Updated: Mar 17
In 2020 the fashion global retail market was valued at £2 trillion, being part of such a lucrative industry, it’s never been more important for Fashion brands and retailers to dominate their market share and secure their position within a constantly evolving, hyper competitive retail landscape.
According to the research company McKinsey (2018) The industry operates on a “winner takes all basis” Fashion brands and retailers are in direct competition with each other in terms of market share and positioning , but are also operating with a limited amount of profit to go round. Only a staggering 20% of fashion business generated 100% share of economic profit of 2018 which leaves businesses outside of the top 20% either breaking even or losing profit, adding to the need to stay competitive as a simple means of survival. McKinsey concluded that the top 20% of Fashion businesses generating profit practiced the following….
Brands and Retailers relied heavily on data analytics, particularly at an early stage of the creative process.
The top 20% were able to react quickly to the information provided from the analytics and information collated, bringing new products to market within an 8 week lead time.
It’s evident that information that is included within market intelligence plays a substantial role within decision making throughout the product life-cycle in order to gain a competitive advantage, and is a direct connection between the brand, retailer and the consumer. This often encompasses focus groups, social media analysis, competitor analysis, trend analysis, competitor marketing strategies and consumer behaviour all driven by a need to keep tabs on competitor and social trends that impact the way in which we buy. As future thinking Industry we have a vast array of intelligent resources available that work in tandem to enable us to analyse predict and react, so to answer the title question, the answer is Yes, consumer insights is unquestionably making the Fashion industry more intelligent. At Inhouse we work with clients on providing bespoke market intelligence reports both in the UK and provided by our team on the ground Internationally. To further the conversation with us leave a comment below 👇🏾👇🏾👇🏾 or email us @ hello@inousecreativity,.com