McKinsey: Off-Price Retail Fuels Fashion Growth In Europe

Off-price retail is increasingly becoming an important source of growth for the fashion sector as inflation has hit a high post-pandemic, the new study from McKinsey titled “Mastering off-price fashion in an omnichannel world” revealed. According to an analysis of global data on the off-price market and a survey of 11,000 consumers in 10 European countries, it appeared that this segment grew faster than the fashion market as a whole, and it was hit less hard during the pandemic. McKinsey estimated that off-price retail will likely grow five times faster than the market overall between 2025 and 2030. A key pusher behind the growth is the increasingly strong online presence of off-price retailers. Even T.K. Maxx, the European arm of T.J. Maxx, has drastically increased online offerings during the Covid-19 lockdowns. Other online models that have taken hold include flash sales, done by players like Dress-for-less, Limango, Veepee and Zalando Lounge; mystery boxes from start-ups like Heat and Scare; and the more traditional sites that offer a standing assortment of fashion items, such as BestSecret, Booztlet, Brands4friends, Otrium and Yoox. Katharina Schumacher, a digital expert and coauthor of the study, said: “Online sales account for 40% of the off-price market and they are growing extremely fast right now — about 13% annually, on average.” She added that mastering off-price fashion in an omnichannel world will be key for fashion companies to “have their brands reach new consumers who would not normally consider making a purchase at the full price,” and to sell their excess stock more sustainably. The study also revealed that off-price enthusiasts, who are interested in products in the luxury, affordable luxury and premium categories and do their shopping on specialised platforms like Dress-for-less, BestSecret, Brands4friends or Scarce enjoy comparing prices and spend 2.3 times more on their purchases than other groups of fashion customers.

Textile Excellence

us teens plan to spend us$ 66 billion on shopping this year : survey

global spinning capacity remains stable, consumption down: itmf

Subscribe To Textile Excellence Print Edition

If you wish to Subscribe to Textile Excellence Print Edition, kindly fill in the below form and we shall get back to you with details.