Conscious consumers a major threat to fashion and footwear retailers
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Conscious consumers pose “the biggest threat to clothing and footwear retailers in 2020” according to research by GlobalData.
When asked about their intentions last month, 19.2 percent of UK consumers said they planned to spend less than average on retail products, according to the survey of 2000 nationally representative shoppers.
“A worrying 48.9 percent of these consumers said they are making a conscious effort to buy less stuff,” said Sofie Willmott, lead retail analyst at GlobalData.
“Although some shoppers will struggle to keep up this mindful mentality past January, the shift away from spending on non-essential retail products is set to continue throughout the year as consumers prioritize spend on holidays, activities and meals out, and especially as sustainability concerns seep into their consciences.
“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. Buying second-hand items or reducing the number of clothing and 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,” said Willmott.
Early signs of a new wave of conscious consumers came with the results of discount-fashion retailer Primark. For the 16 weeks to January 4, Primark recorded a marginal decline in like-for-like sales. Willmott says that suggests volume growth will be difficult for clothing retailers to achieve this year.
“A worrying 48.9 percent of these consumers said they are making a conscious effort to buy less stuff,”
“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 convey the steps they are taking.
A brand’s positive environmental stance must be communicated through aspects that customers can interact with. For example, & Other Stories offers 10 percent off a purchase when you bring back an empty beauty container and H&M has garment collection bins in store 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,” she said.
“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.”
Questions & Answers
Q.What percentage of UK consumers intend to spend less on retail products, according to the research?
What percentage of UK consumers intend to spend less on retail products, according to the research?
The survey found that 19.2 percent of UK consumers said they planned to spend less than average on retail products. Of these, 48.9 percent are making a conscious effort to buy less stuff.
Q.Why do consumers plan to reduce their spending on non-essential retail items?
Why do consumers plan to reduce their spending on non-essential retail items?
Consumers are shifting their focus to spending on holidays, activities, and meals out. Sustainability concerns are also increasingly influencing their decision-making process to buy less.
Q.How can retailers respond to the trend of conscious consumerism?
How can retailers respond to the trend of conscious consumerism?
Retailers should provide transparency in their supply chains and clearly convey the steps they are taking towards sustainability. Communicating a positive environmental stance through customer-interactive aspects is also vital.
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