While 2021 held more hope than 2020, there are still mixed feelings about what 2022 will bring, in consumer trends and in all areas of life. McKinsey’s The State of Fashion 2021 predicts that difficult conditions will continue with further bankruptcies, store closures, and job losses. On the other hand, market research firm IBISWorld’s Global Apparel Manufacturing report foresees continual improvement in the economy, increases in disposable incomes, and a growing population will boost the industry in the next few years (Schmidt, 2021).
No matter the industry, 2022 will bring challenges as brands, retailers, and consumers navigate hopes and expectations during the continuing pandemic. McKinsey 2021 survey of 38 international brands and retailers found that 50% of them are undergoing major transformation. They are working to shift toward a sourcing model that is “flexible, fast, sustainable, digitally enhanced, and consumer-centric” (Hedrich et al., 2021).
Consumer trends
Likely the most obvious trend–and one that will last–is e-commerce’s rise in popularity. Ericsson’s 2019 Internet of Things forecast predicted that by 2022, there will be about 29 billion connected devices around the world; this is three times the human population. Also, 75% of the world’s population will have access to the internet (Bell, 2021). Shopping online, even for clothing, is the new “norm.” While in-store shopping has recovered to pre-pandemic levels, shopping via smartphone is at a historic high, with 41% of those surveyed stating they shop daily or weekly on their mobile or smartphone device (PWC, 2021).
In September 2021, PWC surveyed 9,370 people in 26 countries and territories for their December 2021 Global Consumer Insights Survey. They found that 76% of the respondents were at least partially vaccinated. Their findings noted that consumers plan to spend more and are experiencing improvements in lifestyle as employers adjust to the changing workplace. Yet, some things do not change: Consumers still care about price and convenience above all, though factors such as sustainability are gaining traction. With 61% of respondents optimistic about the future, only 18% were not hopeful. This optimism is apparent in planned spending, with respondents saying they will spend more in the next six months–41% estimating greater spending on groceries, 33% on fashion, and 30% on health and beauty.
Retail trends
Qualtrics (2021) surveyed over 23,000 consumers in 23 countries about their experiences with businesses in 2021 and their expectations for 2022. The survey identified these four trends:
- Consumers will no longer tolerate bad experiences. They know they can easily find another company with little to no trouble.
- Companies need to get adjust pre-2022 business plans. Businesses must respond to the fact that what consumers buy and how they purchase has changed, likely for good. The survey found that 8 in 10 respondents feel customer experience must improve, particularly in the areas of prices and fees, customer service, product capabilities, and ease of use.
- Consumers want to be heard. Two-thirds of those surveyed feel that companies must improve on listening to feedback.
- Companies should not treat customers as data. Over 60% of consumers stated that they would buy more if they felt that businesses cared more about them.
Brands and retailers have their work cut out for them. With 75% of millennials stating that they value experiences over items, brands must work to stay relevant both online and offline, turning consumers’ journeys into experiences (Marr, 2021). There is also increasing demand for sustainability. PWC found that consumers around the world care about sustainability more than ever before. More than half of respondents (52%) stated that they had become more eco-friendly in the past six months, and 51% of respondents said that they factor in a product’s traceability and transparency when making a purchase.
Industry trends
MarketResearch.com (Schmidt, 2021) found four fashion industry trends to look for in the coming year:
- The increasing (and permanent) role of digitization. With e-commerce gaining popularity even before the pandemic, old and new fashion brands must increase their online presence and employ big data and analytics so that they can offer more personalization and capture a larger share of the market.
- Continued emphasis on sustainability and social justice. Consumers are putting more pressure on brands to be more eco-friendly, which is therefore motivating companies to use more sustainable materials. The secondhand market continues to grow rapidly. Consumers are also becoming more aware of unfair living wages and unsafe working conditions in factories.
- Further growth in athleisure. Retail chains that have stayed with more formal apparel struggled during 2020-2021. A report by Technavio predicts the global athleisure market will grow by $153.02 billion during 2021-2025.
- Continued shift toward size-inclusive fashion. Rising obesity levels have created a demand for trendy, plus-size fashion, though most luxury brands have yet to expand their sizing in stores.
When it comes to apparel, Trendalytics’s Spring/Summer 2022 forecast predicted a fashion season influenced by consumers’ desire to reconnect with nature, streamline closets, and escape the modern world with themes expected to reflect appreciation for high-quality materials, calming colors, and emotionally and physically-comforting fashion (Velasquez, 2021). And as previously noted, athleisure will continue to hold its popularity.
Looking to the future
While brands, retailers, and consumers prepare for the unknown of 2022, it is clear that some things will remain, particularly the prominence of online shopping and the focus on sustainable purchases.
References
Bell, A. (2021). Future consumer 2022. WGSN. https://www.wgsn.com/assets/marketing/WGSN_Future_Consumer_2022_Executive_Summary.pdf
Hedrich, S., J. Hugl, P. Ibanez, & K.H. Magnus. (2021, November 12). Revamping fashion sourcing: Speed and flexibility to the fore. McKinsey. https://www.mckinsey.com/industries/retail/our-insights/revamping-fashion-sourcing-speed-and-flexibility-to-the-fore
Marr, B. (2021, November 8). The 8 biggest consumer and customer experience trends in 2022. Forbes. https://www.forbes.com/sites/bernardmarr/2021/11/08/the-8-biggest-consumer-and-customer-experience-trends-in-2022/?sh=2964727b4cfe
PWC. (2021, December). A time for hope: Consumers’ outlook brightens despite headwinds, December 2021 Global Consumer Insights Pulse Survey. https://www.pwc.com/gx/en/industries/consumer-markets/consumer-insights-survey.html
Qualtrics. (2021, November 16). Global consumer trends in 2022. https://www.qualtrics.com/blog/global-consumer-trends-2022/
Schmidt, S. (2021, October 29). 4 Top Apparel Industry Trends to Watch in 2021 and 2022. MarketResearch.com. https://blog.marketresearch.com/4-top-apparel-industry-trends-to-watch-in-2020
Velasquez, A. (2021, February 17). Women’s fashion time travels in Trendalytics’ Spring/Summer 2022 forecast. Sourcing Journal. https://sourcingjournal.com/denim/denim-trends/womens-fashion-time-travels-bridgerton-trendalytics-spring-summer-2022-forecast-260779/
