New data from UK brand advocacy firm Mention Me reveals that consumers are shifting their focus from quantity to quality amidst the current cost-of-living crisis. The firm’s analysis of 500 brands shows that higher-priced items are outselling fast fashion, indicating a change in consumer sentiment.
In Q1 2023, the fashion industry experienced a 2% decline in sales compared to the previous year. However, the average order volume increased by 8%, driven by a preference for higher-priced labels. The study, which examined 20 million transactions between 2022 and 2023, found that fashion brands with a higher price point saw a 6% growth in orders year on year, outperforming fast fashion.
Notably, fashion had a higher repeat purchase rate than any other sector, with 11% of consumers making a second purchase within 30 days. Referrals from friends and family also increased by 16% year on year, highlighting the growing influence of recommendations on consumer purchasing decisions. Advocates shared recommendations with friends at an increased rate, rising from 5.9% to 7.3%.
Brand advocacy plays a significant role in the fashion sector, as advocates tend to bring in customers who spend more than non-advocates. The best-performing sub-categories within fashion were fashion accessories and footwear, which experienced a year-on-year growth of 70% and a 260% increase in orders driven by referrals. This was followed by positive growth in menswear and womenswear.
Simon Dring, COO of Mention Me, emphasized the potential for brands to leverage the power of advocates in the fashion industry. With friends often complimenting each other on outfits, brand information and referrals are frequently shared. Referred customers tend to spend more and make repeat purchases, offering brands an opportunity to cultivate a valuable customer base.
The data also indicates a shift in consumer sentiment towards prioritizing quality over quantity. Concerns about the sustainability of fast fashion and the cost-of-living crisis are driving consumers to choose fewer, higher-quality clothing items that offer longer durability.
Ben Henshall, Data Analyst at Mention Me, made an interesting observation that fashion experiences an increase in order numbers at the beginning of the year, similar to the peak in holiday bookings in January and February and the heightened demand for financial services leading up to the April tax deadline.
Overall, the data suggests that higher-priced clothes are proving to be more resilient in the current market than fast fashion. As consumers increasingly value quality and rely on recommendations from advocates, fashion brands have an opportunity to cultivate strong customer relationships and thrive in this evolving landscape.
For more information on brand advocacy and its impact on the fashion industry, check out these useful resources:
1. Retail Customer Experience – This website provides insights and news on various aspects of the retail industry, including customer experience and brand advocacy.
2. Business of Fashion – A leading platform for the fashion industry, Business of Fashion offers in-depth analysis and articles covering a wide range of topics, including trends, consumer behavior, and brand strategies.
