At the opening of Paris Retail Week (September 19-21), Fevad and the French Fashion Institute (IFM) presented the results of the latest survey on fashion consumption. This articles resumes its major findings.
EUROPEANS ARE THE BIGGEST FASHION CONSUMERS IN THE WORLD
By 2015, clothing and footwear consumption reached 444 billion euros in Europe and thus exceeded the consumption of the United States. Although fashion consumption in China is growing rapidly, it is not expected to reach a similar level to the European and American ones until the 2020s.
INCREASE IN ONLINE FASHION SALES, DECREASE IN FASHION SALES IN STORE
According to the IFM consumer survey, online sales keep growing with a turnover exceeding 5 billion euros, with reference to a global clothing market of 28 billion; however the dynamism of online sales does not compensate for the erosion in in-store sales: total clothing sales are declining.
RETURN OF CROSSED-OUT PRICES ON THE INTERNET
In 2016, the share of crossed-out sales on the Internet still marks a decline after 2015. However, this share remains at 58% which is considerable. Beyond the fact that promotional sales affect all distribution channels, virtual and physical, online sales are distinguished through the use of promotions such as vouchers or personalized and temporal discounts which enable to interact with customers and stimulate customer purchases with precision.
INTERNET TAKES HOLD OF THE LUXURY MARKET
Internet plays a major role in marketing, communication and sales of luxury brands. Brands develop their presence on the social networks. Consumers on their side are in search of information: 57% of luxury customers prepare their purchases on the Internet, even if they buy in stores. These consumers play an increasingly significant role: not only did a quarter of them purchase for more than 1000 € of clothing and accessories on the internet, but also more than 50% buy at least once every three months.
YOUNG WOMEN ARE OVER-CONSUMERS OF FASHION ON THE INTERNET
While women’s clothing purchases account for 49% of the market in value, this share reaches 55% on the Internet. Women are thus over-consuming fashion by online pruchases, unlike men, who are rather under-consumers. The share of children is somewhat lower on the Internet than on the global market for children’s clothes: women purchase online for themselves before dressing their children. And whether female or male, it is among the youngest that one finds the highest budgets. Young women hold the record spending 112.8 € per head on average against 71.7 € for young men (15-24 years). The 25-44 year-olds are nevertheless the first customers of the net: they make up the highest number of the population. Even if they spend less per head, they seize opportunities on the web, and for young parents the opportunity consists in buying without running the shops.
CLICK AND MORTAR STILL HIGH IN SALES
The “clicks and mortars” are still increasing, having passed the historical actors of distance selling on the net last year. Their share reached 38,1% in clothing sales. They still have a good room for growth if we believe the performance of American brands – department stores and chains – on the web. As for the pure-players, the results are heterogeneous: alongside the web giants, many of them developing their clothing line, a multitude of small sites is born, with uneven success.
The share of online purchases however is more and more difficult to evaluate: in case of the “click and reserve” – which is a great success – the item is payed for in store.
The original press release in French can be found here
The 3rd edition of Paris Retail Week ended on 21 September after three days dedicated to Live Retail. Punctuated by conferences and the Paris Retail Awards ceremony, trade and e-commerce professionals who attended the show shared their experiences and viewpoints on future retail trends.
This edition of Paris Retail Week brought together 25,497 professionals and nearly 500 participating companies, players from physical and online retail on the subject of Live Retail. It spotlighted how new technologies and data, notably thanks to AI, virtual reality and augmented reality, have become central in the retail sector while continuing to provide the authentic, human and experience-based service that customers want.
Save the date for the next edition: from 10 to 12 September 2018
Full press release on: https://en.parisretailweek.com/Press/Press-releases/review-2017-edition