According to the Business of Fashion and McKinsey’s 2024 State of Fashion report, the buzzword defining the fashion industry this year is ‘uncertainty.’ For brands and advertisers, this spells a formidable challenge: how to thrive in a market that’s constantly in flux. While this may not be news to industry insiders, it underscores persistent issues such as waning consumer enthusiasm, fierce online competition, and the lingering effects of the COVID-19 pandemic.
Since COVID-19, the fashion landscape has transformed dramatically, accelerating the growth of online sales. This shift has put legacy brands and high street veterans under immense pressure to pull up their sleeves or face becoming old news. With clothing now just a click away, fashion has never been more accessible. Brands deliver straight to your door, and fast-fashion companies are evolving with trends faster than you can say “Anna Wintour.”
The surge in online shopping has led many fashion brands to prioritise their digital presence, often focusing on performance-driven strategies. We’ve all seen the Instagram ads: a shoe against a flat backdrop or a celebrity dressed to the nines. But how much of that noise is truly memorable or distinctive? These campaigns frequently aim for immediate consumer action, and while they sometimes succeed, they have contributed to a plateau in brand growth across the industry. Despite an anticipated retail growth of 2-4% for 2024, this is a far cry from pre-pandemic levels. So, is COVID the only culprit?
Source: ONS, series MS6Y (all sales excluding fuel) retrieved May 2021
Airing Fashion’s Dirty Laundry
COVID-19 certainly slowed fashion retail growth, but another key factor often overlooked is advertising. System1’s Test Your Ad database uncovers a troubling trend: fashion advertising is, quite simply, uninspired.
Star Rating, which measures long-term effectiveness, reveals that fashion advertising scores modestly for brand building and shows some promise for short-term sales. In a category with potential for excitement and innovation, why does fashion advertising remain so lacklustre?
Year-on-year trends show a notable correlation between the decline in Star Rating (long-term brand-building potential) and the rise in internet sales. Short-term strategies are also infiltrating the worlds of TV and outdoor, with an increased focus on product and call to action, and a notable shift away from characters, storytelling and humour. The UK has been particularly affected, with the category’s Star Rating dropping from 3.2 in 2019 to 2.4 in 2024. Globally, the decline is from 2.8 Stars to 2.5. This shift from brand building to short-term campaigns might seem like a surefire way to boost short-term sales potential, as measured by System1’s Spike Rating. Wrong. The decline in brand building has led to an even more dramatic drop in short-term sales impact, with global figures falling from ‘strong’ potential to ‘modest.’
First in, Best Dressed
It’s not all bad news, though. McKinsey & Company predicts that brand building is likely to return to vogue over the next year. Meanwhile, some brands are already ahead of the curve, standing out with emotional, distinctive, and long-term-focused campaigns amidst the ‘sea of sameness.’ There’s much to learn from these ‘IT brands.’ At System1, we delved into category trends to uncover best practices for driving both long-term and short-term success. Here’s a sneak peek at some fashion-forward insights and global examples of what works and why:
Seasonal Stars Reflect the Mood of the Nation
In the UK and US, fashion advertising peaks in spring and winter, with brands ramping up their TV presence. However, despite the increased media spend, long-term effectiveness remains flat, as evidenced by consistent month-to-month performance trends. Although media budgets rise during these periods, creative investment seldom follows suit. Seasonal campaigns and promotions, like back-to-school ads, often focus on price cuts and product functionality rather than impactful, brand-building creativity.
One standout performer from the past year, breaking these seasonal norms, is Marks & Spencer. Since launching their ‘Anything but Ordinary’ campaign in 2022, the brand has seen a performance uplift from 2.9 Stars to 4.4 Stars in 2024. This success is attributed to a consistent strategy that emphasises how clothes make you feel, leveraging seasonal moods, scenery, and human experiences over the products themselves.
“We wanted to encapsulate the spring season with a fun irreverent advert, tapping into the mood of the nation as we come out of winter. A celebration of fashion and women.”
Anna Brathwaite
Marketing Director, M&S
Fashion with Purpose
Accenture’s global study reveals that 66% of consumers are shopping more responsibly since COVID-19, favouring brands that prioritise sustainability, inclusivity, and responsible retail. Despite this trend, System1 and ITV’s The Greenprint report found that fewer than 2% of fashion ads feature environmental messages. Notably, including such messages does not harm long-term effectiveness and may actually enhance brand distinctiveness and memorability in a category that struggles with brand recognition.
Conversely, System1’s research into diversity and inclusion, Feeling Seen, shows that brands incorporating DE&I strategies see significant improvements in effectiveness with both the general public and under-represented groups. Nike exemplifies this, achieving a +1.0 increase in Star Rating for its diverse ads compared to its average. Their recent campaign ‘What if You Can?’, which received considerable online attention, showcased an empowering narrative of a young girl in Saudi Arabia discovering new opportunities in sports, illustrating how DE&I can drive impactful and memorable advertising.
Fashion Needs to Take Itself Less Seriously
Orlando Wood’s research in Lemon and Look out demonstrates that humour is highly effective for consumer engagement and long-term brand-building. Yet, it remains underutilised in advertising, especially in fashion. Fashion’s focus on public image often leads to a serious tone. But could this reluctance to break the mould be limiting brand-building potential?
In an interview on the Uncensored CMO podcast with Sir John Hegarty, he discussed Levi’s revolutionary ‘Flat Eric’ campaign. Initially, Levi’s was hesitant to use a puppet character, worried about public perception. However, their persistence paid off, resulting in one of the most effective fashion campaigns in the System1 database. This example shows how stepping outside the norm can lead to outstanding results.
“Be surprising and make them laugh. People have forgotten that part of advertising is about making people laugh! When they’re not smiling, they’re not buying.”
Sir John Hegarty on Levi’s ‘Flat Eric’
Humour made a notable comeback at Cannes this year, with a Thai underwear brand, Sabina, winning a Cannes Lion for its witty campaign. The campaign cleverly challenged cultural stereotypes with a fresh, modern twist, showcasing how humour can effectively engage audiences and stand out in advertising, achieving a 5.0 Star Rating.
Learn More
The fashion category has big boots to fill when it comes to driving long-term brand-building potential and emotion. It’s no easy feet. To discover actionable strategies and see successful examples from leading brands, be sure to download System1’s Style Stars report.
