A quarter of young people plan to spend less on clothing in the start of 2011, with working women aged 20-24 most likely to cut back.
According to consumer research firm Mintel, the start of this year will be challenging for young fashion retailers. However the proportion of young people planning to cut back is lower than the third of adults surveyed who said they would cut their clothing spending.
Mintel found that over a third (36%) of 20-24 year-olds were buying new clothes for job interviews, indicating extra demand for smarter clothing despite the tough economic conditions. This has led to a 4% increase in men aged 16-24 buying ties between 2007 and 2010.
Mintel also found that dress purchasing soared 20% over the last three years, with 66% of women aged 16-24 buying dresses in 2010, up from 46% in 2007. However skirt buying has fallen by 8% since 2007 to 3% of young women buying skirts in 2010.
There has been solid growth in the 16-24 year olds clothing market, which has grown by 17% to £10.1bn from 2005 to 2010. Mintel predicts it will rise 15% to £11.6bn by 2015.