Apparel Looks Strong Online
Forrester Research and Shop.org released their new state of the industry report this week. The big news in The State of Retailing Online 2007: last year’s online sales leader was the apparel category. Sales of clothing, accessories and footwear totaled $18.3 billion, up 61% over 2005 — a strong contributor to the 29% overall growth in overall online retail sales last year.
The report predicts continued strong growth; Forrester expects the online channel to account for 10% of all clothing sales in 2007.
That’s a 20% increase over 2006 levels, which seems on the conservative side. The ingredients are here: increased broadband penetration, more online shoppers, greater usage, and higher monetization. The apparel retailers who can provide a shopping experience that’s solidly branded, focused on the customer and showcases the product will be in a position to grow their sales beyond the industry projections.
The report includes more metrics worth note: Based on 170 retailers surveyed, the report includes:
- 3.1% average conversion rate [Catalog retailers reported an average conversion rate of 4.4%]
- 50% shopping cart abandonment rate
- 36% of revenue from repeat customers
- $117 average order value
For more on the report, Internet Retailer has a good recap. And there’s a conversation worth checking out at Retail Wire.
Posted: May 20th, 2007 under analytics, marketing.
Comments: 1
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Pingback from ‘07 Online Retail: Beat the Numbers » Dave Lindberg
Time: January 1, 2008, 3:25 pm
[…] to $123 billion for 2007, up from $102b in ‘06. Their base numbers are a bit off from the Forrester/Shop.org report issued last May, which came up with 2006 online retail sales of $146 […]
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