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the 2020 global
Fashion AND Beauty Trend Report
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Welcome to the first installment of Afterpay’s biannual global trend report
Here, we’ve aggregated recent purchases made by our global customer base of 8.4 million, across our catalogue of 48,800+ brands and retailers, to identify the season’s key trends and shopping patterns.
What sets our report apart is our use of actual, up-to-the-moment customer purchase data, coupled with the fact that an overwhelming majority of Afterpay users are categorized as Millennials and Gen Z.
Just over 65% of our global consumers are Millennial and Gen Z.
Rather, we are uniquely positioned to present a definitive guide to the global fashion and beauty landscape through the lens of how the world’s highest-value and most powerful demographic is spending its money.
So who exactly is the global customer, when are they shopping and from where?
On average, they're in their early 30's, prefer to shop around lunchtime (1pm is the most popular time across all timezones) and can be found in the world’s major (and most expensive) cities.
In fact, the large majority of them are located in the United States, which represents Afterpay’s largest active customer base at 4.4 million. They’re also heavily influenced by social media.
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The Top Global Cities
Afterpay Customers Are Shopping From:
Melbourne
Los Angeles
Chicago
Brooklyn, NY
Houston
London
Philadelphia
Auckland
San Antonio
New York City
how are they spending?
This is a financially savvy generation who wants more control over its money, shops from its phones and spends the most money on accessories.
They Prefer Debit To Credit
Nearly 90% of global Afterpay payments were made with a debit card. Citing fear of debt, the vast majority of Millennials and Gen Z that we spoke with sought to avoid credit cards.
Are scared of taking on too much debt with a credit card
Say they are scared of buying things with credit
Avoid credit cards out of choice
Budgeting Is Big.
The percentage of those who actively manage their money ranges from 33% in the US to a whopping 90% in the UK. And it’s working—95% of global Afterpay users never pay more than the listed price of the product due to on-time payments, enjoying a free service.
It’s also worth noting that the majority of Afterpay customers live in cities with high costs of living, places where the Afterpay concept is an effective way to help them manage their money and spend responsibly.
In the US, 33% of Millennials use a budgeting tool to keep track of finances
In Australia and New Zealand, 67% use a budget
In the UK, 90% of Millennials actively manage their money
Afterpay Customers Return Less
The total global value of merchandise being returned is approaching $3 trillion this year - a challenge for retailers. Additionally, returns generate 18 billion kgs of waste and 112 million tons of CO2. Afterpay has the lowest return rate among all payment types for fashion (4-6ppts lower than debit and credit cards), because Afterpay is a budgeting tool that attracts customers who are committed to their purchases.
They Shop On The Go
It’s no secret that Millennials and Gen Z are the most digitally savvy of any generation today—and the most attached to their phones. Unsurprisingly, they’re making more purchases on mobile than they are any other device.
Mobile Device
Desktop
iPad
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They’re Shopping Every Few Months.
More than 65% of Afterpay’s global customers made at least two purchases in the past six months. What that return traffic tells us is that the Afterpay concept is resonating and consumers are coming to rely on it to budget.
On average, they’re purchasing 3 items each time they check out.
The number of fashion items purchased in a single transaction was the highest, followed by beauty and then accessories. Good news for brands: Consumers who check out with Afterpay (and pay less up front) are increasingly likely to purchase more in one transaction.
the top
Global Trends
Despite differences in time zones, seasons, style and culture, there are plenty of similarities when it comes to what customers in Australia and New Zealand, the United States and the United Kingdom are shopping. From neutral hues to maxi dresses, here’s a look at what Millennials and Gen Z around the world are buying.
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The It List:
The Season's Hottest Pieces
These days, younger customers are buying more than products—they’re buying into a lifestyle. And so it comes as no surprise that the top-selling global product is one with a beauty influencer’s name attached to it.
Anastasia Beverly Hills’s Nicole Guerriero Glow Kit tops a list that includes other buzzy, cult-brand items such as Nike’s Air Jordan Retro 3 and Air VaporMax Plus, and the Mini Flyliner Longwear Liquid Eyeliner from Rihanna’s Fenty Beauty.
the top 5
Product Categories
With people spending more time indoors and in isolation globally, there is proof that the casual dress code isn’t showing any signs of stopping, T-shirts outrank dresses in top product categories purchased according to sales volume data.
T-SHIRts
dresses
tops
jeans
shoes
the top 5
Shoe Shapes
Footwear is having a major moment both pre and post-quarantine. Ask any fashion insider and they’ll tell you the ‘90s-era mule is the shoe of the moment (Rihanna and Hailey Bieber, who have been spotted wearing them, would likely agree.) Surprised to see loafers on the list? They were all over the spring runway at Prada. And it’s no surprise to see sneakers topping the list with fitness being a major focus for consumers globally.
sandals
sneakers
mules
clogs
loafers
the top 5
Handbag Silhouettes
Day clutches have surged in popularity ever since blockbuster brand Bottega Veneta debuted its instantly covetable Pouch bag last spring. An immediate social media hit, it inspired a trend set to continue into the next season and well beyond.
clutches
shopper totes
backpacks
hobos
bumbags
Shades of the Season
Neutrals are hands down the sleeper-hit hues of the season, seen all over Instagram during February’s Fashion Month. Customers are copying the look—and when in the mood for a pop of color, they’re going for blue, pink or orange.
blue
pink
orange
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The Most Popular Silhouettes
Covering up is definitely the new cool as maxi dresses are having a moment. Need proof? There was not one short hemline at Gucci’s Spring ‘20 show, and at Valentino, over half of the 80 looks were long. Meanwhile, when it comes to their denim this season, women prefer the classic skinny shape.
