The New Normal · 2020. 10. 9. · SHOPPING ONLINE: U.S. Consumers look online for shopping needs....
Transcript of The New Normal · 2020. 10. 9. · SHOPPING ONLINE: U.S. Consumers look online for shopping needs....
The New NormalAccelerating Consumer Trends in the Current & Post-COVID World
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The New NormalAccelerating Consumer Trends in the Current & Post-COVID World
COVID-19 ECONOMIC
IMPACTS
ONLINE SHOPPING
SURGE
CLOTHING TRENDS
COVID-19 ECONOMIC
IMPACTS
COVID-19 GLOBAL IMPACTEconomic impacts will be substantial
Source: IMF and World Economic forum
4.9% contraction projected
What level of impact will COVID-19 pandemic have on the global economy?
Forecast annual change in real GDP, issued in different months
+3.3%
-3.0% -4.9%January
April June
2020
*October next release date
COVID-19 & GLOBAL GDP FORECASTS
-5
-3
-1
1
3
5
7Percent change in global GDP, constant prices
significant downside risk to 2021 forecast if virus resurfaces
Source: IMF global GDP forecast
COVID-19 CONSUMER EFFECTSMany consumers across the globe are delaying purchases
% who plan to delay purchases until outbreak is over in their country
68%
65%U.S.
COVID-19 will have an impact on my household finances
68%Global
82%U.S. GLOBALSource: GWI Coronavirus Research July 2020
-20%
-15%
-10%
-5%
0%
5%
10%
Source: U.S. Bureau of Economic Analysis
Year-over-year change in overall consumer spending (goods and services), constant prices
Already worse than any point of the financial crisis
U.S. CONSUMER SPENDINGLargest drop on record
U.S. CONSUMER SPENDING: CLOTHING
4.6% 4.3%
-26.1%
-43.2%
-22.8%
-3.7% -3.6% -2.5%
-50
-40
-30
-20
-10
0
10
1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020
Source: U.S. Bureau of Economic Analysis
Year-over-year change in overall consumer spending for clothing, constant prices
CLOTHING PURCHASES AFFECTED: U.S.Consumer’s apparel spending will drop and take
time to recover
12
$326 $330 $305 $320 $337 $350
1.3%
4.9% 5.1% 3.8%
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
$450.0
$500.0
2018 2019 2020 2021 2022 20230.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Apparel Sales (Billion USD) % growth YOY
-
29%of U.S. consumers say they are spending less on clothing than before COVID-19
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 9-11 and Euromonitor International and Bureau of Economics
-7.6%
ONLINE SHOPPING
SURGE
COVID-19 CONCERN: U.S.Concerns around COVID-19 remain high for consumers
Percentage of U.S. consumer who are very concerned about the COVID-19 pandemic:
March April September
58% 62% 58%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
COVID-19 CONSUMER EFFECTS: U.S.Consumer concern is very high, keeping
consumers out of physical stores
Have shopped for clothing in
physical stores in the last month
“It will take awhile before I am comfortable
shopping in a mall”
September survey finds consumers still staying home
65%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
17%
SHOPPING ONLINE: U.S.Consumers look online for shopping needs
Shopping online morein the last month
27%
29%
44%
42%
60%
I have access to moreproducts online
Online shopping is fun
I am online more oftennow
Many physical storesare closed
I feel it is safer
Reasons consumers shop online more:
44%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
RETAIL SALE BY CHANNEL: U.S.Retails Sales (by channel) year-over-year change
Date Total Retail Sales Online Sales
01/01/20 4.9% 8.3%02/01/20 4.5% 8.6%03/01/20 -5.6% 14.3%04/01/20 -19.9% 22.7%05/01/20 -5.6% 29.0%06/01/20 2.2% 23.7%07/01/20 2.4% 23.4%08/01/20 2.6% 22.4%
Source: Bureau of Economic Analysis
ONLINE SHOPPING IN COVID-19 ERA
$1,730$2,011
$2,310
$2,716
$3,036
$3,384
16.2% 14.9%17.6% 11.8% 11.6%
$1,500.0
$1,700.0
$1,900.0
$2,100.0
$2,300.0
$2,500.0
$2,700.0
$2,900.0
$3,100.0
$3,300.0
$3,500.0
2017 2018 2019 2020 2021 20220.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Digital Commerce (Billion USD) % growth YOYSource: Euromonitor
U.S.
What is your experience with shopping online for clothing?
31%
41%
28%
Never shopped this way
Always shopped this way
New Adopters
COVID-19 has forced new adoptions for online clothes shopping
ONLINE CLOTHING SHOPPING: U.S.
29%
51%
20%
New Adopters' breakdown by
age groups
16-24
25-44
45+
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
COMMON ONLINE ISSUES: U.S.
FIT54%
LOOK QUALITY SHIPPINGDon’t trust that I will receive what was ordered
51% Cost/time of shipping
61% Unsure of quality
65% How it will look on me
68% How it will fit
Percentage who say the following issues make online clothes shopping more challenging:
70% 70% 71%
66%
Those that don’t trust online shopping
77%
Source: Cotton Incorporated’s 2020 Sustainability and E-commerce Consumer Survey
INCREASING ONLINE CLOTHING SHOPPINGHow to make consumers feel more comfortable shopping for clothing online:
Easy and free returns, 45%
Offering a quality guarantee, 34%
Being able to try on clothing before deciding to purchase, 36%
Detailed fit information, 37%
Customer-submitted photos of people wearing the garment, 26%
Reviews from customers who have bought garment, 34%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
ONLINE PREFERENCES SHIFTINGConsumer shopping preferences
expected to shift even after COVID
% of consumers who will have a stronger preference for shopping for clothes online after the pandemic is gone and stores reopen
U.S.25%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 2 April
Equates to:82 million people
CLOTHES SHOPPING JOURNEY: U.S.In-store still dominates clothing purchase
preferences for U.S. consumers
23
46% 35% 64% 51%
BROWSING RESEARCH PURCHASING POST-PURCHASE
Percent of consumers who prefer to do the following in-store when shopping for clothing:
Source: Cotton Incorporated’s Lifestyle Monitor™ Survey
SHOPPING IN-STORES: U.S.Consumers want brands/retailers to take steps to protect them
24
Percentage of consumers who say the following would make them feel more comfortable shopping for clothing in physical stores:
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 2 April 27-30
25%
33%
38%
47%
48%
51%
51%
Shopping by appointment only
Increased sanitation
Extra distance between clothing racks
Customers wear masks
Hand sanitizer stations
Sales associates wear masks or distant
Limited occupancy
COVID-19 EFFECTS WILL PERSIST: U.S.This experience will change the
way consumers shop in the future
73%This experience will change my
way of shopping in the future
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 2 April
CLOTHING TRENDS
CLOTHING SHIFTS: U.S. Consumers wearing more casual and activewear clothing
38%39%
42%46%
49%50%
52%52%
Dress clothingCoats, jackets, outerwear
Clothing for workDenim Jeans
AthleisureLoungewearActivewear
T-shirts
Source: Cotton Incorporated’s 2019 Global Transparency Survey
% of consumer who say they are wearing the following clothing everyday or every other day in the past month:
CLOTHING PURCHASES COVID: U.S.Consumers seeking out for loungewear and active clothing
Percentage of consumers who plan to purchase the following in the next 3 months:
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
Plan to spend more on clothing in the next
few months
31%
Activewear Athleisure Denim Jeans
28% 27% 25%Loungewear
25%
CLOTHING PURCHASES: U.S.Brands should focus on activewear as health/wellness interest is surging
Health and Wellness are top priorityIncreased exercise
53%50%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
COMFORT IS KINGConsumer are rarely dressing up
and seek comfort
Percent of consumers who agree with the following:
85% 75%These days I rarely have a reason to
“dress up”
Wearing comfortable clothes helps me feel
better right now
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September 7-11
CLOTHING PURCHASES: U.S.Brands should focus on comfort in the apparel offerings
Wearing more comfortable clothes since COVID-19
Have purchased clothing made for comfort
69%
67%
Source: Cotton Incorporated’s 2020 Coronavirus Response Consumer Survey, Wave 3 September
30% 31% 35% 37% 42%
2015 2016 2017 2018 2019
WORK CASUAL DRESS ON THE RISECasual dress and telecommuting
rising as workplace benefitsPercentage of U.S. companies allowing:
32% 36% 40% 44%50%
Source: Society for Human Research Management
Casual Dress Telecommuting
COTTON = COMFORTConsumers choose cotton
% of consumer who describe cotton clothing, compared to manmade
fiber blended, as the most:
FAVORITE TO WEAR
COMFORTABLE
SUSTAINABLE
HIGH QUALITY
DURABLE
Prefer their clothing to be made of cotton
80%Source: Cotton Incorporated’s Lifestyle Monitor™ Survey
85%84%82%75%65%
SUMMARY
Economic impacts are widespread, but spending is bouncing back
Look for ways to capitalize on the
surge in online shopping
Understand how consumer’s
clothing habits are changing
COVID-19 ECONOMIC
IMPACTS
ONLINE SHOPPING
SURGE
CLOTHING TRENDS
The New NormalAccelerating Consumer Trends in the Current & Post-COVID World
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The New NormalAccelerating Consumer Trends in the Current & Post-COVID World
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