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APPAREL TREND REPORT Understanding the Apparel Industry and the Digital Trends Shaping It
APPAREL TREND REPORTUnderstanding the Apparel Industry and the Digital Trends Shaping It
STATE OF THE APPAREL INDUSTRY
(surpassed only by grocery)
of fashion media is spent online
want to focus more on paid social media
APPAREL IS THESECOND-LARGEST RETAILCATEGORY IN THE WORLD
online apparel sales growthoutpaces in-store growth
3X FASTER
$1.65 TRILLION2020 global apparel industry forecast
6 PERCENT
48%global ecommerce sales growth
2020 annual growth forecast
of fashion brands will increase online ad budgets in 2019
STATE OF THE APPAREL INDUSTRY
The way consumers interact with fashion brands is changing. Shoppers don’t just want to connect with companies once; they want to engage throughout the entire purchasing journey. Before entering a store or visiting a brand’s website, consumers turn to digital platforms for inspiration, exploration, and to research and compare products. As the industry continues to go through a digital transformation, platforms like Instagram, Pinterest, Facebook, and Amazon have also become primary destinations for making purchases.
Fashion, a visual industry driven by trends and community, is particularly well suited for social marketing. An increasing number of apparel brands have started to understand the true opportunity presented on these platforms, but many are still struggling to deliver relevant, purposeful experiences to consumers. As these online touchpoints continue to alter fashion shoppers’ behaviors, preferences, and expectations, brands should consider how to engage and connect with them through the entire ecommerce ecosystem.
THE APPAREL INDUSTRY IS GOING THROUGH A DIGITAL TRANSFORMATION
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Social media has become an increasingly important driving force behind apparel consumers’ paths to purchase. 1 in 4 users follows at least one brand whose products they’re interested in buying, and 200 million Instagram users follow at least one fashion account. The hashtag #fashion is used over 13 million times per month and #ootd (outfit of the day) features in 140 million posts to date.
According to Adaptly data, fashion brands currently allocate the majority of their social media budget to Facebook and Instagram – 57% and 23% respectively. An analysis of other industries’ investment patterns shows that this represents significantly higher-than-average spend on Instagram (compared to a 13% average) and slightly lower-than-average spend on Facebook (compared to a 64% average).
57% 23% 12% 6% 3%
0% 25% 50% 75% 100%
APPAREL MEDIA SPEND BY PLATFORM
13%
15%
35%22%
50%
75%
100%
FACEBOOK PINTERESTINSTAGRAM SNAPCHAT TWITTER
Many fashion brands seem to primarily view Facebook and Instagram as lower-funnel platforms. A large part (63%) of last year’s social advertising activity was focused on driving conversions – a significantly higher figure than the 21% dedicated to awareness ads. The combined average across all industries was
much more evenly split across the funnel. This shows that, while retail advertisers still want to inspire, they also work to facilitate shopping experiences on social platforms. And they’re leading the charge compared to other industries.
FASHION BRANDS ON SOCIAL MEDIA
The hashtag #fashion is used over 13 million times per month and
#ootd (outfit of the day) features in 140 million posts to date.
APPAREL MEDIA SPEND BY PLATFORM2017-2019
Source: Adaptly data
Facebook and Instagram have earned 80% of apparel social media spend over the last few years.
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On Pinterest, where users often plan future purchases, the vast majority of fashion brands’ ads (94%) were focused on upper-funnel objectives – awareness and consideration. This more or less mirrors investment patterns for other industries, where the combined figure is as high as 99% for upper-funnel objectives.
TOP TRENDS IN THE RETAIL INDUSTRYAs apparel sales continue to migrate online, fashion brands are shifting marketing budgets toward digital channels. Shoppers have moved away from relying solely on catwalk reports and glossy magazines for fashion inspiration. Instead, they’re exploring trends and researching brands and products on social. Platform experiences are converging, and the challenge for fashion brands is to deliver a relevant, useful, and purposeful experience, not just on – but also across – those digital platforms.
Source: Adaptly data, 2017 - 2018
52%63%
13%
15%
35%22%
0%
25%
50%
75%
100%
2017 2018
Awareness Consideration Conversion
FACEBOOK & INSTAGRAM APPAREL MEDIA SPEND BY OBJECTIVE
Shoppers have moved away from relying solely on catwalk reports and glossy magazines for fashion
inspiration. Instead, they’re exploring trends and researching
brands and products on social.
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Online marketplaces like Amazon, Ebay, and Zalando have grown to become influential cornerstones in the fashion consumer’s purchase journey. More than half of Internet users who bought clothing online in the last six months made at least one purchase on Amazon. It’s predicted that these types of marketplace platforms will more than double their total revenue from $18.7 billion in 2017 to $40.1 billion by 2022, with Amazon the predominant driving force worldwide.
As shoppers increasingly turn to marketplace sites, not only to buy, but also to discover and research products, brands gain deeper insight into their customers’ behaviors and purchase decisions. This can help frame their digital advertising strategies.
WHAT THIS MEANS FOR BRANDSAmazon knows more about what people buy than any other platform. The company has access to billions of shopping and media consumption patterns through every stage of the purchase funnel. This enables advertisers to define audiences based not only on demographics, but also on things like lifestyle, lookalikes, and first-party platform data. Amazon DSP, the platform’s programmatic ad offering, allows brands to display their ads across Amazon sites, apps, and devices as well as on the wider web. This presents significant opportunities for fashion brands to reach users across the entire consumer journey – from awareness to conversion.
It’s predicted that these types of marketplace platforms will more than double their total revenue from $18.7 billion in 2017 to $40.1 billion by 2022, with Amazon the predominant driving force worldwide.
ONLINE MARKETPLACES DOMINATE
TREND#1
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It’s well-established that social media plays a central role in influencing consumer behavior. 76% of shoppers have bought a product they first saw in a brand’s social media post, and more than half of those purchases were made online. Social platforms are increasingly building out different kinds of commerce functionalities, making it easier for users to go from exploration to purchase. Instagram recently launched an in-app checkout function for ecommerce advertisers, allowing users to purchase items directly from their feeds. 66% of global fashion brands have already adopted some form of social shopping feature, primarily on Instagram and Facebook.
While still somewhat in its infancy, shoppable social is quickly gaining momentum. 30% of consumers say they are willing to make purchases directly on social platforms. As social media plays an increasingly central role in influencing shopping behavior, functions that simplify the path to purchase are bound to get more important.
WHAT THIS MEANS FOR BRANDSIn addition to its newly launched checkout function, Instagram offers several other in-app shopping features that bridge the exploration and conversion parts of the consumer journey. Shoppable tags, displaying product pricing and details, can be added up to five times per post and make for a smoother shopping experience by redirecting users straight to the relevant product page. Similarly, formats like Facebook Collections and Pinterest Product Pins are effective in not only increasing product consideration but also in making it easier for users to make a purchase. As social platforms have evolved to become primary sources of fashion inspiration, apparel brands should leverage shoppable features to catch their audiences throughout the entire funnel.
SHOPPABLE SOCIAL IS ON THE RISE
76% of shoppers have bought a product they first saw in a brand’s social media post, and more than half of those purchases were made online.
TREND#2
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Research shows that the vast majority (91%) of consumers are more inclined to purchase products from companies that recognize them, remember them, and provide relevant offers and recommendations. Almost half of shoppers have bought something they had not planned to purchase after being served a personalized recommendation from a brand. While the recent data protection debate means that companies have to take greater care with how they gather and use customer data, 83% of consumers are still willing to share personal information if it leads to a personalized experience.
76% of apparel brands consider personalization very important, yet only 13% have made it a prominent part of their digital marketing strategies. As customers increasingly use fashion as a way to communicate their personal styles and values, brands have to make sure to use messaging and creative that feels relevant to individual consumers.
WHAT THIS MEANS FOR BRANDSBrands should use the data available on digital platforms to understand not only what users are buying, but also why they are interested in a product. The opportunity then lives at the intersection of media and creative: tailoring content to the individual person as well as to the platform experience. That’s why our technology integrates with a variety of feeds and data sources, enabling brands to dynamically and programmatically personalize content on the fly. Ads can be tailored based on audience location, real-world conditions, or on the action advertisers want users to take. Fashion brands for example, can serve different creative to customers in hot and cold weather conditions or depending on whether or not they’ve purchased from the brand in the past.
PERSONALIZATION IS THE NEW NORM
83% of consumers are still willing to share personal information if it leads to a personalized experience.
TREND#3
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According to a recent study, 75% of fashion retailers plan to invest in features relating to artificial intelligence over the coming year. It has also been predicted that 85% of customer / company relationships will be managed without human interaction by 2020. Fashion retailers like H&M, Tommy Hilfiger, and Burberry have already implemented chatbots as part of their customer service programs, and apparel brand Ted Baker opted to showcase last year’s fall collection with help of the Facebook Messenger app.
Customers around the world are open to the idea of chatbots; 65% would like to use messaging services like Messenger or WhatsApp to interact directly with brands. 53% of shoppers even prefer buying from companies they can contact via messaging.
WHAT THIS MEANS FOR BRANDSChatbots and messaging products can help brands establish and maintain personal relationships with users. They enable advertisers to uncover information about a customer’s preferences and sizes, for example, which can then be turned into personalized recommendations and offers. Rather than presenting an individual with a general selection of products or categories, brands can use the insights gathered through messaging services to narrow down their offers to the most relevant items. Sponsored Messages in Facebook Messenger, which deliver a brand’s chat messages straight into a user’s inbox, can then be used to retarget customers who have already interacted with the brand.
AI AND BOTS BUILD PERSONAL CUSTOMER RELATIONSHIPS
75% of fashion retailers plan to invest in features relating to artificial intelligence over the coming year.
TREND#4
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ABOUT ADAPTLYAdaptly, acquired by Accenture in December 2018, is a digital media services company enables global brands to manage data-driven campaigns across digital ad platforms. Adaptly partners with some of the leading digital platforms, including Amazon, Facebook, Google, Instagram, Snapchat, and Twitter. Its client roster spans 15 industries and includes brands such as Chico’s, Mazda, Prudential, Sprint and more.
adaptly.com | @adaptly | [email protected]
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