Transparency to gain consumer's trust

Consumers are becoming more and more cautious with brands and the industry. The consumer's trust towards brands is a crucial point. However, fashion companies need to come to the fact that it has been eroding as the consumers are expecting more information with full transparency across the value chain. Brands, companies, and retailers have left the consumers questioning if they should share information with them. In response, the consumers are demanding more insights on various issues, including the manufacturing process, quality of the goods, who made the products, etc.

Surveys show that consumers' trust towards businesses plunged to 40% in 2017, with more than two of five customers claimed they are confused about which brands to trust. Eventually, it makes sense that as trust eroded, consumers become more active in examining brands.

"If you don't have trust, you don't win the customer over time," claimed Mike Smith, Stitch Fix's chief operating officer.

Millennials lead as 52% of them stating that they always research for information before buying goods, commonly from reviews and articles. It is followed by Genz consumers (45%) and baby boomers (41%). Creative integrity, sustainable supply chains, value for money, ethical working environment, data protection, and authenticity have become the most critical points in which the consumers will most scrutinize fashion businesses.

The increasing plagiarism cases in this industry and cultural appropriation where a culture from the minority is taken disrespectfully to gain profit have made consumer demand for an authentic and original brand that reflects their real sense of style and values. The consumers are concerned about supply chain issues, such as fair labor, sustainable resourcing, and the environment. They want brands to be more transparent and willing to support those who are giving a positive impact on society and the environment. 66% of them are willing to spend more on sustainable goods, while 42% of millennials are curious about the product components and the manufacturing processes, compared to the Genz (37%). In addition, value for money has also become a rising concerning aspect among the consumers, as they are searching for product information and reviews and compare prices.

In response, brands are trying to be more transparent in many cases. They are investing to address these problem areas and highlighting their best practices to create a competitive strategy. As a fashion business student, I have seen and experienced the moving trends of brand transparency. More brands in Indonesia have been quick to respond and disclosing their business strategy. The younger generations are appreciating these small local businesses for the effort to give back to society and the environment. From what I have observed on Indonesian consumers, they are willing to spend on sustainable & ethical brands as well as promoting them to their friends and relatives, either through word of mouth or social media for nothing. As a student, I see this as a massive opportunity for businesses to not only target the customers and boost sales but also to be a part of making changes to the industry and world.

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Amed, I., Balchandani, A., Beltrami, M., Berg, A., Hedrich, S., & Rölkens, F. (2019). What radical transparency could mean for the fashion industry. Retrieved 13 September 2020, from https://www.mckinsey.com/industries/retail/our-insights/what-radical-transparency-could-mean-for-the-fashion-industry