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During the past year, inflation and prices soared while wages remained mostly flat, affecting how consumers shop. We were curious to understand how these changes affected consumers’ shopping behavior, so we took a deep dive into data from the apparel industry.
Interestingly, we found fascinating relations between inflation and what it means for consumers when they shop. Read on to discover how consumers reacted, what it means for your brand, and how to position yourself in this new market.
As a result of the ongoing supply chain crisis kickstarted by the COVID-19 pandemic and the Russia-Ukraine war, the world economy has changed significantly.
A big focus of these changes has been on the soaring inflation rates, reaching double digits in the UK and a peaking at 9.1% in the US during June and began to steadily decline, ultimately reaching 6% at the start of 2023.
And so, with prices rising all across the board and wages stagnating, households’ budgets and disposable income have been effectively reduced, ushering in a cost of living crisis.
This, in turn, naturally affected consumers’ spending habits, as pricing and value for money become key factors when shopping for items – from groceries to electronics.
Following our in-depth cosmetics industry report, we decided to delve into the apparel industry, examining how customers reacted to this new reality. In particular, this report gets granular with the footwear.
US inflation rates started at 7.5% in Jan’2022 and reached a peak of 9.1% in Jun’2022. Following this peak, inflation rates began to steadily decline, ultimately reaching 6% at the start of 2023.
In this original research study, we’ve examined how these circumstances have affected consumer behavior, specifically within the apparel ecommerce industry.
We collected and analyzed over 115,000 online reviews of apparel products from all brands from major online retailers, including:
Our analysis focuses on the period between January 2022-February 2023. Product categories we looked into include Top Bottom Footwear Given that the footwear category was most impacted, this report also provides a granular breakdown of how inflation impacted footwear types.
In the next section, we’ll explore strong positive and negative correlations between inflation rates and and apparel categories. A positive correlation tells us customers are delighted with the price/ VFM these products offer, while a negative one tells us the opposite.
Germany (DE) 
Spain (ES) 
Italy (IT) 
France (FR) 
