Supermarkets and department stores have been investing in their own-brand offers in recent years and while fashion retail giants such as Next and M&S have also been adding third-party brands, a new study claims that retailer-branded labels is where much of the fashion growth will come from next year.

RSM UK, the audit, tax and consulting firm to the middle market, said “more cash-strapped consumers look to own-brand clothing ranges to get the latest look as the cost of living continues to shape shopping habits in 2024”.

A survey of 1,000 consumers conducted on behalf of the firm in a link-up with data specialists Moody’s Analytics and The Harris Poll showed over a third of consumers (34%) are buying more own-brand products than last year. 

And while the own-brand products in general that consumers would buy remained static across almost all categories, clothing and accessories stood out with RSM seeing a six percentage point increase to 26%. That could be a reflection of the improved products on offer from many retailers as well as other factors.

It also found that over a quarter of consumers are set to cut back on clothing and accessories in the next three months, and this jumps to over a third (36%) for women – increasing the competition for consumer spending in 2024.

It’s an interesting development, especially as the third-party brands trend gathers pace. As well as Next and M&S, supermarket Sainsbury’s and department store John Lewis are also adding more external labels to their respective fashion offers. But crucially, all of these firms are also focusing heavily on their own labels with consumers clearly appreciating their value in difficult times.

Jacqui Baker, head of retail at RSM UK, said: “Whether its aligning with the right celebrity or collaborating with a brand that supports your values as a business – the own-brand market is booming. Savvy retailers are diversifying and investing into different markets to stay relevant to customers and forge real brand loyalty with quality own-brand offerings. The cost of living continues to squeeze household budgets, so cheaper on-trend ranges driven by the right brand ambassador is set to be a key driver for sales in 2024.”