Fashion is the 1st pick for DTC and cross-border e-tail growth in 2021
04 February 2022, Mumbai:
According to recent survey data from global DTC e-commerce specialist ESW, DTC online purchases increased 17 percent year over year in 2021, fueled by a huge 114 percent global growth in luxury sales.
Behavioral alterations created in reaction to the Covid-19 epidemic, according to the firm, remained entrenched through 2021. Clothing remained the most common cross-border purchase, despite a significant rise in footwear. As previously stated, luxury was the outstanding performance, while multi-brand retailers (+10 percent) and single brand and specialty stores.
Millennials continue to be the driving force behind growing DTC and cross-border buying rates, according to the Global Voices: 2022 study of more than 14,000 customers from 14 countries. In fact, the survey's findings reveal that 25-40-year-olds reported increasing DTC purchases in all 11 of the survey's 11 purchasing categories.
As a result, domestic e-commerce sales of luxury goods (+28%), sporting goods (+19%), cosmetics (+19%), fragrance (+13%), and skincare (+10%) increased significantly across all age groups "as consumers continued to purchase these traditionally high contact' items — that would have previously been validated either by trying on or testing in-store — online."
According to the survey, 37 percent of Millennials made more than 11 online cross-border transactions in 2021, up 12 percent from the previous year. This was followed by 30% of Generation Z, 26% of Generation X, and 19% of Baby Boomers. The UAE (53 percent), China (50 percent), and India (41 percent) buyers reported the highest rates of purchase frequency levels of 11 or more.
In 2021, 31% of respondents in the UK said they will make 11 or more cross-border purchases, followed by 23% in Germany and 23% in France (22 percent ).
In 2021, buyers in Japan (51%) reported spending more than GBP£1,100 (US$1,500) on cross-border purchases, followed by China (44%), the UAE (21%), South Korea (17%), and Mexico (16%). Paying less for things than they would locally (26 percent) and having a favorable prior experience buying from a foreign website were the top reasons given for shopping cross-border (26 percent ).
While more over a quarter (26%) of global buyers bought apparel online outside of their home country, making it the most popular cross-border transaction in 2021, the category only grew by 4% overall.
Luxury and fragrance, two of the top five most popular cross-border e-commerce categories, both climbed by 50% in the last year, followed by footwear (+33%), skincare and cosmetics (+31%), and footwear (+33%). Consumer confidence is strong for 2022, with 53% anticipating their online shopping habits to stay approximately the same over the next 12 months.
In fact, 19% intend to boost their spending, while 22% intend to cut back.
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*Figures mentioned in the above article have been sourced from Fashion Network article.
