Analysis on China’s Fast Fashion Industry under Covid-19 Based on the SCP Model

Abstract

The outbreak of Covid-19 causes a great impact on Chinese economy and industries, especially for the fast fashion industry with a large number of brick-and-mortar stores. Many shops are closed because of the pandemic. Therefore, it is meaningful to study the current state of the fast fashion industry during Covid-19 period, so that the effect of Covid-19 on the fast fashion industry can be analyzed and strategic recommendations can be made for the enterprises to overcome the impacts of Covid-19. This paper applies the SCP model to analyze the fast fashion industry in China. Through the analysis, it is concluded that the market structure is oligopoly type III, and the pandemic changes the market structure. The analysis of the market behaviors states that the industry adopts the cost-oriented pricing behavior and the sales channels optimization non-price behavior. The decreasing resource allocation efficiency is shown as a result of the market performance analysis.