The COVID-19 pandemic is hitting smaller running brands harder, and 40 percent of all running brands “don’t think they will survive” if the crisis stretches into the third quarter and beyond. These are among the findings in the Running Industry Association’s COVID-19 Brand Survey where 28 footwear, apparel or accessory respondents, all RIA members, participated anonymously.
Ten other key findings in the 16-page brand study:
- 90 percent of the brands surveyed expect sell-in rates to be negatively impacted by COVID-19.
- 80 percent are using or partnering with e-commerce platforms like Locally or Fitted to support retailers.
- 81 percent remain open for shipping.
- Nearly 24 percent will “slow down” the supply chain until current inventory is cleared if there are a high level of cancellations.
- 43 percent are currently experiencing supply chain disruptions; 48 percent anticipate them in the coming months.
- 33 percent do not anticipate any changes to planned Q3 product launches; 24 percent expect a 2 to 3 month delay.
- 24 percent will begin showing Spring 2021 products and taking orders in May; another 29 percent in June.
- With 90.5 percent of brand respondents expecting the pandemic to impact the sell-in process, 21 percent will make presentations via video platform; 5 percent via digital or mailed catalog.
- Half of responding brands with over $100 million in FY19 sales projected 81 to 100 percent of retailer invoices will be paid late.
- Nearly 59 percent of brands with under $20 million in FY19 sales projected up to 20 of retailer invoices will turn to bad debt.