Apparel retailers must improve digital capabilities for growth: Study


As the apparel industry is seeking to regain its footing from 2020, retailers with investments in digital technologies prior to or early in the pandemic fared far better financially, according to Incisiv’s 2021 Apparel, Footwear & Accessories Digital Maturity Index, which stresses that apparel retailers must improve digital capabilities for growth.

Close to 70 per cent of revenue comes from digital channels by 2025, as per the Index produced in partnership with Hughes Network Systems, LLC (HUGHES).

According to the report, the buying journey has been forever changed, and digital is now the starting point for over 90 per cent of shoppers. Proving that the path to purchase decision is no longer linear, 70 per cent of traffic to apparel retailers’ websites is from mobile devices. Nearly 70 per cent of market sales now come from a digital platform.

In online ordering, the “buy-now, pay-later” trend led the way with close to 60 per cent of retailers now offering the option. However, one of the most critical components of retail, inventory visibility, saw almost no advancement in maturity. The report further revealed that 88 per cent of retailers rank digital innovation as the highest investment priority over the next two to three years.

“The apparel industry has had to endure unparalleled disruption to their business models in the last 24 months. The segment should be commended for the speed by which they have adapted,” said Amarjot Mokha, chief operating officer, Incisiv. “However, shopper behaviour is a moving target, and the industry must still evolve to meet their expectations. We conduct this work to help retailers understand how they compare to their peers and to help identify high-impact improvement opportunities based on the complete digital shopper journey.”

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The Incisiv Digital Maturity Index examines the biggest gaps and opportunities to improve the digital experience for these omni-channel shoppers, and shares which retailers currently deliver the best omni-channel experience. Incisiv recognises 21 retailers and brands as leaders, including Abercrombie & Fitch, Belk, DSW, Macy’s, Pacsun, Ralph Lauren and Target. 

“As revealed in the Incisiv report, digital is now the front door to the retail store and essential to profitability,” said Jeff Bradbury, senior marketing director, Hughes. “It’s not just about ecommerce but digital must be part of the entire customer journey – especially in the store, where the brand experience comes to life.”

As the apparel industry is seeking to regain its footing from 2020, retailers with investments in digital technologies prior to or early in the pandemic fared far better financially, according to Incisiv’s 2021 Apparel, Footwear & Accessories Digital Maturity Index, which stresses that apparel retailers must improve digital capabilities for growth.





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