Britons are set to spend £16.2bn on fashion online this year representing a 17.2% increase, according the latest research released by Mintel on day one of London Fashion Week. Furthermore it is set to grow by a further 79% by 2022, reaching just under £29bn.
Fashion is the most popular category for online shoppers and sales of fashion online have almost doubled since 2012. Online spend now accounts for almost a quarter (24%) of all fashion spend (up from 17% in 2013) and the growth in online fashion sales is by far outstripping the growth in fashion as a whole, which is expected to increase by just 1.3% this year.
Tamara Sender, senior fashion analyst at Mintel, said the online growth stood out as the fashion market as a whole was struggling to compete for consumer spend with leisure activities. “The way consumers are shopping for clothes and shoes is changing; there is a buy-now, wear-now mentality and a desire to shop for clothes however and whenever they want, with consumers demanding convenient shopping that fits around their busy lifestyles,” she explained.
Mintel says the most influential players are the pureplay retailers (those without physical stores such as ASOS and Net-A-Porter.com) who account for 38% of all online fashion sales. “Usage and trust in online retailers is still growing. Many of the pureplay fashion retailers are still immature businesses and have a degree of novelty value, which is helping to drive sales,” Sender said.
Online fashion shopping is popular with consumers of all ages but unsurprisingly especially so among the Millennials (18-37 year olds). Just under seven in 10 (66%) internet users in the UK have bought fashion items online in the last 12 months, rising to four fifths (81%) of Millennials. However more than half (54%) of over-45s have also bought some of their clothing and footwear online.
Young women are particularly drawn to online players with frequently updated ranges such as ASOS
Young women are increasingly turning to e-stores for their fashion purchases with 85% of female 16-24s having purchased their garments online and this is the group most likely to be driven to purchase by newness with 71% opting to shop at retailers that sell frequently updated ranges.
But while online is booming only 15% of consumers buy all of their clothing online, with the remainder still preferring to head to a store for at least some of their clothing at footwear, which Mintel says highlights the need for a “joined-up overall shopping experience”. Mobile use is also growing with 84% of shoppers saying they have purchased via a desktop/laptop and 48% of all Millennials saying they have shopped via a mobile device.
“The ease of purchasing via a mobile device is helping to fuel online demand. Retailers are continuing to invest in offering mobile-ready sites. As smartphones become an everyday part of life, brands should assume that their audience have a connected device at their fingertips at all times, ensuring accessibility anytime, anywhere.” Sender said.
With the popularity of online shopping comes the inevitability of a high level of returns with half (50%) of online clothes shoppers having returned fashion items they have purchased online, rising to 56% of female online clothes shoppers and 60% of women aged 25-44. However for some returning goods proves to be too much trouble with a third (34%) of online fashion shoppers overall saying they have kept products they don’t want due to the hassle of returning them, including 41% of females aged 25-44. Overall, three quarters (73%) of online fashion shoppers want more return options such as collection from home or drop-off at multiple locations.
“Returns remain a big issue for the fashion sector. As sales of online fashion rise, retailers are looking to find the right balance between the costs incurred for deliveries and returns and ensuring the process is convenient and cost-effective for shoppers. Retailers can also look to make the returns process an engagement opportunity by personalising the process and offering different products and relevant promotions to encourage customers to buy alternative items.” Tamara continues.
Finally, three quarters (76%) of online fashion shoppers are interested in improved delivery options rising to four fifths (80%) of male shoppers aged under 45. While entertainment is appealing to the 44% of online consumers who are interested in virtual reality (VR) experiences when shopping online for fashion. Parents in particular would appreciate this with 60% of parents of under-5s expressing an interest in virtual reality experiences when shopping online for fashion.
“As consumers have become more accustomed to shopping for fashion online, their expectations have been raised and retailers will have to invest more in the online shopping experience to drive sales. Delivery is becoming a key online battleground and the use of delivery passes and more dynamic delivery options could increase loyalty towards a specific retailer. As consumers crave experiences, retailers will also need to elevate the online shopping experience and make it more entertaining through the use of technology, such as live video on social media platforms, virtual reality and personalised customer service and stylist options,” Sender concluded.
