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Circular Fashion Summit 2020
The document summarizes findings from PwC's Global Consumer Insights Survey regarding changing consumer behaviors and expectations during the COVID-19 pandemic. Some key findings include: - Nearly half of global consumers reported reduced income due to the pandemic, leading more to expect decreased spending. - Apparel and footwear saw the largest cuts in household spending of all categories. - Consumers now prioritize safety, sustainability and accountability from businesses and expect a more digital customer experience. - Younger consumers especially demand transparency from brands regarding environmental and social impacts.
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Circular Fashion Summit 2020
- 1. 3 - 4October 2020 The consumer transformed - Changing behaviours are accelerating trends along a reinvented customer purchase journey Circular Fashion Summit 2020 Erika Andreetta | Partner PwC
- 2. 24° Beauty SummitPambianco 2.448 46% 54% Millennials (25 – 40 anni) Generation Z (18 – 24 anni) 23.545 50% 50% Observatory Millennials & Gen Z Global Consumer Insights Survey M Z 11° 5° Italy 27 Countries Before COVID-19 After COVID-19 19.098 Respondents 27 Territories 74 Cities 4.447 Respondents 9 Territories 35 Cities Respondents Jan – Jun 2020 Respondents Jan – Jun 2020 2PwC
- 3. PwC Global consumers whowill spend less in the «New Normal» have almost doubled Which of the following have you encountered as a result of the current COVID-19 (Coronavirus) situation? * Includes the answers: "a reduction in family income due to job loss / reduction of hours" and / or "a reduction in family income due to illness / care for others» Question, 2019: in terms of personal spending for the next 12 months, do you expect to ... Base: 19.098 Question, 2020: Due to the COVID-19 (coronavirus) situation, how do you expect your family's spending to change in the coming months? Base: 4,447 Source: PwC, Global Consumer Insights Survey 2020 + 89% 40% of global consumers suffered a reduction in income due to the COVID-19 emergency - 28% Middle East 49% China 43% France 49% Spend more Spend less Spend the same 46% 33% 33% 32% 19% 36% Before COVID-19 After COVID-19 Spain 56% UK 43% Italy 42% 3PwC
- 4. PwC 4 Cuts inhousehold expenses: fashion is the most affected sector by the discount mindset in all countries Health & Beauty products Office tools Restaurants (pick up/ delivery) Sport equipment Apparel and footwear 51% 46% 41% 36% 35% Spain 61% Italy 57% ME 53% Spain 62% UK 58% China 49% ME 50% Spain 49% Italy 44% ME 45% UK 44% China 42% Spain 70% | Italy 65% | UK 60% 51%of global consumers will spend less in apparel and footwear Just 10% of them will increase their Fashion purchases Top 5 areas of decreased household spend How have household expenses changed in the following categories, if not entirely, following the removal / social isolation measures COVID-19 (Coronavirus)? It includes the% of those who declared "decreased" - excludes those who declared "I don't spend in this category - excludes those who said" I don't spend in this category “. Base range: 3158 - 4094 Source: Global Consumer Insight Survey Pulse 2020
- 5. PwC 49% safety & securityare the most important features of their city (vs 27% pre- COVID-19) Changing behaviours are accelerating trends along a reinvented customer purchase journey 5 How do you expect your household spend to change over the next few months? Base: 4447 Thinking about your city, which of the following features are the primary reasons why you live there? (Ranked Top 3) Base: 4447 Thinking about your consumer data, to what extent do you agree or disagree with the following statements in relation to sharing it with organizations? (Please select ONE option) For each of the following product categories, how many of your purchases have you made online over the last 12 months? 43% expect businesses to be accountable for environmental impact 42% are open to share their data to get a better customized experience 36% spend less Expect market volatility and price sensitivity 78% made purchases by mobile Consumer experience must be rooted in safety and accessibility Digital engagement will be robust and diversified Customers will become longtime advocates if you prioritise sustanaibility and innovation 86% Made online fashion purchases over the last 12 months (Please select ONE option) Note: not considered «have not purchased in the last 12 months» How often do you buy products (e.g. clothes, books, electronics) using the following shopping channels? (Please select ONE option) Please indicate which statements best reflect your actions and expectations on sustainability (Please select ALL that apply) Source: PwC, Global Consumer Insights Survey 2020 Base 19,098
- 6. PwC Consumer look totheir government to drive sustainable behaviors, but in some countries greater responsibility is attributed to brands/retailers In your opinion, who should take the biggest responsibility for encouraging sustainable behaviors and/or lifestyle practices in your city/country? Note: exclude the answer “don’t know” Source: PwC, Global Consumer Insights Survey 2020 Base 19,098 34 The Government 21% Me, the consumer The Government was cited top by 20 territories Mexico 40% Indonesia/Malaysia 35% Thailand 32% Russia 45% Spain/ Singapore/ Philippines 42-44% China/ HK/ Malaysia 37-38% 22% The manufacturer or retailer Germany 33% Canada/ UK 27% USA/ China 25-26% The Manufacturer / retailer was cited top by Germany/ USA Me was cited top by Mexico, Indonesia and Thailand 35% Millennials 36% Generation X 34% Greatest generation 27% Baby boomers 35% Greatest generation 6PwC
- 7. PwC Urban consumers are consciousof the need to reduce plastic use and expect brands/ retailers to support this Please indicate which statements best reflect your actions and expectations on sustainability (Please select ALL that apply) Source: PwC, Global Consumer Insights Survey 2020 Base 19,098 Quale informazione riflette meglio il suo comportamento d'acquisto in termini di sostenibilità? Fonte: PwC Millennials vs Generation Z 2020 In 2020 only 6% declare not to be interested in sustainability (vs 13% in 2019) Brand expectations Conscious consumption Personal behavior China 39% China 47% Spain 47% UK 44% China 40% China 34% Germany 43% Spain 43% Spain 51% Also MZ pay attention to sustainability, they choose: • 63% Ecological products • 28% Conscious brands • 9% Personal behavior 45% Business accountable for environmental impact 28% Consider environmental/social effort of retailer 41% Retailer to eliminate plastic bags / wrapping 37% Buy items with less packaging 32% Consider sustainability in my food choices 19% Reconsider amount of air travel 32% Choose sustainable ways to travel 45% Avoid use of plastic 30% Buy from brand that promote sustainability 28% Choose products with traceable origin PwC 7
- 8. 84° Beauty SummitPambianco M&Z in Italy are looking for: Even post COVID-19, consumers are looking for natural, sustainable and ethical Fashion products, less than 10% do not recognize a small premium price In which of the following cases are you willing to pay a higher price for the purchase of clothing, accessories or beauty products? Source: PwC Millennials vs Generation Z 2020 53% Natural products 50% 36% 28% Eco-friendly products Ethical products Brands known for sustainable practices A parità di prezzo PwC 8
- 9. PwC As a personalcommitment they are inclined to "share" Q24 Please indicate which of the following product categories you currently rent or use a sharing service for, or would be willing to in the future? (Please select ONE option) Source: PwC, Global Consumer Insights Survey 2020 Base 19,098 Z: 24% M22% Z: 21% M21% 9
- 10. PwC The choice ofsupplies and raw materials is fundamental for the sustainable reputation of companies .. To consider a company “sustainable”, what is more important to you? Select up to three answers Source: PwC Millennials vs Generation Z 2020 Z: 36% M: 44% Z: 62% M: 57% Z: 34% M: 42% 10PwC Sustainable reputation:
- 11. PwC Over 90% areready to change their mind about the sustainability of a company ... 11 What can change your opinion on the sustainability of a company or a brand? Source: PwC Millennials vs Generation Z 2020 73% The perception of the company's concrete commitment to improve its sustainability practices 20% The positive opinion of the people I trust 11PwC
- 12. PwC Do companies communicate product information transparently? Inyour experience, do companies communicate transparently where, by whom and how the product is processed? (Fashion and Accessories) Source: PwC Millennials vs Generation Z 2020 Trend in slight improvement for fashion and accessories Companies communicate in a fairly / very transparent way how the product is processed In 2020 due to the COVID-19 pandemic there is a discontinuity PwC 12
- 13. PwC Young Italians are sensitiveto "Animal Free“ topic … For which category do you buy animal free products? Beauty - Fashion and Accessories Which of the following statements best defines your product purchasing behavior? Fashion and Accessories - Beauty Note: Multiple choice answers Source: PwC Millennials vs Generation Z 2020 66% chooses clothing, footwear and accessories made with non-animal materials 66% I choose beauty products "not tested on animals", "cruelty-free" and / or "100% vegan" PwC 13
- 14. PwC 14 …primary drivenby concern for animal well-being What is the main reason that drives you to buy an Animal Free product? Source: PwC Millennials vs Generation Z 2020 57% is driven mainly by concern for animal well-being 34% Is concerned for the environment 9% Pay attention to their health / well-being M+Z 14 14PwC
- 15. PwC In your opinion,which of the following tools are most effective in communicating information about sustainability by companies? Fashion and Accessories Note: Multiple choice question Source: PwC Millennials vs Generation Z 2020 Label 1° M Gen Z 70% 64% Website 3° M Gen Z 46% 44% 2° M Gen Z 58% 63% Social +76% vs 2019 For the first time, the product label goes beyond social media as the most effective tool to communicate information on the sustainability of fashion companies 15PwC
- 16. PwC M&Z expect tofind on the label the information regarding ingredients and product origin, to assess its actual sustainability What information do you think should be indicated on the packaging / labels of a product to assess its sustainability? Select up to three answers Source: PwC Millennials vs Generation Z 2020 66% Type of product materials 63% Origin of raw materials/ country of manufacture / product processing Instructions on recyclability / disposal of the product / packaging Sustainability related certifications 56% 37% 16PwC
- 17. 174° Beauty SummitPambianco What’s next? Growing desire of transparency, sustainability, cleanliness, community living and social consciousness Greater attention to health and well-being Medical needs Health and well-being Diet and nutrition Mental health 64% 69% 63% 69% New habits post COVID-19 74% 36% 44% 59% 35% 45% Smartworking (at least sometimes) Increased spending on entertainment and online media Amazon Prime memberships Increased use of video chat apps Buying groceries online/by phone Willingness to share own information to improve the environment Avoid use of plastic 49% Source: PwC, Global Consumer Insights Survey 2020 China 80% MZ 80% M 52% China 75%
- 18. 18 Erika Andreetta Partner PwC ConsumerMarkets Consulting Leader erika.andreetta@pwc.com Erika Andreetta, PwC Partner, is responsible for consulting services in the Retail & Consumer Goods world Management engineer, she joined PwC Consulting in 1999 and has always been involved in Fashion and Food, first at European and then international level She personally followed important internationalization processes of primary groups in the Chinese market, and was an active member of the CINDIA Desk of PwC from 2000 to 2006. At the moment she is supporting high potential companies in promoting Made In Italy worldwide, developing systemic project focused primarily on reshoring and sustainability She is also a member of Get it Fair, the first international certification system for textile and clothing supply chains in emerging countries for responsible labeling. Careful observer of consumer evolution, over the last five years she has been studying the impact of omnichannel in Made In Italy sectors, through the Global Consumer Insight Survey (27 countries, 21,000 consumers) and Italian insights on Millennials and Generation Z. 18PwC
- 19. pwc.com/it Thank you © 2020PricewaterhouseCoopers Advisory SpA. All rights reserved. PwC refers to PricewaterhouseCoopers Advisory SpA and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.