Consumer data tracker, PSFK Research, has analysed sustainable models and solutions to assist retailers as brands face unprecedented challenges in 2020.
Due to the toll Covid-19 is taking on the fashion industry, fashion brands and retailers are placing new value on accessibility, circularity and efficiency. Sustainability is at the focal point of many retailers as the resale market is projected to increase from 7 billion dollars in 2019 to 36 billion dollars by 2024, according to PSFK Research.
E-commerce has become significantly more vital to the survival of brands as those without an online presence are experiencing a decline in accessibility. A perfect example of this is Zara owner, Inditex, who is reportedly investing 1 billion dollars between now and 2022 in its ecommerce operations, as a result of its surge in online sales during lockdown.
PSFK Research investigated new forms of customer acquisition to help retailers and brands predict what their demand will be, in ways such as digital transformation, virtual and user-generated marketing, business models and connected logistics: six trends stuck out to them.
Six trends which outline business practices and models
Alternative distribution models are methods in which existing services offer customers new packages. For example, invite-only emarketplace, Italic Black, works by bringing manufacturers and consumers together to offer its members access to unbranded luxury goods at wholesale prices.
Retailers are using co-created content between the brand and their ambassador to make use of both existing fan bases and communities to launch campaigns and collections. Size-inclusive fashion brand, Eloquii, collaborated with influencers to model the retailer’s clothing from their home which gave them creative independence and original content for the brand.
Technology providers are partnering with retailers to create internal solutions in order to achieve a greater knowledge of their inventory, this is called connecting inventory. Fashion outlet, Otrium, sells end-of-season clothing from other brands that would otherwise have to dispose of them.
Fit-tech creates an enhanced shopping experience by reducing the rate of size-related returns. Reality tech company, Vertebrae, develops virtual tools intended for users to try on products such as hats, jewellery and sunglasses.
Rotating closets is a movement that is becoming increasingly popular as consumers still want the excitement of new clothing, but without the commitment of wanting it forever. An Irish rental platform, Nuw, is a clothes-sharing app that is taking full advantage of this trend for a savings-focused consumer.
Virtual runways are becoming the new normal, even before the pandemic, as the traditional fashion show was in a state of confusion about where to go next. Wholesale platform, Joor, came up with Passport which is a virtual tradeshow portal where buyers and retailers can browse and place orders.
Photo credit: PSFK, Facebook