Despite the economic downturn, luxury fashion has enjoyed a sales boost compared to the same time last year, according to data from brand advocacy platform Mention Me.
While sales from across the fashion industry fell by 2% in Q1 2023 compared to the same period in 2022, the average order volume (AOV) swelled by 8%, driven by a preference for luxury brands over fast fashion.
Mention Me analysed sales orders from over 500 brands to understand shopper buying habits.
Simon Dring, COO of Mention Me, commented: “Our data shows consumers are opting for quality over quantity, reflecting a real shift in consumer sentiment. The cost-of-living crisis, combined with sustainability concerns around fast fashion, is driving consumers to buy fewer, higher quality clothes that will last longer.”
Despite the 2% drop in orders, fashion was the third best performing sector in the first quarter of this year. Financial services and travel and hospitality saw the largest growth.
Ben Henshall, data analyst at Mention Me, added: “We often see a peak in booking holidays in January and February, while the April tax deadline drives a peak in orders for financial services. It’s interesting to see fashion right up there in terms of order numbers at the start of the year.”
The data also showed that fashion referrals have increased 16% year on year, highlighting the uplift in customers actively introducing their friends and family to the brands they love. Mention Me’s data shows fashion advocates bring in customers that spend more than non-advocates.
Simon continued: “The fashion sector is rife with potential brand advocates. Friends are often complimenting one another on their outfits, naturally leading to sharing where items are from and referring the brand in question. Better yet, referred customers tend to spend more and return more often than those acquired through other channels. That presents a major opportunity for brands to grow a highly valuable customer base.”
Additionally, fashion has the highest repeat rate than any other sector with 11% of consumers going on to make a second purchase within 30 days.
