ECOMMERCE IS RE-WRITING THE FUTURE OF APPAREL – A glance at what was in 2017
2017 was a test of survival of the fittest in the retail apparel world, and a bleak year for many major retailers. It’s a long list that saw brick and mortar retailers close tens to hundreds of stores - JC Penny, Macy's JCrew, Gap, Gymboree, True religion to mention only a few. And just days ago, most recent announcement – Charming Charlie to close almost 100 stores.
Apparel retailers have seen the writing on the wall for several years with gains in retail revenue being driven almost solely be ecommerce, which has seen growth at as high as 7% higher than the retail sector in general. Brick and mortar shopping has been stagnating with traditional retailers in the U.S. are faced with flat or declining sales outside of online revenue growth.
And the more stores that close, the more consumers turn to the web to shop.
Pureplay online players are joining the market out of seemingly nowhere. eMarketer forecasted US ecommerce sales of apparel and accessories would reach $84.58 billion in 2017, accounting for 18.7% of total US retail ecommerce. In 2016, ecommerce apparel and accessories sales reached $74,03 billion, showing an increased in over 13% in a year.
The 6 fastest growing online retailers in 2016 were ecommerce based only, (according to an IR report)
In 2017, ecommerce drove many brands to rethink how they operate in their entirety. With big retailers are investing in SEO, in buying companies with an expertise in ecommerce.
Apparel retailers continue to invest in a major balancing act – between brick and mortar and ecommerce and will try to implement the latest buzz word - "omni-channel". The focus – delighting and drawing consumers into the brands story, providing them with exceptional (and unifying) buying experiences..both in stores and online. Nordstrom took the plunge to become a model of omnichannel customer sales and experience, launching a inventory-less store that provides unique experiences and services for customers.
The Amazon stronghold - if you can't beat them, join them.
Amazon was expected to become the no. 1 retailer of apparel and accessories in the US (Cowen & Co.) in 2017 by surpassing Macy's. Amazon spent 2017 diversifying its offerings in the apparel - for example, Prime Wardrobe, which lets you try items before you even buy them, they launched their own athleisure brand and released a camera style assistant called Echo Look. Amazon, are operating in all directions - while some brands held that selling on Amazon might cheapen their brand image, it is clear that Amazon is working around this, having convinced brands to the likes of Nike, Under Armor to be sold on Amazon. Amazon is just too big to be ignored as they move ahead and set a standard of primeable products, setting consumer expectations that goods can be received in a day.
Consumers have never been more spoiled for choice, putting pressure on retailers to be competitive, demanding convenience and value from the palms of their hands (literally). Retailers need to seek ways to differentiate themselves and those that don't keep up might unwittingly donate their market share. It'll be interesting to watch development in the industry's technologies that can support these consumer demands.
Learn more about Kornit's textile printing technlogies at
https://www.kornit.com/printing-solutions/
*IR (Internet Retailer) Research
