Media Alert: Adobe Analytics Shows Online Apparel Sales Putting Pressure on In-Store Sales

28 Jun

Adobe has released its first Digital Price Index (DPI) for the apparel category, leveraging data from Adobe Analytics Cloud. The DPI data reveals tremendous choice, volume and velocity in the online apparel category. Nearly half of the 7,000 new apparel products that appear online each day are targeted at women (3,150), while one-quarter (1,750) at men and the rest to children, babies and footwear. Nearly one-third (30.8 percent) of all spending on women’s clothing went toward products that are one month old or less, while 18.0 percent of spending on men’s apparel was for items that were one month old or less.

The May DPI apparel data shows prices for apparel online drop faster than offline. The DPI found 4.3 percent YoY price deflation in May, compared to the Consumer Price Index’s relatively flat deflation rate at 0.9 percent in May. Data also points to the biggest discounts for the highest and lowest priced apparel online. High-end apparel, the top 25 percent most expensive items online, show a 5.5 percent drop in prices YoY while low-end apparel, the lowest 25 percent, saw prices decrease by 7.5 percent over the same time period. Compare this to the middle 50 percent of apparel, which shows minimal deflation YoY.

“With retail chains closing stores at a record pace, we’ve been closely watching the impact on the e-commerce world,” said Mickey Mericle, vice president, Marketing and Customer Insights at Adobe. “For the first time, we’re seeing that apparel sold online is clearly developed with a specific velocity in mind, and an incredibly high turnover rate, compared to other categories we track.”