Shopper types emerging from Covid-19 impacts
Covid-19 impacts have been felt unevenly across consumer segments depending on age, affluence, technological proficiency, and many other factors. One of the most significant challenges currently facing European apparel brands is assessing whether these shifts towards greater use of digital channels will persist beyond the impact of the pandemic. Our research suggests that increased engagement in digital will persist for many parts of the market, based on behavioural shifts since the pandemic and long-term shopping intentions. The work identifies four main consumer archetypes for European apparel shoppers (Fig 1).
Fig 1. - Four key shopper types have emerged over the pandemic
Source: Retail Economics
Digital Embracers (30%) – permanent change in shopping behaviour, shift from stores to online Digital Dabblers (18%) – temporary change in shopping behaviour, open to shopping more online Store Reverters (24%) – temporary change in shopping behaviour, will revert to store Store Loyalists (28%) – no change in shopping behaviour, loyal to store
Permanency of behavioural change
The shift towards digital has emerged as the most prolific impact for European apparel brands. Our research shows that just under half (49%) of European consumers have changed their apparel shopping behaviour as a direct consequence of the pandemic.
While some of these behavioural changes are temporary (e.g. from health/safety concerns, or capacity constraints), nearly a third (31%) of European consumers believe that how they shop for apparel will change permanently, even after the impact of the pandemic recedes.
The UK shows the greatest impact from behavioural changes with 36% of shoppers expecting to permanently alter the way they shop for apparel following Covid-19. This is the highest proportion amongst the four major European retail markets surveyed (Fig 2).
Fig 2. - UK Shoppers most impacted by pandemic
Source: Retail Economics
Differences by shopper age
Focusing on generational differences, our research shows that Millennial consumers (25-44 yrs) are most likely to feel that the pandemic has permanently impacted their shopping behaviour (34%). This age group (typically juggling family commitments and in mid-career) have increased their use of digital tools and time indoors during the crisis, resulting in an improved work-life balance (e.g. remote working, accumulated savings). As such, they expect to maintain these changes on a permanent basis.
Fig 2. - UK Shoppers most impacted by pandemic
Question asked: “Thinking about the way Covid-19 has affected the way you shop for apparel, which option best describes the impact on your shopping behavior?” Source: Retail Economics
Digital shift across entire customer journey
Digital technology is now at the epicentre of people’s lives, whether that’s communicating with friends and family, remote working, or shopping. Notably, its influence has become more pronounced across all stages of the customer journey for apparel. From the awareness of fashion brands and products to service and returns, many consumers have been exposed to new digital-first customer journeys, breaking down initial barriers of setting up online accounts, entering payment details and overcoming issues of trust.
Browsing vs buying
Our research shows that the permanency of the shift to online is greater for consumers when browsing compared to buying. In the UK, as many as a quarter of all shoppers intend to continue browsing more online for apparel than they did prior to the pandemic.
"One in three European shoppers say that since the pandemic, they now spend more time online browsing for clothing and footwear, with nearly 20% expecting this change to be permanent.
Shying away from physical stores
Consumers across all European markets researched expect to visit clothing and footwear stores less frequently than pre-pandemic times. The greatest declines are expected across the UK (-26%), followed by France (-21%), Germany (-18%) and the Netherlands (-18%).
Overall, more than a quarter of European shoppers expect to make fewer visits to clothing and footwear stores than they did before Covid-19.
Download the full report here to discover more insights into how the online channel for apparel is rapidly changing and what this means for retailers and brands as we move closer to a post pandemic era.
Things to do now
Explore the next article in this series which looks at lost physical retail store sales within the apparel industry here.
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This insight article forms part of a thought leadership report entitled “A seamless fit - Evolution of stores in a digital-centric customer journey” produced by Retail Economics in partnership with Eversheds Sutherland. It is the first in a three part article series which explores the future of the European apparel industry and the role of physical stores. For retailers and brands seeking insight into the impact of the crisis across Europe, the full report provides data-driven insights and guidance for action.
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