Fashion Flash Report. Fickle yet fashionable: How apparel consumers are leading the multidevice revolution. SEPTEMBER 2015 FASHION FLASH REPORT 2015 Executive Summary The long and the short of it: Fashion is forward. The fashion industry is moving to mobile faster than any other retail category, with 33% of fashion purchases now coming from mobile devices. There's no stopping mobile fashion. Mobile growth is steady at +18% YOY (and up to 37% in the U.S. and 78% in Brazil). Fashion shoppers are device-hoppers. 43% use multiple devices on the path to purchase, and many purchase on any device (desktop, tablet, smartphone) or platform (app or website) at hand. Fashion shoppers are fickle. Even the most loyal customers browse multiple apparel sites. Methodology These trends and forecasts are based on Criteo’s unique pool of online shopping data covering 1.4 billion transactions totaling over $160 billion of annual sales. Unless otherwise stated, the subset used in this report totals 278 million transactions from 832 fashion & luxury retailers in 12 countries. Retailers included in the sample offer apparel, shoes, accessories, lingerie and/or luxury products. Mobile commerce in this report excludes NFC/proximity payments. 1 FASHION FLASH REPORT 2015 No one does mobile like the fashion industry MOBILE RULES FASHION & LUXURY Growth of mobile share of sales from Q3 2014 to Q2 2015 globally Retailers in the fashion & luxury vertical have gained +18% more from the mobile trend than other e-tailers*. Why? Products are easy to purchase on Average mobile share of eCommerce sales in fashion & luxury globally smaller form factors. And fashion retailers have 33% embraced mobile-minded tactics like limitedtime and first-come-first-served offers. Average mobile shopping cart value vs. desktop globally 94% MOBILE DELIVERS 33% OF ONLINE FASHION SALES GLOBALLY In the U.S., mobile’s share of fashion sales is 8 percentage points higher than health & beauty sales and 17 points above home decoration. Mobile share of eCommerce sales and average shopping cart: fashion & luxury Mobile share of transactions SMALL SCREEN, BIG SPEND In most countries, the average mobile shopping cart 300 Avg. shopping cart on mobile (indexed against desktop - 100=avg. cart on desktop) 250 49% is very close to that of desktop: on average, for $100 46% spent on desktop, consumers spend $94 on mobile. 106 200 40% 104 37% 95 95 36% 33% 95 33% AVERAGE 33% 30% 91 STEADY GROWTH 89 87 Total share of mobile purchases 104 150 93 26% 100 20% 80 is up +18% since Q3 2014. 50 14% Source: Criteo, Q3 2014 – Q2 2015 Base: 278 million transactions from 832 fashion & luxury retailers * For comparisons across verticals and much more, please see Criteo’s State of Mobile Commerce report. BRAZIL RUSSIAN FEDERATTON FRANCE ITALY AUSTRALIA SPAIN GERMANY USA NETHERLANDS JAPAN UK 5-6 AM 0 Catch Low penetr 1 2 ALL WOMEN MEN LIVING Brazil FASHION FLASH REPORT 2015 Slaves to fashion, not platform MORE THAN OTHER INDUSTRIES, FASHION SHOPPERS ARE PLATFORM HOPPERS. Share of mobile fashion sales by day of week (U.S.)** Indexed (100=weekly average) They increasingly use multiple devices 115 114 throughout the buying journey: In 43% of purchases, U.S. fashion shoppers use multiple devices to visit the same retailer, against 40% on average across all retail categories. 98 95 94 93 91 MOBILE SHOPPING PEAKS ON WEEKENDS. Globally (except in Japan) mobile shoppers Weekend peaks are most pronounced in SUNDAY SATURDAY FRIDAY THURSDAY WEDNESDAY TUESDAY MONDAY tend to load up on the weekends. countries where mobile shopping is still novel. PLATFORM USAGE CHANGES BY DAY PART. Fashion & luxury sales by platform and day part*** App purchases peak in the morning when Indexed (100=average across day parts) shoppers are away from home, time is scarce, high-speed connectivity isn’t guaranteed, 300 and limited-time offers are expiring. SMARTPHONES 250 65% Shoppers use the mobile web preFASHION dominantly in the evening. 200 AGE 33% 35% 7 47% 7 54% 93 46% FASHION 100 UK 50 14% Desktop App 43% RETAIL AVERAGE 7 45% 55% 7 of fashion purchases now involve Mobile Web multiple devices prior 45%to purchase* 0 55% 11-12 PM 10-11 PM 9-10 PM 7-8 PM 8-9 PM 6-7 PM 5-6 PM 4-5 PM 3-4 PM 1-2 PM 2-3 PM 12-1 PM 10-11 AM 11-12 NOON 8-9 AM 9-10 AM 7-8 AM 6-7 AM FASHION 5-6 AM BRAZIL 53% SHAR Desktop is strongest during office hours. 150 % FEDERATTON RETAIL AVERAGE USA TABLETS GERMANY RETAIL AVERAGE 6 46% 5 38% * Source: Criteo, State of Mobile Commerce report, Q2 2015. Base: 19 U.S. retailers FASHION ** Source: Criteo, Q3 2014 – Q2 2015. Base: 96 million transactions from 155 US fashion & luxury retailers *** Source: Criteo, June 24-30, 2015. Base: fashion retailers from five countries with over 25% of eCommerce transactions on 41% mobile and more than 10% of those on mobile apps RETAIL FRANCE HIGH GROWTH Catch-up Players Low penetration, high growth 100% 54% 62% 6 59% 6 AVERAGE Over-performers High penetration, high growth 82% FASHION 3 18% 5 88% FASHION FLASH REPORT 2015 Slaves to fashion, not platform FASHION SHOPPING AND SMARTPHONES GO TOGETHER LIKE DOLCE & GABBANA Mobile fashion sales by device type and geo** 300 Smartphones are gaining ground against tablets desktop) 7 SMARTPHONES 250 everywhere*, and fashion is leading the trend in the 65% U.S. and the U.K. with a larger piece of the mobile pie than other retail categories. 104 USA RETAIL AVERAGE In France, Germany, Brazil and Japan, the share of tablets among mobile fashion sales is equal or 100 higher than among retail sales overall. 14% IOS IS ALWAYS IN STYLE UK App Desktop 47% 74% 46% RETAIL AVERAGE 76% 45% 55% 77% Mobile Web 45% 0 55% GERMANY RETAIL AVERAGE BRAZIL sales in the U.S. and the U.K. and six out of 10 in 11-12 PM 10-11 PM 9-10 PM 7-8 PM 8-9 PM 6-7 PM 5-6 PM 4-5 PM 3-4 PM 1-2 PM 2-3 PM 12-1 PM 10-11 AM 11-12 NOON 9-10 AM 7-8 AM 8-9 AM 6-7 AM 5-6 AM FASHION iOS accounts for three quarters of mobile fashion RUSSIAN FEDERATTON 53% FASHION 50 Germany, France and Japan. 61% 46% 54% 55% 38% 62% FASHION In Brazil, where Android is the dominant operating FRANCE HIGH GROWTH system, iOS has more of the fashion sector than retail Catch-up Players Low penetration, high growth overall. HIGH SHARE OF MOBILE PURCHASES USA 50% 20% Spain France 59% 62% 82% JAPAN Germany 20% 64% 41% 18% FASHION Brazil 50% RETAIL AVERAGE Over-performers High penetration, high growth 100% LOW SHARE OF MOBILE PURCHASES FRANCE 75% 54% 93 20% 35% 150 AVERAGE 33% 26% SHARE OF IOS FASHION 200 104 TABLETS 30% 40% RETAIL AVERAGE 58% 88% 12% 60% 71% 29% FASHION BRAZIL RETAIL AVERAGE 42% 73% 27% 10% Italy Japan Sweden Netherlands Australia Aspiring Low penetration, low growth UK 0% Mobile Superpowers High penetration, low growth MODERATE GROWTH * See Criteo’s State of Mobile Commerce report for more information about how smartphones are displacing tablets globally. ** Source: Criteo, State of Mobile Commerce report, Q2 2015 4 40% US FASHION FLASH REPORT 2015 Is your app dressed for success? Mobile share of transactions 300 Avg. shopping cart on mobile (indexed against desktop - 100=avg. cart on desktop) Share of apps among mobile sales 250 TOP-PERFORMING APPS GENERATE OVER 3/4 OF MOBILE SALES FOR THEIR RETAILERS. 49% 46% 106 37% 95 200 apps drive 54% of mobile sales, but the On average, 78% 40% 95 104 36% 33% 95 54% 33% best drive as much as 78%. AVERAGE 33% 89 150 So 93 what makes an app a trendsetter? Flawless 30% 91 87 104 execution100and an obession with urgency: 26% 20% User-focused - top performers’ apps consistently 80 50 14% 26% received 4- to 5-star ratings in the appAppstoresMobile Web Desktop BRAZIL RUSSIAN FEDERATTON FRANCE ITALY AUSTRALIA GERMANY USA SPAIN TOP THIRD NETHERLANDS JAPAN AVERAGE UK BOTTOM THIRD 10-11 PM 9-10 PM 7-8 PM 8-9 PM 5-6 PM 4-5 PM 3-4 PM 1-2 PM 2-3 PM 12-1 PM 10-11 AM 11-12 NOON 9-10 AM 7-8 AM 8-9 AM 6-7 AM 5-6 AM checkout and fuel for impulse purchases 6-7 PM 0 Built for speed - with limited-time offers, easy Serves as a reminder – with features like an option to save items, add them to a wishlist, and transfer them easily to the shopping cart HIGH GROWTH Well-connected making it easy for users Catch-up –Players Low penetration, high growth High to share items they like on social networks 1 ALL WOMEN MEN 100% LIVING Brazil LOW SHARE OF MOBILE PURCHASES 50% VINTAGE + LUXURIES Trending Looks to Own Now Closing in 3 days Over-performers penetration, high gro USA Germany 50% 20% 20% Spain France 30% 40% 10% Italy Japan Sweden Netherlands Australia BOUTIQUES WHAT’S HOT COMING SOON ACCOUNT Aspiring Low penetration, low growth 0% Mobile Superpowers High penetration, low gro MODERATE GROWTH Source: Criteo, June 24-30, 2015. Base: fashion retailers from five countries with over 25% of eCommerce transactions on mobile and more than 10% of those on mobile apps 5 FASHION FLASH REPORT 2015 78% SMARTPHONES TABLETS SHARE OF IOS 65% 35% Impulse buys and loyal customers drive revenue SHION 75% 53% TAIL ERAGE 47% 74% 37% 54% 28% 46% 76% day as the first visit on retailers’ websites. 38% 55% 62% SHION HALF OF THE REVENUE COMES FROM EXISTING PURCHASERS. TAIL ERAGE Existing purchasers may represent just 13% of62% fashion 64% 41% 3% 3% of users starting their purchasing journey* User count and share of revenue by browsing history, U.S.** 59% 63% retailers’ user count, but they account for over half of 55% the 82% revenue. Users with four or more18% past purchases SHION 3% UK SPAIN 5% of U.S. fashion purchases occur within 24 hours 46% sales out of 10 occur on the 54% fashion same TAIL ERAGE 60% FRANCE 61% GERMANY 55% Fashion is all about impulse purchases. Six USA 45% SHION BRAZIL SEE IT, NEED IT. 7% NETHERLANDS 8% AUSTRALIA 13% 77% SWEDEN TAIL ERAGE 18% 55% ITALY 45% JAPAN SHION 58% account for 22% of revenue even though they 44% 88% make up less than 3% of the average12% site’s users. TAIL ERAGE 60% 22% BUT, REPEAT PURCHASERS ARE EVEN MORE 71% TO CHECK OUT YOUR COMPETITION. 29% LIKELY SHION 42% 1.8% 0.3% 13% 0.6% In fashion, just because users purchase 73% 27% TAIL ERAGE 40% frequently doesn’t mean they are loyal – quite USERS NEVER SEEN ON VISITED HOME PAGE WEBSITE OR PRODUCT LISTING the opposite. Indeed, heavy buyers show an % OF USERS even higher propensity to visit several fashion PREVIOUSLY LOOKED AT PRODUCTS ON THE SITE PREVIOUSLY PURCHASED ON THE SITE % OF REVENUE retailer websites than casual customers. Given the sheer weight of frequent buyers, there is tremendous value for fashion retailers in retaining Propensity to visit multiple retail sites in the same category during the same month, by browsing history, U.S.** them and ensuring they don’t go to the competition. 78% 47% 48% 41% 33% 26% 37% 20% 28% 18% 13% 6 7% 5% 3% 3% 3% 1-3 PRODUCT PAGES 4+ PRODUCT PAGES 1 CONVERSION UK NETHERLANDS AUSTRALIA SWEDEN ITALY JAPAN SPAIN FRANCE Source: Criteo, April 2015. Base: 30 U.S. fashion retailers. * Beginning of the journey is defined as the first visit to the advertiser's website during the month ** Browsing history represents known user history during the last 30 days. GERMANY USA BRAZIL 8% 2/3 CONVERSIONS 4+ CONVERSIONS AVERAGE sktop) SHARE OF IOS 35% FASHION 75% 200 FASHION FLASH REPORT 2015 104 53% RETAIL AVERAGE USA 47% 74% 150 AVERAGE 33% 54% 93 % 46% FASHION 100 Where will the mobile fashion bug bite next? 20% 50 App Desktop 45% RETAIL AVERAGE UK 14% 76% 55% 77% Mobile Web 45% 0 55% 11-12 PM 10-11 PM 9-10 PM 7-8 PM 8-9 PM 6-7 PM 5-6 PM 4-5 PM 3-4 PM 1-2 PM 2-3 PM 12-1 PM 10-11 AM 11-12 NOON 9-10 AM 7-8 AM 8-9 AM 6-7 AM 5-6 AM FASHION GERMANY 46% RETAIL AVERAGE 54% 38% FRANCE Over-performers High penetration, high growth pack, with FASHION Brazil JAPAN USA HIGH SHARE OF MOBILE PURCHASES 50% 20% Spain 30% 41% 59% 62% mobile economies like Japan, the 82% 18% mobile accounting for close to half 58% of all online fashion sales. But growth is flat.12% 88% RETAIL AVERAGE 60% The U.S., Brazil, and Germany are closing fast in Germany France RETAIL AVERAGE Established U.K., the Netherlands and Sweden still lead the 100% 20% 64% NEW SUPERPOWERS ARE RISING HIGH GROWTH 50% 62% FASHION The next big thing: a typology of nations Catch-up Players Low penetration, high growth 61% 55% BRAZIL 40% 10% Italy 29% BRAZIL RETAIL With fashion AVERAGE 73% shoppers in major markets like 42% 27% 40% the US and Brazil rapidly becoming platformagnostic, some ripple effects around the retailers ramping up their offerings across all Netherlands Australia 71% mobile fashion eCommerce, with rapid growth. FASHION world are to be expected due to international Japan Sweden UK devices globally in order to compete locally. 0% Aspiring Low penetration, low growth Mobile Superpowers High penetration, low growth MODERATE GROWTH Growth of the share of mobile, Q3 2014 - Q2 2015 78% 47% 48% 41% 33% 26% 37% 20% 28% 18% ITALY SWEDEN 3% 3% 3% UK 5% NETHERLANDS 7% AUSTRALIA 8% JAPAN SPAIN FRANCE GERMANY USA 13% BRAZIL RUSSIAN FEDERATTON FRANCE TABLETS 65% LOW SHARE OF MOBILE PURCHASES 4 SMARTPHONES 250 1-3 PRODUCT PAGES 4+ PRODUCT PAGES 1 CONVERSION 2/3 CONVERSIONS 4+ CONVERSIONS AVERAGE Source: Criteo, Q3 2014 – Q2 2015. Base: 278 million transactions from 832 fashion & luxury retailers 7 63% FASHION FLASH REPORT 2015 How to woo the device-hopping shopper Design a fabulous mobile experience It’s coming, so get ready for it. Create a superior buying experience on every screen, and you will capture more sales from fashion shoppers as they move from device to device. Tips: Speed up your mobile efforts, even if mobile penetration in the markets you operate in seems low today. Track users across devices. Prioritize smartphones against tablets. Show the love to your existing customers Even if they do frequently visit your competitors’ sites, your existing customers are your most important customers. Fickle as they are, you must work to outshine your competition to get them back to your site frequently. Tips: Offer a curated shopping experience in order to capture additional sales from heavy buyers. Reactivate even shoppers who've purchased recently. Make your app runway-worthy Don’t skimp, don’t take shortcuts, and do take risks – your app must be couture-perfect, especially on iOS. Your design must invite repeat visits, minimize time-to-purchase and cultivate impulse buys. The investment will pay off, potentially driving a huge share of your mobile sales. Tips: Reduce purchase to as few clicks as possible. Make it easy for users to save items, or add them to their wishlist. Connect your app to your brand's social media accounts and make sharing easy. 8 9 About Criteo. Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,600 employees in 27 offices across the Americas, EMEA and Asia-Pacific, serving over 8,500 advertisers worldwide and with direct relationships with over 10,000 publishers. For more information, please visit www.criteo.com This Fashion Flash Report can be found at http://www.criteo.com/resources/fashion-flashreport/ 10 Copyright © 2015 Criteo
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