The fashion industry is experiencing an unprecedented crisis of trust. Brands that once enjoyed blind loyalty now face a scenario in which consumers have become increasingly sceptical and demanding. According to a recent Business of Fashion report called The State of Fashion 2025: Challenges at every turn by McKinsey & Company, trust in brands reached its lowest point in more than 20 years, hitting alarming figures in 2022 in the US, Europe and China, with an even sharper drop during the summer of 2024.
This phenomenon is not merely anecdotal: it translates directly into shopping habits, with more than 40% of consumers in key markets such as the US, UK and Germany decreasing their spending on clothing, footwear and accessories in the first half of 2024. According to McKinsey in its report, lack of confidence and propensity to spend represent the biggest risks to growth in the sector.
This shift not only reflects a reduced willingness to spend, but a profound change in priorities. More than 60% of consumers surveyed admitted that they ‘try to save on fashion whenever or wherever they can’, with this percentage reaching 75% in the US and even surpassing 80% by 2025. While inflation has played a role, the cause is more complex: consumers are no longer willing to pay exorbitant prices for products that offer no clear value. Fashion is now eclipsed by a need for more: experiences, authenticity and real quality.
From fashion to experiences: the shift to the intangible
What stands out in this shift is that even the affluent are reorienting their spending. According to BoF, in 2024, consumers will prefer to invest in experiences and travel rather than fashion. In fact, in the third quarter of 2024, the category that experienced the greatest growth in spending was food, followed by travel, with fashion taking a back seat. This shift reflects a perceived value relationship: people are looking for quality, authenticity and enriching experiences, something they do not always find in high-priced fashion products.
This shift in priorities is driving the rise of off-price retailers. According to McKinsey, these retailers have managed to increase revenues and improve profitability, despite the difficulties of the overall market, registering a weighted increase of 4.6%, compared to 2.6% for listed companies. This underlines consumers’ preference for good quality products at more affordable prices, a trend that only adds to the pressure on traditional brands.
The second-hand market: the silent revolution
However, the second-hand market is emerging as the real player in this crisis of confidence. According to Business of Fashion, by 2025, second-hand sales will account for 10% of the global fashion market, with a compound annual growth rate of 12%, reaching $350 billion by 2028. The reason behind this boom? Value for money, which consumers increasingly appreciate. According to a report by Vinted, nearly 48% of shoppers opt for second-hand items because of their lower prices, without compromising on quality. 84% of consumers say that the quality of second-hand products is comparable, or even superior, to that of new items.
In addition, the growing presence of resale platforms and the ‘dupe’ culture (cheap copies of luxury goods) reinforce this trend. On TikTok, the hashtag #dupe has reached almost 6 billion views, reflecting a fascination with inexpensive alternatives to luxury brands. It’s not just a youth trend: a third of US adults have admitted to intentionally buying a counterfeit, with 11% buying at least one every two months. Seventeen percent of these consumers consider dupes to be a valid alternative, even when they have the financial ability to purchase the original product.
How should brands adapt?
Faced with this new reality, brands must rethink their communication strategy and offer. What today’s consumers value above all else is quality, affordability and sustainability. Companies that understand these pillars will be able to regain lost trust and, in the process, win the loyalty of a new generation of much more demanding shoppers. In addition, it is imperative that brands communicate their values clearly and authentically, using social media and influencer-generated content as key channels to connect with their audience.
Retail outlets and resale platforms also play a crucial role in this strategic fit. These not only allow them to appeal to price-conscious consumers, but also provide the opportunity to control the quality of second-hand products. Durability and the ethical origin of the materials used are becoming essential elements to reinforce the positive perception of brands.
In conclusion, the fashion market is facing a turning point: with consumers becoming more informed, demanding and cautious in their purchasing decisions, brands will need to adapt to stay relevant. Investing in quality, being transparent about sustainability and offering accessible products are key steps towards regaining consumer trust. This is the only way to revive a market that is going through uncertain times and, at the same time, take advantage of the growth of new opportunities such as second-hand and low-cost alternatives.
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