Industry Voices: Ingredient Brand Execs on the State of Denim, Part 2
Along with the rest of the apparel industry, denim has recently faced some ups and downs due to economic fluctuations and changing consumer behavior. For a window into what is happening on the ground, Carved in Blue is catching up with industry figures—including executives at mills and consultants—to get their perspective.
Here, executives from laundry equipment firm Tonello and the U.S. Cotton Trust Protocol weigh in on what they are seeing and the path ahead for the category.
Alice Tonello, marketing and R&D director at Tonello (Italy)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Alice: The denim market is kind of flat right now, and there are a few reasons for that. First off, the global recession, making people more cautious with their spending. On top of that, prices for things have been going up, which is squeezing companies’ profits and reducing purchasing power. And it’s not just that—people’s preferences and what they care about seem to be changing too, and that’s affecting what brands are selling and how well they’re doing. All of this adds up to why the denim market isn’t really going anywhere at the moment.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Alice: People might not be as interested in buying clothes as they used to be. It looks like they’re more focused on things like going on holiday, making sure they are eating good food, staying healthy and wellness in general. So, buying new garments might not be as important to them right now. This change in what people care about is likely affecting how well the market is doing.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Alice: Well, it’s kind of hard to say, but it seems like people aren’t all that into denim these days. We’re all hoping things will get better soon, but to be real, it’s hard to believe there will be a big change in just a year. Denim’s comeback might need more time to really shake things up in the market.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Alice: Things are pretty different now, especially for Generation Z. They’re going through a time where things are uncertain, and there isn’t a lot of excitement happening culturally. This makes buying a pair of jeans not as important or valuable to them as it was for previous generations. In the past, jeans were seen as a status symbol or a cool fashion choice. But for Gen Z, it’s just not as big a deal, mainly because they have different things on their minds due to the challenges they’re facing today.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Alice: When it comes to the denim industry and how well they’re keeping up with what consumers want, things can get a little bit confusing. On one hand, there’s a wide range of options to suit all sorts of tastes, which is a good thing. But on the other side, there’s a pretty big gap in quality between some of these choices. So, while there’s something for everyone, it can also be a bit confusing and not always meeting everyone’s needs as well as it could.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Alice: To get more people investing on denim, the industry should make their jeans more appealing by providing real value in their products. They need to change some of the not-so-great things they do and show why their jeans are worth it.
In the past, there weren’t many options, and you could count the big brands on one hand. But now, it’s the opposite. There are tons of denim brands out there, all trying to get your attention. So, the industry needs to make jeans that aren’t just trendy but also good quality, responsible and ethical. That way, they can win back customers, get more people buying denim, and stay relevant in a world with so many choices.
Daren Abney, executive director of the U.S. Cotton Trust Protocol (United States)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Daren: Everyone knows that it’s been a challenging few years, and this period has lasted longer than anyone cares for. The main factors I see driving the market today are traceability and transparency related to raw material sourcing and sustainability, which includes the need for data, impact and outcome measurability. These are also key priorities for the U.S. Cotton Trust Protocol. For the denim industry, we can see changing dynamics between fast fashion vs. premium denim, material innovation and the influences on our continued work-from-home culture.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Daren: According to the National Retail Federation, U.S. consumers are still buying more than in 2022, but spending growth is slowing as the economy settles down with increased interest rates.But confidence in brands is shaken, with only 38 percent of U.S. consumers tending to believe companies’ authentic commitments to environmental sustainability. There are more questions today than a year ago related to raw material sourcing and traceability. Emerging technologies are being adapted by the industry at a rate that’s difficult to keep up with. It’s unclear yet how this exactly links to consumer confidence, but the connection is unavoidable.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Daren: Changes in fashion trends and consumer preferences will always play a significant role in the denim market. I’m not the denim expert, but in my professional life I see more denim being worn. Recent polling data also found that jeans are still a staple for more than half of the adults in the United States. My 13-year-old daughter and her friends are constantly in denim. So, I’m not sure where the market is projecting growth in the next year, but I’d like to predict denim will continue to remain a staple for many.
Carved in Blue: How does Gen Z’s consumer behavior around denim compare to millennials, Gen X and baby boomers? What does this mean for denim retail?
Daren: In my opinion,while Gen Z is often more environmentally conscious. Millennials often prefer investing in higher-quality denim that lasts longer rather than buying lots of cheaper options. Gen Xers may have established brand loyalty and prefer traditional denim brands they’ve trusted for years, and baby boomers tend to prefer classic denim styles and may not be as interested in the latest trends. Retailers have catered to the varying preferences of different generations by offering a wide range of denim styles, from classic to trendy, and highlighting sustainable options. The challenge for denim retail will continue to be online and offline presence, sustainability, customization, creating in-store experiences and tailoring their marketing strategies.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Daren: I believe the denim industry has done an excellent job adapting to consumer demands in recent years—the pandemic really forced the industry to become more adaptable and agile. Introducing robust sustainability strategies is just part of the equation. The denim industry moved quickly to adapt fit and comfort, style variety, inclusivity, integrating technology and incorporating more transparency than ever before—a trend that’s really evolved into a lasting expectation.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Daren: I think the denim industry will continue to explore new strategies to entice consumers to invest more in denim products. At the core it’s all about innovative product offerings, creating unique denim products that stand out in the market. It’s also important to keep customization, quality and durability at the forefront of decision making. Customer loyalty programs and online shopping experiences will only take brands so far—it’s all about investment in the product. For the Trust Protocol, that includes providing more sustainably grown cotton that can help evidence brands’ reputations and long-term success in the market.
See part 1 here.