With the increasing availability of vaccines, both retailers and consumers are looking hopefully toward a return to more normalcy. It is encouraging to note that the Mastercard SpendingPulse report for March 2021 found that apparel sales rose 60.6% when compared to last year, and department store sales jumped 114.3% (Young, 2021, April 9). However, there can be no doubt that the world is beginning to define “new normal,” with different priorities and practices among consumers, as well as brands and retailers even post-vaccine.
Post-vaccine consumer behavior
At least one in five people surveyed by IBM plan to increase their in-store purchases once they are vaccinated. In-person shopping for apparel, footwear, and accessories could increase as much as 76% (Young, 2021). That being said, 49% of shoppers state that they have replaced products formerly purchased in person with online options (Taylor, 2021).
Men are more likely to begin shopping in person before women (Nishimura, 2021, March 29), but what will drive all consumers to brick-and-mortar locations includes in-store promotions and local products that are unavailable online. However, IBM survey respondents noted that vaccination levels need to exceed 70% in order for respondents to be ready to return to their former lifestyle habits (Young, 2021).
Finances also continue to be a concern–as of March 2021, 29% of U.S. consumers were apprehensive about paying upcoming bills, with 37% putting off large purchases for now (Nishimura, 2021, March 23). On the other hand, one positive result of the pandemic is that only 44% of consumers were mindful of their consumption habits in February 2020, and 76% percent claimed to be so in January 2021 (Nishimura, 2021, January 27). However, stimulus checks have led to increased spending on apparel. For instance, U.S. retail sales rose $619.1 billion in March up from February (Young, 2021, May 4).
Impacts on industry
Brands and retailers have also had time to reflect on their priorities. A recent U.S. Cotton Trust Protocol survey of sustainability decision-makers at 1,000 brands and retailers in the U.S. and U.K. looked at the impact of the pandemic on sustainability initiatives. The survey consequently found that 61% of brands and retailers feel that the pandemic has increased demand for sustainable products. 63% stated that the pandemic has positively impacted their company’s investment in sustainability, specifically focused on sustainable sourcing of raw materials, reducing impacts of chemicals, water, and energy, and promoting safe work environments (Friedman, 2021).
Along with strengthening sustainable practices, companies can similarly anticipate other shifting priorities among their customers. Brands and retailers will also need to engage more digitally, using AI and cloud-based solutions to stay competitive and provide personalization (Young, 2021, April 9). Of course ongoing concerns about health continue to influence practices in daily life; the focus on cleanliness is not likely to shift soon.
Also, with consumers spending more time in activewear, the demand for odor-resistant apparel is rising. In fact, more than 9 in 10 consumers are wearing activewear for more than exercise (Lifestyle Monitor, 2021). Data from China, for example, states that 91% of those surveyed prefer comfortable clothing, ranking athleisure and activewear as top clothing categories to purchase (Cotton Inc., 2021).
The new normal
In conclusion, for brands, retailers, and consumers, hope lies ahead. While workplaces, apparel choices, and focus on hygiene have shifted, many of these changes are positive. In Europe, nearly a quarter of consumers state that they would change retailers if stores didn’t offer sustainable products (Adhi et al., 2021). Certainly as expectations and habits evolve, the focus on the importance of personal hygiene and sustainability should remain in the post-vaccine world.
References
Adhi, P., Hazan, E., Kohli, S., & Robinson, K. (2021, April 9). Omnichannel shopping in 2030. McKinsey. https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/omnichannel-shopping-in-2030
Cotton Inc., (2021). COVID-19 & consumer concerns in China and Mexico. https://lifestylemonitor.cottoninc.com/covid-19-consumer-concerns-in-china-and-mexico/
Friedman, A. (2021, April 5). Why 50% of fashion execs think consumers will spend more on sustainable clothing. Sourcing Journal. https://sourcingjournal.com/topics/sustainability/us-cotton-trust-protocol-sustainable-apparel-consumer-spending-coronavirus-vaccine-271255/
Nishimura, K. (2021, January 27). Will vaccines rescue retail? Why shots might not be ‘silver bullet’ fashion’s hoping for. Sourcing Journal. https://sourcingjournal.com/topics/retail/first-insight-coronavirus-vaccine-in-store-shopping-apparel-footwear-258065/
Nishimura, K. (2021, March 23). People are less stressed about covid—but more anxious about this. Sourcing Journal. https://sourcingjournal.com/topics/retail/deloitte-coronavirus-pandemic-anxiety-online-shopping-davinci-payments-contactless-269680/
Nishimura, K. (2021, March 29). What consumers really think about vaccines and returning to stores. Sourcing Journal. https://sourcingjournal.com/topics/retail/first-insight-coronavirus-vaccines-men-shopping-stores-women-millennials-270830/
Lifestyle Monitor. (2021). Performance cotton activewear. Cotton Inc. https://lifestylemonitor.cottoninc.com/performance-cotton-activewear/
Taylor, G. (2021, January 5). Why stores matter: 65% spend more online after positive brick-and-mortar experience. Sourcing Journal. https://sourcingjournal.com/topics/retail/store-experience-covid-19-shopper-raydiant-survey-consumer-behavior-online-253631/
Young, V. M. (2021, April 9). Sales data suggests apparel’s on the upswing. Sourcing Journal. https://sourcingjournal.com/topics/retail/apparel-sales-mastercard-department-stores-ibm-shopping-malls-coronavirus-vaccine-273479/
Young, V. M. (2021, May 4). Fashion’s new cycle: What to know and which brands could benefit. Sourcing Journal. https://sourcingjournal.com/topics/retail/new-fashion-cycle-denim-jeans-bottoms-jefferies-npd-nrf-weddings-277471/
