Fashion shoppers will choose their preferred brands in the year ahead based on the beliefs and values they seek, not past loyalties.
The Samsung Fashion Institute says consumers’ needs will be increasingly fragmented this year and brands are also expected to carry out sophisticated target strategies.
The institute noted, in the same context, that the nature of the fashion industry is changing from goods to services.
The changes come as consumers seek alternative consumption, shifting away from the traditional way of spending. The prime examples include H&M and Ganni clothing-rental services.
The institute suggested that the industry should work on so-called “narrative branding” to shift its perspective toward consumers. The challenge for the industry will be to provide a reason to purchase from a particular brand and to have consumers continue to love the brand.
“Now, consumers do not choose brands if they do not meet their respective beliefs even if they need them,” said Lim Ji-yeon, director of the Samsung Fashion Institute.
One example of a reason sought by consumers was “sustainable fashion.” In fact, a platform that only collects sustainable fashion brands is continuing to emerge, targeting consumers who think about the environment.
Furthermore, clothing-rental services and other clothing services are gaining popularity as more consumers accept clothing as a concept of sharing, not as a subject of ownership.
“Companies that have failed to respond to the consumer-oriented market structure will not be able to produce results next year,” Lim said, adding this should be a year where companies stay more closely connected to consumers.