5 Big Covid Consequences Questions – And a Few Answers

If we are truly in the post-pandemic era and everyone is trying to pick up their lives from before they were so rudely interrupted, the same goes for companies working to figure out what comes next for their businesses.

As the home textiles industry gathers next week in New York for what kind-of/sort-of/maybe is a market week, it’s a good time to ask some big questions about how the consequences of Covid will play out for the wonderful world of sheets and towels. And notice, we said we had the questions. We certainly don’t have all the answers.

1. WILL THE HOME BUSINESS REBOUND?

The fast answer is yes, the slower response is that it’s not going back to the way it was in 2020 and 2021. Demographic trends guarantee that the housing market will remain strong throughout much of the rest of the decade and that’s good for the companies that furnish all those places to live.

2. WILL COMPANIES GO BACK TO JUST-IN-TIME VS. JUST-IN-CASE?

Again, the quick answer is yes. Decades of business models built on small inventories and rapid replenishment rates combined with short memories will mark a return to old habits. The supply chain will get back in sync with the laws of supply and demand sooner rather than later.

3. WILL PRODUCTION AND SOURCING MIGRATE TO NEW LOCALES?

China will stay the largest supplier of products to America, but its share of market will continue to decline. When Apple says it’s shifting more production to India it’s a harbinger of things to come. Watch for more sourcing in Southeast Asia, Central America and even Africa for home textiles.

4. WILL DOMESTIC MANUFACTURING COME BACK IN A BIGGER WAY?

Bigger is a relative term. Yes, we’ll see more domestic production, but it will remain a small part of the bigger picture. Cut[1]and-sew, digital printing and final manufacturing processes are the most likely returnees, but the days of the giant vertical mills will remain in the rear-view mirror.

5. WILL THE MIX OF FORMATS AT RETAIL REMAIN…WELL, MIXED?

As we’ve seen, reports of the death of physical stores and the dominance of e-commerce proved to be wildly inaccurate. So it will be for the foreseeable future as consumers buy the way they want – and from who they want. And any seller not positioned to address that is doomed.

There are so many variables out there in the marketplace and just as nobody was imagining a pandemic – much less prepared for it – the industry remains subject to change at any given moment. Think how different this market week is from five or 10 years ago…or even one or two years ago.

Stay loose, stay flexible and keep your eyes wide open. See you on Fifth Avenue…somewhere.