Fashion as investment: Has shopping lost its magic?

London - Will you buy your winter coat today? That is precisely the question retailers, analysts, brands and anyone invested in the newly disrupted fashion season is hoping to answer.

From the latest figures on the UK high street and beyond, it appears shoppers are spending less money on clothing. Retail may not have slumped, but sales of fashion and accessories have declined, a full 4 percent in August, with retailers scratching their heads at how to entice consumers to visit their stores, and spend.

To comprehend just how challenging the retail market is, here are some numbers to ponder over: in July Marks & Spencer announced its sharpest quarterly decline in over a decade, resulting in 'a restructuring' of the company and significant job losses; John Lewis, usually a stalwart of the high street with dependable sales figures, posted a 75 percent drop in half year profits; Primark last week reported it saw a drop in same-store sales for the first time in 16 years. And the list goes on.

Has fashion lost its magic?

Why? Has fashion lost its magic? It appears that on a hot sunny day in September, there aren't many shoppers inclined to buy their winter coat. Not in the UK, not in the US, not in France. Perhaps a decade ago, when there was no 'see now, buy now', when there were less brands, less options, less images screaming at us on social media, there was greater interest.

There used to be a time when - however loosely editors and fashionistas discussed 'investment pieces' for the season - that a degree of integrity and desirability made customers want to indeed go and invest in that special item; that big wooly designer coat we bought in August, or the bag which cost the equivalent of a month's salary and saw said owner dine weeks-long on pasta pesto. Back then there was no regret to investing in clothes.

“Consumers are switching their spending away from apparel to an extent we have never seen before,” Geoff Ruddell, retail analyst at Morgan Stanley told the Financial Times. “The fact that volumes have gone into decline for the first time in more than 20 years is remarkable.”

The retail landscape is one of constant disruption

According to research from Deloitte: "We are living in a volatile, uncertain, complex, and ambiguous world of constant disruption - and the rate of change is accelerating. Social, technological, environmental, political, and economic trends have converged to create disruptive threats that are shaping consumer behavior and preferences, including how, when, and where they make purchases - which is now “everywhere and on every device.”

There appears to be no easy answer, other than brands adapting to the new millennials, doing their utmost to sprinkle a little fairy dust magic every season. Burberry, Tom Ford and Tommy Hilfiger opted for the see now, buy now model this month. At Milan Fashion Week Gucci hopes to continue to draw in consumers with its luxury take on geek chic fashion. Prada is focusing on accessories and what many editors said is a 'return to form.' Versace is foregoing its usual molto sexy glamour of red carpet dressing for something more sporty and accessible. The power of disruption can be seen everywhere, with brands taking steps - and risks - to sustain sales and at the same time grow their businesses.

US-based retail expert Doug Stephens earlier this year wrote on his The Retail Prophet blog: "Today's retailers face a tsunami of problems but none, in my opinion is more deadly than the pandemic of sheer consumer boredom that shoppers are being subjected to. Most retail is just painfully boring. In fact, the majority of store chains, malls and shopping centers have become beacons of boredom, monuments to mediocrity and havens of ho hum."

Across the pond retailers such as Gap, Macy's, J Crew, American Apparel and Banana Republic are facing similar issues. Either retailers are not fulling a consumer's needs to go shopping, or consumers appear to have different needs.

We can learn from the past

Deloitte, in its research on retail disruption noted: "In hindsight, it’s easy to see the disruptive signals that toppled many leading retailers. But in reality, these signals were often faint and hard to spot. And few companies even knew to look for them. Strategic risks can attack the basis of your competitive advantage, undermining your ability to sustain exceptional performance. Without historical precedent, strategic risks are immune to traditional risk management methods."

Whether it is just down to risk management or charting a new course in retail altogether, consumers need a reason to invest in fashion.

Photo credit: John Lewis official Facebook page