The fashion industry is constantly changing and changes have also been observed in men’s fashion in recent seasons: Driven by the return to the office and workplace after the long period of Corona lockdown, “semi-formal clothing” has become popular of men’s fashion. This development is driven by the increasing fluidity in the industry, the strong demand for casual clothing and the aesthetics of the minimalist trend ‘Quiet Luxury’ reinforced.
These developments emerge from a new report from the retail trade association International Association of Department Stores (IADS). The trade association examined the changes in men’s fashion and their impact on retailers. In times of high inflation, all consumers have become price sensitive – this is also reflected in the IADS results. Men now spend much more carefully on clothing, even if their “lust for fashion remains constant”. Therefore, department stores are seeing growth in the casual menswear category.
‘Brands are not pigeonholed’
Last year, men’s fashion sales accounted for an average of 16 percent of total sales among IADS members and thus remained stable. The association’s permanent members include department store chains such as Breuninger in Germany, Galeries Lafayette in France and Manor in Switzerland, as well as department store groups in Thailand and China. There is also a broad network of corresponding members. In total, the retail association is active in 380 stores in 20 countries.
Sales in the low and high price categories also remained stable last year. According to the association, the share of the entry-level segment was 18 percent and the luxury segment was ten percent. There was a clear change in the premium segment, which recorded growth compared to the previous year with a sales share of 25 percent. According to the IADS, these results can be attributed to a more cautious willingness to buy as a result of the economic situation. When consumers spend their money, they want to do so on high-quality clothing without venturing into the luxury segment.
Shifts and, above all, overlaps can also be observed in the individual clothing items, as consumers are increasingly combining leisure fashion, sportswear and tailoring. Men’s fashion is “no longer a collection of separate and highly differentiated product categories, nor are brands categorized and put into specific stylistic boxes,” comments B2B platform and IADS partner The Style Pulse. Leisure clothing is still the “driving force” of IADS members with a sales share of 56 percent, followed by work clothing with 24 percent. The increasing overlap between the different product categories is reflected in the growth of the fluid ‘athleisure’ category, whose sales share increased to 15 percent of total sales. This means that the category has clearly differentiated itself from sportswear.
E-commerce is ‘a priority for everyone’
The retail association also emphasized that department stores must act dynamically in the face of these changes. The return of consumers to stores is reflected in a stable sales share of 17 percent of online retail. In order to keep e-commerce dynamic and attractive for customers, the IADS advises integrating new offers such as delivery services in order to consolidate interest in its members’ online stores. However, in its report, the association emphasized its members’ efforts in physical shopping experiences, such as pop-ups and capsule collections. These are effective means of revitalizing the product range.
Despite everything, the association calls on department stores and retailers to ensure that their businesses remain profitable under the “current economic conditions”. “For retailers with fewer units per transaction (UPT) and an average smaller inventory, the purchase decision becomes more complex. As a result of inflation and, in some cases, declining sales, department stores are facing problems with their inventory and end-of-season inventory.”
This translated post previously appeared on FashionUnited.uk. Translation and editing: Pia Schulz