People
People focuses on the role of people in the fashion industry and the corresponding impact on the industry. Gen Z, the new generation of people born from 1995 to 2010, is a new consumer group in the fashion industry. Unlike previous generations, in particular, Gen Zers are digital natives, surrounded by technology and the Internet all their lives.
Compared with Gen X’s close attention to material and Gen Y’s close attention to self, Gen Z cares more about uniqueness and unlimited(McKinsey, 2018). In the fashion industry, as a consumer, Gen Z has three typical consumption habits: consumption as access rather than possession, consumption as an expression of individual identity and consumption as a matter of ethical concern. At the same time, with the development of science and technology, they also expressed a strong interest in online shopping.
To attract Gen Z, brands should shift their focus to the online sales and promotion of products, even explore the field of the meta-universe, since 61.6% of Gen Z say they are familiar with the metaverse concept (Drapers, 2022). At the same time, considering that unlimited access to goods and services is valuable to Gen Z, brands should try to increase the stickiness between brands and customers by working hard on services while ensuring high-quality products.
McKinsey reports that fifty-eight per cent of A-class and 43 per cent of C-class consumers say they are willing to pay more for personalised offerings(McKinsey, 2018). In this regard, brands can provide customised services or launch collections that express personal identities, such as a series of products with consumers’ initials or constellation characteristics.
Furthermore, Gen Z also attaches great importance to diversity and other ethical concepts. Seven out of ten Gen Zers say it is vital to defend causes related to identity(McKinsey, 2018). Ralph Lauren has a good performance in this respect. Its two product lines, Lauren Petite and Lauren Curve, especially pay attention to consumers of different races and shapes.
Figure 1 (McKinsey, 2018)
On the other hand, people working in the fashion industry are also crucial. As a mixture of fashion and technology, Farfetch has been looking for fashion industry workers from a technology background(BOF, 2022). In the current trend of the times, skills closely related to technology will become critical people skills to help fashion brands succeed.
References
Drapers, 2022. Gen Z and Millennials 2022. [online].
Available at: https://www.drapersonline.com/guides/gen-z-and-millennials-2022 [Accessed 16 October 2022].
Mckinsey, 2018. ‘True Gen’: Generation Z and its implications for companies. [online].
Available at:https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies [Accessed 16 October 2022].
BOF, 2022. The State of Fashion 2022 Report. [online].
Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/state%20of%20fashion/2022/the-state-of-fashion-2022.pdf [Accessed 7 October 2022].
Figure 1:
Mckinsey, 2018. ‘True Gen’: Generation Z and its implications for companies. [online].
Available at:https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/true-gen-generation-z-and-its-implications-for-companies [Accessed 16 October 2022].