Consumer Shopping

Habits in the Future

How the New Normal Will Outlast COVID-19
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Introduction

Has your business adjusted to the New Normal?

Have you responded with a realistic strategy to survive these economy-wide
changes?
Will you survive the post-pandemic recession?

In this white paper, we consider consumers’ changing mindsets and

behaviours,
preparing you to answer all of these and other looming questions. While the
situation
may seem grim, there are on-going actions and strategies that you can
adopt to position
yourself for the future.

Let’s get started.

 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

The Effects of the Lockdown

Slow Living, the New Normal

Because the lockdown has forced people inside, it has afforded them the
time they need to clean their homes and rethink their lives. This has led to an
increased sense of humility: people are becoming less frivolous and more
practical, living more in accordance with the philosophy that Marie Kondo
has championed.
More and more, it seems like this adjustment is not temporary but
permanent. People are moving away from their old habits.

Let’s take a look at what the adjustments look like specifically.

"Discard everything that does not

spark joy."
Marie Kondo
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Work-from-Home Culture

Zoom calls are part of the new normal, and the traditional dress codes are
falling apart, in favour of comfort. Employees and businesses alike are
discovering the advantages of flexibility and reduced travel, while many
businesses have tapped into freelance workforces. It is likely these changes
will remain in place as the new normal working life.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Reduced Travel

Forcing people to stay inside their homes, COVID-19 has drastically reduced
travel. Even as governments have lifted restrictions, international travel levels
have lagged behind their pre-pandemic levels – because people have
become accustomed to remote work. More people are also considering the
environmental impact of travel: for example, it takes 45 new trees to offset
one transatlantic flight.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Creative Reflection

Long-term, we would hope that the pandemic will lead to self-reflection,

empathy, and thoughtfulness. It seems likely that business leaders and
workers will plan their brands and collections more in alignment with the
common good going forward.
Next, let’s take a look at the ways that the lockdown has affected shopping
and retail.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

The Impact of Lockdown on Shopping & Retail

While retail stores will reopen, it may be a slower recovery period with people
preferring to shop online. This represents a massive, lasting change for
shopping and retail post-lockdown. Brick-and-mortar stores will become
somewhat relevant again, but they may struggle to pivot to people’s new
expectations. Many of the old ways of doing business are no longer feasible,
and just as they are already, larger numbers of retail brands will go out of
business.
Let’s break down some of the aspects of these changes.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

The Evolution of Shopping Habits

Consumers will put more thought into all of their product choices.
Consuming less, they will cause a massive reduction in sales volumes over
the next five years, and five to eight years into the future, half of all
contemporary fashion brands, retailers, and firms will have ceased
operations. This affects all industries: only the best will survive what is to
come.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Consumer Mindset Adjustments

At the core of these changes are the shoppers’ mindsets: because they are
thinking differently, they will behave differently as well. Here is how.

1. No More Hope Retail

“Hope retail” is hoping for the best that things will sell, in essence throwing
styles out there and seeing what catches. This will not work post-coronavirus
because consumers will make more careful decisions. We need to
understand what sells before we make any moves.

2. No More Fast Fashion

In the long-term, the era of fast fashion cannot last. Putting out high volumes
of products at high speeds, fast-fashion firms rely on impulse purchases,
which will become less and less common. Although businesses cannot rely
on longer lead times, they can also assume that their products’ shelf lives will
become shorter.
3. No More Sub-Standard Retail

It is a worthy refrain: only the strong will survive in the new landscape. Market
conditions will lead to more intense consumer demands, and to make a sale,
brands must offer products that are at least twice as good as the old
standard. Nothing sub-standard will sell reliably anymore, and in some
cases, products must make it into the top 20 most interesting options
available – simply to stand a chance in the market.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Product Changes

With the subsequent shift in perspectives of work-lifestyle balance, products

are going to have to change. Professional, formal clothing will become less
important, while “Zoom workers” will seek out greater comfort and versatility,
favouring home life and sports products. Mental, physical, and spiritual
wellness will become crucial for this segment.
The luxury sector will, specifically, need to shift in response to these changes.
Big-ticket items that require one-on-one interactions may become in-store
exclusives, but other brands will need to figure out how to sell their products
online: a tailored suit, for example, remains out of reach for online shoppers.
This begs the question: what is the future of physical retail? In the food
industry, supermarkets are already offering convenience as a substitute for
quality. No one purchases a ready-made meal at the supermarket expecting
it to taste like home cooking, and in the same way, consumers in retail want
convenience above all else.
Seasonality is relevant here too. More brands will opt for monthly product
drops, as Prada has, instead of dropping their entire seasonal range at once.
This makes more curated collections possible.
Considering the impact, we may find ourselves wondering: what does the
thought process behind all of this look like?
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

The Hyper-Informed Consumer

A slower day-to-day pace of life has afforded consumers time to reflect on
their purchasing and spending habits. Consumers will make fewer impulse
purchases, researching their product options more thoroughly so that they
make more careful decisions. This means that education will become
primary.

Consumers will seek out product details and information, making more
meaningful purchases for themselves. According to Drapers Report 2019, 48%
of consumers say they have abandoned a purchase because a brand or
retailer did not fit with their values: this is likely to become much more
common.

One of the key areas that consumers will consider for their purchases is
environmental impact. At all market levels, brands need to present their eco-
friendly credentials, emphasising sustainability and transparency.

Fast fashion will no longer become an option because, as Drapers Report

2019 states, 46% of shoppers are spending time researching ethical and
sustainable brands before they make their purchases. Smart, successful
fast-fashion retailers such as Zara and H&M have already started to make
changes to their businesses in response.
Now, what form will these thought processes take?
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Meaningful Purchases & Purposeful Product

Researching more than any other consumers ever have, Millennials and Gen
Z are considering the meaning and purpose of the products they buy.
Comfort, fit, appearance: all of these are important once again.
Brands must make a meaningful, purposeful statement. Brand is the new
band.
As Gen Z increasingly favour DIY and second-hand clothing, sewing and
crafting instructions will become more popular. Those who can’t make or
mend their own clothing will hire others to do so.
Read our extended report to find out why “brand is the new band” and how
Gen Z will find alternatives to buying new fashion items.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

The Role of Brands

Brands should communicate values: those that stand in the middle ground,
never taking a stand, face the threat of extinction, while those that support a
cause or contribute to society will fare better in the post-COVID world.
According to ThredUp 2020, 73% of people plan to support brands that have
contributed positively to those in need during the lockdown.
The more consumers are thinking about environmental impact, the more
boldly brands and retailers should act in response, reducing or even
eliminating waste. This is an intelligent means to exhibit values, collecting
unused fabric and finding places to sell off excess inventory. Burberry, for
instance, now donates excess fabric to a women’s cooperative in Italy to
recycle waste and repurpose raw materials. Another example is Reformation,
which makes 15% of all products via deadstock. As VP of Sustainability
Kathleen Talbot says, “If we want to try something different, deadstock allows
us to do that without developing new fabrics or ordering a minimum
amount.”

Read our Future Consumer Shopping Habits Full Insights Report for the brand
case studies focussing on purposeful products and meaningful initiatives.
You can also learn more about the brands at the forefront of meaningful
circular economy and sustainability initiatives.
Next, let’s think about the specific actions brands can take to prove that they
are doing meaningful work.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Concerted Waste Reduction

The idea of “less but better” is central to any purposeful product. Cut out filler
items, slash the range of sizes, and focus on products that consumers love,
generating less waste.
Your brand must make a point of cutting down on excess – while also selling
products.
To add to this challenge, brands must achieve “less but better” while
maintaining affordable prices, in view of falling disposable income levels.
Because fast fashion has taught consumers to buy cheap, retailers must
recognize this mindset, acknowledging that consumers will make purchases
less frequently but also realizing that spend-per-item may increase.
Closely related to this idea is the packaging idea that “less is more.” An area
in which brands and retailers can minimise waste, “less is more” packaging
entails compostable packaging and reusable packaging, not only recyclable
packaging. Retailers should provide eco-friendly options in addition to
alternative packaging at check-out.
Check out our Future Consumer Shopping Habits Full Insights Report for
specific case studies.
There are more precise strategies in this area too: upcycling and rentals.
Let’s review those next.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Upcycling & Rental

Upcycling

Rather than making endless purchases, young consumers want to create

pieces that are uniquely their own, upcycling from their own wardrobes. This
practice has become more popular throughout the lockdown, as Depop can
attest: 90 per cent of its 15 million registered users are under 25 and more
active than ever, traffic on the app increasing 74 per cent in March 2020
year-over-year.
As Jeremy Salazar (@happyxloco) puts it: “I've seen all of the madness of
how much stuff there already is. Why would I go buy new stuff when there's a
giant pile of resources, like an ocean of textiles and clothes already made?”
Brands can take advantage of this shift by providing tutorials or selling
practical tools, as A-Cold-Wall and Dickies already have. Other brands,
however, are pioneering “buy back” schemes, focussing on fibres and raw
materials, similar to the way that in traditional Japanese culture, kimonos
undergo deconstruction for washing and then repurposing for bedding,
children’s toys, and other crafts.
Read the key upcycling case study in our long version Future Consumer
Shopping Habits Full Insights Report.
Rental & Pre-Loved

Rental and pre-loved garments are both on the rise. By 2020, ThredUp2020
projects, the second-hand market will grow to twice the size of fast fashion,
and between 2019 and 2021, it will have grown 69%.
On The Devout, a popular rental service, consumers can try five pieces at a
time, swapping them out at the end of the month, keeping them for a longer
period, or purchasing them outright. The Devout has partnered with Shelter
as well in the fight against homelessness. Ahead of its June launch, The
Devout conducted research that showed over half of 23-38-year-olds
expressed an interest in a fashion rental service.
The success of The Devout makes sense: Gen Z are socially conscious, often
giving items away to minimise their environmental impact, and according to
the environmental group WRAO, an item worn nine extra months makes a
carbon footprint 20-30% lower.
Read our full insights report for forward-thinking retail case studies and how
the perception and communications around second-hand fashion are
changing.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Forward Looking Strategies

At Trendstop, we have helped brands navigate the lockdown and post-
pandemic recession, discerning consumer behaviours and now it’s essential
to planning for the future.
Through innovation, brands can propel through the ongoing challenges. This
is one of the deepest recessions in a generation, and it has changed
consumer habits for good. Yet, the “new normal” is manageable with the help
of Trendstop.
The key is to remember that it is not all about the product. Turbulent times
like this require brands to rethink their entire strategy, from communication
to distribution. Businesses need to utilise all of their resources and get
creative, focusing on personality and story to connect with consumers.
Beyond all of that, these tips can make a great difference.

Reduce
Now is the time for all businesses to take stock of mass consumerism and its
effects on people and the planet. For younger generations, the conclusion is
clear: this is not working. The market has become oversaturated, and waste
has become excessive. Every year, families throw out 80 billion items of
clothing. Reduction is the solution economically and ecologically.

Slow Fashion

In opposition to seasonality and fast fashion, slow fashion reduces each

product’s life cycle, moving from four seasons back to two, making releases
every six months. This also marks a return to discounting at the end of the
season instead of mid-way through it. According to the recent Rewriting
Fashion Manifesto, there will be less emphasis on pre-collections and do
away with major mid-season discounting, including Black Friday, Cyber
Monday, and Singles Day, driving traffic and sales while eroding margins and
brand equity.
Less Range

Taking away 80% of the world’s fashion today and leaving only the best 20%,
there would still be enough variety for everyone. Since consumers are a lot
more discerning and selective than ever, a smaller product range will
connect with them more frequently, keeping sales around the same levels
and slashing costs. Right now, 75% of items are unprofitable anyway: brands
need to become more innovative and trend-minded in order to launch
products that consumers will appreciate. Some brands will see themselves
cut range sizes by as much as half, thinking through every item and asking
why anyone would want to buy it.

The inventory gluts that COVID has caused will lead to smaller, season-free
collections in the future.

Staying Local

As a repercussion of COVID brands have had to rethink the globalisation of

the supply chain, to a centralised system that is more plausible than ever
before. As commercial flights have fallen off the schedule, it has become
untenable to send orders via air, reducing turn-around time and causing
lags in the supply chain. From a wider point of view, an over-reliance on one
country has proven to be dangerous to businesses, the monopolies that
China, Turkey, and India run far too fragile for long-term reliability. This is one
area in which brands must reset and rethink completely, considering a
demand-driven model, a flexible supply chain, and more near-shore or on-
shore manufacturing. The natural results of all of this will be smaller order
volumes, vertical working processes, dual-location sourcing, and near-shore
sourcing, all of which will empower retailers through smoother access to
customer data and analytics.

Going Digital
The key is to remember that it is not all about the product. What we have
learned from this upheaval is that brands need to rethink their entire
strategy, from communication to distribution. Businesses need to utilise all of
their resources and get creative, focussing on personality and story to
connect with consumers.

Keep reading to find out how Trendstop can best support you, as well as how
to get your copy of our Future Consumer Shopping Habits Full Insights Report.
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

A Little About Us
Trendstop are the leading fashion & lifestyle trend innovation agency. Over
the past two decades, we have been supporting the world’s fashion and
lifestyle innovators, from independent start-ups to leading global brands
with our holistic consultancy. We take a forward-looking, consumer-centred
approach to planning – what we call our “360° Elevation Approach.”
Through holistic thinking and our network of global experts, we can combine
future consumer insights, brand positioning and values, seasonal product
direction, communications and experience.

Our methods get sucessful results because of our deep understanding of

future consumer and market trends, and the ability to effectively transform
them into highly profitable collections and engaging communications to a
specific target audience.

If you are ready to discover what innovation and more intelligent

planning can do for your brand, we are ready to show you the way.

Supporting You through Unexpected Times

Now more than ever, brands need to rethink the way they do business,
developing meaningful products and offering them to their consumers
sensibly and conveniently.
 At Trendstop, our goal is always to show our brands how to invest their
time and resources effectively to guarantee results. We know how to identify
the future consumer and product trends, and design consumer-optimised
stratagies that work for you. Less waste, more results: that is what we want
for you.

Connect with Us

Contact us today and let’s talk about your brand’s future, and how we can
help you reach your goals.

Contact us at hello@trendstop.com or via our website at

www.trendstop.com.
Or, call us in London +44 (0) 207 309 6888 or New York +1 866 329 3140.
Or, connect with Annabel Smiley on WhatsApp +44 7944 116 232 to discuss
your needs.

For deeper insights, statistics, surveys and case studies about the topics in
this white paper, download our Future Consumer Shopping Habits Full
Insights Report as well (see next page for details).
 Future Consumer Shopping Habits
How the New Normal Will Outlast COVID-19

Next Steps
There are two exciting next steps you can take with us. We’d love to speak
with you on how we can help you create ‘Less but Better’ product in 2021 and
beyond, resulting in sell-out collections for you, and reduced impact to our
planet.

1. Pre Order the Future Consumer Habits Full Insights

Report
Discover more about the future of business post COVID19 and the impact of
changing consumer behaviours on retail in our expanded Full Insights Report:
The Future Consumer Shopping Habits; How the New Normal Will Outlast
COVID-19. It provides an in-depth look at the economy-wide changes.
Packed with additional insights, statistics, surveys and a wealth of forward-
thinking case studies, the full insights report will inspire you to find solutions
to critical business questions going forward.

Pre order* your copy of the Future Consumer Shopping Habits; How the New
Normal Will Outlast COVID-19 Full Insights Report below.

Click here to pre-order your Full Insights Report.

2. Book Your Complimentary Strategy
Session
Over the past two decades we have worked with global brands on a number
of successful projects, including:

Brand identity elevation, pricing & positioning, re-brand

Brand expansion to effectively target Millennial and Gen Z consumers
Seasonal collection direction to grow sales to a specific audience
Influencer and social engagement planning
Consumer-driven holistic product & marketing planning and execution
Digital sales strategy: wholesale and direct-to-consumer

As the reader of this white paper, we offer you a unique opportunity to meet
us for a complimentary breakthrough strategy session to learn more about
how we could help you in your current situation.

Click here to book your strategy session.