Consumers are navigating a time marked by uncertainty, selective luxury, and an increasing focus on sustainability. Louise Byg Kongsholm, CEO of the Danish trend forecasting agency, Pej gruppen, offers a sharp insight into the key trends and strategies for brands looking to navigate in this new reality.
By Sine Gerstenberg. Photo: PR.
What are the three biggest consumer trends right now?
Firstly, we are seeing continued caution in spending. Most consumers experience significant uncertainty regarding the global economy, politics, and the system in general. Many are prioritizing only the essentials and saving where they can.
Secondly, there is a simultaneous focus on self-indulgence and personal philosophies of "the good life." Even though consumers are saving, they are still willing to spend money on experiences, travel, good food, or a designer investment – all the things that make their everyday lives a little more extraordinary.
Thirdly, sustainability and the circular economy are here to stay. Consumers are increasingly demanding durable products that last longer and can potentially be recycled, resold, or otherwise become part of a circular value chain.
Is fast fashion slowing down, or is the trend hard to stop?
Fast fashion and slow fashion coexist and appeal to different consumers and situations. On one hand, there remains a large market for fast fashion, which is confirmed by several Danish players with impressive and stable financial results. On the other hand, slow fashion is gaining momentum, particularly due to a rising consumer desire for sustainability and quality.
While slow fashion is on the rise, it can be difficult to achieve the same financial success as fast fashion. The two directions will likely continue to coexist, and each will find its place in the market.
What would you recommend Danish brands focus on right now? And what does a sustainable brand strategy look like?
When everything is turbulent and uncertain, there is (almost) only one way to go: tighten your focus. Strengthen what you are already good at and dig deeper rather than trying to expand in many different directions.
A sustainable brand strategy can take various forms. Some brands invest in a strong "never-out-of-stock" concept, where classic styles are always available. Others choose to limit the number of collections and invest in timeless designs and high quality. The key is to ensure a consistent thread in product development, material selection, and marketing, signaling credibility and long-term responsibility to the consumer.
Is it an advantage or a disadvantage that the secondhand market is booming? And how can brands avoid competing indirectly with their own label?
Societally, it's clearly an advantage. When products are of high quality, they can easily live multiple lives with different consumers. This ties directly into the sustainability agenda, where durability and iconic designs become increasingly important – allowing clothes to be used and reused over time.
For brands, the secondhand market can be both a competitor and a golden opportunity. Many new generations don’t distinguish between new and used but see secondhand as a completely natural shopping channel. At the same time, brands can avoid indirect competition by integrating secondhand into their own brand universe. An example is Create2STAY, which offers a platform for circular shopping in Denmark while managing the logistics and technology for resale. Such solutions enhance a brand's sustainability profile and open a new revenue stream while maintaining a connection with consumers throughout the product's lifecycle.
What three design tips would you give to new, emerging talents?
1. Focus: There is already plenty to choose from in the market, so be clear about what differentiates your brand.
2. Know your audience: Don’t try to appeal to everyone – find a clear match between your brand DNA, design, and target group.
3. Think sustainability: Consider design, materials, and production methods so you create products that can stand the test of time in both style and quality.
What advice would you give to more established designers?
The most important thing is to clean up your portfolio. If the pandemic lockdowns didn’t already prompt a reassessment of your range, now is the time. Consumers no longer need more "noise" in stores. They increasingly demand fewer, but better, options to make decisions in a time where overconsumption and resource waste are getting more attention.
