North American fashion e-commerce is recovering, but logistics issues are a hindrance

North American fashion e-commerce is recovering, but logistics issues are a hindrance

But even as fashion recovers, brick-and -mortar retailers like Urban , Gap and Nordstrom are struggling to keep up with consumers, and online sellers continue to face congestion at U.S. ports and a shortage of containers, which could keep supply of fashion from keeping up with consumer demand.

 

Apparel sales fell 19% last year , according to market researcher NPD Group, as Americans stayed home and focused their attention on groceries and other household essentials .

 

NPD said that last year, due to the epidemic, consumers stayed at home and comfort became the top priority in clothing : sales of sweatpants increased by 17% year-on-year , sales of pajamas increased by 6% year-on-year , sales of slippers increased by 21% , while fashion footwear fell by 27% throughout the year .

 

Throughout the past year, North American consumers have lost their "worldly desires" for fashion .

 

But at the beginning of spring 2021, as the number of reported cases was declining due to the widespread use of COVID-19 vaccines in the United States, some social restrictions were lifted, encouraging consumers to venture out to restaurants or watch movies at night , and fashion purchases were put on the agenda.

 

( Fashion popularity in the past 30 days on Google Trends )

In addition, with the relaxation of social restrictions, some schools have been able to reopen. The craze of the back-to-school season has not only brought a large amount of traffic to school supplies, but also attracted a lot of popularity to fashion - many students will want to wear the latest clothes to meet classmates they haven't seen for a long time .

 

However, fashion sellers should not be happy too soon, because of the congestion at US ports and the shortage of containers , goods are backlogged and the shipping delay ranges from three to four weeks . In addition to the increased logistics costs, the backlog of fashion leads to missing short-term trends, which also creates cost pressure.

 

"People have money in their pockets and they're tired of staying home and wearing home clothes, " said Stacey Widlitz, president of SW Retail Advisors. " The weather is getting better and people are happy to go out again, and you can even see women wearing bright skirts in the park . "

 

Although fashion is gaining popularity , some predict that comfortable casual clothes will continue to grow in 2021. This is because some consumers have become accustomed to wearing comfortable casual clothes in the past year, and some companies will relax their dress code for employees. Therefore, comfortable casual clothes are still a big obstacle to the hot sales of fashion.

 

U.S. apparel retailer American Eagle said it expects its current-quarter sales to be its strongest in three years , helped by growth at its Aerie brand , which sells yoga pants, sports bras, sleepwear and some work-from-home products .

 

Kontoor Brands similarly said jeans are making a comeback as Americans seek a balance between style and comfort.

 

Clothing sellers need to note that in addition to considering consumer preferences when selecting products and competing with local physical stores in the United States, they also need to pay attention to current logistics conditions in terms of transportation.

 

In addition to plaguing online platforms, logistics issues are also a headache for physical stores. Nordstrom pointed out that logistics delays hurt its fourth-quarter performance. Gap also pointed out that port congestion is expected to continue into the first half of this year , which will lead to higher inventory levels in the second quarter.

 

 


North America

Fashion

E-commerce

logistics

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