One test of these models involves evaluating consumers’ preferences for clothes-shopping outlets. The "staircase" model can be evaluated by testing the hypothesis that Baby Boomers should shop at specialty and department stores in higher percentages than Generation X consumers. These types of stores, one could argue, are characterized by higher average prices and frequented by consumers in higher socioeconomic groups. The "spiral" model implies that Gen-Xers, in contrast, should shop at many different types of outlets. However, Lifestyle Monitor data show little support for using these models to describe generational differences in shopping behavior. The two generations have similar outlet preferences. Among Baby Boomers, 56% shop at either department stores or chain stores, compared with 51% of Gen-Xers. The only significant difference in outlet preference is toward specialty stores. Only 7.4% of Baby Boomers prefer shopping at specialty stores, compared with 18.6% of Gen-Xers. These results suggest that Baby Boomers do not differ significantly from Gen-Xers in where they prefer to shop for clothes.

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However, brand loyalty does tend to differ between these two groups. In Cotton Incorporated’s Lifestyle Monitor, consumers were asked to name their favorite brand of clothing. More than a third of Baby Boomers either do not have or are unable to name a favorite brand of apparel, while only 22% of Gen-Xers do not name a favorite brand. Almost half of consumers aged 55 or older do not have a favorite brand, nor do older consumers love shopping as much as the Baby Boomers or Generation X. These findings indicate that apparel brand and shopping preferences may be more indicative of life stages than of life styles.

By exploiting Gen-Xers’ affinity for brands, retailers can win these consumers as they enter the prime shopping years and as the Internet grows as a retail outlet for clothing. With 78% of Gen-Xers naming a favorite brand and 12% of this generation browsing the Internet for clothes (up from 5% in 1997), brand identification will be important as the Internet gains acceptance among shoppers.

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Exchange Rate Has Major Effect on Domestic Cotton Usage

How much cotton will the domestic textile industry consume? That is a fundamental question posed by analysts of the cotton market. And whether consumption is rising or falling can influence, among other things, the price of cotton.

In simple terms, the amount of cotton used by the U.S. textile industry depends on the overall consumer demand for cotton and the industry’s position versus its competitors overseas. In the competitive arena, most attention has been focused on trade issues such as NAFTA, GATT, CBI Parity, and the Sub-Saharan African trade bill. All of these legislative issues are important; but one factor that is vital in determining the competitiveness of U.S. manufacturing is the relative value of the U.S. dollar. A rising dollar means that our currency is becoming relatively more expensive than other currencies. As a result, textile and apparel imports become relatively cheaper, and U.S. exports more expensive. Thus, a rising dollar results in decreased domestic cotton consumption, while a falling dollar leads to increased consumption.