Changes in market organisation due to exogenous shocks – the case of the transformation of the Swedish fashion industry caused by the COVID-19 pandemic

ABSTRACT This study aims to provide insights into the transformation of retail caused by the COVID-19 pandemic, using the Swedish fashion industry as an example. In an institutional perspective, combined with Actor-network theory, both new actors and the changing role of existing ones were identified as influencing how the market was organised. An empirical field study of the Swedish fashion industry has illustrated the changes caused to retail by the outbreak of COVID-19, and the subsequent actions taken to limit its spread. Interviews with and observations of retailers’ actions contributed to a more in-depth understanding of the changes caused to retail. The study finds that the market was subject to two exogenous shocks: Firstly, that a non-human actor, i.e. the COVID-19 virus, influenced the Swedish fashion market in combination with humans and secondly, that new actors entered the market and influenced its organisation. This has led to a situation where digitalisation has accelerated and experience design has stagnated, and there has also been a re-definition of sustainability. Using an institutional perspective, combined with thick descriptions of the empirical material, this study challenges the existing narrow understanding, i.e., that the actors in the field are barely tied together as supply chains or networks, by including non-human actors in its analysis. This allows us to gain a greater understanding of how a virus and its antagonists have had a major impact on the organisation of the field, in turn having consequences on the trends prominent in the fashion retail industry before the outbreak of COVID-19.