The US Online Apparel and Footwear market Outlook to 2019: Ken Research

The US online market is one of the largest and most sophisticated in the world and hasmatured rapidly over the past five years. Internet penetration in the country hasincreased from ~% in 2009 to ~% in 2014. The rapid increase in number of internetusers has also been supported by growth in smartphone usage. The number ofsmartphone users has witnessed a CAGR of 32.3% during the years 2009-2014.Theonline sales of apparel and footwear have driven away the large proportion ofrevenue from the brick and mortar retail outlets. Such a trend has arisen majorlyon account of greater convenience, affordable prices and variety of productsoffered by online portals. The US online apparel and footwear industry stood atUSD ~ billion in 2014 and grew at a CAGR of ~% from 2009 to 2014 The sales ofapparel through online portals observed growth from USD ~ billion in 2009 to USD~ billion in 2014. A CAGR of ~% was recorded during this time period. On the otherhand, the revenues of online footwear industry grew at a CAGR of 15.3% duringthe same time period.

The industry showcased that the months from April to June were the majorcontributors to the online apparel and footwear sales. The major reason of such atrend included summer holidays for school and college students, semi-annual salesand marketing initiatives by retailers to offer discount on pre-season and postseason sales.

The online apparel market in the US is highly developed. A large number of e-commerce portals have provided apparel products at competitive prices. Over thereview period, online sales of apparel have showcased significant growth. The USonline apparel market has elevated consistently over the last five years from USD ~billion in 2009 to USD ~ billion in 2014 at a CAGR of 18.8%. The US apparel marketwas majorly driven by increasing internet penetration rate and availability of cheapimports from China on e-commerce portals. The apparel market in the US hasbeen import driven and observed ~% imports in the year 2012. Moreover theincrease in inflation in China has escalated the cost of imported goods which haveforced retailers in the US to manufacture them domestically from the year 2013.The online market of footwear in the US has performed sluggish in comparison toapparel segment. Footwear sales through online portals only accounted for ~% ofthe market in the year 2014. The US online footwear revenues have showcased aconsistent trajectory of growth from 2009 to 2014 at a CAGR of 15.3%. The markethas reflected tremendous increase over the years due to the rising disposableincome of the masses and an increase in affinity to shop footwear online.

• How Will The Future of Online Apparel and Footwear Market Pan out?

• The online sales of apparel and footwear in the US have witnessed a significantrise during the review period. This market has grown at a CAGR of 18.2% during2009-2014. The future of the US online footwear and apparel industry is likely tocontinue with high growth patterns. The market in this part of the world isexpected to witness wide span of activities in the retail segment of the onlinebusiness industry. This growth can be certainly associated with the risingdisposable income of the people in the US and the preference to shop andtransact business online. In addition, the introduction of innovative businessstrategies such as flash sales and daily deals concept will aid the futuresustainability of the market in the US in the long run. Increasing broadbandpenetration in the US is also a positive sign as broadband accelerates the wholepurchasing process, making it faster and more convenient and attractive for sellersand buyers. In addition, financial transactions and banking will also be fast-growingapplications which are carried over broadband.

The online apparel and footwear market in the US is expected to foresee severalconsolidations in the near future as large players such as Amazon, Staples,Nordstorm and few others strategize to dominate the market. This will probablylead to partnerships and alliances with technically efficient small scale playerswhich in turn would lead to a diversified product line of the major organizations.Overall, the US online apparel and footwear market is projected to grow at a CAGRof 12.6% from 2014 to 2019. The online apparel and footwear market is projectedto increase consistently over the years 2014-2019.

• US ONLINE APPAREL MARKET

• The US online apparel industry stood at USD ~ billion in 2014 and is projected togrow at a CAGR of 13.5% to USD ~ billion in 2019. Many e-retailers arecontinuously innovating to deliver a superior in-store experience to theircustomers through the exciting in-store environment of a new and visuallycompelling product portfolio. An elevation in the revenues of online portals waswitnessed during the last five years which was on account increasing spendingpower, rising number of younger working class people and growth of fashionconscious population. Moreover, aggressive marketing, optimizing the websites,pricing and customer acquisition tactics will contribute to the expansion of onlineapparel market in the next five years.

• US ONLINE FOOTWEAR MARKET

• The footwear industry is projected to increase consistently on account of increase in customer confidence to purchase footwear products online. Also, many brick and mortar stores are expanding their reach by entering into online industry. Through these online portals, these stores provide lucrative pricing and discount offers in order to increase traffic to their portals. Personal style consultants, free shipping, free returns and effective customer care services are the some of the factors which are propelling the online footwear sales revenues. The revenues generated in the US online footwear market were registered at USD ~ billion in 2014 and are projected to grow at a CAGR of 7.2% to USD ~ billion in 2019.

• COMPANIES CITED IN THE REPORT

• Companies Mentioned

• AmazoneBayWalmartForever21KmartAsos

• Gap

• Products Mentioned Apparel and Footwear

• Competition Amazon was the largest player in the US online apparel andfootwear market. The products offered on Amazon.com primarily includemerchandise and content purchased for resale from vendors and those offered bythird-party sellers.

• Amazon.com is an American multinational fortune 500 e-commerce company. Thecompany has separate retail websites for the countries such as India, the US,Canada, UK, France, Germany, Italy, Spain, Japan and China. It is one of the largestonline retailers in the world and in the US. The company is headquartered atSeattle, Washington, the US.

• Amazon sells books, DVDs, apparel, furniture, food, toys, and jewelry among otherlist of items. The company focuses on its core business values ensuring that thegoals and objectives are achieved. It uses different strategies which enable themto sustain their competitive position in the global market. The ability of themanagement to manage their financial resources and limit their expenses tosustain their needs for expansion has also been considered as one of thecapabilities that sustain their competitive advantage

• KEY FACTORS CONSIDERED IN THE REPORT

• Comprehensive analysis of the online apparel and footwear market and its segments

• Industry is presented by online retailers; by product types and by demand from different categories

• Listed major players

• Identified major industry developments in last few years and assessed the future growth of the industry

• Regulatory framework help to understand investment opportunities and complexities involved

• To know more on coverage, click on the link below:

• https://www.kenresearch.com/consumer-products-and-retail/textile-apparel-and-footwear/the-us-online-apparel-and-footwear-market-report/2115-95.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

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