CONSUMER NEEDS
As shown by the mega trend map, created by the German Future Institute, the sustainability mega trend is addressing customers neo ecological needs and desires. Consumers are increasingly requiring spaces and environments in which they can behave ethically. A key dimension of the sustainability trend is the sharing economy.
The sharing economy specifically addresses consumers’ needs for affordability and self-expression. With regard to the fashion industry, luxury clothing can be bought second hand or rented at a lower cost which addresses consumer desires for less wasteful consumption.
TREND DRIVERS
The sharing economy rising in popularity is a result of short-term triggers and long-term shifts in society. The main long-term shift causing widespread macro change is the greater awareness of the negative impact of the fashion industry on the planet. This increased awareness has led to a shift in consumer preferences, stimulating a greater interest in conscious consumption. This is in part due to greater media coverage, with 35% of consumers more likely to purchase sustainably after watching a documentary about the planet. Environmental protests have also increased awareness, and are driving the trend, with 22% motivated to purchase ethically after seeing protests. The preference shift is challenging the traditional idea of ownership as a display of status, and instead consumers are increasingly valuing access and flexibility. Consequently, the sharing economy is expanding across all industries; particularly amongst the younger generation.
A more recent short-term trigger, which will likely develop into a long-term shift, is the COVID 19 pandemic, which has resulted in economic uncertainty and changing priorities – to high quality and minimalism. 48% of consumers surveyed agreed the uncertainty is preventing purchases they would have committed to before the pandemic. This mindset makes the sharing economy even more attractive, as methods such as renting allow a lower cost and less commitment. Where purchasing is happening, consumers are looking for high quality pieces so they can make infrequent investments, instead of spending little and often.
CONSUMER EXPECTATIONS
The megatrend not only addresses consumers basic needs, but also creates emerging consumer expectations. The focus on flexibility and access had led to the popularised business model of monthly charges for access to a variety of products and services, leading to a so called ‘Netflix generation’. This model has become so normalised there is the expectation that it should be utilised across industries, including the fashion industry. Expectations are resulting in increased pressure from consumers to brands to develop comprehensive sustainability initiatives and create the ethical environment they desire. Consumers want to shop with brands their personal values are aligned with.
INDUSTRY INSPIRATION
The pressure is changing the fashion industry, as brands realise they must create their own sustainable offerings to reduce the threat and satisfy consumers. Brands globally, and at every level of the fashion segmentation pyramid, are expanding into sustainable services and incorporating sustainability into their company strategies.
In the ‘luxury fashion’ segment, Gucci have partnered with The Real Real to launch a preloved Gucci online shop. This helps to normalise luxury second hand options at affordable prices, meeting consumer needs. To further encourage ethical purchasing, a tree will be planted for every item sold.
High street brand Levi’s has entered the fashion rental market with a collaboration with Ganni; offering a capsule collection of upcycled denim that can be rented for up to three weeks. This alternative ownership offering is important as it helps consumers view renting as a positive and viable option, and shows it across all quality levels.
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