From Replenishment To Re-Engagement

How the apparel industry can lean into new trends to encourage excitement and spark joy

In 2019, the apparel industry was facing some slow burning challenges. A lack of new trends and an overall malaise towards fashion led to a constant state of promotions. The consumer was trained to play “promotional chicken” with brands and retailers — a game they almost always won.

The great reemergence from the pandemic changed this landscape. Metaphorically speaking, if the apparel industry was a snow globe, our reemergence from the pandemic acted as an over-zealous child shaking up a once stagnant scene. Post-pandemic apparel replenishment was a rising tide that lifted all boats — and the dock, too. Brands and retailers benefited from this fervent behavior, as consumers replenished their wardrobes in waves. Sales for active apparel and basics like bras and underwear were the first to take off as we surfaced from quarantine. Swimwear followed in the summer of 2021, ignited by “revenge travel” as people tried to make up for lost [vacation] time and destination dreams became a tangible reality. Most recently, dresses and tailored clothing sales surged in 2022 as people returned to offices, attended those postponed weddings, and resumed other social activities.

For the last two years, we have been steadily outfitting ourselves for all facets of our revamped, post-pandemic lifestyles. In fact, 57% of U.S. consumers continue to cite replenishment as the leading reason for their apparel purchases, according to a recent poll from the Circana “Future of Apparel” survey. However, once these replacement needs run out, where does this leave the apparel industry as we face the remainder of 2023 with an overstuffed bureau and a full closet?

The apparel industry is in danger of finding itself back where it was in 2019, with bored consumers and out-of-control promotions. With immediate fashion needs met, purchase motivators will likely shift focus to two things: innovation and joy. Consumers will crave updated silhouettes, new performance features, and fresh colors that keep them both intrigued and excited.

Right now, though, the industry is lacking a response to the consumer’s desire for something new; only 19% of dollars spent on apparel in 2022 went to new styles, and that’s even lower than it was in 2019, according to Retail Tracking Service point-of-sale data from Circana. Rather than intrigue, an innovation stagnation is plaguing the industry. A recent Wall Street Journal article attributed a pullback in innovation across retail to a plethora of factors, including collaboration stifled by remote work, supply chain challenges, and erratic consumer demand. With that being said, there are some nice opportunities we, as an industry, can learn from. And they are right under our noses.

Shapewear is a market that emerged from underneath (literally) and is now in the retail spotlight. While a return to social events helped boost shapewear sales in 2022, brands like Yitty and Skims are reinventing the category. Shapewear is now being used not only to discreetly shape, but to be seen, with these brands developing shaping tanks, spots, and pants in complementary colors and silhouettes. This is also a category that boosts confidence through sculpting and smoothing benefits. Shapewear is unlocking the potential of what an emotional connection through apparel can mean.

Beauty is another discretionary industry that continues to experience sales growth in the face of economic instability. In 2022, U.S. sales revenue for prestige beauty products grew by 15% — making it the fastest-growing industry across the $3 trillion in U.S. consumer spending tracked by Circana. Furthermore, beauty was the only industry across both discretionary general merchandise and consumer packaged goods (CPG) categories to experience unit sales growth in 2022. My colleague Larissa Jensen says that a key reason consumers continue to splurge on beauty products is because of the emotional connection these products create. Over 50% of consumers report that “makeup makes me feel confident,” while nearly 30% say that “makeup brings me joy,” based on findings from the NPD 2022 Makeup Consumer Report. The apparel industry is in a position to create similar emotional bonds because it is – first and foremost – a category that enables our physical representation of how we want to be seen in the world. As an industry, we need to replicate the same physical and mental confidence that the beauty industry does.

While leaning into newness is crucial, innovation has multiple meanings as it is uniquely dependent on the brand’s core consumers and their end goals. For example, innovation at a brand like The North Face might take on a dual play of fabric insulation innovation and the hottest designer collaboration to expand and activate its appeal to more consumers. For fashion brands like Aritzia, innovation can mean updating the fabrication and color pallet of a universally flattering blazer. Regardless of the business, at the core of this quest for newness and innovation is creating an emotional connection with the consumer. In the face of whatever economic instabilities that might come our way, consumers will consistently turn to products that uplift, instill confidence, and spark joy.