The COVID-19 pandemic is an unprecedented global economic shock. Some apparel, fashion and footwear companies might not survive the current crisis, whereas others will emerge better positioned for the future. Although no one in the industry could foresee the intensity of this crisis, several fashion houses are discovering that they were better equipped than others— to a great extent because of their logistics setup and E-commerce proposition.
From Retail to E-Commerce
Figures show 70% declines in offline purchases, as compared to 30% to 40% increases in purchasing online. This stands true even in countries that haven’t been under full lockdown. E-commerce is clearly not counteracting the sale declines in stores, but nevertheless it has been a lifeline for fashion brands during the pandemic. It will further continue to be critical during and after the recovery period. There is no doubt that the E-commerce share of fashion will also continue to increase during the upcoming 12 months.
The Covid-19 lockdown has also shown how quickly the behaviour of customers, and thus the requirements on logistics, can change. Supply chains had to be reorganised during a very short period of time and many processes had to be restructured rapidly. The question is whether the adjustments will remain necessary in a post-pandemic world. It can be expected however, that transport and logistics will have to be able to respond to new circumstances and trends in a quick and flexible manner also in the future.
Delivering an excellent customer experience online is crucial, in which timely and proper fulfilment are some of the key factors. As a Fashion Logistics Service Provider, Modexpress needed to be able to scale up capabilities in both demand fulfilment and in the last mile. This was to guarantee a high level of customer satisfaction within Modexpress’ wide customer base. There is no doubt that these requirements for supply-chain speed and flexibility will continue to increase, which is why Modexpress is prepared for these new requirements in the future.
One Stop Shop E-Commerce
The charging of VAT on cross-border sales by web shops has been simplified due to the European Committee’s adoption of new regulations. These regulations cover cross-border supplies (distance selling) and services to consumers within the EU, as well as supplies and services to consumers from outside the EU. In the past, these sales to consumers were subject to VAT in the country of the purchaser. In certain cases, this system enforced the brand to register in up to 28 of the EU Member States in order to submit VAT returns in each of them. However, from 2021 onwards the company in question will be able to declare foreign VAT in their country of establishment. This is what is known as the Mini One Stop Shop which further simplifies E-Commerce offerings in the EU.
There’s no denying that the Covid-19 pandemic will make for a challenging 2021. For some fashion companies, the biggest challenge will be mere survival and recovery. However, if they select the right logistic service provider they can not only endure the crisis, but further build competitive advantage and strengthen their business for an omnichannel in the future. The chosen logistics service provider, such as Modexpress, needs to be fully aware of all regulations but simultaneously remain flexible and supportive. This is what we are! Our advice to you is to concentrate on what you can do best: developing, marketing and selling products. And let Modexpress concentrate on what we are superb in: fulfilling and delivering orders and complete customer care. We invite you to join us!