Market/Consumer Research (1000 words)
Retail Trends, Market Research and Consumer Reaction to the current Recession
‘More than one shop in every ten has closed within the past nine months, according to findings that show how the diverging fortunes of shopkeepers are shaping high streets.’ -www.business.timesonline.co.uk
The fashion industry connects to a wide range of business opportunities such as apparel, clothing and garments, footwear, home furnishings, textiles and accessories. The industry is built up of many companies and job opportunities such as modelling, fashion designing, retailing, marketing, planning and distribution. There are brands and local sellers too all struggling with their products for survival.
Many big and well-known designers and brands within the fashion industry have announced their bankruptcy. Many other companies are being bought out, taken over or becoming partnered with other surviving businesses in order to help with finance issues, during the current recession.
CONSUMER REACTION TO CURRENT RECESSION:
Fashion is considered a luxury item and for some is a luxury that can be easily cut out of their budget. Apparels and fashion accessories are one of the few things that consumers cut back on in hard times. Lavish spending habits have been replaced by cautious purchasing from consumers.
A lot of today’s consumers are in demand for customised fashion, which suits their own individual lifestyles and needs. In uncertain economic times, designers need to work harder to give the public a reason to spend their money and buy. Customers are looking for affordable clothing that is still on trend and stylish. ‘According to some fashion experts this has forced designers to lose the excess fluff and get back to the meat and potatoes of their lines’. This can be done by making sure the clothes are better fitting, choosing items that they know are popular amongst their customers (such as the best sellers and most commonly bought), as well as designs that focus more on the companies general target customer’s style.
Consumers seem to be taking more time to compare prices in stores and online to get the best and cheapest deals available, they are holding back on the impulse buys, and also seem to be looking in unusual places for these deals. “Designers and retailers need to get the most out of every purchase a customer makes, due to the fact that customers are thinking twice before buying excess pieces”- Amanda Lovell Chair of Fashion at the Arts Institute of New York.
“By making less and offering less, there is a stronger focus on producing items that are known sellers” – Amanda Lovell
RETAIL TRENDS:
All retailers have cut back on the amount they are buying and are being less risky when it comes to investing in new products. This means designers and manufacturers have to work extra hard to create more unique, must have pieces at a recession friendly price. Retailers are concentrating on buying and creating the classic pieces rather than ordering attention grabbing garments/items, as this is key to retaining sales, people are always in need and wanting the basics such as jeans and plain tees. Staying away from these one-off pieces and ‘at risk’ products means that retailers are less likely to fail and make a loss, or loose customers.
While many large retailers are struggling, smaller businesses such as Boutiques are thinking outside the usual circumstances to keep their businesses ahead of the recession, Boutiques are going back to basics with their marketing and visual merchandising techniques, they are taking a local approach to their advertising by hosting more in-store events rather than spending money on traditional methods of advertising.
The worlds top fashion designers are starting to reveal their outfits not just on the catwalks but on the high street, many shoppers are turning to designer equivalents that deliver quality, durability and design but with a cheaper price tag. Collaborations are developing between high street retailers and luxury designers such as Christopher Kane for Topshop as well as Kate Moss being used to bring in customers who are also fans of hers.
Whilst lots of designers are reducing their costs with manufacturers and are setting new trends by having smaller or more reserved shows, a lot have also decided to cut their expenses by using the internet. With some designers launching collections online, and almost every designer having their own website showing off their work by having pictures from catwalks, photo shoots as well as live videos for the public to view and access quicker then ever before. Most websites allow customers to buy online, which helps in these times of trouble to attract a worldwide audience and customer, which may not have been feasible before, and would have cost a huge amount of money. ‘Online fashion has more then trebled over the last five years according to figures released by www.shopsafe.co.uk’. -www.shopsafe.co.uk
MARKET RESEARCH
Companies need to constantly understand and look out for their competitors and what they are doing- their price changes and promotions, this is so that they can quickly react within the market place.
Strong brand identity will also help companies through this tough economical time. The stronger the brands identity the more these businesses will be able to take advantage of their status and will be able to expand themselves nationally and globally with loyal customers standing by.
All designers, fashion companies and any other professional within this industry need to maintain a healthy and good relationship with their customer to establish survival and growth within the recession as well as in normal circumstances. Customer loyalty is key for progression. Consumers will need to be provided with consistent service from the brand, offering this through multiple touch points such as online stores, social commerce sites, blogs, mobile devices and other up and coming technologies. Services with added value such as buying online, return items to stores or free returns online will only help establish this brand loyalty which retailers are so desperate for.
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