Apparel Logs In at the Top Spot in Online Holiday Sales

For the first time in e-commerce history, apparel made it to the No. 1 spot online this Holiday season. Most experts were surprised at the rate of growth, which put apparel ahead of former leaders consumer electronics (which experienced moderate growth) and books (whose numbers dropped a little).

Online apparel sales rose a whopping 42 percent, to about $5.3 billion. “That’s significant because it shows consumers willing to buy items that are often purchased based on a shopper’s fit, material quality and other questions best determined in traditional retail settings,” said Nielsen/NetRatings Senior Analyst Heather Dougherty.

Besides the apparel boom, experts were also surprised by the overall growth in online Holiday shopping in all categories—at a pace that beat even the most optimistic forecasts. ECommerceTimes.com reported a rate of growth across the board of about 30 percent, totaling more than $30.1 billion.

Online retailing got an early present this year as last-minute shoppers rewarded e-tailers with a huge jump in sales the week of Dec. 13–19, a surge of 57 percent over the same period in 2004, according to a report by market research firm ComScore Networks. The report said a shift in the calendar was partly responsible for the late-season sales acceleration, because consumers got two extra shopping days this year between Thanksgiving and Christmas. Additionally, more retailers began offering discounted- or free-shipping incentives as the shopping season progressed.

“Retailers have worked tirelessly to translate the lessons of years past into improved merchandising systems and strategies, and the work is paying dividends this season,” said Dan Hess, senior vice president of ComScore.

Perhaps most significant, seven of the top 10 busiest sites during the Holiday shopping season were retailers that operate in more than one channel, with eBay, Amazon (which ranked first and second, respectively) and Overstock.com as the only pure players on the list. (The bricks-and-mortar retailers were Wal-Mart, Apple, Target, Dell, Toys R Us, Best Buy and Circuit City.)

Although free shipping and other aggressive online promotions obviously cut into e-tailer profits, the losses did not compare to the sheer growth of volume, as well as in cross-marketing opportunities for those seven with catalogs and/or bricks-and-mortar stores.

Bottom line: Many more people bought many more garments online, and at such a pace that Nielsen/NetRating’s Dougherty said “double-digit expansion seems possible for another couple of years. You’re still seeing more shifting of the dollars. More people are becoming new buyers, and more dollars are being shifted online.”

Consulting firm KPMG said that more than half of all shoppers bought something online this Holiday season, including older consumers. “The Internet continued to attract the most desirable customer: The higher the income, the more the likelihood to buy on the Internet,” said John Rittenhouse, in charge of KPMG’s Operations Risk Management division. “People with incomes over $75,000 were twice as likely to use the Internet compared with people with incomes under $30,000.”

Site reviews: Breaking the model mold

Those who create online fashion modeling services have become increasingly Web-savvy over the past few years, and so has their ability to present the looks sought by manufacturers, designers, and fashion- and trade-show producers.

PromoModels.com is a nationwide promotional staffing company that provides spokesmodels and promotional models for a variety of marketing events and promotions. Claiming to have the largest promotional modeling roster in the country, it serves both large and small companies and their agencies.

Among several unique services is that of “Brand Ambassadors,” which offers specialized search features that help the user find representatives to fit a wide range of criteria.

The Flash-based site shows off hundreds of member-models and offers a direct-booking form. Educational resources include an advanced glossary and tips on photography, preparation and professionalism.

At the other end of the modeling-industry spectrum is WickedTalent.com, a modeling and movie-extra referral service for “alternative” talent. Not as flashy, it offers “goths, glam, pierced, punk, tattooed and all-around circus freaks” to the fashion and entertainment industries. The site includes a long and varied list of member-models along with an ample list of photographers, stylists and illustrators. Bookings are not as automated as at PromoModels but can be accomplished with a simple e-mail request. A neat little store offers “goth-couture” clothing, cosmetics and jewelry.

Both sites appear to do a good job of providing what their constituents need in terms of information and high-quality, well-produced model images. And both demonstrate the flexibility of Web-site design today in meeting the varied needs of clients.