
In 2022, shopper confidence indexes within the US, Eurozone and China hit their lowest ranges since 2005, and confidence in China as soon as once more neared file lows in August 2024. Throughout markets, shopper uncertainty about macroeconomic circumstances stays. Within the first half of 2024, shopper confidence was about 10 to 30 factors under 2019 averages throughout the Eurozone, US and China, although confidence ranges within the Eurozone and US are ticking up barely from 2023.
Intent to spend on discretionary classes similar to style stays low. Over 40 p.c of buyers within the US, UK and Germany are spending much less on clothes, footwear and equipment than they did a yr in the past. Within the BoF-McKinsey State of Trend 2025 Government Survey, shopper confidence and urge for food to spend was ranked by style executives as the highest threat to development.
Customers aren’t solely seeking to spend much less, however they’re additionally making an attempt to stretch their cash additional. Over 60 p.c of customers within the US and UK say they’re making an attempt to save cash on style “usually” or “as a lot as potential.” Within the US, this determine is as excessive as 75 p.c.
Customers throughout revenue ranges are buying and selling down, altering the kind of product or amount bought in pursuit of higher worth, however their behaviour varies by section. Whereas worth and mid-market buyers have a tendency to purchase from shops or off-price retailers (>33 p.c) or seek for the most effective worth for an merchandise (>31 p.c), premium buyers usually tend to leverage “purchase now, pay later” companies (16 p.c) or use resale platforms to save lots of (23 p.c). Premium prospects embrace sure trade-down behaviours much more than prospects from different segments; a better share say they’ve bought a less expensive duplicate, or “dupe,” of the product they needed in comparison with worth and mid-market buyers.
At the same time as economies enhance, value-orientated behaviours are prone to persist
Customers aren’t keen to extend their style budgets, at the same time as financial prospects and shopper sentiment enhance in some areas. Over 80 p.c of buyers plan to spend the identical or much less on clothes, footwear and equipment in 2025.
An “inflation overhang,” the concept prospects take time to regulate to increased costs, is just not the one dynamic at play. Even prospects with rising discretionary spend are prioritising experiences and journey over style. Within the third quarter of 2024, the highest class that US and European prospects splurged on was consuming out, adopted by journey and shopping for groceries.
The survey additionally revealed the stickiness of value-seeking shopper behaviour. When requested which classes they’d spend on (e.g. groceries, clothes, actions) given increased discretionary spend, over 70 p.c say they’d proceed sure trade-down behaviours of their style purchases.
“Worth” can tackle totally different meanings. For some, it’d imply procuring pre-owned or shopping for on sale, for others it’d imply shopping for fewer, increased high quality gadgets.

Affordability is propelling development for off-price retailers and shops
1.8x
— off-price retailer income development between 2023 and 2024 vs the broader market
Off-price retailers have continued to develop revenues and enhance profitability regardless of broader market turbulence, this yr’s McKinsey World Trend Index (MGFI) evaluation exhibits. Conventional off-price retailers Burlington, Ross and TJX are anticipated to develop revenues by a weighted common of 4.6 p.c in 2024, in comparison with a 2.6 p.c common for publicly listed style firms. Ross and TJX have been additionally among the many MGFI Tremendous Winners record, main in business financial revenue in 2023.
Outlet channels are additionally benefitting from this dynamic. Within the first half of 2024, Zalando’s business-to-consumer (B2C) channel profitability rose 1.4 share factors yr on yr and income grew by 0.6 p.c. In the meantime, e-commerce off-price manufacturers are rising even sooner, with gamers similar to BestSecret rising 25 p.c within the first quarter of 2024.
Client seek for worth is driving wins within the resale market
41%
— of customers look to secondhand shops when in search of attire offers
The resale market within the US grew 15x sooner than the broader clothes retail sector in 2023. By 2025, secondhand gross sales will account for 10 p.c of the worldwide attire market, and the section is predicted to develop at a 12 p.c compound annual development price to achieve $350 billion by 2028.
The notion amongst customers is that they get extra worth from resale purchases. 60 p.c say procuring secondhand attire provides them probably the most worth for cash. Within the non-luxury house, gamers similar to ThredUp and Vinted broke even for the primary time in 2023. Vinted stories that 65 p.c of its patrons want to purchase fewer, dearer gadgets that final, relatively than extra, low cost style gadgets.
Some manufacturers have recognised this development alternative and are creating their very own resale capabilities. For instance, Sandro’s resale programme drives buyer loyalty by giving sellers both 70 p.c of the resale worth in the event that they select to be paid instantly, or 100% of the resale worth in the event that they select Sandro credit score. In the meantime, Shein launched its personal on-line peer-to-peer resale platform, Shein Alternate, in Europe in summer time 2024 after seeing success within the US. In 2023, Shein Alternate gained over 4.2 million new customers within the US.
The pursuit of inexpensive alternate options has given rise to “dupe mania”
1 in 3
— US adults say they deliberately purchased a dupe of a premium or luxurious product
In a rebrand of what was once considered taboo counterfeits, Gen-Z has popularised “dupes,” or duplicates of dearer merchandise. The phenomenon has grown past Gen-Z, nonetheless. Practically one third of US adults say they deliberately purchased a dupe of a premium or luxurious product, and the #dupe hashtag on TikTok has almost 6 billion views.
Customers don’t simply flip to dupes for one-off developments. Amongst UK buyers, 11 p.c say they purchase a dupe at the very least as soon as each few months. Half say they achieve this for the financial savings, however 17 p.c take into account dupes as nice alternate options even when they may afford the unique.
Manufacturers are leaning into this development. Shein makes use of influencers who outwardly promote Shein merchandise as dupes, whereas start-up Quince is constructed on a “similar, however cheaper” precept, producing replicas of luxurious fundamentals at inexpensive costs while sustaining high quality. In 2023, Quince’s gross sales tripled, and the model goals to triple gross sales once more in 2024 to achieve $1 billion. In the meantime, different manufacturers are utilizing the attraction of dupes as a advertising and marketing alternative: Lululemon hosted a pop-up the place buyers may swap out their dupe leggings for actual ones — freed from cost. The marketing campaign paid off, as 50 p.c of those that visited have been new prospects.
How ought to executives reply to those shifts?
1. Determine worth drivers
Determine the “worth proposition” that resonates with prospects, whether or not rooted in high quality or inexpensive costs.
As “worth” can tackle totally different meanings, manufacturers might want to determine which value-seeking behaviours drive their prospects and tailor their methods accordingly. Shopper surveys, social listening and evaluation of buyer relationship administration information can all be efficient methods to determine what buyers care about by way of worth.
2. Talk worth
Persuade customers of the outlined worth proposition via efficient model communication.
Create campaigns that spotlight the craftsmanship and high quality of merchandise, the innovation behind them or aggressive costs to justify a purchase order to buyers.
Leverage non-traditional channels to satisfy customers the place they’re — and the place they are going to be receptive. Natural influencer content material, shopper boards and social media platforms similar to TikTok can all be highly effective methods to affect customers’ model notion.
3. Combine worth into the channel and product technique
Appeal to value-minded buyers via different channels and differentiated merchandise, whereas defending core model fairness.
Leverage owned shops and resale platforms to draw entry-level buyers who could sooner or later purchase at full worth. Moreover, resale may give manufacturers extra management over the standard of their secondhand items in circulation, with the bonus impact of accelerating circularity.
Think about “premiumisation” of choose product strains to showcase worth via high quality of supplies and sturdiness.
This text first appeared in The State of Trend 2025, an in-depth report on the worldwide style business, co-published by BoF and McKinsey & Firm.