The development of e-commerce is expected to result in a seismic shift in the retail of fashion products, with latest research suggesting that a multi-channel approach to fashion brings maximum returns.
The popularity of social networking among today’s youth is likely to secure the continued growth of e-commerce too.
According to a just-style research report, called New fashion retail channels: how consumers will be buying clothes – forecasts to 2016, this is a key driver of online sales growth.
Research finds that online sales could represent 8.5% of the total world apparel market this year, from 7.2% in 2007. Traditional shop sales have actually fallen over the period, and their share has declined from 65% to 63.6%.
The breakdown of sales channels varies between countries though, with Internet and social networking to represent 10% of the US apparel market this year, for instance, but 17% of Japan and Korea’s.
The influence of Twitter and Facebook is increasing importantly, finds the report. Blake Chandlee, commercial director for Facebook, says: “Progressive brands are seeing social networking as an opportunity to connect with consumers like never before. When information about a brand comes to you from a friend rather than from a corporation, it gives your brand a completely different level of credibility.”
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By GlobalDataTherefore, if an e-commerce site is worth an extra flagship store then advertising and communicating on social network sites is the equivalent to addressing a large television audience.
Offering discounts, vouchers and free shipping is another method fashion brands are using to capture their online communities.
Forecasts to 2016 suggest that traditional retail shops will recover in US dollar value, but will stagnate at around 64% share. However, bricks-and-mortar retailers offering the consumer a multi-channel offer will be the undisputed winners.
“Although some pureplay e-tailers have been very successful, much of the clothing online sales growth has been made by existing traditional retailers’ online offers, the so called “multi-channel” approach,” the report adds.
Therefore, a significant physical retail presence will continue to form the foundations of every successful fashion brand, despite how quickly e-commerce evolves.
Click here to download just-style’s latest report – New fashion retail channels: how consumers will be buying clothes – forecasts to 2016.
