Commentary
Online Apparel Buyers Up, Spending Up, Order Size Down
- by Jack Loechner , Staff Writer @mp_research, December 8, 2006
According to comScore Networks, a third-quarter analysis of consumer spending in the online apparel category found that, during Q3 2006, total U.S. online apparel sales registered a 32-percent increase versus the same quarter last year. Sites operated by specialty retailers accounted for the largest share of sales with 46 percent of total dollars spent, followed by department store sites at 21 percent, and online pureplay sites at 16 percent.
Specialty store sites increased their market share by more than 3 points during the past year, says the report, while department store sites rose 1 point. Catalog sites lost approximately 2 share points, while discount store sites lost 1 share point.
Online Apparel Category (Share of Dollars Spent((Q3 2006 vs. Q3 2005 (Total U.S. Home/Work/University Locations) | |||
Apparel Site Segment | Q3 2005 | Q3 2006 | Pct. Chg |
Total Online Apparel | 100.0% | 100.0% | 0.0 |
Catalog | 15.7% | 13.6% | -2.2 |
Department Store | 19.7% | 20.8% | 1.1 |
Discount | 3.4% | 2.4% | -1.0 |
Manufacturer | 2.0% | 1.6% | -0.4 |
Online Pureplay | 16.5% | 15.9% | -0.7 |
Specialty Store | 42.6% | 45.8% | 3.2 |
Source: comScore Networks, November 2006 | |||
In the online apparel category, sales growth was driven during the past year primarily by the increasing number of buyers, with five out of six apparel site segments showing double-digit percent increases in the size of their respective buyer bases. Department store sites led the way with 60 percent growth in number of buyers, followed by manufacturer and specialty store sites, which each saw 48 percent growth.
Online Apparel Category (Percent Change: Number of Buyers, Average Order Value, Dollar Sales((Q3 2006 vs. Q3 2005 (Total U.S. Home/Work/University Locations) | |||
Number of Buyers | Avg. Order Value | Sales in Dollars | |
Total Online Apparel | 35% | -1% | 32 |
Catalog | 19% | -3% | 3% |
Department Store | 60% | -8% | 43% |
Discount | -74% | 44% | -32% |
Manufacturer | 48% | -17% | -7% |
Online Pureplay | 32% | 6% | 23% |
Specialty Store | 48% | -2% | 47% |
Source: comScore Networks, November 2006 | |||
Rob Harles, senior vice president of comScore Networks, said "That the number of online retail apparel buyers is increasing so rapidly bodes well for long term category growth. Because new buyers tend to spend less online until they've become comfortable with the purchase process, the average order value is experiencing declines among some of the site segments..."
Online consumers tend to stick with what they know, concludes the study. During Q3 2006, about two-thirds of online apparel buyers purchased exclusively within a single site segment. Consumers were most loyal to specialty store sites, with 74 percent purchasing only within that site segment, followed by catalog and online pureplay, each with 68 percent loyalty.
Online Apparel Category (Consumer Loyalty Analysis (Percent of Buyers Purchasing Exclusively by Apparel Site Segment((Q3 2006 vs. Q3 2005 (Total U.S. Home/Work/University Locations) | |||
Segment | Q3 2005 | Q3 2006 | Pct. Chg |
Catalog | 69.7% | 67.9% | -1.8 |
Department Store | 64.2% | 63.8% | -0.4 |
Discount | 61.3% | 45.6% | -15.8 |
Manufacturer | 65.5% | 63.8% | -1.7 |
Online Pureplay | 71.3% | 68.2% | -3.1 |
Specialty Store | 75.5% | 74.4% | -1.1 |
Source: comScore Networks, November 2006 | |||
More on the material in the press release may be found here.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.