Fashion Brands: 6 effective ways to conduct market research before expanding to new areas

How do some international fashion brands thrive in new markets while others struggle?

Could understanding the local consumer be the missing piece in the puzzle?

This post gives a closer look at strategies to conduct market research before expanding to new markets.

First, some key statistics about the Portuguese consumer in the fashion market:

• The Apparel market in Portugal is projected to grow by 2.63% from 2024-2028, resulting in a market volume of US$8.53 billion in 2028 (Statista)
• Annual consumer expenditure on clothing in Portugal increased by 12.96% in 2022, reaching 791.6 million Euros (Statista)
• 52% of Portuguese consumers have bought sustainable products, but only 11% choose exclusively eco-friendly options when faced with other options ("What Are Portuguese Consumers’ Preferences Towards Sustainable Fashion?")

Understanding this situation is crucial for creating plans that connect with local Clients and ensure a successful entry into the market.

However, a question appears: how fashion brands should conduct this research? Where to start?

1. Demographic analysis

Analyse the demographic of potential target markets, including factors like age, gender, income, and education levels to determine if there is a suitable customer base for the brand's products.

1. Evaluate regional/local fashion preferences

Research the unique fashion trends, styles, and preferences in each target market to understand how to tailor the product offerings to answer directly to what local consumers need and desire.

1. Assess the target market's potential

Evaluate the size and growth potential of the target markets. Brands should consider factors like population, disposable income, and e-commerce penetration to prioritize the most promising expansion opportunities.

1. Conduct competition analysis

Identify local and international competitors, analyse their strengths and weaknesses, market share, and strategies to uncover potential opportunities for the brand to distinguish itself.

1. Engage with local communities and cultural experts

Immerse the brand in the local culture, observe consumer behaviors, and collaborate with cultural experts to gain insights into the preferences, values, and expectations of the target market.

1. Leverage digital tools and social media

Utilize digital platforms and social media to gather insights about consumer trends, preferences, and behaviors in the new markets.

As well as to test the brand's appeal and engagement with the target audience.

At Just Fashion, we have focused on communication to reinforce brand awareness. Not only internally, but above all with the brands we represent. This has been an important factor since the beginning of our relationship.

Global brands need to take a personalized approach to succeed in all markets. And Portugal is no different. By understanding the unique demographic profiles and spending habits, brands can strategically align their offerings to meet the expectations and preferences of Portuguese consumers.

Maybe it’s time to rethink brands’ strategies. Let's transform challenges into opportunities.

#JustFashion #PortugueseFashionMarket #FashionDistribution #FashionWholesale