A Study of Fashion Retailer’s Crisis Management Strategies Based on the U.S. Market

Abstract

The global fashion industry faces challenges as it steps into 2023, with indications of a slowdown due to macroeconomic factors. This highlights the importance of crisis management strategies, especially for fashion retailers in the U.S. While existing literature delves into the effects of crises on brand equity and trust, there’s a gap concerning U.S. fashion retail. This research seeks to bridge this gap, focusing on the industry’s crisis management against external and internal crises, considering the complex dynamics of consumer expectations and sustainability. The U.S. fashion retail sector’s crisis management is presently disjointed and often short-term, emphasizing immediate damage control over lasting solutions. This approach also suffers from issues like strategy misalignment, failure to anticipate crises, and not learning from past mistakes. This study suggests adopting a holistic strategy centered on foundational values, prioritizing long-term resilience, aligning actions with consumer values, proactively engaging online, and emphasizing continuous adaptability. The research underscores the vital importance of effective crisis management in maintaining brand trust and reputation. Properly addressing these challenges is expected to boost brand equity and consumer loyalty and ensure sustained success in the unpredictable fashion industry.