Settling In
A new consumer profile is pushing local economies.
The retail industry relies on trend forecaster insights to predict and understand the next wave of consumer behavior. No more is this evident than amid a global pandemic, where consumer behavior seemingly shifted overnight, sending workers home, disrupting supply chains, and shaking economies altogether. Value and essentialism became immediately paramount, omnichannel became a survival tactic, and a stay-home economy was born.
Of many emerging consumer profiles, trend forecaster WGSN has identified one group, aptly named “The Settlers,” who, now with a better work-life balance, are driving a “hyper-localized social commerce economy.” The motivation behind their efforts polarizes the generational demographics that The Settlers comprise: Gen-X and Millennials aim to support their communities, while Gen-Z is focused on being a conscious consumer, aligning the possessions they purchase with their moral, ethical, and sustainability beliefs.
As clothing re-selling platforms like Depop gain traction, The Settlers increasingly engage in localized, “peer-to-peer” transactions, and brands find themselves looking for a way to tap into these markets. Urban Outfitters and Free People house a collection of vintage items for resale in-store, while Ralph Lauren has partnered with Depop to sell a limited line of archived and exclusive pieces online. If The Settlers continue to display these shopping characteristics, brands will need to find more ways to meet their new demands and priorities.
Sources: Mckinsey & Company (July 8, 2020) | Image: United Nations COVID-19 Response