Though the cumulative impact of online channels is undeniable, consumers are still most likely to learn about new brands and products from visiting stores.

Physical retail has the overall advantage for upper-funnel awareness

• Consumers are most likely to discover clothing by browsing in-store. Nearly 40% of clothing buyers in our survey learned about new fashion products by visiting a physical store. The ability to see and try on products in person still has no comparable virtual equivalent.
• Owned digital channels also matter greatly. Brand websites/apps were the No. 2 most influential for driving awareness, followed closely by third-party online retailers. These ranked above social media and word-of-mouth for introducing new products.

The top of the funnel looks different by generation

• Gen Z shoppers discover more broadly. For this group, stores, brand websites/apps, and social channels were essentially tied for new clothing product discovery.

• Stores have less pull among millennials. Brand websites/apps and social media channels trumped physical retail by a significant margin for apparel. Connected TV (CTV) ads had about as much influence as store channels for clothing; it was also the top channel for accessories.

How should fashion brands and retailers balance online and brick-and-mortar strategies?

• Don’t underestimate the power of the store. Even pure-play online retailers like Shein have recognized the value of physical retail. The fast-fashion brand has hosted numerous pop-ups across the US to generate marketing buzz. And thanks to an investment deal with Forever 21, Shein has expanded its ability to showcase products in newer categories, such as home goods, through the US retailer’s physical outlets.
• Tailor digital marketing to drive discovery on the appropriate channels. Brand-owned channels and social carry relatively more weight among consumers under the age of 45. New opportunities in targeted CTV advertising may prove valuable in connecting millennials, in particular, with fashion brands and retailers.