Alteration in Consumption Patterns
In a roundtable discussion held at the headquarters of the Spanish Association of the Knitwear Sector (Aegp), Josep Maria Gali, a professor in the marketing department at Esade, highlighted the current state of consumption in the fashion industry.
Gali explained that the economic situation is making it difficult for consumption to pick up, with consumers mainly working to save and repress their desire to buy. To reactivate consumption, Gali suggested that companies should know their customers and their wants, and stimulate them to spend.
According to Gali, the last two decades have seen a significant increase in income inequality in most Western countries, which has affected consumer behaviour. As a result, there is a polarization of market segments, with consumers either opting for affordable, low-cost fashion brands or premium brands that justify their prices through quality.
New consumer behaviours towards big brands have emerged during the economic downturn, with consumers in the mass consumption sector opting for store-brand products instead of branded ones. Gali believes that there is a lack of innovation and creativity in the textile and fashion industry, and that companies should think about the future and make plans to adapt to these changing consumer behaviours.
In addition, consumers are demanding more transparency and honesty from brands, with factors such as the product, the components used in the garments, and craftsmanship regaining importance in the future. Premium brands will have to justify the price of their products through quality to continue growing and maintain current sales figures.
Gali predicts that the only way to break the current market is through a price war, but advises textile entrepreneurs not to miss any opportunity or option. Consumption is currently in a state of involution, according to Gali, and the industry must adapt to survive.
Overall, the roundtable discussion highlighted the challenges facing the fashion industry in the current economic climate, and the need for companies to innovate and adapt to changing consumer behaviours in order to survive and thrive.
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