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ConsumerOf The FutureInsights on Fashion & Apparel

January 2019

COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.

Table of Contents

All of the material in this document is copyrighted and may not be reproduced in whole or in part without express written permission. For permission, contact Joe Sciara at [email protected].

05 About This Study

07 Fashion & Apparel

18 AboutBarkley

20 Resources

COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.

5

NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.

AboutThis Study

Full of noise, constant competition and easy access to just about everything, the modern market is congested with brands doing anything to stand out, while consumers too often respond by shutting off. Potent modern brands understand why: They listen to and study consumers, then evolve to meet their needs.

It’s our business to help brands get to know their consumers, to connect with them through ideas that drive the entire spectrum of a brand, from business strategy to marketing strategy. And, ideas that are not just for now, but for what’s next. Our commitment to knowing modern consumers better than anyone inspired this

latest deep-dive into brand values and mindsets as they pertain to various categories, conducted in partnership with Jefferies and Accenture.

In partnership with Jefferies and Accenture Strategy, we conducted a proprietary survey of 2,850 consumers that studied brand engagement and preferences across multiple categories, including personal care & beauty, apparel, packaged foods and QSR restaurants.

We investigated modern brand mindsets — or the cross-generation collection of behaviors and attitudes that a brand can leverage to drive performance in terms of share, growth and loyalty. These mindsets are informed by the impact of Millennial and Gen Z expectations of modern

brands, as they form the majority of people engaging in commerce — the core of what we call modern consumers.

Brands that understand the modern consumer will be more likely to create an emotional connection that drives brand love and loyalty — which equates to higher brand value.

Modern Brand Mindsets

Adding GoodPurposeful

Simplifies My LifeAccessible

ReinventingInnovate

Emotional ConnectionSelf

Puts ConsumerTrustedNeeds First

Conversational +Social Circle

Participative

COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.

Product

Communications

Design

Experience

Workforce

OverallPerformancePrice

CampaignPaid MediaEarned MediaSocial EngagementCRM / Email

Brand IDVirtualPhysicalPackaging

Overall SatisfactionVirtualPhysicalEvent

SentimentEngagementCultureTurnover Rate

Brand Impact Levers We also looked at impact levers, defined as the sub-system of product, experience, communications, design and workforce activities. These levers connect a brand’s business and marketing ideas with its consumers and stakeholders.

01

Fashion& Apparel


9Personal Care

& Beauty


9Fashion

& Apparel


11


ModernBrand Mindsets

Mindset drivers also differ by gender with men caring more about innovation and social circle and women caring more about purpose.

Modern Brand Mindsets When looking at the importance of the Modern Brand Mindsets in this category, accessibility, self and trust are important overall to driving

performance. Accessibility (both off and online) is a dominate theme in this category throughout this report. Accessibility is more than product availability —

It is how a brand delivers a frictionless experience. Self is also important in how a brand or product adds value to a person’s life or sense of self.

figure 1.1Modern Brand Mindsets - Fashion & ApparelIndex to All Categories

Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study

Social AccessibleSelf Innovative Trusted Purposeful0%

20%

40%

60%

80%

100%

figure 1.2TURF

Makes it convenient to shop for

and buy their

products

Makes it easy

for me to use their products

Helps me live a

simpler, healthier

life

Cares about sustainability

and the environment

Reflects my

lifestyle

Cares about sustainability

and the environment

Is honest in its actions and communication

Is authentic and true

to its roots

I trust them

to do the right

things

Is always testing new

ideas

We used a TURF analysis (total unduplicated reach and frequency) to see what individual Modern Brand Mindset statements drove reach in this category. The chart below indicates it takes a higher requirement for a brand to achieve 70

percent reach with women and men. Shopability, ease of use, brand promise, sustainability and innovation are key attribute factors. Men prefer brands that portray images that are authentic and honest.


70% Reach

40

80

120

160

0

Men CareMore About

Women CareMore About

Innovation Purpose

Social Circle

MaleFemale


13


BrandImpact Statements

0% 20% 40% 60% 80% 100 %

figure 1.3Brand Impact Levers

Brand Impact Levers While performance measurements across categories find that product matters most when buying staples such as packaged

foods and household goods, brand experience and communications become more critical in Fashion & Apparel.

Brand Communications

Brand Experience

Product + Service

Workforce

Brand Design

Fashion& Apparel

figure 1.4Brand Impact Statements

Individual statements for the Fashion & Apparel category also indicate that brand experience and brand communications play a critical role in driving performance. Product and service is focused on reliability and fitting personal needs.

COMMUNICATIONS

EXPERIENCE

PRODUCT/SERVICE

67%

64%

64%

65%

64%

63%

53%



Has advertising that is easy to understand.

Has advertising I’ve seen/ heard in the past month.

I am able to purchase the product/service through multiple channels (e.g., in-store, online, voice and recognition).

Has a store, website, mobile app, etc. that is easy to navigate and shop.

Offers products/services that are high quality.

Offers products/services that are reliable or consistent.

Has products/services available that fit my needs.

Fast Food Restaurants

Packaged Food

Personal Care & Beauty

Household Products

Fashion & Apparel


15Key

Takeaways


Brand Impact levers differ by gender where men care more about design and entertaining communications and women care more about loyalty and personalization.

Key TakeawaysModern consumers view brands as a collection of ideas that embody a mindset(s) and activate across brand impact levers, albeit not all equally. As a result, brands do well when they:

• Shift away from the Golden Rule of Treat others as you want to be treated, and move toward the new Platinum Rule, Treat others as they want to be treated.

• Understand that modern consumers value authentic brand purpose built through a virtuous cycle of trust, purpose and loyalty, with accessibility being paramount.

• Recognize that brand impact levers vary by demography, category, mindset and brand lifecycle — there’s no “one size fits all” when it comes to connecting with consumers.

• Clearly and consistently convey their brand value and use personalized engagements to build emotional connections.

• Invest in experience and communications levers.

Men Care More About

Women Care More About

“Has a logo, packaging or store front that is easy to recognize.”

“Rewards me for my loyalty.”

“Has advertising that is entertaining.”

“Personalizes interactions to me to fit my needs.”

Design

Loyalty

Communications

Personalization


17


Capability

Growth Opportunities To extract growth, brand owners need to focus on three types of next-generation capabilities.

Consumer Insight & Strategy Formulation

Continually renewing market awareness driving consumer-centric brand portfolio strategy.

Operating Model Agility

Living organization with modular plug-and-play structure that adapts to changing market conditions, balancing speed, flexibility and efficiency.

Brand Activation: Bringing Brands to Life

Meaningful consumer engagement integrated in consumers’ lives through deep insight, agile innovation, and authentic, relevant brand stories.

Source: BSM Executive Interviews; Accenture Research

However, brands must build new capabilities to win in the marketplace: larger brands must invest in such capabilities more than emerging brands due to their leadership role in the marketplace.

CAPABILITYRequired Mastery by Brand Type

Leading Retailer Emerging

Con

sum

er In

sigh

t &

Stra

tegy

Continually Renewing Market and Consumer Awareness: Holistic, data-driven external outlook that continually scans the market and identifies disruptive opportunities.

Compelling, Balanced Portfolio: Clear and disciplined brand portfolio strategy.

Bran

d Ac

tiva

tion

Agile Innovation: Deep consumer insight drives rapid product/service/business model innovation.

Consumer Intimacy: Hyper-relevant consumer engagement creates authentic brand stories and meaningful relationships.

Consumer-Centric Omnichannel: Brand alignment across proliferating array of business models based on consumer occasions.

Ope

rati

ng M

odel

Agi

lity

Market-Adapting Supply Chain: Demand-sensing manufacturing and supply chain balances flexibility and efficiency.

Living Organization: Nimble and modular organization that supports multiple business models with diverse strategic objectives.

Ecosystem Mastery: Design, form and manage ecosystems for value creation.

Source: BSM Executive Interviews; Accenture Research


19


Authors & Contributors

About Barkley

About Barkley At Barkley, we are committed to knowing the modern consumer better than anyone. We take pride in future-proofing business models and modernizing iconic brands. However, we are more than an ad agency. We are integrated business partners who are analytic and innovative at the core, using data to drive marketing conversation

and strategies. This culture of innovation allows us to partner with our clients to create the solutions of the future. Our emerging technology innovation practice has built and deployed new technologies that create more engagement with the savviest generation of consumers we’ve ever seen.

About Authors & ContributorsBrad Hanna | [email protected] is an Executive Vice President and Director of Business Strategy at Barkley. Brad serves as senior advisor and strategy lead across a portfolio of major brands. He has played a vital role in shaping the research and strategy design projects for Barkley, as well as collaborating with FutureCast on major projects since 2011.

Jeff Fromm | [email protected] Jeff is President of FutureCast. Jeff has co-authored two books on Marketing to Millennials and a new book on Gen Z.

Chad Nicholson | [email protected] Chad leads Barkley’s Business Strategy team, responsible for providing deep insight into factors affecting overall business and brand performance. Focus areas include food and beverage categories such as meat protein, dairy, produce and alcohol beverages across retail and food service.

Accenture and Jefferies contributed to this report through the Brands Still Matter Survey and Consumer of the Future Survey.


21


Credits

Resources Credits

Production

Arthur Cherry Associate Design Director

Sara LeutyDesigner

Anh Truong Designer

Contact

Joe Sciara EVP of [email protected]

Editorial

Jennifer MaziWriter

Eli Lafollette Designer

Joni Thomas Designer

Max Jaffee Designer

Danielle Smith Proofreader

1 Brands Still Matter Survey (2018). Accenture Strategy; Jefferies.

2 BSM Executive Interviews (2018). Accenture Strategy.

3 Consumer of the Future Study (2018). Accenture Strategy; Barkley; Jefferies.

4 Marketing to Gen Z (2018). Jeff Fromm; Angie Read.

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Insights on Fashion & Apparel

Consumer of the Future

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