According to research conducted by True Fit, Gen Z is predicted to be the dominant force in both spending and returns this Black Friday. The study, which surveyed over 1,000 UK consumers, revealed that approximately one in six UK fashion purchases made on this day will be returned. Of all the age groups, Gen Z is anticipated to have the highest return rate, with 25% of their Black Friday fashion buys expected to be sent back. Conversely, millennials are projected to return just over 20% of their purchases.
These findings deliver a blow to the already struggling fashion sector, which is grappling with an oversupply issue. The sector faced challenges due to cool early summer weather, causing difficulties in selling summer merchandise, while unseasonably warm temperatures impacted the sale of autumn goods.
Although Gen Z is the group with the highest return rate, they are also preparing to spend the most during Black Friday. On average, individuals aged 18 to 25 plan to spend £389 on clothing, shoes, and accessories during the discount event. Overall, UK shoppers intend to spend an average of £239 on fashion throughout the Black Friday-Cyber Monday (BFCM) period, and millennials plan to spend even more at an average of £334.
The significance of Black Friday as a shopping event is underscored by data from the Institute of Practitioners in Advertising (IPA). Their research indicates that 51% of UK consumers intend to make purchases during BFCM, with 33% of them allocating up to a quarter of their total festive shopping budget to this period.
The surge in online shopping has made returns more convenient and accessible. However, for the fashion industry, a high rate of returns translates to increased costs and logistics challenges. Retailers will need to develop strategies to mitigate the impact of returns and manage their inventory effectively to avoid exacerbating the issue of oversupply.
In conclusion, True Fit’s research highlights Gen Z as the key demographic to watch this Black Friday. While they are expected to spend the most, they also pose challenges for the fashion industry with their high return rate. Retailers will need to find innovative ways to attract and retain Gen Z customers and devise strategies to handle returns effectively. Black Friday remains a critical period for both consumers and retailers, and it will be interesting to observe how the industry adapts to the changing dynamics of this high-stakes shopping event.
Useful links:
1. True Fit: True Fit’s AI platform helps consumers and retailers find the perfect size and fit, providing valuable insights into consumer behavior.
2. Institute of Practitioners in Advertising (IPA): The IPA offers research and resources on advertising and marketing trends, including data on consumer behavior during shopping events like Black Friday.
