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Shoppers turning away from luxury, fashion and beauty and wellbeing during pandemic: research

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The luxury, fashion and beauty and wellbeing could be among the categories hardest hit this year since shoppers say they have turned off from them in lockdown, new are set to be hard hit as shoppers say they have turned off from these during the pandemic, new research suggests.

Almost a third (30%) of 1,000 UK shoppers questioned about their future buying habits said they would spend less on luxury in the future, closely followed by fashion (29%) and beauty and wellbeing (23%), according to the study from RAPP and Code, part of the Omnicom Precision Marketing Group.

The research found that 51% of shoppers have already spent less on fashion while 42% have spent less on beauty and wellbeing. 

When shoppers were asked what led them to choose one retailer over another, 52% cited convenience and clarity, 30% said they’d opt for the one that made their life easier. Values of community and social responsibility were important for a quarter of those aged between 16 and 44 – although only 13% of those aged 45 and over agreed. Younger shoppers aged between 16 and 24 were most likely to value choice (42%) and control (27%). 

Caroline Parkes, chief experience officer at marketing sciences agency RAPP, said: “The pandemic has significantly impacted the retail sector for a number of macro level reasons, and shifts in consumer mindset and action is just one of them. Whilst the evidence from our latest research highlights the luxury sector as the hardest hit in terms of shopper behaviour, it is also clear that all retailers need to adapt in this new world. 

“Our findings show that people have a desire for more individualised communications and we firmly believe this is the future of marketing. Once a pipe dream for marketers, as more and more brands embrace mar-tech, they now have the tools and data available to them which allows them to talk to a customer’s individual needs, right down to their personality type. Understanding how to do this is the key to weathering some stormy weather that lies ahead and will allow those retailers that do it right to come out on top.”

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