Fashion, the industry that makes up a huge chunk of global ecommerce world, is characterized by spur of the moment purchasing decisions, short buying cycles and a wide arrange of products, categories, brands and price points.
All of this makes it an exciting and interesting industry to work in and benchmark specifically looking at the evolving online performance. Due to its competitive nature, the fashion industry is also one that requires introspection and awareness into current trends to succeed. A new benchmark report by PrestaShop’s official partner Nosto set out to not only paint a picture of the European online fashion industry as it stands in 2016, but to also provide fashion (and why not other) retailers with actionable advice for future success. A total of 241 million visits were analyzed for the report and this post will introduce you the key findings of 2015-2016 trends and KPIs, as well as insight around device use to drive multi-channel strategies. On average the European Fashion industry* saw a 16.7% increase in online revenue - Mobile is on the rise Some of the most interesting findings from the new report suggest that the European fashion industry keeps growing in terms of online sales. The biggest growth can be seen in Germany, while Spain and the Nordics see a more conservative growth. The small uplift for Nordics might be explained by a growth curve that’s gradually reaching saturation for online savvy shoppers. While 66% of all online revenues still come from desktop - mobile finally overtook tablet as the second-highest revenue generating 18% of all online revenues. The Nordics, the UK and Spain all saw mobile growth substantial enough for it to overtake tablet as the second-highest revenue generating channel in their area. The Nordics saw the highest percentage (21%) of its total revenue coming from this channel while Germany saw the lowest activity from mobile users. Visits vs conversion still differ significantly depending on device Conversion is by far one of the most important KPIs for success for an online business. With high competition and increasing customer acquisition costs, if someone lands on your site, it is important to make sure they actually convert into a paying customer. Almost across the board there have been increases in conversion from 2015 to 2016, with the European average now sitting at 2.32% Reflecting the trends that were evident for revenue, mobile traffic had the largest percentage increase for all geographies - with a 10% average increase across Europe as a whole. This suggests people browse more and more on the go, but what happens when we break down conversion by device? As may now be expected, the device results for conversion reflect what we have seen with traffic and revenue in terms of extensive mobile growth - with the European average seeing a massive 25% increase in mobile conversion. Unfortunately however even with the whopping jump in mobile conversions, the CR still sits at 1.70% compared to the overall average of 2.32%. These results indicate that the mobile experience, specifically the ease of mobile checkout, is improving, but that there’s still a lot to be done while designing the mobile experience. Key takeaways While the report suggests fashion shopping over especially mobile is increasing at a rapid pace, fashion businesses should place mobile at focus when planning their multi-channel strategies. Mobile visitors are key contributors to ecommerce growth, not only to its growth in traffic. And while mobile users might not boast the same conversion rates as tablet and desktop users, the rate at which mobile conversions are increasing is a clear indication that mobile optimization especially for the European fashion scene is a must. A key indication that the benchmark report suggests is that while the rise of mobile has been happening for years, 2017 might become the year when mobile users finally reach the same level of conversion as the overall figure figuratively transforming them from window shoppers to paying customers. Putting your shoppers at the center of your ecommerce strategy never goes out of style. This is why taking in and planning around the newly revealed trends, especially around mobile, is key when growing your business in early 2017 and beyond. Read more about the European ecommerce fashion trends, the KPIs and most importantly what to do about them in the Benchmark report ‘European online fashion in 2016 - A benchmark report and recommendations for growth’. The report is analyzes the data from a total of 241 million visits in 700 fashion stores across the Nordics, France, Spain, Germany and the UK. Boost the performances of your website thanks to the Nosto module ‘The Complete Personalization Solution for PrestaShop’. This module is already pre-installed and ready for use in the PrestaShop solution. Benefit from a 14 days free trial and get started today!