Online apparel, footwear, and accessories in the US: Key market research findings
- Availability of quick payment options drives market growth
- Apparel accounts for a majority share of the market revenue
- Key vendors – Amazon, Gap, J. C. Penny, Macy’s, Sears, and Walmart
Technavio’s market research analysts predict the online apparel, footwear, and accessories market in the US to grow at a CAGR of almost 16% between 2016 and 2020. The growth of this market can be accredited to time crunch and availability of easy payment options. The availability of easy and secure online payment options, facilities to track shipments, 24/7 customer support, and low costs have led to a higher demand for online shopping. Customers can now choose from a variety of payment methods including credit cards, cash-on-delivery (COD), internet banking, demand drafts, and cash-on-order. One of the popular methods of payment in the US is COD.
The new market research report from Technavio presents a breakdown and analysis of the online apparel, footwear, and accessories segments based on the product category.
“Digital payment is becoming increasingly popular among consumers. These services allow consumers to make payments at the point of sale through a mobile device. The transactions can be completed in a few steps by using a mobile device. Large players like Amazon, Google, MasterCard, PayPal, and Square are investing heavily in the technology,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
By 2020, the apparel segment will continue its dominance over the online apparel, footwear, and accessories market in the US by accounting for almost 71% of the overall market revenue. Online retailers in the US advertise apparel lines through electronic and print media and social media platforms such as Facebook and Twitter. For instance, Zara’s “TRF LOOKBOOK” on Pinterest; H&M’s “#HMLoves;” Gap’s “Born to Fit” and “Pin to Win” on Facebook; L Brands’ “Pink Campus Reps” for its Pink brand; and Nike’s “The Nike+ Human Race,” “Nike She Runs,” “Nike She Runs the Night,” and “Make Yourself” are some of the successful social media campaigns. Besides, many e-retailers offer a wide range of apparel brands at prices lower than those offered by economy brands offline, leading to the growth of this segment.
The key vendors in the market include Amazon, Gap, J. C. Penny, Macy’s, Sears, and Walmart. The online apparel, footwear, and accessories market in the US is characterized by the presence of both national and international vendors. Among the key vendors, Amazon is a pure-play e-retailer, while the others are active in the brick-and-mortar format as well. While online retailers have cost advantage over physical store retailers, the imposition of tax laws in the US on online channels could limit the edge online retailers have over brick-and-mortar retailers.
A more detailed analysis is available in the Technavio report, Online Apparel, Footwear, and Accessories Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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