Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US ecommerce sales of apparel, footwear, and accessories, at current prices, 2015-25
- Impact of COVID-19 on online apparel retailing
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on online apparel, July 2020
- Opportunities and Challenges
- Improving information and providing post-purchase flexibility reduces hesitation
- Fewer occasions and decreased spending lead to cut back on clothes spending
- Experience-driven online shopping will drive category engagement
- Online players aren’t immune from hardships
- Connecting with consumers through shared values
The Market – What You Need to Know
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- Sales will shift online, but apparel spending will be de-prioritized
- COVID-19 has shifted consumers’ attitudes in favor of online
- Online shoppers are multi-generational
Market Size and Forecast
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- The aftermath of COVID-19 will negatively impact apparel sales, but puts eCommerce at an advantage
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- Figure 3: Total US ecommerce sales of apparel, footwear, and accessories, 2015-25
Market Perspective
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- Times are changing, and so are consumers’ attitudes and behaviors toward shopping online
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- Figure 4: The evolution of online apparel shopping
Market Factors
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- High unemployment and low confidence means restricted spending
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- Figure 5: Unemployment and consumer confidence rates, January-June 2020
- Post-pandemic online clothes shoppers are multi-generational
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- Figure 6: Average online shopping frequency - NET, by Generation – May 2020
- Conscious consumerism will influence where shoppers buy clothes, especially in an election year
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- Figure 7: Revolve apology to customers, June 2020
Key Players – What You Need to Know
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- Content meets commerce
- Rewinding the appeal of rentals
- Amazon is on its way to dominate online apparel sales
What’s Working
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- Mass merchandisers find new ways to appeal to value-driven consumers
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- Figure 8: Target designer dress collection, May 2020
- Social shopping
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- Figure 9: Instagram checkout enhancements, July 2020
What’s Struggling
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- COVID-19 throws a wrench in clothing rentals
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- Figure 10: Rent the Runway post to customers, June 2020
What to Watch
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- Amazon has the potential to dominate the online apparel market
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- Figure 11: Common Threads: Vogue x Amazon Fashion, July 2020
- Retailers focus on quality over quantity to appeal to environmentally focused young shoppers
The Consumer – What You Need to Know
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- Shifting sentiments indicate optimism for online retailers
- Casual, less risky purchases are most popular
- Online shopping provides savings and entertainment
- A strong digital presence drives sales
- Quality concerns remain a hurdle
Changed Online Shopping Behavior because of COVID-19
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- COVID-19 transforms consumers into conservative, conscious clothes shoppers
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- Figure 12: Changed behaviors in light of COVID-19, May 2020
- Younger generations are increasingly considerate of their surroundings
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- Figure 13: Changed online shopping behavior, by generation – May 2020
- Health-conscious parents will see more value shopping online
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- Figure 14: Changed online shopping behavior, by parental status – May 2020
Attitudes towards Buying Clothes Online
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- Impact of COVID-19 on consumers’ attitudes toward shopping for clothes online
- Shifting attitudes
- A focus on clean-shopping will drive shoppers online
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- Figure 15: Attitudes toward buying clothes online, May 2020
- Online shopping is more than a transaction, it’s an experience
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- Figure 16: Attitudes towards buying clothes online, May 2020
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- Figure 17: Tibi customer email featuring Instagram Live styles, August 2020
Items Purchased and Item Recipients
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- Consumers seek low-risk, casual apparel online
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- Figure 18: Items purchased – May 2020
- Parents appreciate convenience of making family purchases online
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- Figure 19: Item recipients – NET, by parental and marital status, May 2020
- COVID-19 could introduce older consumers to online apparel shopping
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- Figure 20: Items purchased – by age, May 2020
- Multicultural consumers’ self-shopping is motivated by savings and entertainment
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- Figure 21: Item recipients and reasons for buying clothes online versus in-store, by race and Hispanic origin – May 2020
Retailers Shopped
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- COVID-19 impacts where and how consumers shop for clothes
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- Figure 22: Retailers shopped online, May 2020
- At an advantage: (Nearly everyone shops at) Amazon
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- Figure 23: Retailers shopped, May 2020
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- Figure 24: Retailers shopped by items purchased, May 2020
- At a disadvantage: (certain) circular and luxury retailers
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- Figure 25: Retailers shopped, by gender – May 2020
- At an advantage: mass merchandisers
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- Figure 26: Retailers shopped – Target and Walmart, by select demographics – May 2020
Reasons for Buying Clothes Online
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- Online clothes shopping: equal parts strategy and enjoyment
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- Figure 27: Reasons for buying clothes online – May 2020
- Parents want to avoid stores
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- Figure 28: Reasons for buying clothes online, by parental status – May 2020
- Value motivates younger shoppers to buy clothes online
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- Figure 29: Reasons for buying clothes online, by generation – May 2020
- Black clothes shoppers are savvy
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- Figure 30: Reasons for buying clothes online, by race and Hispanic origin – May 2020
Pre-purchase Process
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- Value assurance motivates pre-purchase research
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- Figure 31: Pre-purchase process – NET, any do, May 2020
- COVID-19 will directly impact the pre-purchase process
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- Figure 32: Pre-purchase process, May 2020
- Younger generations are mission-driven shoppers
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- Figure 33: Pre-purchase process – NET, any do, by generation, May 2020
Online Shopping Behavior
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- Young women like the experience of shopping online
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- Figure 34: Online shopping behavior, by gender and age – May 2020
- Use of digital tools is multi-generational
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- Figure 35: Online shopping behavior, by generation – May 2020
Digital Engagement
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- Ads and apps reach most consumers
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- Figure 36: Digital engagement- NET, May 2020
- Social content drives online shopping for most shoppers, especially women
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- Figure 37: Digital engagement, by gender and age – Have done, May 2020
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- Figure 38: Rent the Runway communication to customers, June 2020
- Hispanic shoppers turn to social media throughout the P2P
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- Figure 39: Digital engagements – NET, by race and Hispanic origin, May 2020
- Figure 40: Spiritú, Instagram post, August 2020
Barriers to Buying
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- Product accuracy and inconsistency remain the top barriers
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- Figure 41: Barriers to buying clothes online, May 2020
- Inconvenience is another issue, for shoppers of all ages
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- Figure 42: Barriers to buying – by generation, May 2020
- Women encounter more product inaccuracies
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- Figure 43: Barriers to buying – by gender, May 2020
Desired Improvements
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- Consumers want more convenience
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- Figure 44: Desired improvements – NET, May 2020
- Parents seek customized convenience
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- Figure 45: Kohl’s Back-to-School Campaign, August 2020
- Figure 46: Desired improvements – by parental status, May 2020
- Sustainability is a purchase priority for younger generations
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- Figure 47: Desired improvements –NET – by generation, May 2020
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- Figure 48: Athleta showcases commitment to sustainability, Instagram, July 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 49: Total US ecommerce sales of apparel, footwear, and accessories, at inflation-adjusted prices, 2015-25
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