Shopping for Fashion: Bricks, Clicks and In-Betweens

August 2016

Global distribution of clothing and footwear is shifting. In developing markets, consumers are steadily switching to organised channels, while in developing markets, e-commerce keeps gaining ground. Fashion players are quickly trying to adapt to this rapidly changing distribution scenario, following different routes. The future for fashion distribution revolves around entertainment, connectivity and seamless shopping experiences in a blended and complementary approach, both physical and digital.

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Socio-demographic and urbanisation profiles shape channel preferences worldwide

Certain retail channels’ appeal to consumers remains heavily linked to urbanisation profiles, disposable incomes and other socio-demographic factors. Emerging markets’ switch from unorganised to organised retail formats, and developed markets’ switch to digital are the main forces shaping the distribution of fashion at world level.

Asia Pacific remains the main driver for growth both off-line and on-line

China and India alone contributed over 70% of the new apparel and footwear specialists’ selling space, and over 50% of total apparel and footwear internet retailing revenue generated globally between 2010 and 2015. Rapidly growing middle classes and increasing internet penetration were the main drivers.

Digital operations will never replace the need for physical outlets

Shopping for fashion continues to be one of the top leisure activities for many consumers across the world. As such, the role of physical outlets is rapidly changing from transactional to entertainment spaces. Bricks and mortar stores are becoming destinations by themselves for consumers to interact with, and for brands to create emotional bonds with their customers.

Technology at POS to entice consumers in line with the “gamification” trend

The in-store retail experience is becoming increasingly technological, as retailers adapt to tech-savvy consumers. From the use of smart mirrors, NFC, beacons to touchscreen terminals, consumers can now interact with brands at point of sale in a playful manner.

“Rent or Buy” sections within apparel and footwear specialist retailers might be common in the near future

In line with other fmcg sectors, the fashion world is witnessing the appearance and growth of peer-to-peer platforms. The search for value for money, novelty, frugality and simplicity is bolstering on-demand enterprises whereby consumers share or rent clothing items, rather than buying them.


Key findings

Shifting Distribution Landscape

Shifting distribution l andscape
Global distribution p references diverge
Experiential shopping drives direct-to-consumer d istribution
Asia Pacific: Vast and diverse
Internet retailing r emains l ow in Latin America
MEA region s hows p olarisation and potential in equal parts
Low-cost formats l ure f rugal E uropean consumers…
…While US shoppers f avour o ff-price retailers

The Physical World

Store evolution
Evolution of bricks-and-mortar stores: The rise of showroom stores
Drivers of showroom stores worldwide
Example: Bonobos Guideshops (US)
Example: Macy’s and Target (US)
“Retailtainment”: Shopping and leisure h and in hand
Example: Club Monaco at Noma (Denmark)
Example: Undiz Machine (France)
The flagship phenomenon

The Digital World

The world is increasingly d igital
Apparel and footwear d igital g lobal e xpansion
E-commerce heavyweights t ry t heir h and at fashion
M-commerce: Another path to purchase
Example: The Operator (US)
Social media drives s-commerce
Example: The NetSet (Yoox Net-a-Porter Group)
Cross-border sales add momentum
Example: Red (China)

“Phygital” Retailing and the Future of Fashion Shopping

Bricks and clicks: The future is “ phygital ”
Retailer growth strategies

Phygital” Retailing and the Future of Fashion Shopping

Retailers offer technology-infused physical stores
Example: Rebecca Minkoff’s connected stores (US)
Example: Zalora QR Stores (Hong Kong)
The impact of sharing and circular e conomy




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