The ‘Demographics in Retail and ApparelThe report found that demographics are a growing theme for retailers, particularly fashion retailers including Zara owner Inditex.
Demographic shifts will have a significant impact on apparel retailers as the distribution of the world’s population changes and the generations with the most purchasing power shift.
Different generational groups have different needs and demands when it comes to the types of clothing they want and are able to buy. Different demographics also have different preferences in how and where they buy them, and the marketing used to promote them.
In the coming years, the baby boomer generation will retire and consumers in the Millennial and Generation Z age groups will become increasingly prominent.
This will have implications for fashion retailers’ propositions in the coming years, including their investments in online and offline channels, store formats, store locations and the social media platforms they use.
Zara owner Inditex mentioned ‘demographics’ a whopping 398 times in 2023, as demographic trends influence its collections and buying patterns.
Other major retail companies that emphasize demographics in their filings include luxury groups such as Hermès and Kering, which rank second and fourth overall. They will face demographic changes as wealth increases in developing countries, making populations more receptive to luxury retail offerings.
Zara, along with Japanese retailer Uniqlo, is expected to capitalize on both Gen Z and millennials.
While Inditex’s Zara appeals to a broad audience, the retail group will still face changing demographics, including changes to its workforce and supply chain.
In June, Inditex reported continued sales growth in the first quarter of 2024As one analyst said, the company is on track to deliver a “robust performance” in the first half of 2024/2025.
Inditex’s Zara brand has announced that it launch a weekly live streaming service in the US, Europe and the UK this year, after reporting a 50% increase in sales in China in the first quarter of 2024.
“In Data: Inditex focuses on demographic trends” was originally created and published by Just Stylea brand of GlobalData.
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