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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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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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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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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
Source:ProsperMonthlyConsumerSurvey–US
*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
Source:ProsperMonthlyConsumerSurvey–US
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
Sample:Women’sClothing:AllWomen/Men’sClothing:AllMen/Children’sClothing:Momswithkidsaged9orbelow/Shoes:AllrespondentsSource:ProsperMonthlyConsumerSurvey–US
0%
10%
20%
30%
40%DepartmentStore
DiscountStore
Specialty–ApparelCatalog
Others
MostO`enShoppedRetailCategoryforWomen’sClothing(ExcludingInternet,April2016)
0%
10%
20%
30%
40%DepartmentStore
DiscountStore
Specialty–ApparelCatalog
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
Sample:Women’sClothing:AllWomen/Men’sClothing:AllMen/Children’sClothing:Momswithkidsaged9orbelow/Shoes:AllrespondentsSource:ProsperMonthlyConsumerSurvey–US
0%
10%
20%
30%
40%DepartmentStore
DiscountStore
Specialty–ApparelCatalog
Others
MostO`enShoppedRetailCategoryforChildren’sClothing(ExcludingInternet,October2016)
0%
10%
20%
30%
40%DepartmentStore
DiscountStore
Specialty–ApparelCatalog
Others
MostO`enShoppedRetailCategoryforFootwear(ExcludingInternet,July2016)
AllShoppers HeavyOnlineShoppers(Thosewhomade51-100%oftheirpurchasesonline)
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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)
AllShoppers HeavyOnlineShoppers(Thosewhomade51-100%oftheirpurchasesonline)
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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)
AllShoppers HeavyOnlineShoppers(Thosewhomade51-100%oftheirpurchasesonline)
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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)
Source:ProsperMonthlyConsumerSurvey–US
21
50% 50% 49% 50% 50% 47%
50% 50% 51% 50% 50% 53%
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16
Important
Notimportant
Slightly More Consumers Regard Labels as Important Compared With Last Year
ImportanceofLabelsWhenBuyingClothes(2011–2016)
Source:ProsperMonthlyConsumerSurvey–US
22
23% 23% 22% 22% 23% 22%
63% 62% 61% 63% 62% 62%
13% 15% 16% 15% 15% 16%
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16
Salesarenotimportanttomewhenbuyingclothing
Iusuallybuyclothingwhenitisonsale
Ionlybuyclothingwhenitisonsale
The Majority of Consumers Usually Buy Clothing When it is On Sale
ImportanceofSales(2011–2016)
Source:ProsperMonthlyConsumerSurvey–US
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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%
EmailAdver1sing InternetAdver1sing SocialMedia VideoonMobileDevice
TV/Broadcast Magazines Newspaper Radio
AllRespondents
18–34(Millennials)
Influence of Social Media is On Par with TV and Magazines Among Millennials
Source:ProsperMediaBehaviors&Influence™(MBI)Study
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%
EmailAdver1sing InternetAdver1sing SocialMedia VideoonMobileDevice
TV/Broadcast Magazines Newspaper Radio
AllRespondents
55+(BoomersandSilvers)
Boomers are Less Influenced by Both Digital and Traditional Media Channels, Except Newspaper
Source:ProsperMediaBehaviors&Influence™(MBI)Study
ThoseWhoWereInfluencedbytheRespec@veMediaChannelwhenPurchasingApparel,Jan2016
Tradi[onalMediaDigitalMedia NewDigitalMedia