Alteration in Consumption Patterns
Yesterday, a roundtable discussion was held at the headquarters of the Spanish Association of the Knitwear Sector (Aegp). The discussion, focused on issues related to the change in consumer behavior in the textile and fashion industry, was hosted by Josep Maria Gali, a professor in the marketing department at Esade.
Dr. Gali explained that consumption in the fashion industry is currently in a state of involution due to a lack of innovation, creativity, and the economic situation. He suggested that to reactivate consumption, fashion companies need to know their customers and understand what they want.
In the big consumption sector, consumers have opted to stop buying brands and bet on acquiring products from white-label brands. This shift, according to Gali, is due to increased income inequality in most Western countries over the last two decades. This increased inequality has made consumers demand more transparency and honesty from brands, as well as lower prices.
Low-cost fashion brands that bet on current design at a low quality have been benefiting from consumers looking for affordable fashion. However, Gali predicts a polarization of segments and the market in the future, with premium brands needing to justify the price of their products through quality to maintain their current sales figures.
Gali advised textile entrepreneurs not to miss any opportunity or option to make their company work. He suggests that companies should start thinking about the future and make plans to know where they want to go. Factors such as the product, the components with which the garments are made, and craftsmanship will return to have importance in the future.
During the economic downturn, a recession in consumption and new consumer behaviors towards big brands have been observed. The only way to break this current market, according to Gali, is a price war. However, he emphasized that the consumer must be stimulated, as they only want to work to save and repress their desire to buy.
The roundtable discussion concluded with Dr. Gali's prediction of a return to quality and craftsmanship in the fashion industry, as well as a need for companies to focus on understanding their customers and meeting their needs to reactivate consumption.
