacted by the information.

Ethical consideration-

The research in this study adheres to the ethical code of conduct, and prior consent is obtained from both participants and the organisation to conduct the survey. The data protection legislation is followed to secure the information of participants. Employee permission is obtained before to completing the survey, and personal information of the participants is preserved in order to respect their privacy (Pandey and Pandey, 2021). Authentic sources will be employed to acquire secondary data in order to meet the study's goals. All information gathered in this study, whether from primary or secondary sources, is kept safe and obtained with the consent of those who provided itSimilarly, all material collected from the internet was properly referenced and labelled with suitable citations in the case of secondary data.

Project plan-

Gantt chart-

The time scale is used to modify and determine which work is completed in which time scale, as well as how the work will be timed.

Activities	Weeks 1-16
	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
Title and research objective
Literature review
Methodology
Recommendation
Reflection
conclusion

While working on this research project I first tried to manage my bug by dividing it into parts and then trying to sort it in two different weeks the first was title and research objectives at 2 weeks to analyse the title and to come up with the most effective research objectives that can best suit my research and also offer a quality reading to the readers of the project. Second commissioner literature review at 23 weeks for literature review as I had three research objective I gave whole one week to 1 research objective and try to have the best research done on 8 as far as possible. The methodology was conducted by me in 4 weeks as I took long time to manage and to accomplish all the work that can be done effectively also to look for the best approaches and methods that can be used in my work. Accumulation of primary information was done by me in 3 weeks as it only took me to make an effective survey question and and then distribute it to the selected participants. Recommendations for the research project as I talk 3 weeks for it and effectively research about what could be done by the company and what is done by them currently to have an effective consumer interaction and sales increase. The reflection and the conclusion are done in 3 weeks as the reflection shows the world scenario that was made in the research and the conclusion has the part that offers will inform short summary of the whole research project.

Risk management-

Key areas	Key notes		Target state	measures
Risk	The research as the risk of loosing the data of the research survey to some other hands.	The research has the limitation that can be a risk to its credibility.	In order to eliminate the risk, the data is been set in a really effective password protected files and are only handed over to the teacher.	The risk is been mitigated by the researcher by being effective in protecting the research survey data.
Assumptions	The assumptions for the organisation is that they need to communicate to the people in order to be more effective in their working.	--	To be more effective the resort offers the ways in which the organisation can be more effective in their working.	The topic is been effectively covered in the research work.
Issues	The main issue of the project is that the project do not have the other aspects of the impact of covid-19 in the survey.	-	The work is been effectively done and is done in the best possible way in order to be more effective with the security of the employees from the covid-19 virus.	The job has been done properly and in the best feasible manner in order to improve the security of the personnel against the covid-19 virus.
Dependence	The survey that is the primary research has the dependence of the research as they need to work on it and make the research more effective.	-	The dependence of the survey is been documented with the research.	The failure of the delivery of the project does not upon the deepened of the survey analysis.
Raid log	The risk for this project is not that big as the risk can be maintained effectively by protecting the work effectively.	-	The risk associated with this project is minimal, since the danger may be efficiently mitigated by adequately safeguarding the work.	The risk connected with this project is low, since the threat may be effectively controlled via sufficient protection of the job.

References-

Barua, S. (2020). Understanding Coronanomics: The economic implications of the coronavirus (COVID-19) pandemic. Available at SSRN 3566477.

Behrmann, D. M., and Brunotte, (2020) D. I. R. ROLE OF AUGMENTED REALITY IN SHAPING THE GERMAN FASHION INDUSTRY DURING COVID 19.

Chen, R., Zhao, R., Deng, S., Zhao, L., and Xu, W. (2021). A cycle research methodology for thermo-chemical engines: From ideal cycle to case study. Energy, 228, 120599.

Fortuna, F., Risso, M., and Musso, F. (2021). Omnichannelling and the Predominance of Big Retailers in the post-Covid Era. Symphonya. Emerging Issues in Management, (2), 142-157.

Gogoi, B. J. (2021). BRAND PERFORMANCE IN THE COVID-19 PERIOD. International Journal of Management (IJM), 12(3), 550-561.

Hoekstra, J. C., and Leeflang, P. S. (2020). Marketing in the era of COVID-19. Italian Journal of Marketing, 2020(4), 249-260.

Hughes, M., and Barlo, S. (2021). Yarning with country: An indigenist research methodology. Qualitative Inquiry, 27(3-4), 353-363.

Nayak, J. K., and Singh, P. (2021). Fundamentals of research methodology problems and prospects. SSDN Publishers and Distributors.

Nyame-Asiamah, F., and Ghulam, S. (2019). The relationship between CSR activity and sales growth in the UK retailing sector. Social Responsibility Journal.

Pandey, P., and Pandey, M. M. (2021). Research methodology tools and techniques. Bridge Center.

Piskunova, O. (2021, June). Fast-Growing eCommerce and Omnichannel Concept Development: Empirical Evidence from Russian Retail. In International Conference on Digital Transformation and Global Society (pp. 493-505). Springer, Cham.

Rana, A., and Shankar, R. (2020). Crisis or opportunity: Marks and Spencer’s tryst with Indian retail. The CASE Journal.

Tabuena, A. C., Hilario, Y. M. C., and Buenaflor, M. P. (2021). Overview and exemplar components of the research methodology on the research writing process for senior high school students. International Journal of Trend in Scientific Research and Development, 5(3), 117-126.

Watanabe, C., Akhtar, W., Tou, Y., and Neittaanmäki, P. (2022). A new perspective of innovation toward a non-contact society-Amazon's initiative in pioneering growing seamless switching. Technology in Society, 69, 101953.

White, S. (2020). The Effectiveness of Customer Loyalty Programmes on Customer Engagement: A Case Study Based on Fashion Retailers in Nelson.