Fashion: Value-driven shopping behaviors persist as economies recover
Shopping behaviors that consumers plan to stick with, even if they had more money to spend
My favorite data from the Business of Fashion /McKinsey & Company State of Fashion 2025 report is this chart on shopping behaviors that consumers plan to stick with, even if they had more money to spend, confirming a sentiment many of us have felt these past 18 months.
Shoppers don’t plan to increase their fashion budgets, even as economic conditions improve in some regions. Over 80% of shoppers expect to spend the same or less on clothing, footwear, and accessories in 2025.
The survey highlights the stickiness of value-seeking shopper behavior.
“Value” means different things to different shoppers: some find it in shopping pre-owned or on sale, while others seek fewer but higher-quality items.
🛍️ 75% buy from an outlet or off-price retailer
Off-price retailers have continued to grow, with revenues up 1.8x despite market turbulence, attracting consumers focused on savings and smart spending.
Traditional Off-price Retailers like Burlington, Ross and TJX are mentioned in this report as the biggest winners in this category and are expected to grow revenues by a weighted average of 4.6 % in 2024, compared to a 2.6% average for publicly listed fashion companies.
Meanwhile, E-Commerce off-price platforms with a members-only model, such as BestSecret and Mile are growing even faster, with over 25% growth per quarter. New platforms are emerging and expanding rapidly, offering better-curated fashion and luxury assortments along with more relevant marketing that appeals to the youth
Mile is my personal favorite. It’s the most innovative and culturally relevant platform. Operated by the same company behind the curated luxury mystery boxes Heat (which I covered in an article last year), Mile is killing it without an excessive marketing budget, offering well-curated, unsold inventory from both major and emerging brands at lower prices, from Balenciaga and Bottega Veneta to Jacquemus, ERL, and Casablanca, to name a few.
Brand outlets are also part of value-driven shoppers favorite destination especially entry-level shoppers. Here in California, near Palm Springs, Desert Hills Premium Outlets, a huge outdoor mall of 180 luxury outlets with most of luxury brands from Burberry, Louboutin to Balenciaga and Gucci, is a huge success, attracting a significant number of visitors, including both locals and tourists.
Like many outlet malls, it often features merchandise created specifically for outlet stores. These "made-for-outlet" products are generally crafted with different materials or simplified designs to keep prices lower, allowing brands to maintain exclusivity for items sold in their mainline stores. However, some outlets also offer discounted past-season or overstock items from mainline collections, particularly in higher-end or luxury brand stores, though availability varies by brand and season.
🛍️ 61% buy or sell on resale websites
Consumers perceive greater value in resale purchases, with 60% saying that buying secondhand apparel provides the best value for their money.
The resale market in the US grew 15x faster than the broader clothing retail sector in 2023. By 2025, secondhand sales will account for 10% of the global apparel market, and the segment is expected to grow at a 12% compound annual growth rate to reach $350 billion by 2028.
Online resale platforms are keep growing and are here to stay. Vinted is a huge success in Europe. Vestiaire Collective and Depop are growing both in Europe and in North America. The Real Real, Poshmark, ThredUp, StockX and Goat are still leading in the US.
Vinted reports that 65% of its buyers prefer to buy fewer, more expensive items that last, rather than more, cheap fashion items.
More and more brands have also recognized this growth opportunity and are developing their own resale capabilities. These past years, we have seen more and more fashion and luxury players such as Alexander McQueen, Balenciaga, Burberry, Mulberry, Rolex, Stella McCartney, Valentino, Patagonia, Sandro (and even Shein) to name a few, launching their circular fashion programs promoting resale, either independently or through partnerships with third-party resale or recommerce platforms. For more information, I wrote a full article a few month ago about the Secondary economy: why resale is crucial for luxury brands?
🛍️ 54% buy a cheaper version or "dupe"
Gen Z loves “dupes,” duplicates of high-end products at accessible prices. While this trend began with Gen Z, it has quickly gained traction across age groups. Nearly a third of US adults now admit to buy a dupe of a premium or luxury item, and the hashtag #dupe on TikTok has almost 6 billion views.
But dupes aren’t just for passing trends. In the UK, 11% of shoppers say they pick up a dupe at least every few months. For half of them, it’s about saving money, while 17% see dupes as great alternatives even if they could afford the originals.
Dupes aren’t also just cheap quality at a cheap price. Shein and Temu are, of course, the bad guys in this category, but we have also seen more players focusing on premium quality at better prices emerging in recent years.
San Francisco based brand Quince is built on a “same, but cheaper” model, offering luxury basics at accessible prices without compromising on quality. In 2023, Quince’s sales tripled, and the brand expects to triple them again in 2024 to reach $1 billion.
I also like the example of WoodChuckSato, a Japanese DTC brand offering premium, Margiela-inspired Tabi shoes at an accessible price point ($250). Discovered on TikTok through fashion creators who are Tabi fans, WoodChuckSato taps into the traditional Japanese shoe design that Margiela did not invent but beautifully reinterpreted and popularized in high fashion. However, Margiela’s versions are not within everyone’s budget, creating a niche market opportunity for Tabi fans seeking quality at an affordable price.
🛍️ 46% shop from cheaper brands than usual
Ultra fast fashion brands and platforms like Shein and Temu, along with fast fashion brands such as H&M, Zara, Mango, and Bershka, represent the dominant options for consumers in this category. However, as we all know, these brands are often associated with low product quality and limited commitment to sustainability, raising significant concerns. Shein and Temu, in particular, face strong criticism in this regard, while Zara and H&M have made considerable efforts to improve their sustainability practices.
The New Consumer 2024 report highlights this surprising consumer contradiction, revealing that more Shein shoppers make sustainability claims than the average shopper. In fact, 53% of shoppers are willing to pay for environmentally sustainable products, rising to 67% among Shein shoppers. 😀
Among the multiple cheaper options available, we are also seeing an increase in choices from players focused on premium quality at a more accessible, lower-premium price.
Zara has been working to position itself as a more premium brand by upgrading its material quality and adopting elevated marketing strategies, including notable collaborations with luxury designers like the recent one with Stefano Pilati to attract a new clientele.
Several cool fashion brands have emerged and grown in this category over the past few years, with strong appeal and traction among Millennials and Gen Z, offering premium quality products with great style at a more accessible premium price point. The most interesting brands in this category are Cos (owned by H&M), The Frankie Shop ($40 million in revenue in 2022), and Sessùn (€70 million in 2023), all available in Europe and the US. Cos and Sessùn are both sustainable brands with a serious approach to sustainability, but Sessùn stands out as a B-Corp.
For brands seeking differentiation, the challenge is to convince and attract value-focused shoppers
We are back to essential brand foundations. Brands need to define a value proposition that resonates, whether grounded in quality, affordability, or both, and integrate it effectively and creatively across their product, marketing, and distribution strategies.
What brands should consider:
Attract value-driven shoppers through alternative channels and differentiated products while protecting core brand equity.
Leverage non-traditional channels to reach value-driven shoppers (including entry-level ones) where they shop, such as owned outlets and resale platforms, and engage them where they are the most receptive, like social platforms, emerging and growing community spaces such as instant messaging, podcasts, Discord, Roblox experiences, etc.
“Premiumise” select product lines to highlight value through quality materials and durability.
I’m Aurelia Ammour. I’m a strategy consultant and youth culture trailblazer (I'm not an agency). I built a next-gen sneaker brand, SHOES 53045, from scratch as its CEO and CMO for 4 years. I was behind the scenes of many major strategic transformation and growth projects for notable names like LVMH, Kering, PUIG, Celine, and Loewe, collaborating closely with C-Suites. I’ve also worked as a VC. Today, I help create and develop visionary & iconic brands, products, and experiences that connect with Gen Z and are relevant in today’s culture across Fashion, Luxury, Lifestyle, CPG, and Retail sectors.