Want to know what, why and how US consumers will make their fashion purchases throughout the year? To shed light on the shopping habits of consumers in the US, the newly launched platform Mmgnet has published a US consumer outlook for 2024. Based on research from BoF Insights, the think tank of the industry magazine Business of Fashion, the report provides practical insights for fashion companies in the mass market, mid-market, luxury segment and second-hand sectors. Below, FashionUnited presents some of the most important results.
76 percent of consumers surveyed plan to spend as much or more on fashion in 2024 as they did in 2023. All respondents, with the exception of those over 55, plan to increase their spending on fashion in 2024. The willingness to spend more money is greatest among 18 to 34 year olds compared to 2023, with Generation Z in particular seeing shopping as a form of leisure time.
Overall, consumers ranked fashion among the top five categories they plan to spend the most on in 2024, followed by dining out, travel, health & fitness in third place, and beauty & personal care. According to the report, Generation Z will spend more than average on health and fitness. However, while respondents plan to spend more on clothing, shoes and beauty, they may reduce spending on accessories or items deemed less necessary, such as handbags, jewelry, watches and luggage.
76 percent of US consumers will spend more on fashion in 2024
As consumers continue to lead a hybrid lifestyle, moving between remote work locations, office environments and social gatherings, the demand for versatile garments that are adaptable is increasing. This trend is characterized by a preference for casual sportswear, coupled with a growing inclination to invest in classic statement pieces and subtle luxury items that are made to last. In 2024, the style fusion trend, combining tailored and formal wear with casual elements, is expected to evolve with new variations.
The clothing category is likely to see the fastest growth in 2024 as consumers purchase new outfits for all occasions. Many respondents said they would rather buy jeans than other trousers, apart from men aged 18 to 24 who will buy other styles. Demand for comfortable and stylish sportswear will remain strong in 2024, as interest in athleisure and workout clothing is strongest among women aged 18 to 34 and men aged 45 to 54.
Older demographics showed greater interest in other categories, with 60 percent of women ages 45 to 54 showing interest in purchasing underwear, lingerie and shapewear. Younger women aged 18 to 24, on the other hand, showed more interest in purchasing formal wear than those aged 25 to 34, as they enter the workforce and increasingly attend business and formal events. As demand for athleisure and loungewear also increases, knitwear is seeing increased demand among shoppers aged 25 to 34 across all genders.
Casual and performance sneakers are at the top of US consumers’ fashion wish lists in 2024
Consumers’ growing interest in health and well-being is leading brands to place more emphasis on performance. Respondents are actively searching for products in various categories that promote their health and well-being. In clothing and footwear, demand is increasing for items with technical features, even for everyday use. As a result, brands are shifting their focus to innovative product development. The most successful product differentiators will be those that effectively communicate the attributes of performance and innovation to consumers.
When it comes to shoes, new everyday sneakers have proven to be the first choice for all age groups and genders. About 40 percent of women and 30 percent of men under 34 said they plan to purchase everyday sneakers this year, showing increasing interest in performance wear brands for both fitness activities and everyday wear. Among women aged 25 to 34, everyday shoes were the second most requested category, with more than 40 percent expressing interest in purchasing everyday sneakers.
Respondents showed a growing interest in comfortable shoes beyond sneakers, with about 30 to 40 percent of them looking to purchase flip-flops, sandals and espadrilles that are easy to wear this year. Additionally, approximately 30 percent of male respondents showed an inclination to purchase outdoor and work shoes, highlighting the market’s preference for brands that combine style and practicality to suit consumers’ diverse lifestyles.
Discounts will continue to be an important reason for purchases for US consumers in 2024
The preference for accessories seems to vary depending on the age group: women between the ages of 18 and 25 primarily prefer handbags, while jewelry is the top priority for those aged 25 to 34. Demand for hosiery and socks could be driven by men aged 45 to 54 in 2024. Additionally, about 30 percent of men intend to purchase watches and belts.
The motivations for buying fashion items in 2024 don’t seem to differ all that much for most age groups, with the main reasons being functional necessities or steep discounts. However, younger consumers said they often shop in anticipation of special events or to receive exclusive, limited-edition products.
In 2024, technological advances such as augmented reality (AR) try-ons and artificial intelligence (AI) recommendations will narrow the gap between online exploration and actual purchase. Consumers have highlighted the unpredictability of fit and quality as key barriers to shopping online, as well as the limited selection of sizes and styles in stores.
Technologies that address size, fit and customization are highly popular with consumers. Despite this, 40 percent remain skeptical about the impact of technology on their shopping habits. Younger consumers are more open to technological advancements, particularly virtual fitting rooms and AI-driven suggestions.
Consumers’ priorities remain focused on the best deals, even as sustainability becomes more important in fashion. Despite the growing importance of sustainability, many shoppers, especially Millennials and Gen-Zs, still gravitate toward lower-priced options like fast fashion. Younger shoppers who are most committed to environmental and social issues are strongly looking for products that are both price-conscious and consistent with their values. This trend will intensify the competitive landscape for sustainable fashion, including in the resale and rental markets, where pricing and strategic marketing will become increasingly important.
US consumers will still be looking for the best value for money in 2024
While many consumers continue to shop from brands and retailers that align with their values and morals, 62 percent of respondents prioritize other factors such as style, popularity, sustainability or social purpose over price when purchasing. When choosing a product, 63 percent of those surveyed place the greatest importance on size, fit and a good price-performance ratio and put these above properties such as timelessness, durability, versatility or sustainability.
For 29 percent of consumers, exploring fashion both online and in-store is the main way they get style inspiration, while social media has a lower influence. However, younger shoppers are more likely to get fashion ideas from their social circle, social media and influencers. When it comes to disposing of old clothes, the majority, namely 61 percent, of those surveyed plan to donate their old clothes to charity in 2024. Younger consumers are also more willing to participate in the resale market.
This translated post previously appeared on FashionUnited.com.