Insights from the 2013 WhyFive Fashion Shopper’s report
It was Heidi Klum who said, “In fashion, one day you’re in, the next you’re out” and never were truer words spoken. It applies to the entire rag trade, from models and designers to trend-spotters, buyers, magazine editors and the hangers and shelf space of countless clothing stores. Which begs the question: how do some retailers get it so right while others are a fashionable flash in the pan?
That simple thought led us to conduct a groundbreaking study into the shopping habits of fashion conscious South Africans – including a substantial sample of 2 600 women. The results were illuminating to say the least, but it soon became clear that there’s a ‘set of rules’ any retailer could (and should) adopt in the current environment to give themselves a shot at success. Which is the story we’re going to tell. But before we do, let’s just make sure we all understand what’s meant by ‘the current environment’…
That darn recession
Fact: the great recession has disrupted our lives, changed our needs and altered our behaviours – and the fashion retail world is not immune to these movements. For those stores hoping for ‘business as usual’, it’s going to be a baffling, frustrating and torrid time.
Right now 45% of South African women claim to shop less often for clothes for themselves than they did a year ago. That’s a very large proportion of consumers, and a sobering statistic for any fashion retailer. And the reasons are obvious: they already have too much debt (so buying on credit is not an option); the cost of living has gone up; their need to buy clothes for their kids is greater than their own and they just don’t have the same disposable income they used to have. To make matters worse, being cash-strapped is especially true for younger shoppers aged 16-24, ironically, the group with the highest need to dress fashionably!
What we realised, however, is that despite some people attributing their ‘new’ buying habits to the poor quality of clothing on offer or a dislike of current styles, you get a strong sense, in most instances, these are just cover-ups for an inescapable fact: they simply cannot afford to buy new clothes as often as they used to.
Across all segments, 72% of respondents claim they put off purchasing what they want until they find a bargain, or until the item goes on sale. And that’s really bad news because it’s leading retailers into very bad habits. We have seen all too often the danger of price-cutting as a way to add value. But right now the consumer is luring retailers into that trap and it’s a hard one from which to escape: retailers who cut prices to shift stock inevitably end up taking years to get their customers back into the habit of paying full price.
None of which affects the bottom line: consumers are feeling the pinch, and, given the uninspiring economic outlook in South Africa, they are likely to be feeling the pinch for some time to come. So having some insight into what’s driving their behaviour right now might well be the difference between visiting your favourite fashion store when you’re next at the mall – or finding another ‘everything for under R10’ store in its place! Let’s take a more detailed look at…
The Top 5 reasons consumers shop where they do
#1. Money’s too tight to mention
Surprise, surprise – not! 40% of respondents selected the ‘Having the best prices’ box and a further 23% ticked ‘fair prices’. So it’s more than reasonable to conclude that price is the primary driver for choosing where to shop for clothes. And, also not particularly surprising, this price sensitivity is especially acute amongst younger shoppers (49%) and less amongst the older, better off ones (29%).
What is interesting however, is that apart from Mr.Price and Pick n Pay Clothing, none of the top 6 stores chosen are ‘known’ for offering the best prices – fair prices, but not the best prices. So the rational side of the consumer’s brain is telling them they need to find the best price, but the emotional side is still leading them to buy the things they really want to buy.
#2. Variety is the spice of life
The next important driver in shop selection is a wide variety of styles and options (39%). This is across the board for all segments of consumers. You can’t have too much money, nor, it seems, can you have too much choice when it comes to shopping for women’s clothing. Stores seen to offer a wider range will do better than those who are not.
#3. Location, location, location
Next, rather surprisingly, is convenient store location (34%). Never mind things like great brands or service – being in the right place is extremely important. Perhaps, since petrol now costs over R13 per litre, the consumer simply really doesn’t want to ‘waste’ too much money driving across town to shop for clothes. This has important implications for the notion of stores marketing themselves better within a footprint: local marketing as opposed to (or in addition to) a national effort. Once again we see the hardest pressed 16-24 year olds (48%) are the most likely to give convenient location as a reason for choosing one store over another – in this case, limited mobility is clearly a factor.
#4. Good quality
Next is good quality (29%). If you buy clothes less often, by logical deduction, you’re wearing the ones you do have for longer. So if clothes have become (a bit) less disposable than they were a few years ago, it stands to reason they need to be of better quality. The rational side of the consumer’s brain tells them they need to favour a garment which they perceive is better quality over one they perceive is not. Importantly, we’re not guessing at this conclusion. We tested the hypothesis, and found that 82% of the respondents agree with the suggestion that ‘these days clothes are not made to last long’ and 91% say ‘clothes have to last longer these days because I cannot afford to shop as often as I used to.’
#5. Fashion
At last fashion gets a mention (22%)! Not surprisingly the younger segment (35% of the sample) are far more likely to choose a store they perceive stocks fashionable clothes, but that means 65% of them didn’t mention fashion as a reason for shopping at a specific store. Keeping up with fashion is an expensive pastime and for 70% of respondents, fashion rolls over too fast. Being fashionable is not affordable and there is a discernible demand for more classic, simple designs that are less likely to become outdated.
#6. The curveball…
Yes, we said ‘5 reasons’, but the sixth is actually a ‘non-reason’. Perhaps the most amazing response regards the issue of service. Massive consultancies and training businesses are built on the concept and importance of ‘customer service’ – and retailers routinely expend massive amounts of time, money and energy in search of service excellence. So they will likely be perplexed to discover only 7% of respondents give ‘friendly staff’ as a reason for choosing one store rather than another. That’s a staggeringly small number, but perhaps it’s not telling the whole story. We can probably deduce from this that great service might not be much of an attractor, but rude service is surely a turn-off. In other words, consumers don’t shop at your store because you offer great service – they expect it – but (perhaps for the reasons outlined below) they will avoid your store if you offer bad service.
Which leads us to the blueprint for success. What, apart from avoiding bad service, can retailers do to be the sort of store customers want to go back to again and again and again?
