People
Among in four pillars, people are the target of the entire fashion industry. Brands rely on people’s consumption behaviour to form a more healthy and stable development. At present, the hot spot Gen Z and diversity are the two key things about people that fashion business follows.
Gen Z
With 2 billion Gen Zers worldwide, the Gen Z age group now makes up a little more than one-quarter of the world’s population, making it the biggest living generation (Cushman & Wakefield, 2020). However, the purchasing power and disposable income of Generation Z is growing steadily and they are standing at and interesting crossroads in age from 11 to 24 (Henry, 2022). As they gradually become the major consumer, Gen Z has unique feature simultaneously in consumer behaviour. The GlobalWebIndex survey indicates that 98% of Generation Zers globally own smartphones. Data on social trends and technology for Generation Z in North America shows that 96% of this age group owns a phone (Katie, 2017). Thus, social media plays a significant role. Generation Z has a very different attitude toward social media and digitization in general and is essentially born with a phone in their hand. They utilise social media to interact with their favourite brands, conduct product research, and look for inspiration. In the US, 60% of Generation Z uses Instagram to find new companies, goods, and services. Americans between 18 to 34 made 48% of their purchases online (Voyado Elevate, 2022). Meanwhile, according to 68% of Gen Zers, they are very aware of their place in the world and work hard to make it a better place for next generations so that 56% of them think they are socially responsible, and more than half purchase products from firms that practise these values (Matt, 2019).
On account of Gen Z’s characters above, Gen Zers more frequently support their ideals through their purchasing decisions, supporting companies that share their values and avoiding those that don’t. Stand the perspective of fashion brand, capturing the Gen Z becomes their main concern. In view of the above mentioned characteristics, social media and sustainability are the keys to the tiebreaker. A spring 2019 survey from investment bank and asset management business Piper Jaffray found that 73% of Gen Zers (those ages 7 to 22 according to the report) preferred brands to contact them about new items using Instagram, with Snapchat coming in second at about 50% (Lucy, 2019). The emphasis on social media will play an important role in attracting Gen Z and brand development. In addition, according to the report, both millennials and Gen Z are more inclined to turn away from firms that do not take a position on crucial issues like the environment, diversity, sustainability, etc. or whose values do not align with theirs (Frida, 2021). Young consumers are more likely to spend extra for clothing that is from a sustainable or socially conscious company, which is an advantage. You can increase trust among Generation Z by communicating these initiatives. Here, it’s critical that you understand where you stand and have a plan for how to actually influence your viewpoints. Avoid “woke-washing” at all costs since it will harm your reputation.
Diversity
Diversity is necessary in fashion industry including internal, external, organisational and world view. Fashion brands’ pursuit of diversity will be a shot in the arm for the brand image. The Fall/Winter 2021-2022 collection by Balenciaga demonstrated the company’s engagement and support of the LGBTQ+ community with rainbow flags and sweatshirts with the word “gay” emblazoned on them. Balenciaga’s design director Demna Gvasalia is introducing a new capsule collection for Pride Month that celebrates the community. T-shirts, baseball caps, undergarments, socks, and bracelets make up this ensemble. Additionally, The Trevor Project, an organisation that strives to prevent suicides among young gay, lesbian, bisexual, transgender, and queer individuals worldwide, will receive 15% of revenues from the Balenciaga Pride 2021 collection (Marie, 2021). The campaign have shown that Balenciaga inclusive of different groups, and have created a well-rounded brand image while arousing the passion of certain consumer groups.
Gen Z and diversity are people topics that fashion brands can not get away from. The key people skill that fashion brands want to be successful is to embrace Gen Z and be inclusive about diversity. People will be placed in an important position in the development of the brand. At the same time, fashion brands will be quick to respond to the public people issues and have the ability to execute, as well as the necessary voice.
Bibliography
Cushman & Wakefield. (2020). Demographic shifts: the world in 2030. [online] Available at: <https://issuu.com/cw-red/docs/cw_demographic_shifts> [Accessed 15 October 2022]
Frida, E. (2021). Marketing to Gen Z: What fashion brands need to know. [online] Available at: <https://www.curemedia.com/marketing-to-gen-z-what-fashion-brands-need-to-know/> [Accessed 15 October 2022]
Henry, B. (2022). Gen Z consumer behavior: What you need to know. [online] Available at: <https://www.talon.one/blog/gen-z-consumer-behavior-what-you-need-to-know> [Accessed 15 October 2022]
Katie, Y. (2017). Chart of the day: 98% of Gen Z Own a Smartphone. [online] Available at: <https://blog.gwi.com/chart-of-the-day/98-percent-of-gen-z-own-a-smartphone/> [Accessed 15 October 2022]
Lucy, K. (2019). Gen Z Goes to the ‘Gram for New Products, Brand Engagement. [online] Available at: <https://www.insiderintelligence.com/content/gen-z-goes-to-the-gram-for-new-products> [Accessed 15 October 2022]
Marie, C. (2021) Pride Month: 13 brands that are supporting the LGBTQ+ community. [online] Available at: <https://www.vogue.fr/fashion/article/pride-month-fashion-brands-supporting-lgbt-community> [Accessed 15 October 2022]
Matt, E. (2019). Gen Z marketing: giving the youngest generation what they want. [online] Available at: <https://99designs.co.uk/blog/marketing-advertising/gen-z-marketing/> [Accessed 15 October 2022]
Voyado Elevate. (2022). How is Generation Z shopping? [online] Available at: <https://www.apptus.com/blog/generation-z-online-shopping-habits/> [Accessed 15 October 2022]