APPAREL TREND REPORT Understanding the Apparel Industry and the Digital Trends Shaping It - Amazon S3
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APPAREL TREND REPORT Understanding the Apparel Industry and the Digital Trends Shaping It
THE APPAREL INDUSTRY IS
GOING THROUGH A DIGITAL
TRANSFORMATION
The way consumers interact with fashion brands is Fashion, a visual industry driven by trends and community,
changing. Shoppers don’t just want to connect with is particularly well suited for social marketing. An increasing
companies once; they want to engage throughout the number of apparel brands have started to understand the
entire purchasing journey. Before entering a store or true opportunity presented on these platforms, but many
visiting a brand’s website, consumers turn to digital are still struggling to deliver relevant, purposeful experiences
platforms for inspiration, exploration, and to research to consumers. As these online touchpoints continue to alter
and compare products. As the industry continues to go fashion shoppers’ behaviors, preferences, and expectations,
STATE OFtransformation,
through a digital THE APPAREL INDUSTRY
platforms like Instagram, brands should consider how to engage and connect with
Pinterest, Facebook, and Amazon have also become them through the entire ecommerce ecosystem.
primary destinations for making purchases.
STATE OF THE APPAREL INDUSTRY
APPAREL IS THE
SECOND-LARGEST RETAIL
CATEGORY IN THE WORLD
(surpassed only by grocery)
$1.65 TRILLION 6 PERCENT
2020 global apparel industry forecast 2020 annual growth forecast
3X FASTER 48%
online apparel sales growth global ecommerce sales growth
outpaces in-store growth
of fashion want to of fashion brands
media is focus more will increase
spent on paid online ad
online social media budgets in 2019
2 APPAREL TREND REPORT
The hashtag #fashion is used over
13 million times per month and
#ootd (outfit of the day) features
in 140 million posts to date.
FASHION BRANDS ON
SOCIAL MEDIA
Social media has become an increasingly important According to Adaptly data, fashion brands currently
driving force behind apparel consumers’ paths to allocate the majority of their social media budget to
purchase. 1 in 4 users follows at least one brand whose Facebook and Instagram – 57% and 23% respectively.
products they’re interested in buying, and 200 million An analysis of other industries’ investment patterns
Instagram users follow at least one fashion account. shows that this represents significantly higher-than-
TheFACEBOOK
hashtag #fashion is used over
INSTAGRAM 13 million times
PINTEREST per
SNAPCHAT average
TWITTER spend on Instagram (compared to a 13%
month and #ootd (outfit of the day) features in 140 average) and slightly lower-than-average spend on
million posts to date. Facebook (compared to a 64% average).
Facebook and Instagram have earned
80% of apparel social media spend
APPAREL MEDIA SPEND BY PLATFORM
over the last few years.
APPAREL MEDIA SPEND BY PLATFORM
2017-2019
57% 23% 12% 6% 3%
0% 25% 50% 75% 100%
Source: Adaptly data
Many fashion brands seem to primarily view Facebook much more evenly split across the funnel. This shows
and Instagram as lower-funnel platforms. A large that, while retail advertisers still want to inspire, they
part (63%) of last year’s social advertising activity also work to facilitate shopping experiences on social
was focused on driving conversions – a significantly platforms.
100%
And they’re leading the charge compared to
22%
higher figure than the 21% dedicated to awareness other industries.
35%
75%
ads. The combined average across all industries was 15%
13%
50%
3 APPAREL TREND REPORTOn Pinterest, where users often plan future
purchases, the vast majority of fashion brands’ ads
FACEBOOK & INSTAGRAM APPAREL
(94%) were focused on upper-funnel objectives – MEDIA SPEND BY OBJECTIVE
awareness and consideration. This more or less 100%
mirrors investment patterns for other industries,
where the combined figure is as high as 99% for 22%
upper-funnel objectives. 35%
75%
15%
TOP TRENDS IN 13%
THE RETAIL INDUSTRY 50%
As apparel sales continue to migrate online, fashion
brands are shifting marketing budgets toward digital
channels. Shoppers have moved away from relying
63%
25% 52%
solely on catwalk reports and glossy magazines
for fashion inspiration. Instead, they’re exploring
trends and researching brands and products on
social. Platform experiences are converging, and the 0%
challenge for fashion brands is to deliver a relevant, 2017 2018
useful, and purposeful experience, not just on – but
Awareness Consideration Conversion
also across – those digital platforms.
Source: Adaptly data, 2017 - 2018
Shoppers have moved away from
relying solely on catwalk reports
and glossy magazines for fashion
inspiration. Instead, they’re
exploring trends and researching
brands and products on social.
4 APPAREL TREND REPORTTREND
#1
ONLINE
MARKETPLACES
DOMINATE
Online marketplaces like Amazon, Ebay, and Zalando have grown to become
It’s predicted
influential cornerstones in the fashion consumer’s purchase journey. More
than half of Internet users who bought clothing online in the last six months that these types
made at least one purchase on Amazon. It’s predicted that these types of
marketplace platforms will more than double their total revenue from $18.7 of marketplace
billion in 2017 to $40.1 billion by 2022, with Amazon the predominant driving
platforms will
force worldwide.
As shoppers increasingly turn to marketplace sites, not only to buy, but also
more than double
to discover and research products, brands gain deeper insight into their
their total revenue
customers’ behaviors and purchase decisions. This can help frame their
digital advertising strategies. from $18.7 billion
in 2017 to $40.1
WHAT THIS MEANS FOR BRANDS billion by 2022,
Amazon knows more about what people buy than any other platform. The
company has access to billions of shopping and media consumption patterns with Amazon the
through every stage of the purchase funnel. This enables advertisers to
define audiences based not only on demographics, but also on things like
predominant
lifestyle, lookalikes, and first-party platform data. Amazon DSP, the platform’s driving force
programmatic ad offering, allows brands to display their ads across Amazon
sites, apps, and devices as well as on the wider web. This presents significant worldwide.
opportunities for fashion brands to reach users across the entire consumer
journey – from awareness to conversion.
5 APPAREL TREND REPORTTREND
#2
SHOPPABLE
SOCIAL IS
ON THE RISE
It’s well-established that social media plays a central role in influencing
76% of shoppers
consumer behavior. 76% of shoppers have bought a product they first saw
in a brand’s social media post, and more than half of those purchases were have bought a
made online. Social platforms are increasingly building out different kinds of
commerce functionalities, making it easier for users to go from exploration product they first
to purchase. Instagram recently launched an in-app checkout function for
saw in a brand’s
ecommerce advertisers, allowing users to purchase items directly from their
feeds. 66% of global fashion brands have already adopted some form of social media post,
social shopping feature, primarily on Instagram and Facebook.
and more than half
While still somewhat in its infancy, shoppable social is quickly gaining
momentum. 30% of consumers say they are willing to make purchases of those purchases
directly on social platforms. As social media plays an increasingly central
role in influencing shopping behavior, functions that simplify the path to were made online.
purchase are bound to get more important.
WHAT THIS MEANS FOR BRANDS
In addition to its newly launched checkout function, Instagram offers several
other in-app shopping features that bridge the exploration and conversion
parts of the consumer journey. Shoppable tags, displaying product pricing
and details, can be added up to five times per post and make for a smoother
shopping experience by redirecting users straight to the relevant product
page. Similarly, formats like Facebook Collections and Pinterest Product Pins
are effective in not only increasing product consideration but also in making
it easier for users to make a purchase. As social platforms have evolved to
become primary sources of fashion inspiration, apparel brands should leverage
shoppable features to catch their audiences throughout the entire funnel.
6 APPAREL TREND REPORTTREND
#3
PERSONALIZATION
IS THE NEW NORM
Research shows that the vast majority (91%) of consumers are more inclined
83%
to purchase products from companies that recognize them, remember them,
and provide relevant offers and recommendations. Almost half of shoppers of consumers
have bought something they had not planned to purchase after being
served a personalized recommendation from a brand. While the recent data are still willing
protection debate means that companies have to take greater care with how
to share personal
they gather and use customer data, 83% of consumers are still willing to
share personal information if it leads to a personalized experience. information
76% of apparel brands consider personalization very important, yet only
if it leads to a
13% have made it a prominent part of their digital marketing strategies. As
customers increasingly use fashion as a way to communicate their personal personalized
styles and values, brands have to make sure to use messaging and creative
that feels relevant to individual consumers. experience.
WHAT THIS MEANS FOR BRANDS
Brands should use the data available on digital platforms to understand not
only what users are buying, but also why they are interested in a product.
The opportunity then lives at the intersection of media and creative: tailoring
content to the individual person as well as to the platform experience. That’s
why our technology integrates with a variety of feeds and data sources,
enabling brands to dynamically and programmatically personalize content
on the fly. Ads can be tailored based on audience location, real-world
conditions, or on the action advertisers want users to take. Fashion brands
for example, can serve different creative to customers in hot and cold
weather conditions or depending on whether or not they’ve purchased from
the brand in the past.
7 APPAREL TREND REPORTTREND
#4
AI AND BOTS BUILD
PERSONAL CUSTOMER
RELATIONSHIPS
According to a recent study, 75% of fashion retailers plan to invest in
75% of fashion
features relating to artificial intelligence over the coming year. It has also
been predicted that 85% of customer / company relationships will be retailers plan
managed without human interaction by 2020. Fashion retailers like H&M,
Tommy Hilfiger, and Burberry have already implemented chatbots as part to invest in
of their customer service programs, and apparel brand Ted Baker opted to
features relating
showcase last year’s fall collection with help of the Facebook Messenger app.
Customers around the world are open to the idea of chatbots; 65% would
to artificial
like to use messaging services like Messenger or WhatsApp to interact
intelligence over
directly with brands. 53% of shoppers even prefer buying from companies
they can contact via messaging. the coming year.
WHAT THIS MEANS FOR BRANDS
Chatbots and messaging products can help brands establish and maintain
personal relationships with users. They enable advertisers to uncover
information about a customer’s preferences and sizes, for example, which
can then be turned into personalized recommendations and offers. Rather
than presenting an individual with a general selection of products or
categories, brands can use the insights gathered through messaging services
to narrow down their offers to the most relevant items. Sponsored Messages
in Facebook Messenger, which deliver a brand’s chat messages straight into
a user’s inbox, can then be used to retarget customers who have already
interacted with the brand.
8 APPAREL TREND REPORTABOUT ADAPTLY
Adaptly, acquired by Accenture in December 2018, is a digital media services
company enables global brands to manage data-driven campaigns across
digital ad platforms. Adaptly partners with some of the leading digital
platforms, including Amazon, Facebook, Google, Instagram, Snapchat, and
Twitter. Its client roster spans 15 industries and includes brands such as
Chico’s, Mazda, Prudential, Sprint and more.
adaptly.com | @adaptly | contactus@adaptly.com
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