How will COVID-19 change consumer behaviour within the fashion industry?

WHAT WILL CHANGE

Amid COVID-19…?

The COVID-19 outbreak saw people flock to supermarkets panic buying essentials; rice, pasta, flour and toilet paper were just a few of the products that flew off the shelves faster than the stores could restock.

It's no surprise then that supermarket sales rose by a staggering 20.6%.

For the fashion industry however, it's a completely different story.

Towards the end of March, the government ordered all UK shops selling non-essential goods to close. Which meant fashion retail stores had to shut (… and yes that did include Sports Direct, sorry to anyone who cannot stay "fit and healthy" without new sports gear...).

Despite physical stores closing, the online world remained open.  So with the closure of physical stores, you'd expect to see consumers switch their shopping habits from in-store to online... right?

Well comparing the performance of 271 eCommerce merchants before and after stores shut, Nosto found that revenues have actually fallen by more than 30% for online fashion retailers in both the US and Europe.

Fashion consumers shop for various reasons…

These include satisfying a material need or just simply for pleasure; the search itself being more significant than its objective (as in Kavafy’s Ithaka) Much like indulging in a bubble bath primarily for the pleasure and relaxation rather than need for cleansing. Where shopping for the sake of shopping is less about the object and more about the motivations associated with the experiencing the sheer pleasure of shopping.

Those consumers that shop for utilitarian reasons, in the physical world, typically make a fast shopping trip (in and out) those shopping for hedonistic reasons enjoy being immersed in the fit, feel and even smell, not to mention the social interaction of the whole shopping experience. So psychologists could argue that for the hedonists’ deprivation of the real, physical and tangible fashion shopping experience, is irreplaceable.

So what’s next?

A worldwide recession is a strong possibility, hopefully giving rise to a more caring and inclusive society. Consumer decision making may well become more of an ethical decision. There may be a switch of emphasis from "what you wear" to "who you are”.

The fashion world may choose the virtual highway and some brands may abandon the high street altogether, cutting overheads by closing down bricks and mortar shops.

Everything points to an acceleration, of the changeover to online fashion consumer buying as the predominant norm.

In fact, in Nosto’s report, it was found that even though fashion revenues had fallen by 30% online, traffic stayed the same. This shows that consumers are actually browsing for fashion.

That’s why brands must digitalise their whole shopping experience using new technologies to provide personalised experiences to their consumers. Those hedonistic shoppers, who shopped for the experience, will continue browsing online. Those consumers who find that they are savouring the online shopping experience may very well then proceed to purchase.

Despite the likely recession, consumers will indulge in purchases which make them feel better. Purchases which sync with their personal values whether they are health and well-being or superior quality. So it’s imperative that brands provide comforting experiences to consumers, with emotional value, with more spend, on sustainable brands that reflect consumers’ own values and beliefs, rather than emphasising status or affluence in itself.

As word of mouth through social media continues to drive purchasing decisions, with a 70% increase in time spent on social media and a 76% increase in social media ad engagement; it’s the best time for brands to re-think how they serve the needs of affluent consumers by creating engaging online content to inspire and entice consumers.

Influencers are experts at creating content remotely, they have an influence over brands’ target markets and can engage consumers faster and better than brands can. Right now is the best time to make full use of such content creators.

Why?

Because influencers are seeing a 20 to 50% increase in their engagement.

Brand deals for most influencers have been put on hold. Simultaneously most followers’ intimate and non-intimate physical human interactions have been limited by the imposition distancing measures, (social distancing), diminishing the distinction between their real and virtual friends. Moreover, Influencers have used the lockdown to get real, forming closer contacts with their followers by providing more real-life unedited versions of their life and workouts; refreshing their look so as to stand out online. Brands now have the opportunity to move beyond basic dressing/ product placement collaborations to interactive collaboration with influencers.

Brands who have already established and developed relationships with influencers and built upon them early on have a huge advantage, but for those who haven’t, it’s recommended that they should get started now before they fall too far behind to catch up with the competition.