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Sizing Up Apparel Online

AUGUST 24, 2007

Customers try on something new.

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According to "The State of Retailing Online 2007," a report sponsored by Shop.org and conducted by Forrester Research, US online sales of apparel, footwear and accessories (excluding jewelry) will reach $22.1 billion in 2007, a 21% increase over 2006.

US Apparel and Accessories E-Commerce Sales, 2006 & 2007 (billions)

Of the three categories, apparel generated the most sales last year at $9.6 billion.

US Apparel and Accessories E-Commerce Sales, by Segment, 2006 (billions)

This year apparel is expected to grow 18%, accessories nearly 25% and footwear 21%.

According to the Forrester figures, US shoppers spent more on apparel than on computers to become the largest online retail sales category (excluding travel).

The four biggest categories accounted for $62 billion in online sales in 2006, representing 42% of Forrester's retail e-commerce sales estimate of $146.5 billion (again, excluding travel).

Leading US Retail E-Commerce Sales Categories, 2006 (billions)

"What is truly amazing about the rise of online apparel sales," said Jeffrey Grau, eMarketer senior analyst and author of the new report, Apparel E-Commerce, "is the overwhelming majority of online shoppers still prefer buying in stores where they can touch and try on clothing items."

An Accenture survey found that two-thirds of online consumers prefer to buy clothing in stores than online.

Preferred Channel* for Select Purchases according to US Internet Users, by Category, January 2007 (% of respondents)

"Many women in particular feel uncomfortable buying apparel online," Mr. Grau said.

In a Consumer Reports poll, 14% of women said clothing was the No. 1 item they would not buy online.

Items that US Female Internet Users Will Not Buy Online, February 2007 (% of respondents)

Another 8% of survey respondents named shoes as the top item they would not purchase online.

"Apparel has traditionally been one of the most popular cross-channel shopping categories," Mr. Grau said. "But now, to overcome customer resistance to actually purchasing online, Internet apparel retailers are pioneering the use of visualization tools, personalizing service and adopting liberal shipping and return policies."

To step into a new online retailing model, please read the new eMarketer report, Apparel E-Commerce, today. 

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