Signal of change: dress to impress and impact fashion retail

According to the European Journal of Social Psychology, On average it takes 66 days for a new behavior to become automatic, and our brains like new habits because they are efficient. When we automate common actions, we free up mental resources for other tasks.

By spending the best part of the last 18 months making daily functional fashion choices and wearing casual or outdoor wear, we effectively broke the habit of dressing to impress which is why it feels a little weird now.

On the other hand, as sales of Ugg boots and jogging pants increase, and with Marks & Spencer reporting a fivefold increase in sleepwear sales during the pandemic, our fashion choices are largely geared towards practicality and the work-from-home lifestyle.

The New York Times coined the hate-wear phrase to describe the habit of locking modes that aren’t stylish or too comfortable, but are constantly spinning. Esquire magazine stylist Charlie Teasdale coined the term sad outfit to describe the clothes that make us feel better when we’re sad, particularly those born of the existential fatigue of lockdown.

Whether sweatpants have the staying power as a fashion choice can be left to catwalk critics. What interests us at OMD EMEA is the impact that post-pandemic public relations with fashion will have on future retail trends.

After all, the more opportunities we take to dress up as restaurants and nightlife venues reopen, the more likely a retail rebound will be.

After a year in which the fashion industry as a whole posted record low economic profits, business leaders are now seeking to encourage consumers’ perceived desire to retire from wearing home clothes and updating retail habits to look good and feel comfortable in clothes that mark a sense of opportunity.

As we know, digital adoption is surging amid the coronavirus crisis, with brands embracing live streaming, virtual customer service and social shopping.

Online marketplaces are also becoming more relevant with retailers and brands adopting new digital offerings, such as John Lewis allow fashion brands to sell directly from their sites for the first time or Hugo Boss invest in 3D simulations of more than 50% of their collection to allow for more accurate virtual installations and trials. Now fashion players are looking for ways to optimize the online retail experience and channel mix, while persuasively reintegrating the human touch.

The challenges that lie ahead for fashion retailers, however, remain significant.

Covid-19 highlights that more products don’t necessarily lead to more profits, so companies will definitely look to reduce complexity and take a more demand-focused approach.

Based on McKinsey, from the retail wreckage of 2020 will emerge a leaner, more focused offering. Store formats will be redefined, with data and analytics used to predict footfall and build personalized offers.

At the same time, we tend to see a more nuanced assessment of store ROI, based on a combination of digital and physical lenses. With China leading the way, brands need to engage more closely with social media to offer shoppers exclusive content and personalized experiences.

To manage the ongoing uncertainty surrounding virus masks and variants, as well as increasing competition from direct-to-consumer (D2C) services, retailers need to enable greater flexibility and faster decision-making, while balancing speed against discipline in the pursuit of innovation.

And, just as our ability to form new habits may temporarily change the way we dress and the way we shop for clothes, our new behavioral habits also signal changing priorities across sustainability, brand goals, and ethical retail which will all require fashion brands to perform. comprehensive review of its processes, practices and supply chain.

As an example, Zalando launched Circularity Pilot in early October as part of its goal to extend the life of at least 50 million items by 2023.

The more we dress to impress, the more brands need to impress with the way they are adjusting for the future.

This is just one of the signals of our change from everyday life. For additional reading, click here to read OMD Signals: Navigating pandemic signals in Semester 1 2021, and for more on the Future of Trading, click here to download our report co-authored with the Omnicom Commerce Group.

Chelsea Horncastle, director, product innovation and insights at OMD EMEA, with editorial input from Tim Denyer, strategy partner and executive director of marketing intelligence Peter White.

For more on the reinvention of retail, check out The Drums Retail hub, where we explore everything from live streaming e-commerce to AR shopping and conscious consumerism.