US Consumer Analysis: Apparel and Footwear US Consumer Analysis: Apparel and Footwear Influences on...

US Consumer Analysis: Apparel and FootwearFebruary, 2017

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US Consumer Analysis: Apparel and Footwear

Influences on Apparel and Footwear Purchases

About this Report

Key Takeaways and Market Overview

Purchase Behavior: Apparel and Footwear

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02

03

04

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About this Report

AboutthisReportThisreportisacollabora1onbetweenFungGlobalRetail&TechnologyandProsperInsights&Analy1cs.ItusesproprietydatafromsurveysconductedbyProsperintheUSthattrackshoppingbehaviorsandthefuturepurchaseinten1onsofconsumers.SurveyMethodologyTheProsperInsights&Analy1csMonthlyConsumerSurveyprovidesinsightsintotheUSconsumermarketfrommul1pledatasetsandmul1plesources.Itsurveysmorethan6,000consumers18+intheUSonanongoingbasis.

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Key Takeaways: Brick-and-Mortar to Remain the Dominant Transaction Channel for US Apparel and Footwear

1.  ThemajorityofUSconsumershavepurchasedapparelbothonlineandoffline,however,brick-and-mortariss1llthedominanttransac1onchannel.

2.  Infact,USconsumers’aQtudetowardsfashionandtheirpurchasebehaviorhaschangedliRleoverthepastfiveyears.

3. Weexpectbrick-and-mortartoremainthedominantstoreformatforUSapparelandfootwearretailinthenearfuture.

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Key Takeaways: Social Media has Become a Major Influencer in Apparel Purchases Among Millennials

1.  AsretailershaveshiWedtheirbudgetstodigitaladver1sing,theinfluenceofallmajormediachannelshasdecreasedinthepastfiveyears,exceptforsocialmediaandmobilevideo.

2.  Amongmillennials,theinfluenceofsocialmediaonapparelpurchasesisonparwithtradi1onalmedialikeTVandmagazines.

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Consumer and Category Insights

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US Consumer Confidence Solid in 2016, Following an Improvement in 2013–2015

52%

20%

30%

40%

50%

60%

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

Source:ProsperMonthlyConsumerSurvey–US/UniversityofMichigan/USCensusBureau/USDepartmentofCommerce

%ofRespondentsFeelingConfidentorVeryConfidentintheEconomyintheNext6Months 98.5

50

60

70

80

90

100

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

IndexofConsumerSen@ment(UniversityofMichigan)

4.85

3.0

3.5

4.0

4.5

5.0

2011 2012 2013 2014 2015 2016

USRetailSales(US$trillion)

110.7

100

105

110

115

2011 2012 2013 2014 2015 2016

USPersonalConsump@onExpendituresPriceIndex(2009=100)

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278 282 285 287 293 292

26 30 34 39 46 55310 317 324 331 343 353

0

100

200

300

400

2011 2012 2013 2014 2015 2016

Othernonstore-basedretailing

Online(Internetretailing)

Offline(store-basedretailing)

The Internet is Not Yet a Significantly Large Channel in Terms of Apparel and Footwear Purchases

SizeofUSApparelandFootwearMarket(US$billion)

Source:Euromonitor

15.5%

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But it Increasingly Influences How Consumers Shop for Apparel Offline

49% 44% 38% 32% 26% 20%

40% 45% 50% 55% 61% 66%

11% 12% 12% 13% 14% 14%

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014 2015 2016

Online

Web-influencedoffline

Offlineonly

ApparelRetailSalesintheUS,byType

Source:ThinkwithGoogle

10

105

85

76

8786

78

40

60

80

100

120

Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16

Children’sClothing

Men’sClothing

Men’sDressClothing

Shoes

Women’sCasualClothing

Women’sDressClothing

Children’s Clothing Shows the Most Seasonality in Apparel, Affected by Back-to-School and Holiday Shopping

SpendingScoreofRespec@veApparelCategory

Source:ProsperMonthlyConsumerSurvey–US

Aspendingscorehigherthan100meansmoreconsumersareplanningtospendmoreonthatcategoryoverthenext90daysthanareplanningtospendlessonit.

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Consumer Purchase Behavior: Online or Offline

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The Majority of Consumers Search and Purchase Some of Their Apparel Online

78%ofConsumersSearchedforClothing/FootwearOnline

FrequencyofClothing/FootwearOnlineSearch

(Jan2016)*

25%

53%

22%

Regularly Occasionally Never

80%ofConsumersWhoPurchaseChildren’sClothingShopOnline

%ofRespec@veItemPurchasedOnline(2016)

29%

33%

20%

47%

43%

39%

43%

29%

28%

28%

37%

23%

Women’s Clothing

Men’s Clothing

Children’s Clothing

Footwear


*Nosignificantchangesinthepastfiveyears *Sample:Momswithkidsaged9andbelow

0%(donotbuyonline) 1%–50%boughtonline 51%–100%boughtonline

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Brick-and-Mortar Still the Dominant and Most-Used Channel for Apparel and Footwear Purchases

Around10%ofConsumersMadePurchasesviaMobileSites

ShoppingMethodUsedinthePast30Days(Nov2016)

10%

11%

39%

39%

63%

78%ApparelandAccessories

Footwear

Brick-and-MortaristheMost-UsedStoreFormat

82%

71%

77%

62%

3%

4%

3%

9%

6%

8%

12%

10%

7%

15%

8%

18%

Women’sClothing

Men’sClothing

Children’sClothing

Footwear


Physicalstore Onlinesite MobilesitePhysicalstore Internet Others Nopreference

Most-UsedStoreFormattoPurchaseRespec@veItems(Nov2016)

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Women’sClothing Men’sClothing Children’sClothing Footwear

More Consumers Use the Internet the Most Often to Purchase Apparel, but are Still a Niche Segment

1%3%

1%4%

1%

3%

4%9%

Nov2011 Nov2016

ThoseWhoUsetheInternettheMosttoPurchaseRespec@veItems(Nov2011andNov2016)

Sample:Women’sClothing:AllWomen/Men’sClothing:AllMen/Children’sClothing:Momswithkidsaged9orbelow/Shoes:AllrespondentsSource:ProsperMonthlyConsumerSurvey–US

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For Women’s and Men’s Apparel, Heavy Online Shoppers Show a Preference for Specialty Stores


0%

10%

20%

30%

40%DepartmentStore

DiscountStore

Specialty–ApparelCatalog

Others

MostO`enShoppedRetailCategoryforWomen’sClothing(ExcludingInternet,April2016)

0%

10%

20%

30%

40%DepartmentStore

DiscountStore


Others

MostO`enShoppedRetailCategoryforMen’sClothing(ExcludingInternet,June2016)

AllShoppers HeavyOnlineShoppers(Thosewhomade51-100%oftheirpurchasesonline)

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Heavy Online Shoppers Also Show a Preference for Specialty Stores in Children’s Apparel and Footwear


0%

10%

20%

30%

40%DepartmentStore

DiscountStore


Others

MostO`enShoppedRetailCategoryforChildren’sClothing(ExcludingInternet,October2016)

0%

10%

20%

30%

40%DepartmentStore

DiscountStore


Others

MostO`enShoppedRetailCategoryforFootwear(ExcludingInternet,July2016)


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Macy’s and Nordstrom are Relatively More Popular Among Heavy Online Shoppers

Source:ProsperMonthlyConsumerSurvey–USSample:Women’sClothing:AllWomen/Men’sClothing:AllMen/Children’sClothing:Momswithkidsaged9orbelow/Shoes:Allrespondents

0%

10%

20%

30%

40%

50%

RetailersShoppedatinthePast90DaysforWomen’sClothing(April2016)

0%

10%

20%

30%

40%

50%

RetailersShoppedatinthePast90DaysforMen’sClothing(June2016)


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In the Children’s Clothing Category, Specialty Stores are Relatively More Popular Among Heavy Online Shoppers

Source:ProsperMonthlyConsumerSurvey–USSample:Women’sClothing:AllWomen/Men’sClothing:AllMen/Children’sClothing:Momswithkidsaged9orbelow/Shoes:Allrespondents

0%

10%

20%

30%

40%

50%

RetailersShoppedatinthePast90DaysforChildren’sClothing(October2016)

0%

10%

20%

30%

40%

50%

RetailersShoppedatinthePast90DaysforFootwear(July2016)


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Consumer Purchase Behavior: Attitudes

20

44% 43% 42% 43% 44% 43%

37% 38% 38% 39% 37% 38%

19% 19% 21% 18% 19% 19%

Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16

Newesttrendsandstylesareimportanttome

Ipreferatradi1onalconserva1velook

Fashionislessimportantthanvalueandcomforttome

Consumers’ Attitude Toward Fashion has Changed Little in the Past Five Years

FeelingsaboutFashion(2011–2016)


21

50% 50% 49% 50% 50% 47%

50% 50% 51% 50% 50% 53%


Important

Notimportant

Slightly More Consumers Regard Labels as Important Compared With Last Year

ImportanceofLabelsWhenBuyingClothes(2011–2016)


22

23% 23% 22% 22% 23% 22%

63% 62% 61% 63% 62% 62%

13% 15% 16% 15% 15% 16%


Salesarenotimportanttomewhenbuyingclothing

Iusuallybuyclothingwhenitisonsale

Ionlybuyclothingwhenitisonsale

The Majority of Consumers Usually Buy Clothing When it is On Sale

ImportanceofSales(2011–2016)


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Media Influence on Apparel Purchases

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Retailers are Shifting Their Focus to Digital Advertising

Adver@singSpendingoftheUSRetailIndustry,2013vs.2015(US$million)

Source:TotalAdverIsingSpend-KantarMedia

42% 38%

25%15%

11%9%

8%

6%

10% 27%4%

4%11,827

13,295

0

5,000

10,000

15,000

2013 2015

Other

Internetdisplay

Magazine

Radio

Newspaper

TV

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The Influence Power of All Major Media Channels has Decreased for Apparel Purchases, Except for Social Media and Mobile Video

Source:ProsperMediaBehaviors&Influence™(MBI)Study

25%

20%

10%

6%

24%26%

20%

10%

25%

18%

14%

9%

19%18%

12%

8%

0%

5%

10%

15%

20%

25%

30%

35%

EmailAdver1sing InternetAdver1sing SocialMedia VideoonMobileDevice

TV/Broadcast Magazines Newspaper Radio

Dec'10

Jan'16

ThoseWhoWereInfluencedbytheRespec@veMediaChannelwhenPurchasingApparel,2010–2016

DigitalMedia Tradi[onalMediaNewDigitalMedia

26

25%

18%

14%

9%

19%18%

12%

8%

32%

26%

23%

18%

22%23%

11%12%

0%

5%

10%

15%

20%

25%

30%

35%



AllRespondents

18–34(Millennials)

Influence of Social Media is On Par with TV and Magazines Among Millennials


ThoseWhoWereInfluencedbytheRespec@veMediaChannelwhenPurchasingApparel,Jan2016

Tradi[onalMediaDigitalMedia NewDigitalMedia

27

25%

18%

14%

9%

19%18%

12%

8%

18%

12%

5%

2%

15%13%

16%

4%

0%

5%

10%

15%

20%

25%

30%

35%



AllRespondents

55+(BoomersandSilvers)

Boomers are Less Influenced by Both Digital and Traditional Media Channels, Except Newspaper


ThoseWhoWereInfluencedbytheRespec@veMediaChannelwhenPurchasingApparel,Jan2016

Tradi[onalMediaDigitalMedia NewDigitalMedia

Find our research at www.FungGlobalRetailTech.com

US Consumer Analysis: Apparel and Footwear US Consumer Analysis: Apparel and Footwear Influences on...

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