Newswise — BLOOMINGTON, Ind. -- In a twist on the classic "Deck the Halls" lyric, young, influential, fashion-conscious consumers are more inclined to don apparel that features wearable technology, according to a new Indiana University Kelley School of Business survey.
"For the first time in three quarters, tech products have gained ground relative to the other categories we studied," said John Talbott, director of research at the Indiana University Kelley School of Business' Center for Education and Research in Retailing.
"This might be based on the growing assortment of wearable technologies and the desire to give or receive new mobile devices during the holiday season," he said. "Though apparel sales will increase, expect the biggest percentage gains in technology products for this demographic."
In September, Apple released its new iPhone 6 and the bigger iPhone 6 Plus, and it will soon roll out its Apple Watch. Samsung, Sony, Microsoft and other competitors already are flooding the market with smart watches and other wearable technologies.
The FIndex, a survey of CollegeFashionista "style gurus," suggests that overall holiday sales of apparel and footwear will rise by only 2 percent, or at almost flat levels when adjusted for inflation.
"Our data indicates that the style gurus are not as optimistic as they were during the first quarter," Talbott said. "Our index has trended downward for three consecutive quarters, which may indicate their concerns for broader economic headwinds in the first two quarters of next year."
Those surveyed also weren't as enthusiastic about the products they are seeing in stores; yet they plan to shop early to find what they want.
"Perhaps the lack of perceived innovation in the offerings of the season creates more demand for the smaller set of innovative products and a willingness to get out there to acquire these items," Talbott said. "This was the first time that we've seen a little bit of pushback on the spending sentiment -- definitely a little downtick in it."
This isn't to say that apparel spending still won't be a large component of holiday shopping this year.
The FIndex, or Fashion Innovation Index, is based on survey data obtained from a representative sample of CollegeFashionista’s 600 "style gurus," mostly women, who report on fashion trends at college campuses around the world. Style gurus are a curated group of college-age students who possess a keen eye for new style trends in all realms of the fashion industry.
The quarterly index, also produced by Kalypso and CollegeFashionista.com, measures consumer sentiment toward fashion trends in the apparel, footwear and accessory industry. Its purpose is to help retailers better track and understand consumer sentiment toward the innovativeness of merchandise quarter-to-quarter and more quickly identify and adopt emerging fashion trends.
Zara, one of the largest international fashion companies and part of Inditex, is emerging as a top brand among the style gurus surveyed. Along with Topshop and Free People, it was one of their top three brands. True Religion, Madewell and American Apparel's ratings improved. Must-have items on their list included leather jackets, an iPhone, boots (but not Uggs) and scarves.
Steve Riordan of Kalypso said the survey results indicate that consumers are responding to retailers' efforts to innovate in other ways, particularly through e-commerce activities.
"Physical stores are still the most important shopping destinations, but the survey data indicates that e-commerce continues to gain ground as it has done over the last four quarters," Riordan said.
Brick-and-mortar retail continues to account for about 80 percent of all sales. Among those surveyed, the Internet remains the most important source for information, but the influence of fashion shows also has been increasing.
The spring 2014 Findex will be released in March.
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