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UK Apparel Ecommerce. a Perfect Fit

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UK Apparel Ecommerce. a Perfect Fit UK Apparel ecommerce. A perfect fit 1 UK APPAREL TREND REPORT 2017 United Kingdom: Q2 2017 Executive summary The internet has brought about a product research online before massive transformation in global hitting the high streets to purchase £45.55: the average cart value with an apparel retailing. With nearly one- in a store (“webrooming”). At the apparel item in Q3 of 2016. quarter of UK sales in apparel and same time, merchants have taken accessories now being made online advantage of the omnipresence £112.05 vs. £111.23: the average Handbag/ according to Fung Global, and of mobile devices and are making Wallet purchases on desktop and mobile, Amazon eying this highly lucrative it easy for shoppers who see respectively, in Q3 2016. category, 2017 will be a pivotal year something they want in store to for the industry. buy the product online and have it shipped (“showrooming”). Smart Gen Z is defining the omnichannel future In addition to the continuing shift retailers are using new technologies of apparel with their love of real world to online of basics purchases like from the internet of things to enable stores, but preference for connecting underwear and casual wear, there this behaviour. Bricks and clicks are with brands online. is growing acknowledgement of no longer in competition, but are the omnichannel nature of apparel seen symbiotically. Marketers are For a big lry event like Valentine’s Day, retailing. For Millennials and Gen winning by using shopper data to “engagement rings” is a top search term. Z, the internet has overtaken print develop holistic profiles of their best During the summer months, it’s “fascinators.” media for the dissemination of customers and presenting them with trends largely due to YouTube and merchandise to surprise, delight, and Instagram. Shoppers often do their ultimately wear. Using Sponsored Products can increase a brand’s share of the digital shelf. Across all campaigns Criteo reviewed in 2016, there was +43% average change in share of category sales. 2 UK APPAREL TREND REPORT 2017 Trends we’re seeing in Apparel ecommerce Bespoke is back. And it’s not just menswear. Marketplace and Glamorous create look books The expectation of discounting. The great danger Digital technologies make custom clothing a on their sites that tell lifestyle stories as they of ecommerce: Shoppers can see what everyone reality and shoppers are responding. merchandise goods. else is charging. The on-site experience — includingr ecommendations via Sponsored Try before you buy/subscription services. Chat bots reinforce online service. Talk to a Product ads — can help to maintain margins. My Little Box, Me, My Suit & Tie, ToppBox, and robot and get all kinds of AI-driven advice. With Golden Tote. Someone else takes the work out of both Facebook Messenger and What’s App Checking the Mirror – and it responds. The choosing. It’s all about personal shoppers on digital reaching the 1B user mark in 2016, it’s worth internet of things has the potential to further time and ease of returns if you just don’t like it. a look – especially in the realm of fashion revolutionise sales of apparel. Like the orange suggestions. Among the retailers working with coat on that big video screen? Use your phone Mobile commerce dominates. Fashion is about them are Burberry and Tommy Hilfiger. to interact with it and, with one click, have it billed movement and being out in the world, and both and shipped. In stores like Burberry and Ralph shopping and research are increasingly shifting The service sector. Led by stores like Apple Lauren, eBay’s magic mirrors are showing what to mobile phones. and upscale boutiques, well-trained personnel the clothes look like in other sizes and colours – empowered to make product suggestions which can then be purchased with one tap. Curation & storytelling. In the mass of goods have become as important as they were when available, shoppers in this category want choices Selfridges were first launched the idea over a to be culled down into something manageable century ago. Sites that offer personal shopping and understandable, or what used to be called assistance are replicating this online. “editorial vision.” Sites like Luxefix, Yoox, ASOS Warby Parker offers in-store eye exams and expert staff to help shopping for glasses feel more like accessorizing. Photo source: Scott Lachut: Warby Parker’s Flagship Foray Into 3 UK APPAREL TREND REPORT 2017 Physical Retail - PSFK 1 Category trends. 4 UK APPAREL TREND REPORT 2017 Frequency with which UK digital buyers make digital purchases1 By age • May 2015 Omnichannel Apparel 18-24 1% Millennials are the generation that grew up online and they are 20% 49% 21% 8% larger in size than the Boomers. They may have started their apparel 25-34 1% shopping with magazines like Elle, and Vogue, but they now are 37% 51% 7% 5% turning to sites like Very and Zalando and using YouTube videos for styling tips. For those 25 – 34, 51% of them say they make digital 35-44 purchases several times a month. 38% 45% 13% 4% 45-54 When they have children of their own – and as the majority of them 32% 45% 17% 8% who are mums who work – convenience for apparel shopping becomes more important, especially in terms of basics for themselves and their At least once a week Several times per year Several times per month families. Why buy the commodity purchases like t-shirts, socks and Approximately Approximately underwear anywhere else but online? once a month once a year How Gen Z-ers prefer to purchase2 Generation Z loves in-store shopping Teenagers have been calling the shots in respect to apparel purchases 67% 31% since the term “teenager” was first made popular. Teens continue to In store set the trends: 55% of Gen Z reports that they spend their own money 22% 54% on clothes, and 60% said they influence household apparel purchasing Online (Uniquely Generation Z, The NRF, IBM, January 2017). 13% 35% While they may have grown up with smartphones (the iPhone was first App introduced in 2007), perhaps because of the overwhelming amount of media they take in, they value tactile experiences. While they make 5% 20% Calling most of their purchases online, they prefer to shop in physical retailers. Most of the time Some of the time 5 UK APPAREL TREND REPORT 2017 Sources: 1 emarketer.com/Article/Young-UK-Millennials-Among-Least-Frequent-Digital-Buyers/1013252?ecid=NL1002 2 IBM/NRF, Uniquely Gen Z, January 2017 Mobile drives Click & Collect Showrooming is a good thing and Click & Ship In many product categories, including apparel & Rather than checking backstocks and dealing Smartphones are the remote controls of the accessories, retailers initially balked at the idea with point of purchase, salespeople are freed up lives of Millennials and Gen Z. They can’t be tied that someone was going to check out an item for customer service. The extended inventory to their laptops and for them, ordering on their in a physical store and then use their phone to exists in a fulfillment center, not a backroom phones and popping by the local store to smugly buy it online. While this is still a possibility, more to be manually inventoried quarterly — which sail by those in line is becoming more and more retailers have begun to embrace Click & Ship further cuts into sales. Because the sale is made the norm. According to a survey by JDA and as a way to increase customer loyalty, better in a cashless, productless manner, there is less Centiro, over half of UK online shoppers had manage inventory and make smarter use of employee shrinkage as well. used Click & Collect to buy online and pick up in store personnel. store by the beginning of 2016. 6 UK APPAREL TREND REPORT 2017 2 Apparel challenges met with opportunity. 77 UKUK APPARELAPPAREL TRENDTREND REPORTREPORT 20172017 Clothing and accessories in their essence are tactile, personal goods. And, when it comes to Apparel, there really is no “one size fits all.” Here are some of the challenges the industry is addressing: Challenge: Online apparel buying is not as fun. Work-around: Sponsored Products are a way purchase. Software solutions like ReadyReturns Work-around: Apparel sites add high-quality to ensure visibility and display items during the put retailers in a position to offer their customers merchandising in the form of videos, curated shoppers journey. Brands can use Criteo’s cross an automated online product returns system. collections and stories. sell tools as a form of digital merchandising. This software integrates directly into the online store and provides a user-friendly return portal Challenge: Shoppers want to test merchandise Challenge: Discounts become an expectation. for customers and for retailers. on themselves before they buy. Work-around: Because digital has upended the Work-around: Customer reviews, photos and whole supply chain of clothing manufacturing, Challenge: Amazon has introduced new lines at sizing statistics like “X% say “fits true to size” brands can produce more limited quantities and various price ranges to tempt their growing base offer shoppers the ability to leverage their online then act on available sales info. Retailers can of customers. manage volumes so that they end up with fewer peers to understand how it will fit. Work-around: The UK has a longstanding items on the sale rack. Challenge: TThe fashion industry is so tradition in apparel retailing and fashion brands ephemeral in terms of trends that online, with its Challenge: Return rates are high. Retail blog that resonate with consumers. Amazon is not algorithmic driven marketing, just doesn’t fit. BoldMetrix notes that return rates are still able to tell the kind of lifestyle stories that Work-around: Algorithms can prove surprisingly around 28%.1 shoppers connect with in apparel.
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