Detailed Findings:
Consumer Confidence Remains Low:
Consumer confidence indexes in the US, Eurozone, and China hit their lowest levels since 2005 in 2022.
Confidence in China neared record lows again in August 2024.
In the first half of 2024, consumer confidence was 10-30 points below 2019 averages across the Eurozone, US, and China.
Discretionary Spending on Fashion is Low:
Over 40% of shoppers in the US, UK, and Germany are spending less on clothing, footwear, and accessories than a year ago.
Fashion executives rank consumer confidence and appetite to spend as the top risk to growth in the BoF-McKinsey State of Fashion 2025 Executive Survey.
Value-Seeking Behaviors are Prevalent:
Over 60% of consumers in the US and UK are trying to save money on fashion "often" or "as much as possible" (75% in the US).
Value and mid-market shoppers favor outlets/off-price retailers (>33%) and price comparisons (>31%).
Premium shoppers use "buy now, pay later" (16%) and resale platforms (23%).
A greater share of premium shoppers have purchased dupes compared to value and mid-market shoppers.
Value-Seeking Behaviors are Expected to Persist:
Over 80% of shoppers plan to spend the same or less on clothing, footwear, and accessories in 2025.
Even with increased discretionary spending, over 70% say they would continue certain trade-down behaviors in fashion.
Top splurges for US and European customers are eating out, travel, and groceries.
Off-Price and Outlets are Growing:
Off-price retailers (Burlington, Ross, TJX) are expected to grow revenues by 4.6% in 2024, compared to 2.6% for publicly listed fashion companies.
Ross and TJX were among the MGFI Super Winners list for 2023.
Zalando's B2C channel profitability rose 1.4 percentage points and revenue grew by 0.6% in the first half of 2024.
E-commerce off-price brands like BestSecret grew 25% in Q1 2024.
Resale Market is Booming:
The US resale market grew 15x faster than the broader clothing retail sector in 2023.
By 2025, secondhand sales will account for 10% of the global apparel market.
The resale segment is expected to grow at a 12% CAGR to reach $350 billion by 2028.
60% of consumers believe secondhand apparel gives them the most value for money.
ThredUp and Vinted became profitable for the first time in 2023.
65% of Vinted buyers prefer fewer, more expensive, long-lasting items.
Brands like Sandro and Shein are launching their own resale platforms.
"Dupe Mania" is on the Rise:
Nearly one in three US adults have intentionally bought a dupe.
The #dupe hashtag on TikTok has nearly 6 billion views.
11% of UK shoppers buy a dupe at least once every few months.
50% of dupe buyers cite cost savings, while 17% consider dupes great alternatives even if they can afford the original.
Brands like Shein and Quince are leaning into the dupe trend.
Lululemon hosted a pop-up where shoppers could swap dupes for real leggings, with 50% of visitors being new customers.
Key Takeaway: Macroeconomic pressures and shifting consumer priorities have led to a sustained period of value-seeking behavior in the fashion industry. Consumers are trading down, embracing resale and dupes, and prioritizing value for money, regardless of income level. To succeed, brands must clearly communicate their value proposition and adapt to these new shopping patterns.
Main Trend: Value-Driven Consumption
Description of the Trend: Consumers are increasingly focused on maximizing the value they receive from their fashion purchases, seeking out the best deals, considering durability and quality, and exploring alternative channels like resale and dupes. This trend is driven by economic uncertainty and a shift in consumer priorities towards experiences and mindful spending.
Consumer Motivation:
Economic Uncertainty: Concerns about inflation, job security, and the overall economic outlook.
Cost Savings: Desire to stretch budgets further and find the best deals.
Value for Money: Seeking products that offer a good balance of quality, durability, and price.
Sustainability: Growing awareness of the environmental impact of fast fashion, leading some to embrace resale.
What is Driving the Trend:
Inflation and Rising Prices: Increased cost of living is forcing consumers to be more price-conscious.
Economic Slowdown: Concerns about a potential recession are making consumers more cautious about spending.
Growth of Resale and Off-Price: Increased availability and acceptance of alternative shopping channels.
Social Media Influence: Platforms like TikTok are popularizing dupes and value-seeking behaviors.
Motivation Beyond the Trend: A desire for financial security, a sense of making smart purchasing decisions, and a growing awareness of the impact of consumption choices on personal finances and the environment.
People the Article is Referring To: Fashion consumers across various income levels (value, mid-market, and premium), with a particular focus on US, UK, and European shoppers. Also, fashion industry executives.
Description of Consumers: The article refers to a broad range of fashion consumers, from value-conscious shoppers seeking the best deals to premium customers who are also exhibiting value-seeking behaviors like using resale or buying dupes. They are influenced by macroeconomic conditions, social media trends, and a growing awareness of sustainability. The article does not specify an age bracket.
Conclusions:
Value-seeking behavior is deeply ingrained and likely to persist even as economic conditions improve.
Off-price, resale, and dupes are gaining significant traction and reshaping the fashion landscape.
Brands need to clearly communicate their value proposition and adapt to evolving consumer preferences to succeed.
Implications for Brands:
Must demonstrate the value of their products, whether through quality, durability, or competitive pricing.
Consider incorporating off-price, resale, or rental options into their business models.
Acknowledge and potentially leverage the dupe trend in marketing or product development.
Communicate value effectively through targeted marketing and non-traditional channels.
Implications for Society:
Potential slowdown in fast fashion consumption and a shift towards more sustainable options like resale.
Normalization of value-seeking behaviors across income levels.
Increased demand for transparency and authenticity from brands.
Implications for Consumers:
More options for finding affordable and value-driven fashion.
Greater access to premium and luxury goods through resale and dupes.
Increased awareness of the value and impact of their purchasing decisions.
Implication for Future:
Brands will continue to adapt to consumer demands for value
Technology will make it easier for consumers to find deals on clothes
Consumer Trend (Detailed Description): Strategic Spending: Consumers are becoming more strategic and discerning in their fashion purchases, carefully evaluating their options, seeking out deals, and prioritizing value for money. They are willing to trade down, explore alternative channels, and invest in fewer, higher-quality items.
Consumer Sub Trend (Detailed Description): Dupe Acceptance: A growing acceptance and even embrace of "dupes" as legitimate alternatives to higher-priced originals, driven by cost savings, social media trends, and a perception that dupes can offer comparable quality and style.
Big Social Trend (Detailed Description): Mindful Consumption: A broader shift towards more conscious and intentional consumption, where consumers consider the ethical, environmental, and financial implications of their purchasing decisions.
Local Trend (Detailed Description): The article highlights specific examples of US and UK consumer behavior, indicating potential regional variations in how value-seeking behaviors manifest. For example, 64% of US shoppers are trading down, and the US resale market is growing rapidly.
Worldwide Social Trend (Detailed Description): Economic Prudence: A global trend towards more cautious and prudent spending habits, driven by economic uncertainties, inflation, and concerns about financial stability.
Name of the Big Trend Implied by Article: Value-Centric Reorientation
Name of Big Social Trend Implied by Article: Conscious Consumerism
Social Drive (Detailed Description): Financial Security: Consumers are driven by a desire for financial security and stability, leading them to prioritize value, seek out deals, and make more informed purchasing decisions.
Learnings for Companies to Use in 2025:
Understand the diverse ways in which consumers define "value."
Recognize that value-seeking behaviors are prevalent across all income levels.
Acknowledge the growing importance of off-price, resale, and dupes.
Clearly communicate their value proposition to consumers.
Adapt to evolving consumer preferences and shopping habits.
Strategy Recommendations for Companies to Follow in 2025:
Value Proposition Clarity: Clearly define and communicate the value offered by their products, whether it's quality, durability, price, or a combination thereof.
Channel Diversification: Explore off-price, outlet, resale, and rental models to reach value-minded shoppers.
Dupe Strategy: Decide whether to embrace, ignore, or combat the dupe trend, and develop a strategy accordingly.
Marketing Transparency: Use authentic and transparent messaging to build trust with consumers.
Data-Driven Insights: Utilize data to understand consumer preferences and tailor offerings accordingly.
Final Sentence (Key Concept): The fashion industry in 2025 will be shaped by Value-Driven Consumption, Strategic Spending, and Dupe Acceptance within a broader context of Value-Centric Reorientation and Conscious Consumerism, requiring brands to prioritize Financial Security by demonstrating value, adapting to new channels, and communicating transparently to meet the evolving needs of a more discerning and cost-conscious consumer.
What Brands & Companies Should Do in 2025 to Benefit from the Trend and How to Do It:
Brands should capitalize on Value-Driven Consumption by:
Highlighting Quality and Durability: Emphasize the craftsmanship, materials, and longevity of their products to justify the price.
Offering Competitive Pricing: Ensure prices are aligned with perceived value and consider offering discounts or promotions strategically.
Developing Value-Focused Lines: Create more affordable product lines or capsule collections that cater to budget-conscious shoppers.
Exploring Resale and Rental: Launch their own resale platforms or partner with existing ones to offer more sustainable and affordable options.
Communicating Value Transparently: Be upfront about pricing, materials, and production processes to build trust with consumers.
Final Note:
By implementing these strategies, brands can successfully take advantage of Value-Driven Consumption, Strategic Spending, and Dupe Acceptance. They can market to consumers who are looking for a value-based, quality-focused, and potentially more sustainable fashion experience and are interested in financial security, cost savings, and mindful consumption. They can be a part of the Value-Centric Reorientation trend by adapting to the changing retail landscape and demonstrating a commitment to meeting the evolving needs of a more discerning and value-conscious consumer base, ultimately seeking to align with the broader movement of Conscious Consumerism driven by a desire for Financial Security.
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