Majority of Footwear Purchases Happen Online According to Survey (Approximately 75%)
The dynamic landscape of online footwear shopping continues to evolve, with the expansion of e-commerce sales driving an increasing number of consumers to purchase shoes digitally. According to a survey of 11,862 shoppers by PowerReviews, a staggering 89% spend more than $101 annually on online clothing and footwear purchases, and 74% of all footwear expenditure takes place online.
A significant proportion of online footwear shoppers, 69%, regularly or frequently seek user-generated photos and videos before making a purchase. The survey also revealed that 63% consistently or frequently review the question-and-answer section of product pages.
When considering online clothing and footwear purchases, shoppers take price, ratings and reviews, images from customers who bought the product, and the retailer's exchange policy into account. However, fewer than half of respondents (48%) said they consider the product's brand, and even less (38%) said they consider the retailer they are purchasing from or recommendations from friends and family (34%).
The PowerReviews survey reflects several trends that emerged early in the COVID-19 pandemic, including increased online spending and a shift towards casual styles. The majority of respondents (96%) said they shop online for casual clothing and footwear, followed by athletic wear and shoes (84%) and sleepwear and intimates (73%).
Previous research predicts a rise in e-commerce spending, with projections from FTI Consulting, Forrester, and Adobe estimating this year's online spending to surpass $1 trillion. Despite the growth in e-commerce spending, apparel and shoe brands may face a downturn due to supply chain issues.
A report by Kearney in January anticipated that North American clothing and shoe brands could lose anywhere between $9 billion and $17 billion in EBITDA in 2022. In July, a survey from the Footwear Distributors and Retailers of America found that the majority of shoe company executives anticipated lower sales in Q3 and Q4 of 2022. As a result, about two-thirds of the respondents stated they would not hire more employees in the coming months, and a third predicted their inventories would decline. In the weeks since, footwear brand Allbirds and retail giant Walmart have announced layoffs.
The growing preference for online footwear shopping and the continuing challenges faced by apparel and shoe brands are key developments to watch in the industry.
- Amidst the evolving landscape of the footwear industry, the rise of AI-driven research in supply chain management could potentially address the issues of supply chain disruptions, aiding apparel and shoe brands in maintaining profitable operations.
- As online spending is projected to surpass $1 trillion this year due to the pandemic, it's crucial that retailers implement business policies focused on providing competitive prices, positive exchange policies, and exceptional customer service to attract and retain consumers.
- The influx of online footwear sales and the associated need for a high-quality digital shopping experience has led to an increasing demand for AI-powered online assistant services, providing personalized product recommendations and enhancing overall customer satisfaction.
- While e-commerce giants like Walmart expand their footwear offerings, smaller, specialized footwear brands might need to leverage collaborations with influencers and AI-driven marketing strategies to compete effectively within the retail industry.
- With Finance sector predictions estimating that inflation will remain elevated for the foreseeable future, it might be necessary for footwear brands to reassess their pricing strategies to account for increasing production costs while still remaining competitive in the market.
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