Purchasing Journey for Fashion - UK - June 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Continued growth in the UK fashion industry
Figure 1: Consumer spending on clothing, footwear and accessories, 2014-24
Online set to account for a third of fashion spending
Figure 2: Online consumer spending on clothing, footwear and accessories, 2014-24
Companies and brands
Merging the offline and offline experience
Social media becomes integral to the purchasing journey
The consumer
Online equals store-based purchasing
Figure 3: How fashion items were bought in the last 12 months, April 2019
Stores influence online shopping, online influences store purchasing
Figure 4: What consumers did before they bought fashion in the last 12 months, April 2019
Most are reluctant to acknowledge where they look for fashion inspiration
Figure 5: Who consumers look to for fashion inspiration, April 2019
Delivery and returns influence where people shop
Figure 6: What would make consumers choose one retailer over another when buying fashion, April 2019
Existing wardrobe important to consumers
Figure 7: Fashion shopping behaviours, April 2019
What we think
ISSUES AND INSIGHTS
Online vs offline in the British fashion industry
The facts
The implications
Who are the real fashion influencers?
The facts
The implications
Meeting the needs of an ever-more demanding consumer
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Spending on fashion remains robust
Online growth continues to outpace the wider market
Ongoing shifts in where people are shopping
Rising technology usage influences shopping journey
MARKET SIZE AND FORECAST
Demand for fashion buoyed by clothing
Figure 8: Consumer spending on clothing, footwear and accessories, 2014-24
Figure 9: Consumer spending on clothing, footwear and accessories, at constant and current prices, 2014-24
Forecast methodology
ONLINE MARKET SIZE AND FORECAST
Growth in the online market set to slow
Figure 10: Online consumer spending on clothing, footwear and accessories, 2014-24
Figure 11: Online consumer spending on clothing, footwear and accessories, at constant and current prices, 2014-24
Online continues to capture a greater share of spending
Figure 12: Online as a percentage of all spending on clothing, footwear and accessories, 2015-19
Forecast methodology
MARKET DRIVERS
Internet access continues to rise
Figure 13: Household internet access, 2009-18
Smartphone ownership is changing the way we shop
Figure 14: Technology products personally owned, January 2019
Changing social media platform preferences
Figure 15: Social and media networks used in last 3 months, March 2017 and March 2019
Print magazine circulation falling
Figure 16: Types of magazines read in the last 6 months, October 2018
Retail footfall remains weak…
Figure 17: Change in UK retail footfall, by location, May 2016-April 2019
…but most consumers still visit the high street
Figure 18: Retail locations visited in the last 6 months, April 2019
An aging population will shape the shopping journey
Figure 19: Trends in the age structure of the UK population, 2016-26
Figure 20: Breakdown of trends in the age structure of the UK population, 2016-26
Consumer confidence remains robust
Figure 21: Consumer financial confidence, January 2016-March 2019
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Social shopping gains momentum
In-store technology merges online and offline
Aiding the online shopping journey
The evolution of personal styling
LAUNCH ACTIVITY AND INNOVATION
The rise of alternative shopping channels
Shopping gets social
New ways to reward loyalty
The reimagining of physical stores
The line between online and offline continues to blur
Additional services add value
Localised store concepts
Using online to drive footfall in-store
Changes in the delivery and returns proposition
Sizing and fitting technology continues to evolve
Try before you buy gains momentum
New ways to aid brand and product discovery
Personal styling becomes more sophisticated
THE CONSUMER – WHAT YOU NEED TO KNOW
Online penetration is high
Most shop using both channels
One in four looks to their peers for fashion advice
Almost half would choose a retailer because of their delivery
How consumers decide what to buy is changing
WHAT THEY BUY AND HOW THEY SHOP FOR FASHION
Clothing remains the most purchased product
Figure 22: What fashion items were bought in the last 12 months, April 2019
As many shopping online as in-store
Figure 23: How fashion items were bought in the last 12 months, April 2019
App usage high amongst fashion consumers
Figure 24: How fashion items were bought via smartphones/tablets in the last 12 months, April 2019
Home delivery is favoured by online shoppers
Figure 25: How fashion items bought online were received in the last 12 months, April 2019
Accessory buyers prefer online channel
Figure 26: What fashion items were bought in the last 12 months, by how they were bought, April 2019
WHAT THEY DO BEFORE BUYING FASHION
One in three visits a store first
Figure 27: What consumers did before they bought fashion in the last 12 months, April 2019
Women more involved in pre-purchase activities
Figure 28: What consumers did before they bought fashion in the last 12 months, by gender, April 2019
Young also more likely to participate
Figure 29: What consumers did before they bought fashion in the last 12 months, by age, April 2019
Online shoppers do more ahead of purchase
Figure 30: How fashion items were bought in the last 12 months, by what they did pre-purchase, April 2019
FASHION INFLUENCERS
Most are inspired by people they know
Figure 31: Who consumers look to for fashion inspiration, April 2019
Men more likely to look to celebrities
Figure 32: Who consumers look to for fashion inspiration, by gender, April 2019
The importance of influencers in the youth fashion market
Figure 33: Who consumers look to for fashion inspiration, by age, April 2019
Online shoppers more influenced by others
Figure 34: How fashion items were bought in the last 12 months, by fashion inspiration, April 2019
Almost a quarter get inspiration from more than one type of influencer
Figure 35: Repertoire of who consumers look to for fashion inspiration, April 2019
IMPORTANT FACTORS WHEN CHOOSING WHERE TO SHOP
Offering a range of delivery options is now integral
Figure 36: What would make consumers choose one retailer over another when buying fashion, April 2019
Women want easy returns, but retailers want women to return less
Figure 37: What would make consumers choose one retailer over another when buying fashion, April 2019
Finance options and delivery passes resonate with young shoppers
Figure 38: What would make consumers choose one retailer over another when buying fashion, April 2019
Reward schemes are a priority for in-store shoppers
Figure 39: How fashion items were bought in the last 12 months, by important factors, April 2019
FASHION BUYING BEHAVIOURS
Most consumers don’t buy immediately
Figure 40: Fashion shopping behaviours – purchase considerations, April 2019
Search engines are key to discovery
Figure 41: Fashion shopping behaviours – the shopping journey and product discovery, April 2019
CHAID analysis
Methodology
A demand for lifestyle-based fashion recommendations from fashion experts
Figure 42: Purchasing Journey for Fashion – CHAID – Tree output, April 2019
Figure 43: Purchasing Journey for Fashion – CHAID – Table output, April 2019
THE PERFECT SHOPPING EXPERIENCE
Methodology
Added value from customer service
Not so pushy staff
For some the store experience is everything…
…but for others the devil is in the detail online
A fit for everyone
Variety is the spice of life
A speedy service
Bargain hunters
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Additional consumer data
Pre-purchase activities
Figure 44: How fashion items were bought in the last 12 months, by what they did pre-purchase, April 2019
Fashion influencers
Figure 45: How fashion items were bought in the last 12 months, by fashion inspiration, April 2019
Important factors
Figure 46: How fashion items were bought in the last 12 months, by important factors, April 2019
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Best- and worst-case forecast
Figure 47: Consumer spending on clothing, footwear and accessories, 2014-24
Figure 48: Online consumer spending on clothing, footwear and accessories, 2014-24
Forecast methodology