In data: Inflation pushes UK consumers toward cheaper apparel
4-7-2024
IN DATA: INFLATION PUSHES UK CONSUMERS TOWARD CHEAPER APPAREL
A new consumer survey
by GlobalData suggests inflationary pressure is causing increased polarisation
in the UK apparel market. In the past year, 22% of consumers have traded down to
cheaper apparel, while 66.4% are still shopping with their usual brands and
retailers. Only 11.6% of UK
consumers have traded up to more expensive apparel brands, although for
consumers under 35 this rises to 22.1%. GlobalData surveyed 2,000 UK consumers
in June 2024 who had purchased clothing, footwear and/or accessories in the
past 12 months for the analysis.
Just 6.8% of those aged over 35 traded up to more expensive brands and retailers, although GlobalData noted that younger consumers, who tend to opt for cheaper brands, have greater scope to trade up than older demographics.
Amongst UK consumers over 55, who tend to be less impacted by inflationary pressures, 81.5% continued to shop with the same brands and retailers over the past 12 months. However, GlobalData pointed out this demographic is underserved, leaving them less choice of brands to switch to.
How UK consumers’ apparel purchasing habits changed over the past 12 months by age
Source: GlobalData
The most common reason consumers gave for trading down to cheaper apparel brands was a desire to save money with 75.8% of those trading down citing this motivation. Over a third (35%) of those trading down said it was due to a reduction in their disposable income, demonstrating the impact of inflation on fashion budgets. 15% of consumers were reducing their fashion budgets so they could prioritise spending elsewhere.
The increased choice offered by cheaper retailers and brands was also a factor with 14.9% trading down to get more variety. GlobalData suggested the rise of ultra-fast fashion giant Shein, which lists thousands of new products each day, would have boosted these numbers.
However, there was also a trend for better quality and longer lasting products with 37.6% of shoppers at more expensive brands looking to reduce the cost-per-wear of garments and 21.2% looking for ‘wardrobe staples’.
GlobalData said even value and mass market apparel brands can capitalise on this trend, citing British retailer M&S’ successful capsule collection and George at supermarket Asda’s premium clothing range, which was introduced in October 2023.
In 2025, GlobalData expects 70.5% of consumers to stick with the same brands with fewer consumers choosing to trade down and slightly more choosing to trade up, as inflation starts to ease in the UK.
Consumers aged between 25 and 34 are more likely to trade up than down next year as the trend for capsule wardrobes gains traction on social media.
By Just Style
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