When the COVID-19 virus started to grip our world in Spring this year, we all hoped it would have disappeared by now. But unfortunately, it is still amongst us and continues to have a major impact on our daily lives. The virus has turned our world upside down, and things that used to be normal, now feel like a lifetime ago. The pandemic has been unprecedented in modern times, with no ‘playbook’ to reference. Impacting all facets of the economy and society, with the denim industry being no exception.

Why and How is COVID-19 Threatening our Industry?

First of all, and most importantly, COVID-19 is threatening our most important value in life: health. It is causing fear and uncertainty in our personal lives. And the aftermath is at least as threatening as COVID-19 itself: stained healthcare services, increasing unemployment, economic instability, depression, loneliness… The list goes on. The persistence of the situation is threatening our industry in many different ways. Let’s forget about the sales, developments, and new releases for a moment, and focus on where the situation impacts us the most: COVID-19 is a direct attack on the wonderful people who make up our industry. But the impact on the economy and circularity of the industry is clear to see - According to the Office of Textiles and Apparel (OTEXA), imports of jeans went down 35% in the first 7 months of 2020 for the USA (one of the largest denim markets in the world). While brands and retailers are focusing on working off inventory (which can be seen as a good thing), this is adversely affecting other parts of the supply chain and overall production economies.

Are There Any Benefits for the Denim Supply Chain in the Aftermath of COVID-19

So, does the current pandemic only yield negative effects on our industry? At first sight, the answer seems to largely be yes. While small gains and interesting developments have been made which may provide some level of future securities, when we focus on the financials, the industry has taken a heavy hit and it will take some time to recover. With that said, we see that denim industry has been quickly adapting to the situation globally. I mean, despite the huge financial impact, companies throughout the whole supply chain are shaping processes according to the current situation trying to turn the crisis into new possibilities, with great innovations in result!

Digitalization

One positive development that shouldn’t be overlooked is the accelerated developments in digitalization. The term digitalization has been high on the agenda of the denim industry for years but has been gaining momentum due to the current CODIV-19 situation. Due to travel restrictions, online became more important than ever, and many initiatives have been launched in the past few months. The Indian-based trade show Denimsandjeans, normally organizing shows in India, Vietnam and Bangladesh, developed an online platform in order to continue doing business. Were they usually rented a huge building to facilitate companies from the denim supply chain, they’re now offering booths in the cloud helping mills to reach out to clients, and vice-versa. Transferring the physical show to an online platform is making their shows much more accessible for companies to join. And, because we are social animals being part of the big denim family, the show even developed a coffee corner in the online platform giving space for some good old chit-chat. Another noteworthy development is that The Kingpins Show recently announced the launch of a new platform in October this year. Kingpins have been carefully listening to the community and heard from mills of their challenges of selling effectively. From buyers they heard of the difficulties in keeping track of all different online alternatives, and thus they came up with a comprehensive digital solution: The Kingpins Exchange. With the online dynamic marketplace, Kingpins continues with what they became known for: providing an innovative platform for denim companies from across the denim supply chain from all over the world, bringing people together under the auspices of a better blue world. And this isn’t just a solution to survive the crisis, this is an innovation on which the denim industry can continue to build on! The examples above are just a small selection of the many great online initiatives that have been brought to life in the last few months. Next to online trade shows, we’ve also seen other innovations like virtual fashion shows, virtual brand/ agency showrooms, online collection launches, and of course the Calik Denim App! With the first mobile application in the denim industry, Calik Denim filled the gap between brands and their supplier. The easy-to-use and innovative app allows clients to explore the latest trends, to match them with Calik Denim fabrics, and to request samples anytime. It showcases the mills’ latest collections and innovations, with the greatest eye to details, and it is sharing global fashion and denim news. If you haven’t seen the app yet, you can download it here if you use IOS, and here if you use Android. All these great innovations, which have been gaining momentum due to the situation, are eventually lessening the costs and can potentially reach a large(r) amount of people. It also has a hugely positive impact on our beautiful planet, as travel emissions continue to drop significantly, and this brings us to the next benefit for the denim supply chain in the aftermath of COVID-19.

Sustainability

Another positive effect of the COVID situation has been highlighted by Deloitte; “The COVID-19 crisis has put sustainability into the spotlight. It has exposed vulnerabilities across government and industry, and put the value of sustainability into sharper focus than ever before”. Although Deloitte isn’t specifically speaking about the denim industry, it is certainly worthy to note this. Sustainability has been the keyword in our industry for the past few years- it’s not a new topic - but COVID-19 will continue to spotlight this increasingly important issue which is constantly informing our initiative. The ING, a global financial institution of Dutch origin, said in a statement early June, that 220 Dutch companies have pledged support to take sustainability as a cornerstone in Covid-19 recovery plans at both a national and European level. The unexpected vulnerability of all industries is giving us the opportunity to make new choices and to do things better and more conscious. In recent history, major denim mills, including Calik Denim, stated sustainability targets, and the current situation is a call to prioritize sustainability within the recovery strategies, to move on to a more responsible and resilient industry. Capgemini, A global leader in consulting, technology services and digital transformation, recently did a research on ‘how sustainability is changing consumer preferences’ and one of their conclusions is as following: The report finds that sustainability has risen up the customer’s agenda: 79% of consumers are changing their purchase preferences based on social responsibility, inclusiveness, or environmental impact. Moreover, COVID-19 has increased consumer awareness and commitment to buying sustainably: 67% of consumers said that they will be more cautious about the scarcity of natural resources due to the COVID-19 crisis, and 65% said that they will be more mindful about the impact of their overall consumption in the “new normal.” It is not only the industry that is taking sustainability as the cornerstone in their recovery, as also consumers tend more towards quality and the way products were made. COVID-19 has been a threat to our ‘normal’, it is a wake-up call to do things better, and an invitation to join a more conscious and more responsible society.