We have already spoken here of changes in consumer habits, accelerated by the pandemic. According to the Organization for Economic Cooperation and Development (OECD), the world economy could take years to fully recover. This economic recession, added to the quarantine, made people more aware of the way they used to consume.
If this shift is already felt in items considered staples, it created chaos in fashion retail. How this scenario has affected retail during the pandemic and what post-pandemic retail will look like is what we will analyze through the vision of Rony Meisler, co-founder of the Reserve.
What was trade like in the past?
Ron reflects on how he learned to be a merchant. Explain that, in the beginning, it was the industry who dictated fashion. She created a piece and the store had the function of doing marketing: “The retailer bought what the industry had and attracted the customer through marketing,” says Rony.
This means that the attraction was achieved through status. The person wanted to have a piece and adapted their style to a collection or even a brand. However, even before the pandemic, a change could be perceived that would have a great impact on the fashion retailer.
The Internet brought, along with the pandemic, two great currents that, for Rony Meisler, today dictate the fashion market: the collaborative economy and the information economy.
Let’s explain a little about each of these terms.
This concept arises as a result of the change in behavior of society at the beginning of the 21st century, where people began to see that there was no longer a need to have things, but to use them. It is basically a concept of Share of goods and services, with the aim of redistributing and rationally using resources. Ultimately, other goals are achieved, such as environmental sustainability and social transformation.
Ron explains it this way: “People share more and more things, they don’t want to have things, they want to use things, they don’t need to have something, they don’t need an apartment anymore, they don’t need a car, they don’t need another outfit if you can wear that one “
This understanding comes from an increasingly minimalist society, of conscious consumption, thinking of future generations. According to the Nielsen Institute, more than 40% of Brazilians are changing their habits to reduce their impact on the environment and 30% of those interviewed are also more attentive to the products they consume.
In other words, the sharing economy is not just a trend: it is the current model in today’s society.
The information economy, on the other hand, is focused on having a more intelligent production, targeting what the public really wants to consume. This avoids waste and helps reduce costs, which is healthy in times of pandemic.
Furthermore, it is no longer the industry that dictates what the public wants, it is the other way around. Ron states that “[o que] the customer asks for what counts, it is not the industry that produces and you buy what you have, it is the industry that produces what you want. It’s the industry studying what you want, brands studying what you want and producing on demand, depending on what you want and whoever doesn’t will get in the way. “
This means that the public has even more power of decision. Decide not only what you want to consume, but also what will be produced for you to consume it. Can you understand the difference?
For Rony, the brand that manages to put these elements in its business will come out ahead in any market dispute. He himself affirms that this change is imperative and will not return to what it was before.
Movements to adapt to the new retail
One of the strategies Ron has decided to use is called a “plain t-shirt.” In it, the customer pays an annual subscription, paid in 12 months, and receives a new shirt every 5 months, totaling 3 at the end.
In addition to the t-shirts, the customer receives a refund to buy in Reserve. At the end of the one-year period, you have the option to return the shirts and earn a refund of 25 reais for each returned shirt. If you choose to return all three, you win a total of 75 reais.
Returned t-shirts are shredded and new simple t-shirt designs are created. In other words, the person is not only consuming fashion, but buying a cause, an idea.
This is just one of the ways Rony has developed for the Reserve, which has resulted in great growth. Last year, the Reserve grew 434% in digital sales and has been preparing to take even higher flights.
For this and many other reasons, Rony Meisler returns to meuSucesso to star in the second season of his Case Study, “Reinvention Mode”. We will see what happened to a brand after it achieved success, the new challenges it went through to become CEO of AR & Co.
Want to learn more about innovation and the future of retail? Be sure to follow Ron Meisler’s case study release on mySuccess.com. You have access for 7 days for free and to all the content of the platform.