current
Value-Driven Consumption
Economic pressures and rising prices are making consumers more cost-conscious, leading to a prioritization of value in fashion purchases.
Timeframe
near-term
Subcategories
Impact areas
Detailed Analysis
Macroeconomic uncertainty and inflationary pressures are impacting consumer spending habits, with shoppers seeking value for their money. "Macroeconomic pressures and rising prices have driven fashion shoppers to adopt cost-conscious behaviours." This is driving growth in segments like resale, off-price, and dupes, as consumers look for affordable alternatives. "This dynamic is fuelling growth in segments with strong value-for-money perception, such as resale, off-price and dupes, among others." Brands need to demonstrate the value of their products and services to capture consumer spending. "To capture customers’ share of wallet, brands will need to prove their value." This includes emphasizing quality, durability, craftsmanship, or offering competitive pricing and promotions. "70% of consumers plan to continue shopping from outlets or off-price retailers in the next 12 months, even if they have more money to spend."
Context Signals
High inflation and economic uncertainty
Growth of resale and off-price markets
Rise of "dupe" culture
Edge
Brands may explore new pricing models and subscription services to offer value and affordability.
Transparency and ethical sourcing could become more important as consumers scrutinize brand practices.
The focus on value could drive innovation in materials and manufacturing processes to reduce costs without compromising quality.
