The Impact of the Economy on Canadian Fashion: Challenges and Opportunities

The fashion industry is a business model that produces negative externalities for both people and the planet. Statistics from the clothing industry report that it takes an average of 3,781 liters of water to manufacture a pair of jeans - enough to cover a household's water needs for three days. In addition, Canadian consumers are expected to spend 35% of their online shopping budgets on electronic products, while only 11% will go to buying groceries online. Glenn Dixon, owner of Glenn Dixon Design and strategist at Shikatani Lacroix Design, who is an interior designer specializing in retail, commercial and residential design, said that the impact of COVID has been immense on the industry, but also offers opportunities.

The Canadian Arts & Fashion Awards (CAFA), which were created to recognize, celebrate and promote established and emerging talent within Canada's fashion community, had to postpone their annual awards in May. Statistics from the Canadian fashion industry show that 95% of fashion-obsessed people follow fashion trends, 90% have the latest fashion available and 76% give fashion advice to others. The fashion industry in Canada has been severely affected by the economic impact of the prolonged COVID-19 pandemic. Canada has 25,000 retail and wholesale fashion companies, 24,000 of which are fashion and fashion accessories retailers. The total annual turnover of fashion retailers is 28 billion Canadian dollars. The effects on the industry have been very specific to raw materials and what companies are doing.

It is important to consider the real costs of clothing when making purchases. The pandemic has presented both challenges and opportunities for the Canadian fashion industry. By understanding current trends and statistics, businesses can make informed decisions about how to move forward.

The Impact of COVID-19 on Canadian Fashion

The COVID-19 pandemic has had a devastating impact on the Canadian fashion industry. With stores closed for months due to lockdowns and restrictions, many businesses have had to close their doors permanently.

This has resulted in job losses for thousands of people in the industry. In addition, many businesses have had to pivot their operations in order to survive. This has included shifting from traditional brick-and-mortar stores to online stores or offering virtual services such as virtual styling sessions or virtual shopping experiences. The pandemic has also caused a shift in consumer spending habits. With people spending more time at home, there has been an increase in demand for comfortable clothing such as loungewear and athleisure wear. This shift in consumer spending has caused a decrease in demand for more formal clothing such as suits and dresses.

Opportunities for Canadian Fashion Businesses

Despite the challenges posed by the pandemic, there are still opportunities for businesses in the Canadian fashion industry.

By understanding current trends and consumer spending habits, businesses can capitalize on these opportunities. One opportunity is to focus on sustainable fashion. With consumers becoming increasingly aware of environmental issues, there is an increasing demand for sustainable clothing made from eco-friendly materials such as organic cotton or recycled polyester. Another opportunity is to focus on digital marketing strategies such as social media campaigns or influencer marketing. This can help businesses reach new customers and increase brand awareness.


The pandemic has had a significant impact on the Canadian fashion industry. However, by understanding current trends and consumer spending habits, businesses can capitalize on opportunities such as sustainable fashion or digital marketing strategies.

Bentley Wong
Bentley Wong

Lifelong zombie scholar. Devoted social media fan. Avid bacon lover. Hipster-friendly twitter aficionado. Friendly zombie guru. Infuriatingly humble travel geek.

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