Capitalizing on Crisis: Untapped market and opportunity for MTM and Bespoke suit industry.

Amidst a backdrop of frequent crises and "once in a lifetime" events happening every few months, ranging from pandemics and wars to economic recessions and social unrest, large part of population is experiencing a sense of burnout and pessimism.

A record 69% of the public holds negative views about the economy both now and in the future, the highest percentage in the survey’s 17-year history. (CNBC All-America Economic Survey)

The traditional notion of achieving financial security through steady employment seems increasingly elusive, particularly for younger generations who feel they are falling further behind financially compared to previous cohorts. According to a survey conducted by Harris Poll for USA Today, 65% of Gen Zers and 74% of millennials believe they are starting from a less advantageous financial position than earlier generations. Additionally, a poll by the New York Post found that one in five Americans now doubts their ability to ever afford a home.

Confronted with this uncertain future, many individuals are mentally resigning themselves to a perpetual state of financial struggle rather than envisioning long-term financial stability. This shift in mindset has led large part of consumers to prioritize immediate gratification and "enjoyment of life" purchases over unpredictable future investments or savings. Consequently, there has been a surge in spending, particularly in the luxury market, which is showcased in "Bain Consulting" research that found out that Gen Z along with Millenials "accounted for the entire growth of the luxury market in 2022 and are predicted to represent 70% of luxury spending by 2025".

Despite the grim outlook of the part of the public, this presents an opportunity for the bespoke and made-to-measure suit industry. The exchange of long-term financial goals for short-term treats has created a new class of potential consumers.

Rather than being irresponsible in their spending, those potential consumers have adjusted their preferences driven by the desire to spend on themselves now.

Capital that was previously opted in for savings and investments is now flowing into luxury markets, including "high-end" suits.

To benefit from this opportunity, here are some practical tips on how to expand the customer base by tapping into this new market:

1. Offer Split Payments: Introduce flexible payment options to make suits more affordable over time.
   

2. Diversify Product Range: If your brand image allows it, consider offering lower-priced entry-level fabrics to cater to budget-conscious consumers who prioritize the experience of owning and getting a custom suit over the fabric's heritage.
   

3. Emphasize the Experience: Shift marketing efforts from showcasing products to those who are well educated in this area towards highlighting the personalized experience of getting a custom suit. Utilize content such as videos showcasing the process of taking measurements and interacting with the tailor to engage potential customers into wanting to experience this process.
   

4. Invest in paid Advertising. Word of mouth marketing and referrals might be the bread and butter of the industry, but it tends to work in a limited network of affluent people and is not scalable to meet this opportunity. Expand outreach efforts by investing in paid advertising to reach a new, broader audience.
   

5. Educate Consumers: Provide informative content to educate potential customers on the value of custom suits and why they are a luxury worth indulging in.
   

6. Introduce Tripwire Products: Use custom shirts as a "Tripwire" product to initiate customer relationships and gradually upsell to custom suits.
   

7. Mentally reposition suit in the mind of your new potential customer. Educate your viewers on why a custom suit is a useful luxury, how it differs from fast fashion and R2W solutions, how it can be a good tool towards leaving a good first impression and a good discussion piece, etc.
   

8. If you don't do it already, consider offering stitched initials in the suits. This segment not only wants to feel good, but also show the world that they do. Give them the tool to spark new conversations. Not only the customer will be happier, but this will also lead to an increase of "word-of-mouth" marketing, potentially generating you even more customers in the future.
   

9. Expand your forms of first contact. As this new segment of the market tends to shorten their decision making cycle, make sure you are maximizing your ability to get in touch with them. If the only way to make a contact with you is to schedule an appointment, consider adding some widgets, exit popups or callback options, to offer some quick feedback, that later leads to a meeting.
   

At Sartorial Digital, we specialize in helping Bespoke, Made to measure and ready to wear suit businesses navigate this evolving landscape and generate more sales and appointments. Contact us for a free consultation and let us guide you in seizing the opportunities available in market.