A presidential election in 2020, unusual weather patterns, a discordant political landscape with no concrete plans or solutions — these are all issues distracting consumers from shopping and buying.
The result is a metamorphosis of the consumer from a happy-go-lucky spender to a cautious customer weighing the benefits and disadvantages of each purchase. When consumers go shopping now, they ask themselves these questions: “Do I really want this? Do I need this? How am I going to pay for it, and can I buy it for less?” Products will have to fit into a mindset of calculated consumption.
Implementing new technologies into a company’s marketing strategies and product instead of relying on its legacy reputation is one way of adapting to the new climate. That means that product developers must adapt to the consumer rather than expecting the consumer to follow branded marketing just because the brand has been around for years.
What Are Consumers Considering?
Yesterday’s fashion industry mantra of “built-in obsolescence” is the antithesis of sustainability. It is no longer about producing a disposable product. Consumers now want value (sometimes at a price) and wearability for a longer cycle — yes, we will see white pants in November, even when snow is falling!
Issues beyond economic uncertainty may slow down consumer spending. Statistically, consumers go on a spending hiatus whenever there’s a major election year, and election time in 2020 will be major! Weather is another issue that could play havoc with retail success. Even without the specter of global warming, we are in a dramatic weather pattern, occurring about every 10 to 12 years and lasting nine to 14 months, according to the meteorology experts. The ravages of the unusual storms of this year will affect those regions’ household incomes and shopping patterns for the 2019 holiday shopping. If people must spent $500 for a generator, what will they not buy? They certainly will not buy a new dress, handbag or fancy jewelry.
Although the economy has made a dramatic recovery (with expansion over 2%), in the near term, we will probably be in a transition from an economy that spends too much on housing to an economy that is going to be something else — but nobody knows what it is yet.
So, Where Are They Shopping?
Conventional wisdom wrote off the shopping mall some time ago, but while no one was looking, the reinvented mall succeeded in attracting new clienteles. For years now, this same “wisdom” said that the mall — particularly in the suburbs — was doomed. Certainly, there are hundreds of outmoded malls, most commonly found in changing neighborhoods. Some will never come back. By some estimates, close to 20% of the country’s estimated 1,000 malls will be out of business in the next 10 years; however, the “power centers” built around Target or Walmart will certainly survive.
The notion that Americans don’t like malls anymore is misleading. Like cities, not all malls are alike. It’s clear the mall concept is transforming itself to meet the needs of a changing society. E-commerce has had an effect, but brick-and-mortar sales still constitute upwards of 84% of commerce. Historically, malls in general reflected the mass sameness of mid-century America, but those who will be successful for the future must focus on distinct niches with entertainment as a key driver.
According to a recent study from A.T. Kearney, shopping in stores is preferred over online-only by every age group, including — most surprisingly — millennials (although 80% of them do research on the web). This leaves us with a tale of other kinds of malls. Old malls in declining areas will seek conversion into apartments, corporate headquarters, etc. In contrast, outlet malls are opening even in the urban core. For the new malls to thrive, the future lies in replicating the function that Main Street once served. Rather than simply a center for food and fashion, the mall as a community and entertainment center with live entertainment, health clubs, movie theaters and trendy restaurants will become a social meeting point and give consumers a sense of place in today’s environment that online retailers, power centers or catalogs cannot provide.
The takeaway here is that the future of fashion consumerism — at least in L.A., which is the global center of celebrity — may be the mall as a place for cultural experiences. It will define fashion’s relevance to music, art and technology for a new generation of shoppers who now take their fashion cues from brand-agnostic bloggers, the streets and celebrity designers. Our fashion gurus used to be the fashion coordinators of the major retailers and fashion magazines, but not any more!
Ilse Metchek
California Fashion Association
444 S. Flower Street, 37th Floor
Los Angeles, CA 90071
213-688-6288
