The more expensive, the better it sells? Americans may not like to buy "discounted" clothing

According to foreign media reports, two extremes are emerging in the current US clothing market. Low-income groups are increasingly paying attention to the price rather than the quality of clothing, while high-income groups are buying more expensive clothing under high inflation.

Take swimwear as an example. According to the latest statistics from NPD, the sales of swimwear have dropped overall this year after soaring last year . In terms of price range , the fastest growing category in the United States this year is swimwear priced at $100 or more, while swimwear priced below $70 is declining year- on-year .

The decline in sales and the increase in sales are not only due to price increases, but also because consumers are more willing to buy high-priced clothing products. These consumers are basically high-income people who have money in their hands and whose purchasing power and consumption desire are not affected too much by inflation, while low-income people now focus more on basic necessities such as groceries.

NPD fashion analyst pointed out that with the arrival of wedding season and the return of office work , formal wear is popular again. When buying these products, some consumers are more willing to buy non-discounted products due to quality considerations .

Recently, due to the fact that the inflation problem in the United States has not been effectively controlled, many economists have said that the United States will face a serious economic recession. Under such an economic crisis warning, major retailers have also started a "protection mechanism". Retailers including Target, Gap and Walmart have launched a series of price reduction promotions to clear excess inventory .

But unfortunately, the market and consumers do not seem to buy it. In the midst of the "price reduction and clearance" craze, the American clothing market has abnormally seen a phenomenon where the more expensive the clothing, the better it sells.

Last week, the U.S. Bureau of Labor Statistics released the latest consumer price index, showing that clothing prices rose 0.8% in June from May and 5.2% year-on-year . Economists and industry experts tried to measure the strength of American consumers based on clothing consumption trends , but it did not seem objective .

Currently, overall sales and prices in the U.S. apparel market are exceeding last year's levels, with consumers spending more on this category .

According to data from American fashion brand Levi Strauss & Co. , as of the end of May, the company's clothing sales increased by 15% year-on-year , but sales volume only increased slightly. Retailers such as Walmart and Amazon also said that sales in this category have declined compared with last year, and price cuts cannot stimulate growth .

NPD data shows that from January to May, clothing sales in the United States increased by 5% year-on-year and increased by 13% compared with the same period before the epidemic ( 2019 ) , with women's clothing sales increasing by 42% year-on-year .

Affected by the economy, the current US apparel market has begun to show some signs of decline. NPD data pointed out that as clothing sales increased, sales fell by about 8% compared with the same period last year, and a survey found that about 35% of Americans are reducing their clothing purchases .  

Buying less does not mean spending less; consumers may prefer to buy one piece of clothing rather than multiple pieces for the same price.   

High-income people said that although they are currently reducing their spending on dining out and travel due to the financial crisis, their clothing purchases have not been affected . They are still willing to buy high-priced clothing , and the luxury goods market is still hot. Low-income people said that they may significantly reduce their spending on clothing, a non-essential update category.

Inflation continues to affect the consumption desire and purchasing power of global consumers. The market is changing rapidly. Sellers need to pay attention to consumption trends at all times and not blindly follow the trend of price cuts and promotions.

USA

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