US Online Apparel And Footwear Market
The US online market is one of the largest and most sophisticated in the world and has matured rapidly over the past five years. Internet penetration in the country has increased from ~% in 2009 to ~% in 2014. The rapid increase in number of internet users has also been supported by growth in smartphone usage. The number of smartphone users has witnessed a CAGR of 32.3% during the years 2009-2014.The online sales of apparel and footwear have driven away the large proportion of revenue from the brick and mortar retail outlets. Such a trend has arisen majorly on account of greater convenience, affordable prices and variety of products offered by online portals.
The US online apparel and footwear industry stood at USD ~ billion in 2014 and grew at a CAGR of ~% from 2009 to 2014
The sales of apparel through online portals observed growth from USD ~ billion in 2009 to USD ~ billion in 2014. A CAGR of ~% was recorded during this time period. On the other hand, the revenues of online footwear industry grew at a CAGR of 15.3% during the same time period.
The industry showcased that the months from April to June were the major contributors to the online apparel and footwear sales. The major reason of such a trend included summer holidays for school and college students, semi-annual sales and marketing initiatives by retailers to offer discount on pre-season and post season sales.
The online apparel market in the US is highly developed. A large number of e-commerce portals have provided apparel products at competitive prices. Over the review period, online sales of apparel have showcased significant growth. The US online apparel market has elevated consistently over the last five years from USD ~ billion in 2009 to USD ~ billion in 2014 at a CAGR of 18.8%. The US apparel market was majorly driven by increasing internet penetration rate and availability of cheap imports from China on e-commerce portals. The apparel market in the US has been import driven and observed ~% imports in the year 2012. Moreover the increase in inflation in China has escalated the cost of imported goods which have forced retailers in the US to manufacture them domestically from the year 2013.
The online market of footwear in the US has performed sluggish in comparison to apparel segment. Footwear sales through online portals only accounted for ~% of the market in the year 2014. The US online footwear revenues have showcased a consistent trajectory of growth from 2009 to 2014 at a CAGR of 15.3%. The market has reflected tremendous increase over the years due to the rising disposable income of the masses and an increase in affinity to shop footwear online.
Women showcased a higher share in sales for both apparel and footwear. Women have reflected a higher affinity to shop for these products online in comparison to men and kids.
How Will The Future of Online Apparel and Footwear Market Pan out?
The online sales of apparel and footwear in the US have witnessed a significant rise during the review period. This market has grown at a CAGR of 18.2% during 2009-2014. The future of the US online footwear and apparel industry is likely to continue with high growth patterns. The market in this part of the world is expected to witness wide span of activities in the retail segment of the online business industry. This growth can be certainly associated with the rising disposable income of the people in the US and the preference to shop and transact business online. In addition, the introduction of innovative business strategies such as flash sales and daily deals concept will aid the future sustainability of the market in the US in the long run. Increasing broadband penetration in the US is also a positive sign as broadband accelerates the whole purchasing process, making it faster and more convenient and attractive for sellers and buyers. In addition, financial transactions and banking will also be fast-growing applications which are carried over broadband.
The online apparel and footwear market in the US is expected to foresee several consolidations in the near future as large players such as Amazon, Staples, Nordstorm and few others strategize to dominate the market. This will probably lead to partnerships and alliances with technically efficient small scale players which in turn would lead to a diversified product line of the major organizations.
Overall, the US online apparel and footwear market is projected to grow at a CAGR of 12.6% from 2014 to 2019. The online apparel and footwear market is projected to increase consistently over the years 2014-2019.
US ONLINE APPAREL MARKET
The US online apparel industry stood at USD ~ billion in 2014 and is projected to grow at a CAGR of 13.5% to USD ~ billion in 2019. Many e-retailers are continuously innovating to deliver a superior in-store experience to their customers through the exciting in-store environment of a new and visually compelling product portfolio. An elevation in the revenues of online portals was witnessed during the last five years which was on account increasing spending power, rising number of younger working class people and growth of fashion conscious population. Moreover, aggressive marketing, optimizing the websites, pricing and customer acquisition tactics will contribute to the expansion of online apparel market in the next five years.
US ONLINE FOOTWEAR MARKET
The footwear industry is projected to increase consistently on account of increase in customer confidence to purchase footwear products online. Also, many brick and mortar stores are expanding their reach by entering into online industry. Through these online portals, these stores provide lucrative pricing and discount offers in order to increase traffic to their portals. Personal style consultants, free shipping, free returns and effective customer care services are the some of the factors which are propelling the online footwear sales revenues. The revenues generated in the US online footwear market were registered at USD ~ billion in 2014 and are projected to grow at a CAGR of 7.2% to USD ~ billion in 2019.
COMPANIES CITED IN THE REPORT
Products Mentioned Apparel and Footwear
Competition Amazon was the largest player in the US online apparel and footwear market. The products offered on Amazon.com primarily include merchandise and content purchased for resale from vendors and those offered by third-party sellers.
Amazon.com is an American multinational fortune 500 e-commerce company. The company has separate retail websites for the countries such as India, the US, Canada, UK, France, Germany, Italy, Spain, Japan and China. It is one of the largest online retailers in the world and in the US. The company is headquartered at Seattle, Washington, the US.
Amazon sells books, DVDs, apparel, furniture, food, toys, and jewelry among other list of items. The company focuses on its core business values ensuring that the goals and objectives are achieved. It uses different strategies which enable them to sustain their competitive position in the global market. The ability of the management to manage their financial resources and limit their expenses to sustain their needs for expansion has also been considered as one of the capabilities that sustain their competitive advantage
KEY FACTORS CONSIDERED IN THE REPORT
Comprehensive analysis of the online apparel and footwear market and its segments
Industry is presented by online retailers; by product types and by demand from different categories
Listed major players
Identified major industry developments in last few years and assessed the future growth of the industry
Regulatory framework help to understand investment opportunities and complexities involved
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Ankur Gupta, Head Marketing & Communications