NATIONAL INSTITUTE OF FASHION TECHNOLOGY

DEPARTMENT OF FASHION MANAGEMENT STUDIES

BATCH 2020-22

SUBJECT- FASHION BUSINESS RESEARCH & IT APPLICATION

RESEARCH ON

CHANGES IN MINDSET OF PEOPLE POST COVID|

SITUATION OF MARKET AND CONSUMER SHIFT
Under the Guidance and Supervision of
MR. KETAN DHILLON
SUBMITTED BY-
ANANYA GUPTA
ASHI MISHRA
KARISHMA SHARMA
KRATI MISHRA
 ACKNOWLEDGEMENT

• It gives us great sense of pleasure to present our project work on

• “CHANGES IN MINDSET OF PEOPLE POST COVID| SITUATION OF MARKET
AND CONSUMER SHIFT”
• We would like to express special gratitude to our professor, MR. KETAN
DHILLON, Faculty of Fashion Business Research & IT Applications, FMS
Department, NIFT, Raebareli for his constant support and guidance
throughout the course of session. His sincerity, thoroughness and
perseverance have been a constant and inspiration for us.
• For specific inspiration, we would like to thank our parents and friends for
their help and cooperation throughout the project.
• And at last, we would like to thank those who indirectly helped us in
making this project a reality
• Date: 02/11/2020
• ANANYA GUPTA
• ASHI MISHRA
• KARISHMA SHARMA
• KRATI MISHRA
 DECLARATION
• DECLARATION
• We hereby declare that the project work entitled
• “CHANGES IN MINDSET OF PEOPLE POST COVID| SITUATION OF MARKET
AND CONSUMER SHIFT”
• submitted to the National Institute of Fashion Technology, Raebareli, is a
original work done by us under the guidance of our professor, MR. KETAN
DHILLON, Faculty of Fashion Business Research & IT Applications, FMS
Department, NIFT, Raebareli
• This report is submitted in the view of completion of our End Term
Assignment. Now it is an asset of NIFT, Raebareli. All the right for using
this project lie with the institute. Unauthorised copying, hiring,
broadcasting, or rental of this project without permission from the
institute will be considered illegal.
• Date: 02/11/2020
• Place: Raebareli
• ANANYA GUPTA
• ASHI MISHRA
• KARISHMA SHARMA
• KRATI MISHRA
 EXECUTIVE SUMMARY

• BREIF PROJECT DETAIL

This project is a part of research documentation by MFM students on the
change in mindset of consumer post covid. With the COVID-19 pandemic
changing life as we know it, it is inevitable that a new normal will emerge.
This includes changes in lifestyle, and consequently consumer mindsets
has also changed.

For the fashion industry, 2020 was the year in which everything changed.
As people stopped moving out of their homes, fashion expenditure
constantly decreased and lead to a huge decrease in sales all over. Not
only it declined sales, but also managed to change the mind set of people
regarding expenditure in apparels or other textile materials.
• PROJECT RATIONAL
As we know Covid 19 hit the world and Fashion/textile industry faced a
major setback. This research aims to find how to boost the sales and the
textile sector. The research has questionnaires from various people telling
about their opinions on how their preferences changed and also how they
expect the shopping experience to be post Covid. With this review we can
learn about our consumers and plan accordingly for future sales.

• PROJECT OBJECTIVE
To know changes in mindset of people post covid and consumer shift
Sustainable fashion
Affordable Fashion
Technological
Advancements needed

• KEY GAPS IDENTIFIED

Lack of knowledge among people relating to fashion industry.
Because of Covid situations, one on one interactions lacked.
Neglectance by retail stores post covid for sanitization.
 INTRODUCTION
• The era of COVID 19 has been quite troublesome for the business people,
entrepreneurs, traders and others related to or dependant on the textile
and fashion industry. As people stopped moving out of their homes,
fashion expenditure constantly decreased and lead to a huge decrease in
sales all over.

• Not only it declined sales, but also managed to change the mind set of
people regarding expenditure in apparels or other textile materials.
Consumers in many areas of the world have tightened their wallets and
eliminated discretionary spending because of lost jobs, lower wages and
uncertainty about how long the COVID-19 pandemic will last.
• The buying and consuming behaviour has been changed and people are
shifting towards a more sustainable approach to fashion and lifestyle
products. Brands are adapting sustainability to avoid the wastage of
already manufactured apparel products.

• Besides this new trends are taking place with respect to sanitisation and
protection from the virus. The challenge of spending mind-set is still there.
People are giving more preference to basics and necessities than luxuries
and liabilities. Fashion has been the least important thing in the COVID era
and the spending has gradually shifted to other products.

• Nowadays, people are used to or addicted to online shopping and they

don’t feel much need to go to retail stores and everything is available
online. So as a result the shop owners or shop keepers have to put their
products on sale to empty their stock to the mark down price.

• E-commerce has been an extremely efficient and a practical way to

enhance the marketing and merchandising in fashion industry. The fashion
shows have become digital and people have started using digital apps for
shopping to save time, energy and money. So, apps can be update in every
once in a while to give the costumers a better buying experience.
Sustainable fashion and reusable clothes should also be available on the
trusted e-commerce websites and many payment options should be
available according to the needs and suitability.
• These challenges are endless as well as revolutionary. Yet, several
measures can be taken to deal with the mind sets and come out with
solutions, conclusions and alternate choices.
 MARKET STRUCTURE
• Customer sentiments has hit the fashion industry hard when it comes to
the nature of clothing purchases. Though there is a 60 percent jump in the
number of online shoppers this year from tier-II cities. Still more than 65
percent of expected consumers had decreased their spending on apparel.

• Amazon and Flipkart the e-commerce giants missed their cumulative

targets in gross merchandise value (GMV) this year, even during festive
season but at the same time sales of smartphones, electronics and
consumer products are rising to about 7-9 percent.

• A huge percentage of consumers in the US or from around the world

already reported that they need to be careful of how they spend their
money, with more than one-third of the world’s population stating that
the pandemic is even impacting their ability to make financial ends meet.
Some experts even predicted that consumer sentiment may never recover
in comparison to what was there before 2020.
 SUSTAINABILITY
• Sustainability is the fashion industry’s latest trend as breakdown of covid 19
has been a wake-up alarm for people that this is high time now and we must
preserve our planet now as the fashion industry is the second largest polluter
in the world.
• Consumers, brands, retailers and designers are pledging their hearts to the
environment and these days consumers want to engage with brands that
support a cause.
• How to make and sell sustainable fashion is on everybody’s lips as the number
of people wanting their clothes to be sustainable as well as beautiful is rising.
• This attitude is being echoed in the rise of second hand buying, but all this is
seen through a new lens. Previously, when somebody would use to buy
something second-hand it was because they could not afford a new one.
• This aspirational purchase meant that they would not want to tell anyone that
they bought the bag from another owner. But today’s second-hand movement
is a bit different.
AFFORDABLE FASHION

• Covid-19 is forcing us to make new fashion choices. The fashion economy

has faced a pandemic-induced slowdown, but retail therapy is not dead,
it's only changing. Consumer sentiment is at an all-time low. This has hit
the fashion industry especially hard due to the discretionary nature of
clothing purchases.

• People are no longer going to buy just for the sake of buying. They will buy
if there is an occasion or if they are in need of it. One will obviously think if
they can use a thing for a long time and if it's functional and comfortable
before making a choice.

• Price has been a common factor in influencing consumers’ purchase

decision-making and choice of products and services. Consumers will
evaluate the reasonableness or appropriateness of the price for a product
or service and compare the prices charged by other competing businesses.
• Customers may not purchase the product or services if the price is too
expensive in comparison to that offered by other sellers. This
phenomenon is known as price consciousness. Price consciousness refers
to “a buyer’s ‘unwillingness’ to pay a higher price for a product” It has
been argued that highly price-conscious consumers typically engage in a
higher level of search in product prices to seek higher economic benefits.

• India has a high population of youngsters who are aspirational. They love
to buy things, they love fashion and the whole lifestyle experience.
Obviously, now it's curbed because of the economic strains and the
disease that is still around. What is going to happen is that the shopper is
going to be smarter. They will definitely want value for money. They are
going to look at the longevity of the products. There's is not going to be
any careless or impromptu buying.

• Hence, people are going for affordable fashion in post covid-19 times, so
that they don't have to spend a huge lot of their hard earned income on
luxury fashion.
 PROBLEM STATEMENTS
• Reduction in fashion & textile sales
• Wastage of already developed goods
• Lack of sustainable practices adopted by brands
• Reluctance of people in visiting retail stores
 RESEARCH OBJECTIVES

• Textile and apparel sector plays a very important role in our country and
because of several lockdowns the whole industry suffered a major
setback.
• The aim is to understand the change in mindset of people towards the
industry to boost the sales in the coming future.
• As millennial are considered the major consumers of textile & fashion
sector aging between 23-38 will play a major role in the research. The
study also aims to determine the shift of people to affordable and
sustainable fashion.
• GENERAL OBJECTIVE-
To know changes in mindset of people post covid and consumer shift

• SPECIFIC OBJECTIVES -
Sustainable fashion
Affordable Fashion
Technological advancements needed
 QUESTIONNAIRE

NAME :
GENDER :
AGE :
OCCUPATION :

PRE COVID

Q1- How often do you used to shop from organized trend changing brands (Zara,
H&M, Mango etc. ) ?
Every week
Every month
Quarterly
Occasionally
 Q2- Where do you prefer shopping?
Online
In store
Q3- How much are you willing to spend on fashion & clothing monthly ?
Upto 5000
5000-10000
10000-15000
15000 and above

POST COVID

Q1- How often do you shop from organized trend changing brands now (Zara, H&M, Mango etc) ?
Every week
Every month
Quarterly
Occasionally
10000-15000
15000 and above
Q2- Where do you prefer shopping?
Online
In store

Q3- How much are you willing to spend on fashion & clothing monthly ?
Upto 5000
5000-10000

Q4- Should the stores/ e-commerce sites bring live screen trials to prevent physical
touch to the product?
Yes, that will be very helpful
No, it won’t be of any use
Not sure if it will be of any help
Q1- Does it matter to you that how the product is made/ the story behind it?
(sustainable approach of brand in making of the product)
Yes, a lot
Yes, sometimes
No
Never thought of it

Q2- What are the concerns that are restricting you to buy fashion ?
Unnecessary expense
Shift towards more productive goods like laptops, smartphones etc
Decrease in income
Lack of proper sanitization facilities in store

Q3- In the Covid era, before shopping for clothes/textiles do you have certain
expectations when you visit the stores to shop?
 DATA COLLECTION

Studying Mindsets of people and how their spending habits on fashion

apparel have changed post covid era.
So Pre Covid, people who shopped regularly
was 23% from fast fashion brands, most
prefered to shop in store and 57% shopped
upto 5000 and 36% shopped between 5000-
10000.
So Post Covid, people who shopped regularly decreased to 20% from fast
fashion brands, most prefered to shop online and people also decreased their
budgets for shopping post covid as per the data above. Also they would prefer
technological ways that modify the way they shop.
As per our study with further more questions. With people
getting aware about nature and the world, they have started
caring how the product they bought was made/manufactured,
the story behind it. Also people have started feeling that
expenditure on fashion is an unnecessary expense and when
they start shopping in stores properly any time sooner they are
preferring that proper measures are taken for sanitization of
clothes.
 SCOPE OF THE STUDY
• With the COVID-19 pandemic changing life as we know it, it is inevitable that a
new normal will emerge. This includes changes in lifestyle, and consequently
consumer mindsets has also changed.
• For the fashion industry, 2020 was the year in which everything changed. As
people stopped moving out of their homes, fashion expenditure constantly
decreased and lead to a huge decrease in sales all over. Not only it declined
sales, but also managed to change the mind set of people regarding
expenditure in apparels or other textile materials.

• In view of this situation, the present study analyzes the Changes in mindset of
the people post covid.

• Further, the study will also cover:

• Market Structure: Customer sentiments has hit the fashion industry hard when
it comes to the nature of clothing purchases.

• Sustainability: A major chunk of the apparel industry is concerned as to how

sustainability will take shape in this new phase post COVID-19. Consumers,
brands, retailers and designers are pledging their hearts to the environment
and these days consumers want to engage with brands that support a cause.

• Brand to lure customers to shop again.

• Affordable Fashion: Customers are going for affordable fashion in post covid-
19 times, so that they don't have to spend a huge lot of their hard earned
income on luxury fashion.

• It also involves changes incurred in buying behavior of customer pre- covid

and post covid, as well as their expectations when they visit a store.

Therefore, the scope is limited to textile industry and the shift in consumer
behavior post covid.
 METHODOLOGY

Applied Research
• Applied research refers to scientific study and research that seeks to solve practical
problems. Applied research is used to find solutions to everyday problems, cure
illness, and develop innovative technologies.
• Applied research is designed to answer specific questions aimed at solving
practical problems. New knowledge acquired from applied research has specific
commercial objectives in the form of products, procedures or services.
Fundamental research answers the initial question of how things work.
• Research Methodology A study can be initiated with a proper design and
methodology to bring out the suitable findings which are reliable and applicable to
solve the problems and useful to carry out further research of interest.
• It needs a careful analysis of the consumer through which the results for the
present study can be crystallized for framing suitable solutions. This study was
conducted completely online by communicating to the local consumers online.
• The sample population was the consumers, in the age of 21–35. The questions
were made according to the objectives and purpose of or questionnaire. The
survey was done through social networking sites/online link to consumers living in
different areas to have stability of response.
The questionnaire was heterogeneous and was made according to the pre
covid and the post covid situations and it includes male, female, and people
from different distances, educational status, and occupation and income
group of regular and occasional buyers.

Well-structured questionnaire was framed and used for collection of data

which enables us to know the practical solutions to the problems and meet
our respective objectives.

The consumers were contacted through whatsapp and other social

networking apps.
The questionnaire was shared online to all the targeted age consumers from
different regions of India. Enough time was given to them to think over the
answers for the questions to have reliability of response.

Questions regarding demographic, economic, social, physiographic and

behavioural characteristics of the consumer, consumer‘s awareness, buying
behaviour and preferences for buying apparels in pre covid and post covid
situation were taken as part of the data collection.
 BENEFIT OF THE STUDY

• This pandemic has posed quite a lot of problems for the people &
businesses in every aspect. specially for the fashion industry,
entrepreneurs, traders and others related to or dependent on the
textile and fashion industry,2020 was the year in which everything
changed. As people stopped moving out of their homes, fashion
expenditure constantly decreased and lead to a huge decrease in
sales all over. Not only it declined sales, but also managed to
change the mind set of people regarding expenditure in apparels or
other textile materials.

• With the COVID-19 pandemic changing life as we know it, it is

inevitable that a new normal will emerge which will includes
changes in lifestyle, and consumer mind-sets has also changed. The
aim of the research is to study the change in behaviour of consumer
and how there preferences have changed so that the industry can
take necessary measures.
• The ongoing pandemic is unquestionably a very fertile area of investigation.
Many things about it are uncertain. During our research with a particular
section of the society whom we consider as real time shoppers & keen fashion
absorbers, where men & women aged between 25-38 years, were asked about
their experiences, thoughts and perception about the situation and If things
have changed for them throughout or was there any kind of shift with relation
to pre Covid and post Covid situations, as it is highly significant to know in
what ways the pandemic has influenced the people work, live and adapt.

• And apparently, we observed that people who were used to shop regularly
and spend a huge amount on fashion & clothing before the pandemic have
shifted towards shopping occasionally post Covid & now they are hardly
investing any amount on fashion & clothing considering it to be an
unnecessary expense and in many cases this is the result of decrease in
income also. People now have shifted their preferences towards more
productive goods like laptops, smartphones etc.
With the analysis of the study, the fashion & textile industry, retail brands &
entrepreneurs can work upon and find real solutions for most of their existing
problems and gain their market back. Going online and putting up a store virtually by
making fashion available for the customer at the comfort of their home, is something
preferred by a major section of the society. Hygiene, safety and proper sanitization of
stores and clothes is another thing that no one is ready to compromise upon and this
has become a major issue amongst people for not visiting the store.

Brand stores and e-commerce sites can try on bringing live screen trials to prevent
physical touch of the product and also try on introducing a new affordable line of
fashion merchandise as many people have lost their jobs during the pandemic or have
struggled with their salaries which have eventually made them shift towards products
on affordable side and investing on basics which can be wore in a multiple ways.
 ANALYSIS
• The research is all about trying and finding how the mind-set of people
have changed when it comes to shopping in pre and post COVID times.
Therefore, with the help of questionnaire, data collection has been done
in such a way that we firstly try to recognize how the consumer
preferences got varied pre and post COVID.
• Later we realise that people shifted their shopping ways i.e. from in stores
to online shopping through various e-commerce websites because stores
lacked sanitisation facilities. Not just that but also the consumers who
spent more money on shopping has consequently reduced their budgets.
Which has also been studied by the SPSS crosstabs to analyse the pre and
post COVID responses.
• Moving forward with the questionnaire we wanted to find out if people
are looking to sustainable and affordable fashion in the coming times as
while people have been in complete lockdown during COVID they got
more closer to nature and have been an evidence in environmental issues
and have started considering sustainable fashion as a good choice and to
which a lot of other respondents also reacted positively.
• Also people have been given a choice to put down there views in
the questionnaire at the end as what their preferences would be if
they would visit the stores to shop and mostly people responded
that they would prefer proper sanitisation facilities.
• Also when we asked them if the stores or e-commerce sites should
bring live screen trails to prevent physical touch to the product,
most of them affirmatively reacted to this question.
• Overall we realise that people have already started shopping and
the textile industry is getting back in its toes. The only issue being is
that the people are preferring affordable and sustainable clothing
above all in the new normal and also proper sanitisation facilities
and enough social distancing to keep each one of them safe.
 CONCLUSION
• With the analysis of the study, the fashion & textile industry, retail
brands & entrepreneurs can work upon and find real solutions for
most of their existing problems and gain their market back. Going
online and putting up a store virtually by making fashion available
for the customer at the comfort of their home, is something
preferred by a major section of the society.
• Hygiene, safety and proper sanitization of stores and clothes is
another thing that no one is ready to compromise upon and this
has become a major issue amongst people for not visiting the store.
Brand stores and e-commerce sites can try on bringing live screen
trials to prevent physical touch of the product and also try on
introducing a new affordable line of fashion merchandise as many
people have lost their jobs during the pandemic or have struggled
with their salaries which have eventually made them shift towards
products on affordable side and investing on basics which can be
wore in a multiple ways.
 REFERENCES
• https://www.academia.edu/31614871/Managing_Motivation_in_a_Difficult_Economy
• https://issuu.com/jessica356/docs/organizational-behavior-18th-editio
• https://www.academia.edu/37389546/Managing_motivation_in_a_difficult_economy
• https://www.forbes.com/sites/biancasalonga/2020/04/26/a-peak-into-the-new-mindset-of-fashion-post-
lockdown/
• https://www.academia.edu/31614871/Managing_Motivation_in_a_Difficult_Economy
• https://www.bcg.com/publications/2020/fashion-industry-reset-covid
• https://www.warc.com/newsandopinion/opinion/how-fmcg-brands-can-respond-to-change-after-covid-19/3682
• https://www.shopify.in/blog/the-changing-consumer-behaviour-and-how-fashion-and-apparel-brands-can-
survive-covid-19
• https://www.businessoffashion.com/articles/intelligence/the-new-normal-a-discount-mindset-will-deepen-its-
grip-on-consumers
• https://www.businessoffashion.com/articles/luxury/how-to-connect-with-the-luxury-consumer-post-pandemic
• https://m.economictimes.com/news/economy/indicators/did-diwali-change-indias-slowdown-story-heres-data-to-
help-you-decide/articleshow/71847718.cms
• http://ijbm.info/index.php/ijbm/article/download/1196/903
• https://www.adweek.com/brand-marketing/why-targeting-millennial-consumers-might-not-be-such-a-hot-idea-
after-all/
• http://ijbm.info/index.php/ijbm/article/download/1196/903
• https://theecologist.org/2019/jun/24/how-reduce-waste-fashion-industry
• https://youtu.be/TZPyOJ8tFcI
• http://ijbm.info/index.php/ijbm/article/download/1196/903
 ANNEXURE
NAME :
GENDER :
AGE :
OCCUPATION :

PRE COVID
Q1- How often do you used to shop from organized trend changing brands
(Zara, H&M, Mango etc) ?
Every week
Every month
Quarterly
Occasionally
Q2- Where do you prefer shopping?
Online
In store
Q3- How much are you willing to spend on fashion & clothing monthly ?
Up to 5000
5000-10000
10000-15000
15000 and above
POST COVID

Q1- How often do you shop from organized trend changing brands now (Zara,
H&M, Mango etc) ?
Every week
Every month
Quarterly
Occasionally
Q2- Where do you prefer shopping?
Online
In store
Q3- How much are you willing to spend on fashion & clothing monthly ?
Up to 5000
5000-10000
10000-15000
15000 and above
Q4- Should the stores/ e-commerce sites bring live screen trials to prevent
physical touch to the product?
Yes, that will be very helpful
No, it won’t be of any use
Not sure if it will be of any help
Q1- Does it matter to you that how the product is made/ the story behind it?
(sustainable approach of brand in making of the product)
Yes, a lot
Yes, sometimes
No
Never thought of it
Q2- What are the concerns that are restricting you to buy fashion ?
Unnecessary expense
Shift towards more productive goods like laptops, smartphones etc.
Decrease in income
Lack of proper sanitization facilities in store
Q3- In the Covid era, before shopping for clothes/textiles do you have certain
expectations when you visit the stores to shop