Designer Apparel and Footwear (Ready-To-Wear) in the US

2021 DEVELOPMENTS

Despite returning to growth, sales remain lower than pre-pandemic

Designer apparel and footwear saw a record current value decline in 2020. Domestic and international travel restrictions and lockdowns to curtail the spread of COVID-19, including a significant reduction of in-person events, as well as social distancing and hygiene regulations in stores, significantly diminished demand for designer apparel and footwear (ready-to-wear), as consumers spent significantly more time at home instead.

Amidst continued stay-at-home behaviour, sportswear outperforms

Although international and domestic travel restrictions, stay-at-home orders and other changes in consumer lifestyles brought about by the pandemic especially hurt sales of more formal designer apparel and footwear items, such as dresses, suits, formal heels and other smart footwear, more casual sportswear items, including sweatpants and sweatshirts, as well as sneakers, performed better in 2020 and into 2021. This was thanks in large part to their usefulness not only at home, but also for activities that were able to continue, such as neighbourhood walks and casual dining out.

Disruptions to in-store shopping continue to boost e-commerce sales

The majority of sales of designer apparel and footwear was through store-based retail channels prior to the pandemic, including apparel and footwear specialist retailers (classified as non-grocery specialists) and department stores (classified as mixed retailers). However,, many consumers found themselves either unable or unwilling to purchase their preferred products and brands in-store throughout much of 2020 and into the first half of 2021 amidst COVID-19 restrictions, which varied across states in terms of timing and severity.

PROSPECTS AND OPPORTUNITIES

Pent-up demand for experiences will benefit designer apparel over the forecast period

Consumers were already increasingly prioritising spending on out-of-home experiences, including travel, dining out and other forms of entertainment, even before the pandemic. Designer apparel benefited from this shift, as consumers chose stylish and versatile items to wear and be seen in on these outings.

Consumers will increasingly participate in the luxury resale market

Interest in the resale market is amongst a number of consumer trends that have come to the forefront amidst the pandemic. Offering environmental merits and the opportunity to buy certified-authentic designer apparel and footwear at more affordable prices, the luxury resale market in the US had already been growing in popularity in recent years, fuelled by the arrival of new digital native players, including The RealReal and Vestiaire Collective, as well as those focused on high-end footwear, such as GOAT.

E e-commerce will continue to grow as luxury brands accelerate digital investments

As a constantly available and often preferred sales channel for designer apparel and footwear throughout much of 2020 and 2021 due to COVID-19 restrictions on in-store shopping, dramatic growth was seen in e-commerce. Rising penetration was seen as many consumers became increasingly comfortable shopping for and purchasing items of increasingly high value online without trying them on first, with many doing so for the first time.