Coroniversary: Shifting habit and 2021 projection
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As COVID-19 wreaks 2020 havoc, the outlook for 2021 seems bleak even though the promise of vaccines reassures investors and business players. Tourism is one of the hardest hit industries. Traveloka in April 2020 laid off 10% of its employees. Retailers are either closing down or filing for bankruptcy. One of the prominent retailers in the country, ARA, last week announced it will be closing down its stores due to the economic impact of the pandemic.
The biggest disruption during the COVID-19 pandemic is probably the way we interact with others. Physical distancing, washing hands and wearing masks are the new habits we have to adapt to. In response to these new habits, businesses have to adjust their operations and offers. Fashion brands start rolling out fabric face masks. Films are launched on streaming platforms. Meetings have to be done online.
Each sector in the creative industry went through different phases. Some are thriving while others fall flat. Here are the conclusions from 2020 and TFR’s projection for 2021.
Fashion and accessories
Party gowns and high heels are replaced by loungewear, pajamas and face masks. The trend will most likely continue in 2021 since the distribution of vaccines will take some time. On the other hand, wedding gowns are still in demand as wedding receptions have moved online. Accessories like handbags and jewelleries - except wedding rings and bands - are slightly harder to mitigate since the core products are usually complimentary to outfits and they are worn in public.
Plausible categories to explore:
Pet accessories - Since pet owners are spending more time at home with their pets, pivoting to pet accessories is worth a try. For instance, leftover fabrics or leather can be turned into pet collars.
Maternity and children’s wear - There is a baby boom during the pandemic. Besides loungewear, ready-to-wear fashion brands could venture out to maternity clothes and children’s wear.
Beauty and wellness
According to a research from McKinsey, sales of eye-cosmetic products on Alibaba increased by 150% in February 2020 since eyes are the only face features that are not covered by masks. However, the research also finds that sales of make-up dropped while skincare and wellness products soared. With beauty salons temporarily shut down, self-care and pampering is done at home.
The trend will most likely continue in 2021. Make-up sales will fare pretty well since we are allowed to go out and dine in. Wellness, including mental health and well-being, will continue to grow.
Home goods
There is a surge in home goods as people stay indoor and the interest shifts to creating an ideal home environment. Plants, for instance, become the latest craze during the pandemic. However, it is worth noting that home accessories like furniture and decor typically last longer than fashion trends.
Performing arts
It goes without saying that film, music, dance and theatre are heavily affected by the pandemic. Film production, concerts, theatre performance and dance classes have to be paused. Streaming platforms might be the saviour of the film industry in 2020, but cinemas are struggling to cope with the sudden change.
Unfortunately, there is a possibility that these industries could remain in tough spots in 2021. Although several filming projects resume, they will not be able to instantly make up for the losses in 2020.
2021 projection - Digital transformation
Before the pandemic, many fashion brands TFR observed didn’t optimise their online presence aside from endorsing influencers. Websites were an afterthought. Some websites were not compatible with mobile devices despite more people tuning in from mobile devices.
The pandemic accelerates digital transformation in all sectors. Companies are forced to adapt to technology. Zoom takes the lead with more than 200% growth. Social media platforms, especially TikTok, are enjoying massive growth. While film production is halted, video production on YouTube continues to gain traction. At-home workout, in particular, becomes a popular segment.
The creative industry is no exception. Online performance, online classes, virtual events and virtual concerts replace offline events. To retain the excitement, the experience has to evolve in 2021. Implementing technology, such as virtual changing rooms and AI assistants, could be a game-changer.
There is also a growing appetite for educational and engaging content on social media. It prompts more social media-based media to surface. One of them is What Is Up, Indonesia? (WIUI), which mainly explains the political climate and regulations in the country in a simple manner. Launched in August 2020 by Faye Simanjuntak and Abigail Limuria, the media gained more than 20,000 followers in two months.
Online media consumption will continue to rise in 2021. However, in the sea of content, editorial direction, branding and communication strategy will play vital roles in the survival of these new-age media.
Emphasis on well-being
One of the concerning side effects of staying home is mental health. Suicide rate, divorce rate and domestic abuse have increased drastically. Mindfulness became a keyword in 2020. The number of online therapy, apps, media and podcasts dedicated to well-being will continue to rise. Well-being is here to stay.
COVID-19 brings a new set of challenges for all of us in 2020. Everyone was in the survival mode. In fact, we might still have to continue to run on this mode in 2021. One thing that is commendable during the pandemic is the collaborative efforts. More people resort to buying local in order to save small businesses. When we cannot be physically there for others, affection is shown through hampers and gifts.
