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Technology: An Unexpected Impact on Apparel Buying Kim Kitchings, Cotton Incorporated The early nineties brought forth the introduction of the Internet and its potential to cannibalize apparel sales at traditional brick and mortar retailers. More than a decade has past, and the influence of the Internet on apparel sales is impressive, but not to the degree or the manner many industry experts had originally forecasted. In 2003, only 1% of consumers indicated they purchased most of their apparel on the Internet and 6% stated that they utilized the Internet as a secondary source for buying clothing, according to Cotton Incorporated’s Lifestyle Monitor™ survey. These numbers do not vary significantly by age or gender, but do increase significantly with income. Six percent of consumers living in households with incomes less than $50,000 purchased apparel on-line last year, while 10% of those in households with incomes greater than $50,000 bought clothing online. These results indicate that the Internet is a more viable source for purchasing among upper-income consumers. Results from STS Market Research’s AccuPanel—a monthly panel of 10,000 consumers, show 6.2% of all clothing sales were made via the Internet in 2003. Of those sales, 90% were made through Internet sites that are complementary to brick and mortar stores or established catalog retailers. Among the top five leaders in Internet clothing sales were Lands’ End, JCPenney, and Lane Bryant. These results indicate that consumers continue to purchase from retailers with well-established reputations.
Although the share of clothing sales on the Internet is minuscule relative to total apparel sales, a noteworthy number of consumers are using this channel to generate apparel ideas and identify shopping locations. In 1998, when Cotton Incorporated started collecting data on Internet shopping for apparel, 5% of consumers went online to look at clothing. By the end of 2003, 30% of consumers admitted to going online to browse for clothing, a significant increase in five years. Consumers who are on the verge of “fanatical shoppers” are the most likely candidates to browse online. In apparel shopping, that translates primarily to teens. Forty-three percent of 16 to 19 year-old females browse the Net for apparel, while 38% of male teens use the web for ideas. The teen segment has had the largest growth in perusing the Net over the past five years. This cohort of shoppers also is the most likely to love shopping for apparel, buy clothes on impulse, and to buy at regular price.
Through numerous qualitative and quantitative research studies conducted
by Cotton Incorporated, it is apparent that most consumers want and even
need to try apparel on before purchasing. Not only is size a consideration,
but the feel and fit of the item is of utmost importance. Lastly, many
consumers use apparel shopping as a social opportunity and desire the input
of others. Half of all consumers want a second opinion when buying apparel,
and 68% of teens state they need verification. Although there have been
tremendous advances in virtual models and online shopping assistance, peer
approval is not yet achievable through a modem. The percent of consumers
using technology to generate ideas continues to increase, but not to the
detriment of traditional clothing retailers. |
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