Post by account_disabled on Feb 25, 2024 0:39:27 GMT -6
The for money are top of mind in this peak quarter. Split Share on Twitter Share on Facebook Share on LinkedIn In the wake of the pandemic the Ukraine Russia conflict rising energy and gasoline prices and delays in supply chains have led to one of the highest increases in inflation in recent memory. In addition consumer confidence has fallen to an alltime low which is leading to many behavioral changes among consumers They are spending more time at home shopping less and buying significantly cheaper products or relying on sustainable alternatives. At first glance this seems contradictory. Given current economic pressures we expect sales volumes to generally decline in this Golden Quarter. The same could be expected for average order value AOV.
However we assume that the AOV will increase in the fourth quarter precisely because of inflation growth. As the graphic above shows Switzerland Mobile Number List rising inflation in the European Union and the EEAEEA area Iceland Liechtenstein and Norway correlates with higher shopping basket values but how does this come about The fashion industry provides an interesting example here because as can be seen in the chart below along with the advent of inflation sales have declined steadily throughout with an average quarterly decline of 4 from Q2 onwards Q3. However AOV continues to grow with an average quarterly increase of which is why we forecast further growth.
Fashion industry for the rest of the year. What does that mean In the face of inflation we see that purchasing habits are changing and consumers can be classified into one of two groups those who buy cheaper alternatives in larger quantities and those who buy less often but spend more per purchase namely on sustainable long lasting products. A recent report from FirstInsights shows that consumers across all age groups are willing to pay 10 more for sustainable products apparently taking inspiration from ecoconscious Gen Z. Although younger consumers are naturally more likely to look.
However we assume that the AOV will increase in the fourth quarter precisely because of inflation growth. As the graphic above shows Switzerland Mobile Number List rising inflation in the European Union and the EEAEEA area Iceland Liechtenstein and Norway correlates with higher shopping basket values but how does this come about The fashion industry provides an interesting example here because as can be seen in the chart below along with the advent of inflation sales have declined steadily throughout with an average quarterly decline of 4 from Q2 onwards Q3. However AOV continues to grow with an average quarterly increase of which is why we forecast further growth.
Fashion industry for the rest of the year. What does that mean In the face of inflation we see that purchasing habits are changing and consumers can be classified into one of two groups those who buy cheaper alternatives in larger quantities and those who buy less often but spend more per purchase namely on sustainable long lasting products. A recent report from FirstInsights shows that consumers across all age groups are willing to pay 10 more for sustainable products apparently taking inspiration from ecoconscious Gen Z. Although younger consumers are naturally more likely to look.