Industry growth has coincided with the increasing ubiquity of internet access
Los Angeles, CA (PRWEB) March 14, 2013
In 2013, revenue generated from online designer clothing sales is projected to reach about $4.9 billion, representing an increase of 10.7% from 2012. The Online Designer Clothing Sales industry has “grown furiously for more than a decade as consumers increasingly shift to shopping online,” says IBISWorld industry analyst Nima Samadi. “Every year, more than 100 million Americans purchase goods from the online retail marketplace, one of the fastest-growing sectors in the United States.” A recent survey by Nielsen indicates that clothing, accessories and shoes are the second most popular category of items (after books) that consumers consider purchasing online. Furthermore, as traditional (i.e. brick-and-mortar) retailers have entered the online realm to recapture sales taken by exclusively online retailers, industry revenue has only expanded. Over the five years to 2013, IBISWorld estimates that revenue increased at 14.0% per year on average.
The growth of this relatively new industry has coincided with the increasing ubiquity of internet access, particularly broadband. The easier and more affordable it is to connect to the internet, the more accessible online retailers are, making consumers more likely to purchase from these stores. According to internet market research firm ComScore, consumers who use broadband connections are more likely to make online purchases than those who use dial-up internet connections because broadband provides better speeds, bandwidth and connection stability. “Various industry sources also attribute the rapid growth of the industry to firms placing an emphasis on top-notch customer service,” says Samadi. “Successful customer satisfaction strategies have included free shipping for deliveries and returns, generous return policies and 24-hour customer service call centers.”
The Online Designer Clothing Sales industry will continue expanding over the coming years, although an increasingly saturated market will result in relatively slower growth. Many of the same factors that contributed to the industry's ascent in previous years will carry forward over the next five, including the rising acceptance of online shopping. Rising consumer confidence, and thus consumer spending, will aid the industry's long-term prospects. Additionally, rapid technology change, particularly consumers shifting interest toward shopping on mobile devices, is presenting opportunities for new firms to enter the industry and forcing existing firms to constantly adapt to keep pace. While the industry is still largely characterized by smaller niche designer fashion retailing websites, there has been some consolidation among players and increased dominance of traditional retailers and e-commerce websites with established designer-brand relationships. The entry of eBay and Amazon into the high-end designer fashion market in 2010 and 2011, respectively, is expected to initially keep competition intense and market share concentration low over the next five years. In the latter half of the period, though, their entry will start to increase concentration as they begin acquiring smaller competitors to gain market share and enter new market segments. For more information, visit IBISWorld’s Online Designer Clothing Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells designer apparel, shoes and accessories online. Industry operators may offer a wide variety of brands or a single designer's collections. Designer clothing carries the logo or name of a recognized designer, but the actual designer does not always create the clothing. Often, designer apparel is created under a licensing agreement with a manufacturing company.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.