Industry Voices: Consultants 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, denim consultants Lucia Rosin and Jordí Juaní Moragas weigh in on what they are seeing and the path ahead for the category.
Lucia Rosin, Meidea (Italy)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Lucia: From my point of view, the denim market is experiencing a dynamic interplay of contrasting trends. On one hand, there’s a strong emphasis on driving down prices to cater to rapidly changing fashion trends, often driven by demanding suppliers and cost-conscious producers. On the other hand, there’s a luxury segment seeking quality and sustainability, marked by intricate research into the final product. Achieving circularity, transparency and durability poses significant challenges that require ample resources, expert personnel and a genuine commitment. Despite these challenges, these factors are vital for staying relevant in the current and future market. The market’s fast pace contrasts with the ideal trend of producing fewer, higher-quality items. Social media’s influence and superficial communication also shape the market, although promising instances of collaboration and vision are emerging, setting a positive trajectory.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Lucia: The recent growth in consumer confidence hasn’t been substantial. Transparency remains crucial to bridging the gap between producers and the end consumer. The market has seen unclear messages causing confusion, leading to a desire for more authenticity. Legislative efforts within Europe are expected to play a significant role in instigating positive change. This process of transformation is gradual, requiring time and resources as the industry naturally evolves. Incremental progress in this direction will contribute to building consumer trust over time.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Lucia: Presently, consumer interest seems to be relatively stable, with minimal fluctuations. Luxury brands are vigorously promoting denim through fashion shows and innovative projects, showcasing a spike in interest. However, substantial growth beyond this point in the coming year appears unlikely. This should encourage industry players to adopt new strategies; increased differentiation and research could generate more interest. The ongoing crisis will prompt a search for innovative solutions, refreshing perspectives and curated offerings. This effort could lead to a more pronounced recovery by 2025.
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?
Lucia: The evolution in consumer behavior across generations is evident, particularly with Generation Z. This cohort shuns traditional norms, embracing broader exposure to fashion and lifestyle influences, which directly shapes their purchasing decisions. A significant departure from prior generations, they revere vintage and upcycled styles, prioritize fluidity over hyperstretch, and exhibit high digital engagement. Their purchasing power is relatively limited, but ethics and transparency hold great significance for them. Brands must engage responsibly, as any misstep can trigger swift backlash due to their interconnectedness and high expectations. With extensive pre-shopping research, retail outlets must offer a seamless transition from digital discovery to in-store experience.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Lucia: The industry showcases dual efforts in responding to evolving consumer needs. On one hand, it has adeptly adapted to recent lifestyle shifts, offering comfort and versatility that align with changing demands, especially post-Covid. Garments are now tailored for performance and wearer well-being. Yet, pockets of the market continue to produce trend-driven pieces with limited longevity. A positive trend, however, is the increasing focus on crafting meaningful products that resonate with consumers, reflecting a more purpose-driven approach.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Lucia: To steer more consumer spending towards denim, several crucial actions should be considered. Continual innovation guided by circular product principles, coupled with transparent and sincere communication, can foster a genuine connection between products and consumers. Differentiation strategies should prioritize wearer well-being, offering unique value. It’s imperative to foresee lifestyle shifts and ensure products align accordingly. A clear, holistic vision of industry evolution will underpin these efforts, channeling consumer interest and investment towards denim.
Jordí Juaní Moragas, Juani & Bachs (Spain/Hong Kong)
Carved in Blue: From your perspective, how is the denim market currently performing? What are the main factors you see affecting the market?
Jordí: The denim market is low mainly for three reasons: remaining overstock due to brands over purchasing; the seasonal factor—for the last one year, the trend in bottoms has been more towards color rather than denim; and denim is no more disruptive for new generations, it is something from their parents, thus they want to be different from them.
Carved in Blue: How would you describe the level of consumer confidence compared to last year?
Jordí: Consumer confidence is less important after Covid related to spending (in fast-moving consumer goods). Consumers are moved more for impulse rather than confidence (this is starting to change, but this attitude is still there). Level of consumption in the E.U. and U.S. keeps on the higher side, stores are full and people in malls carry shopping bags (this may not be a scientific data but a good indicator on this topic). Indeed, the sales of retail is maintaining well this year. And other related indicators—like holiday expenses—are high as well.
Carved in Blue: Is consumer interest in denim up, down or flat? And where do you see this going in the next year?
Jordí: It’s down; again, trend is one of the reasons, but also, a certain tiredness of wearing denim, movement of consumer’s mindset towards sportswear and climate change with higher temperatures in longer periods, among others.
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?
Jordí: For Gen Z, denim is just apparel, with lesser or no connection to be revel/disruptive. In this sense, they will be more selective in terms of styling (and they will consider it only if it is trendy in social media and influencers). In addition, a trendy item can appear or disappear extremely fast.
These factors make the retail business more difficult and probably will require to work deeper in three main directions: quicker manufacturing, or remanufacturing or finishing near the sales point; new creative ideas and wider presence in social media and those areas of interest of Gen Z. In fact, younger generations have been usually left aside by denim brands (thinking on their lower purchasing power) and in the current situation this is shown to be a big mistake when compared with athleisure brands.
Carved in Blue: How well is the denim industry paying attention to and serving consumer wants and needs?
Jordí: Part of the answer is in the previous point. Denim has been transformed along the years from a disruptive sector to a status quo sector, more conservative. Although some brands are doing big efforts to revert this situation, the gap is there. Only by becoming somehow disruptive again will it be able to attract young generations again, and they will be the engine to grow. This disruption is not easy now from a styling point of view and should find new ways, as sustainability, proximity, customization.
Carved in Blue: What could the industry do to move more wallet share toward denim?
Jordí: Understanding disruption as the capability of the brands to identify how the new generations are trying to differentiate from the previous. Changing from imposing brand ideas to the market to deliver to each consumer the way to reinforce his or her attitude in life. Moving somehow to a certain made on demand system proposing possibilities but adjusting quick to the consumer’s mindset.
See part 1 here.