Can you believe 2023 is over?
And although 2024 has only just begun, fashion retailers should be prepared with strategies to engage consumers who have been pulling back on spending coming out of a good amount of holiday shopping.
Experts believe retailers will need a combination of good marketing ideas, tech, and a consistent level of quality to survive the year.
Quality is king: While costs are rising whether it’s for the customer or the retailer, whether they’re affordable, mid-tier or high-end, one rule is applicable for all: Don’t compromise on quality.
“As wallets tighten, consumers are pivoting toward value-driven purchases,” Benjamin Bond, principal in the consumer practice of Kearney, told Retail Brew. “Retailers like Uniqlo, which offer high-quality yet affordable products, are likely to capture the market's heart in these challenging economic times.”
Don’t be shy about AI: Of course, maintaining a level of quality while keeping costs low doesn’t come easy. Bond also recommends not being afraid to ask for help, whether it’s from your team or, you know, the computer on your desk. “The future of fashion retail lies in AI’s hands,” he said. “Expect a new standard in shopping experience relevance as retailers harness generative AI for ultra-personalized style recommendations. This isn’t just about selling clothes; it’s about curating a unique style narrative for each consumer.”
Ellyn Briggs, brands analyst at Morning Consult, agreed, pointing to recent research by the intelligence group that found that consumer interest in AI purchasing consideration for applications like ChatGPT was up. “The way that it plays out from a brand and marketing perspective is that it is incorporated into advertisements and copy generating images, being able to personalize ads to a hyper sort of level,” she told Retail Brew, adding that while it is important in shaping shopping experiences, “brands must not forget that customers still value the role of human interaction.”
Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
“Our data shows that its consumers are still far more trusting and responsive to human influencers or human marketers whether that’s an ad or to online influencers than AI spokespeople or AI applications,” she said. “It’s a mixed developing area, obviously.”
Cheap, but not easy: Another key area that analysts recommend brands pay attention to is discounting strategy. While customers, of course, love a great deal, it’s important that retailers, especially luxury ones, do not go down a discounting rabbit hole, Claire Tassin, retail and e-commerce analyst at Morning Consult, told Retail Brew.
“We were talking about Black Friday in July. It feels like it’s never-ending. My inboxes are completely inundated, more so than usual with discount offers from retailers,” she said. “Pulling out of that discount spiral is also really necessary, especially for those mid- and higher-tier brands. I know luxury doesn’t discount, obviously, as much as a mid-tier, but getting away from everything’s about price constantly is going to be necessary, especially as inflation is moderating.”
Lastly, whatever you want to do as a brand to compete for customer attention, it’s important that you do so while maintaining a level of transparency. Buzzy fast-fashion brands have been rewriting many of retail’s rules. Bond recommends that “traditional brands must up their game in ethical transparency. It’s not just about the product anymore; it’s about the story and ethics behind it. Consumers now hold the magnifying glass to supply chains, demanding clarity and conscience.”