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E-Commerce on the Rise

February 13, 2012

E-commerce spending rose 14 percent in the fourth quarter over last year, according to Reston, Va.–based research firm ComScore Inc., which said spending reached $49.7 billion.


The increase represents the ninth consecutive quarter of growth and the fifth of double-digit growth in online spending, ComScore said.


Overall, U.S. online spending reached $161.5 billion, marking a 13 percent increase over 2010. Among the top five performing categories were jewelry and watches. (The other four were digital content and subscriptions, consumer electronics, toys and hobbies, and computer software.)


“The fourth quarter of 2011 capped off what was yet another strong year for online retail, one in which every quarter achieved double-digit increases versus the prior year,” said ComScore Chairman Gian Fulgoni. “In the face of continuing uncertainty regarding the U.S. economy, consumers increasingly went online for their shopping needs. Price and convenience continue to be the critical value drivers for e-commerce, and unless those conditions change, we can expect to see more channel shifting to online in 2012 and, perhaps, even an acceleration in the current growth trend.”


According to ComScore, 52 percent of online transactions included free shipping. (In 2010, 49 percent of all transaction included free shipping.)

 

For more information: http://www.apparelnews.net/news/retailing/020912-E-Commerce-Spending-Hits-161-5-Billion-According-to-ComScore 


E-Commerce on the Rise

February 13, 2012

E-commerce spending rose 14 percent in the fourth quarter over last year, according to Reston, Va.–based research firm ComScore Inc., which said spending reached $49.7 billion.


The increase represents the ninth consecutive quarter of growth and the fifth of double-digit growth in online spending, ComScore said.



Overall, U.S. online spending reached $161.5 billion, marking a 13 percent increase over 2010. Among the top five performing categories were jewelry and watches. (The other four were digital content and subscriptions, consumer electronics, toys and hobbies, and computer software.)

 


“The fourth quarter of 2011 capped off what was yet another strong year for online retail, one in which every quarter achieved double-digit increases versus the prior year,” said ComScore Chairman Gian Fulgoni. “In the face of continuing uncertainty regarding the U.S. economy, consumers increasingly went online for their shopping needs. Price and convenience continue to be the critical value drivers for e-commerce, and unless those conditions change, we can expect to see more channel shifting to online in 2012 and, perhaps, even an acceleration in the current growth trend.”


According to ComScore, 52 percent of online transactions included free shipping. (In 2010, 49 percent of all transaction included free shipping.)

 

For more information: http://www.apparelnews.net/news/retailing/020912-E-Commerce-Spending-Hits-161-5-Billion-According-to-ComScore 


E-Commerce on the Rise

February 13, 2012

E-commerce spending rose 14 percent in the fourth quarter over last year, according to Reston, Va.–based research firm ComScore Inc., which said spending reached $49.7 billion.

The increase represents the ninth consecutive quarter of growth and the fifth of double-digit growth in online spending, ComScore said.

Overall, U.S. online spending reached $161.5 billion, marking a 13 percent increase over 2010. Among the top five performing categories were jewelry and watches. (The other four were digital content and subscriptions, consumer electronics, toys and hobbies, and computer software.)
“The fourth quarter of 2011 capped off what was yet another strong year for online retail, one in which every quarter achieved double-digit increases versus the prior year,” said ComScore Chairman Gian Fulgoni. “In the face of continuing uncertainty regarding the U.S. economy, consumers increasingly went online for their shopping needs. Price and convenience continue to be the critical value drivers for e-commerce, and unless those conditions change, we can expect to see more channel shifting to online in 2012 and, perhaps, even an acceleration in the current growth trend.”

According to ComScore, 52 percent of online transactions included free shipping. (In 2010, 49 percent of all transaction included free shipping.)

For more information: http://www.apparelnews.net/news/retailing/020912-E-Commerce-Spending-Hits-161-5-Billion-According-to-ComScore


Apparel deals Launches Website Appareldeals.com for Wholesale Customers

January 20, 2012

Apparel Deals announced this week the launch of its new wholesale clothing website – ApparelDeals.com.

 

Apparel Deals has been providing quality goods and competitive pricing to hundreds of thousands of customers for nine years and decided it was time to create an online presence.

 

"Our executive team has more than 20 years of experience in the industry," says Jonathan Kremerman of ApparelDeals.com. "We know our market."

 

On a daily basis, Apparel Deals provides new arrivals on wholesale clothing for the most up-to-date merchandise available. It offers same-day shipments and returns are allowed within seven days – no questions asked.

 

Wholesale clothing prices range from 30 to 80 percent below other wholesale competitors.

 

"Our goal is to provide high-quality products coupled with superior customer service," says Kremerman. "We want our clients to have a positive online shopping experience and strive for 100 percent customer satisfaction."

 

Dedicated technical support and customer service is available 24 hours via e-mail and there is also a toll-free customer support number.

 

The site offers a wide selection of fashion products and includes not only clothing, but wholesale fashion accessories, cosmetic and perfumes too.  

 

"When you combine more than competitive prices with a multitude of choices, it's a win-win situation," adds Kremerman.

 

One wholesale customer said: "I started purchasing from Apparel Deals and my customers love the clothes. I love it too as I am able to keep my customers happy and my profits are good."

 

For more information: http://www.prnewswire.com/news-releases/apparel-deals-launches-wholesale-clothing-website-137710058.html


H&M Cutting Costs By Using Digital Bodies

December 28, 2011

IT wasn’t the first time the fashion industry was slammed for extreme Photoshopping. But an entirely fake body?

 

That was the collective clucking earlier this month when it was exposed by Aftonbladet, the Swedish newspaper, that H&M had superimposed the heads of real models onto computer-generated mannequins for an online swimwear campaign.

 

“In the future, even models’ faces won’t be considered perfect enough for online fast fashion, and we’ll buy all of our clothing from cyborgs,” said a writer for the style blog Jezebel. The Norwegian Broadcasting Corporation blasted the retailer for “creating unrealistic physical ideals.”

 

But the practice is unlikely to end. Putting aside the technological advances that make digitally altered photographs harder to detect, the boom in fashion e-commerce means that radical retouching is here to stay and will probably go further.

 

It can be cheaper to superimpose a model’s face on a virtual body than it is to photograph a model in multiple outfits, said Ashley Mears, an assistant sociology professor at Boston University and former model, whose book, “Pricing Beauty,” explores the harsh economic realities of modeling.

 

For working models, it represents an existential threat. Models are generally paid whenever their faces are used. But they’re also paid for their time, and using a virtual mannequin means money taken out of their already-skinny pockets. (The Bureau of Labor Statistics says the median wage for models in the United States was $13.18 an hour in 2008.)

 

“If H&M just shot her head smiling at different angles, they’d have to pay for hair and makeup, plus the time to prepare her, but would not have to pay for the time it would take her to change in and out of multiple outfits,” Dr. Mears said. “That can be costly indeed.”

 

In a way, the H&M models should be glad they were included at all. To keep costs low, many online retailers crop out models’ heads entirely to avoid multiple-use fees. That is why so many sites, including low-end Wal-Mart and high-end Net-a-Porter, display page after page of headless dresses and sweaters.

 

(In one creative work-around, Alexander Wang, for his new e-commerce site last spring, partnered with the artist Terence Koh to obscure models’ faces with halo-shaped fluorescent bulbs: visually striking, but still a bag over the models’ heads.)

 

If there is any good modeling news in the H&M situation, it’s that a pretty face remains a bankable asset. H&M might have gotten away with a virtual body, but it did not dare create a virtual face. Consumers would have been turned off.

 

Scientists call it the “uncanny valley” theory, which holds that people will tolerate only so much artificial human likeness before attraction turns into revulsion. Think lifelike sex dolls or Michael Jackson’s nose.

 

“There is a very striking uncanny effect for faces” but less for nonmoving bodies, said Nancy Etcoff, an assistant clinical professor at Harvard Medical School. “If they added a super-realistic but not-real face, they’d become uncanny, and therefore frightening, eerie and creepy.”

 

http://www.nytimes.com/2011/12/18/fashion/hm-puts-real-heads-on-digital-bodies.html?_r=1&ref=fashionandapparel


Black Friday results-- some win, some lose!

November 28, 2011

 

The results are in: Black Friday was lucrative for most retailers, thanks to some early doorbuster deals. But not every store was a winner.

 

Shops like Toys R Us and Walmart made gambles that paid off this year by opening earlier than ever on Thanksgiving evening. Others, including Macy's and Target, opened at midnight, also drawing praise from retail analysts, who think the move to earlier opening hours will be repeated by more retailers next year.

 

“We wonder if next year you will just be able to have your turkey dinner in the mall,” joked Nomura analyst Paul Lejuez in a report. His comment may not be far from the truth, as almost 25% of Black Friday consumers were shopping or waiting for stores to open at midnight, compared with 10% of shoppers last year and 3% in 2009, according to the National Retail Federation.

 

Since all stores were offering promotions, those that traditionally rely on shoppers seeking value may have missed out. Mr. Lejuez estimated that teen retailer Aeropostale Inc. lost out to competitors such as American Eagle Outfitters Inc. Womenswear stores such as Talbots and Ann Inc., owner of Ann Taylor and Loft, also saw weak traffic, he noted, because women are typically not shopping for themselves during Black Friday.

 

Though the day started out with robust traffic, shopping petered out after consumers scooped up the main promotional attractions. Retail research firm NPD Group Inc. reported that 56% of consumers who shopped on Black Friday said they would not likely shop again over the course of the holiday weekend.

 

“Black Friday may have come in with a roar, but it is going out with a whimper,” said Marshal Cohen, chief industry analyst at NPD, in a statement. He noted that “the consumer is tapped out or spent out.”

 

Even so, retailers were also banking on Cyber Monday, the Monday following Thanksgiving when most consumers shop online, to generate sales. Many, including the Gap and J Crew, were offering 30% off discounts for different apparel divisions. In the past, sites such as Target, Bloomingdale's and J Crew were overwhelmed with traffic on Cyber Monday, and experienced temporary shutdowns throughout the day. This year, however, the majority of e-commerce sites were better prepared and functioning properly by mid-afternoon on Monday.

 

 

For more information: http://www.crainsnewyork.com/article/20111128/RETAIL_APPAREL/111129924#ixzz1f2ojR0az


The Future Of Online Retailing

June 25, 2009

Everyone knows the economy—online and off—is bad. What no one knows for sure is when the situation will improve.

But things will get better.

eMarketer forecasts that US retail e-commerce sales (excluding travel) will total nearly $132 billion in 2009, down 0.4% from 2008.

But, assuming the recession ends this year, as many economists predict, the forecast indicates that online sales will begin to rebound in 2010 and hit full stride in 2011.

Declining sales growth rates do not tell the whole story.

“Everyone focuses on the downturn in the overall economy, but the recession has only accentuated the gradual decline in online sales growth over the past few years—the decline would likely have occurred even in normal economic times,” says Jeffrey Grau, eMarketer senior analyst and author of the new report, Retail E-Commerce Forecast: Cautious Optimism. “It’s just simple math: The bigger online sales become, the harder it is to maintain high levels of growth.”

Greater spending by incumbent online buyers is the key to continued e-commerce growth.

Some 152 million individuals ages 14 and above will shop online in 2009.

“That means almost nine out of 10 Internet users will browse, research or compare products online this year,” says Mr. Grau. “This rate will grow slightly by 2013, since most Internet users predisposed to online shopping will already be doing it.”

Yet measuring e-commerce’s potential solely in terms of online sales ignores the impact of cross-channel shopping.

“The recession has made online product research an imperative,” says Mr. Grau.

According to PriceGrabber.com, the tough economy is driving consumers online to compare prices, look for retailers that do not charge sales tax or shipping fees, seek discounts and avoid impulse buying.

“Cross-channel shopping tends to fall under the radar because it is harder to measure than e-commerce sales,” says Mr. Grau.

Forrester Research estimated that store sales influenced by online research are higher than retail e-commerce sales. For 2009, Forrester projected cross-channel sales of $758.8 billion—about three times higher than online sales of $235.4 billion.

“Retailers still have plenty of work ahead to weave their channels into a single, unified presence,” says Mr. Grau. “If enough succeed, it could contribute to building greater consumer confidence in e-commerce.”

For further information, visit: http://www.emarketer.com/Article.aspx?R=1007142


Potential Growth for Fashion Footwear

June 22, 2009

The NPD Group, Inc., a leading market research company, reports that while overall sales of fashion footwear were down in the most recent quarter, the segment fared better than apparel; and there were pockets of growth within the footwear market.

NPD found fashion footwear less challenged than apparel in terms of overall sales. For the three months ending in April 2009, overall apparel sales were down 8.6 percent while fashion footwear sales for the same time period were down 6.4 percent.

There are two categories in the footwear market that showed sales increases in spite of the particularly tough economic climate in the early part of this year. They are sport leisure, and outdoor. Both categories posted dollar volume growth in the three months ending April 2009.

“What this shows me, is that when the product is right and offers multiple reasons for wear, the purchases will come.” said Marshal Cohen, Chief Industry Analyst for The NPD Group, Inc. “Consumers are showing they want footwear and are willing to show their passion on their feet rather than on their backs.”

Bright spots were also evident in channel trends. Sporting goods stores and online retailers posted positive results despite the economy. While the off price and discount/mass merchants channels did post declines, they were not as deep as some of the other channels or the total fashion footwear market.

“Consumers are changing the way they shop, shopping less overall and shopping less expensively,” said Cohen. “But, at least in footwear, the consumer isn’t abandoning shopping altogether.”

The Online channel is the clear leader posting double digit growth numbers. “Consumers are finding the widest selection of product available online coupled with free shipping and the convenience of no parking hassles, it looks like a winning combination.” observed Cohen.

Another bright spot for the industry is children’s footwear. During the three months ending in April 2009, children’s footwear posted an 11.8 percent dollar volume sales increase. “Not only is this double digit growth an incredible accomplishment given the time, it is likely to be a very hopeful sign for our next important retail season, Back-To-School,” said Cohen.

For further information, visit: http://www.npd.com/press/releases/press_090617.html