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January 21, 2020

Conscious consumers pose the biggest threat to clothing & footwear retailers in 2020

January is a time that intentions are set for the year ahead and although many of these ideals slip away before the end of the month, increasingly conscious and frugal shoppers are likely to keep resolutions to reduce clothing & footwear purchases well into 2020.

By GlobalData Consumer

January is a time that intentions are set for the year ahead and although many of these ideals slip away before the end of the month, increasingly conscious and frugal shoppers are likely to keep resolutions to reduce clothing & footwear purchases well into 2020.

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What are the key consumer trends driving FMCG in 2022?

The consumer landscape has permanently changed since the COVID-19 pandemic began, prompting trends to emerge or accelerate, causing subsequent macro-economic shifts. In order to stay relevant, Consumer Packaged Goods companies must stay abreast of these developments. It is here that GlobalData can offer valuable assistance. Download GlobalData’s Trendsights: Trends to Watch in 2022 report to:
  • Gain insight into the 12 most important trends across the FMCG value chain
  • See the consumer survey data that underpins these insights
  • Learn what early-movers are already doing in terms of NPD and product marketing
Take a look at this report to give yourself the best standing in this developing market.
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When asked about their intentions for January, 19.2% of UK consumers said they planned to spend less than average on retail products (according to GlobalData’s survey of 2,000 nationally representative shoppers conducted in January 2020). Although this is to be expected following increased outlay over Christmas, just 31.4% said this was because they spent too much on retail items in December in comparison to a worrying 48.9% that said they are making a conscious effort to buy less stuff. Some shoppers will struggle to keep up this mindful mentality past January but the shift away from spending on non-essential retail products is set to continue throughout the year as consumers prioritise spend on holidays, activities and meals out, and sustainability concerns seep into their consciences.

Warning signs were evident in Primark’s Q1 results (for the 16 weeks to 4 January 2020) released last week with the largest UK clothing retailer reporting a marginal decline in UK l-f-l sales, indicating that volume growth will be difficult for clothing retailers to achieve in 2020.

With sustainability becoming a bigger consideration for more consumers, the easiest way they can reduce their impact on the environment is by not buying anything new and instead buying second-hand products from charity shops, online marketplaces like Depop and eBay or by renting or swapping. Buying second-hand items or reducing the number of clothing & footwear products they purchase is a win-win for consumers who are focused on spending their disposable income wisely while also acting in a sustainable way, but these shifting shopping habits will not help struggling retailers in what is already a challenging and highly competitive trading landscape.

In order to thrive in testing times, it is vital that retailers provide transparency in their supply chains and although years of building a production process with the main aim of providing fast fashion at accessible prices will be difficult to transform into an environmentally sustainable operation, retailers should clearly communicate the steps they are taking. A brand’s positive environmental stance must be communicated through aspects that customers can interact with, not just through information online and instore (which most shoppers are unlikely to sift through). For example, & Other Stories offers 10% off a purchase when you bring back an empty beauty container and H&M has garment collection bins instore which customers can donate a bag of clothes to and receive a £5 voucher to use at H&M when they spend £25 or more. Sustainable clothing pioneer Reformation has taken it to more of an extreme giving their customers the option to purchase ‘climate credits’ such as a credit for an international flight for £22 which offsets the carbon emissions.

Free Report
img

What are the key consumer trends driving FMCG in 2022?

The consumer landscape has permanently changed since the COVID-19 pandemic began, prompting trends to emerge or accelerate, causing subsequent macro-economic shifts. In order to stay relevant, Consumer Packaged Goods companies must stay abreast of these developments. It is here that GlobalData can offer valuable assistance. Download GlobalData’s Trendsights: Trends to Watch in 2022 report to:
  • Gain insight into the 12 most important trends across the FMCG value chain
  • See the consumer survey data that underpins these insights
  • Learn what early-movers are already doing in terms of NPD and product marketing
Take a look at this report to give yourself the best standing in this developing market.
by GlobalData
Enter your details here to receive your free Report.