Increased information technology adoption encourages shoppers to purchase online
London, United Kingdom (PRWEB) March 07, 2013
The British economy has struggled over the past five years as the onset of the financial crisis severely affected consumer and business confidence as financial markets became turbulent. The retail sector struggled as a result, particularly as conditions were exacerbated by tumultuous conditions across the eurozone. The British retail sector struggled as a result, however, the Online Women's Clothing Sales industry grew rapidly as online shopping became increasingly popular with consumers. According to IBISWorld industry analyst Jeremy Edwards, “there has been significant increase in the adoption of information technology over the past five years and this has translated into consumers turning to online shopping to purchase clothing”. The industry has benefited from strong growth in the proportion of consumers shopping online compared with in physical stores, as they are able to source cheaper goods without dealing with crowds and queues found in store. Consumers are able to access a range of products from the comfort of their own home and compare prices and quality of goods easily.
Consequently, the industry has grown by a compound annual rate of 19.4% over the five years through 2012-13. Firms in the industry are subject to increased international competition due to consumers using online systems for shopping, but have also benefited from developing strong relationships with manufactures, bypassing wholesalers. Industry revenue is expected to grow by a further 15.1% in 2012-13, and the industry will be valued at £3.25 billion.
There have been a number of new enterprises enter the industry and this is expected to continue as the industry remains highly fragmented. Retail conditions are expected to improve slowly over the next five years and the industry will benefit from improving consumer and business confidence. Edwards adds, “firms are expected to continue to invest in technology so that they are able to capture more customers through new mediums such as smartphones”. In addition, technological investment will focus on providing more secure and efficient systems for consumers so that reservations about online purchases are handled.
The industry is forecast to continue to grow strongly over the five years through 2017-18 as more consumers turn to online shopping as a means of purchasing women's clothing. Firms are expected to develop relationships with manufacturers to bypass wholesalers and increase profit margins.
The Online Women’s Clothing Sales industry's three largest players are expected to account for approximately 16% of industry revenue. This is indicative of an industry with a low level of concentration, yet the vast number of operators indicates a high level of competition. Major companies include Arcadia Group and ASOS.
For more information on the Online Women’s Clothing Sales industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Businesses in this industry sell women's and junior's clothing via the internet. This includes online-only retailers as well as bricks-and-mortar stores that have an online presence.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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