Data via Statista
The Fashion industry is going through dramatical changes. What areas should you invest your resources in, and what should you avoid at all cost?
Not only social media has become crucial for brand loyalty, it also allows smaller brands to challenge the big ones by reaching out to the very same audience.
The “catch”? there’s a lot to keep up with.
Trends & Opportunities
Consumers want to be individuals by identifying themselves with authentic brands and products.
Practically that means more personalized shopping experiences, with a focus on niche markets opposed to mass production.
According to data presented by Nosto, 75% of consumers prefer brands to personalize messaging, offers, and experiences through their online stores.
2. Technological innovation
Merchants will increasingly drive growth with machine learning, artificial intelligence, and ecommerce automation tools that offer highly relevant and personalized customer experiences.
3. E-mail marketing
Is becoming vital for brands, as it’s widely used as an efficient and cost-effective method for new customer acquisition, building brand awareness, and increasing product sales.
Email-marketing should be responsible for at least 25% of your total store’s revenue.
A solid brand should aim for 35, 40 or even 50% of sales generated, coming from their email-marketing systems.
4. Value & Price
A quarter of customers globally never buy clothes full price and wait until the sale.
Then, there a lot of unhappiness because the discount isn’t big enough or it’s just sold out.
Clever retailers will focus on value, price, and the availability of their products.
5. Multi-channel ecommerce
Where does your audience usually spends his time? The real power of social media comes from integrating these channels.
Shopping on Instagram, Facebook Shops, Buyable Pins, and more all take advantage of this strategy.
Just remember the words of Kevin Dao, co-founder and CEO/CCO at ORO LA:
“In everything we do, we’re helping the customer imagine. We want them to imagine being the man in every picture. To imagine us being their stylist.
To imagine, ‘That could be me wearing those clothes.’
Image via Shopify
The fast-fashion’s ability to manufacture on-demand and dropship from anywhere pose real threats to established brands that lack an embedded social cause, and aren’t as agile as necessary.
2. Product returns
As e-commerce continues to grab share, it’s going to get worse-perhaps considerably- before it gets better.
Online return rates are high as 50% in some sectors.
Email-marketing automations, for example, can be used to segment serial returners,
and thereby avoid offering discounts and promotions like free shipping to those that take advantage of such options
Millennials are becoming increasingly sustainability and quality-conscious.
Recent studies show that “more than 9 in 10 millennials would switch brands to one associated with a cause”.
4. Big companies
Big eCommerce merchants such as Amazon can always undercut smaller sellers on price.
Having a strong brand image or story which allows you to create a relationship with your customers, is more important than ever.