Specialised e-commerce platform Centra conducted a survey of 1,000 UK consumers and found that consumer loyalty also includes engagement through checking out new products, consuming branded content and following brands on social media, with the aim of resuming purchases once their financial situation improves.
Centra’s data shows that the ongoing cost of living crisis has impacted consumer behavior, with 64% of respondents saying they have purchased fewer fashion and lifestyle products.
In the “The clothing market in Great Britain until 2028”, In 2024, the market is expected to slow further, growing by just 0.3% to £60.9 billion, as consumers remain cautious with their money. However, demand is expected to pick up in the second half of the year as the economy recovers.
To adapt to financial difficulties, according to Centra, 25% of shoppers are turning to used or second-hand items, while another 25% are opting for cheaper items or accessories to update their wardrobe.
GlobalData found that 45.9% of consumers intend to buy second-hand clothing in the 12 months to June 2023, 39.7% would consider buying clothing in the future and 17.8% would buy used shoes.
However, the study shows that lower spending does not automatically lead to brand abandonment. In fact, 53% of consumers remain loyal to their favorite brands even when they are not actively shopping.
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By GlobalData
This trend is particularly pronounced among the Millennial generation: 29% of them continue to express brand loyalty despite spending less frequently.
Looking ahead, consumers have clear priorities for future fashion purchases as their financial situation improves. Topping their list are coats or jackets (40%), jeans (37%), formal shoes (25%), sportswear (23%) and watches or jewelry (22%).
Martin Jensen, CEO of Centra, commented: “The data clearly shows how important brand equity is to customer loyalty. UK brands must continue to focus on nurturing their existing customers to ensure they start spending again as the economy recovers – and that means investing in customer retention.”
“Fashion and lifestyle brands need to work with a specialized e-commerce platform partner that provides the core functionality out of the box to build a store that best meets the needs of a brand and its customers. This allows the company to focus on all the elements – from product design to branded content to customer experience – that reinforce the unique brand experience to drive long-term loyalty and ultimately revenue when economic conditions improve.”
A recent report from advertising platform Cardlytics found that 64% of UK consumers are increasingly prioritising affordability over brand loyalty in their shopping habits.
