88% of retailers rank digital innovation as the highest investment priority over the next two to three years
JACKSONVILLE, Fla., January 26, 2022--(BUSINESS WIRE)--As the apparel industry sought to regain its footing from a disastrous 2020, retailers with investments in digital technologies prior to or early in the pandemic fared far better financially, according to Incisiv’s 2021 Apparel, Footwear & Accessories Digital Maturity Index, produced in partnership with Hughes Network Systems, LLC (HUGHES).
According to the report, the buying journey has been forever changed, and digital is now the starting point for over 90% of shoppers. Proving that the path to purchase decision is no longer linear, 70% of traffic to apparel retailers’ websites is from mobile devices. Nearly 70% of market sales now come from a digital platform.
Additional key takeaways from the report include:
In research & discovery, personalization and product recommendations saw the highest growth in maturity. Retailers that added sections for cross-selling on product page saw the most growth at 60%.
In online ordering, the "buy-now, pay-later" trend led the way with close to 60% of retailers now offering the option. However, one of the most critical components of retail, inventory visibility, saw almost no advancement in maturity.
In fulfillment, contactless pick-up and self-service capabilities saw the most growth while other pick-up options such as pick-up in-store and expedited pick-up continue to lag more mature segments in this area, such as grocery.
In customer service, communication channels such as subscribing for text alerts and virtual assistants saw the most growth (although still low at less than 35% adoption) and shopper engagement capabilities saw the least growth year-on-year.
"The apparel industry has had to endure unparalleled disruption to their business models in the last 24 months. The segment should be commended for the speed by which they have adapted," said Amarjot Mokha, Chief Operating Officer, Incisiv. "However, shopper behavior is a moving target, and the industry must still evolve to meet their expectations. We conduct this work to help retailers understand how they compare to their peers and to help identify high-impact improvement opportunities based on the complete digital shopper journey."
The Incisiv Digital Maturity Index examines the biggest gaps and opportunities to improve the digital experience for these omnichannel shoppers, and shares which retailers currently deliver the best omnichannel experience. Incisiv recognizes 21 retailers and brands as Leaders, including Abercrombie & Fitch, Belk, DSW, Macy’s, Pacsun, Ralph Lauren and Target. The complete list of Leaders is available to download here.
"As revealed in the Incisiv report, digital is now the front door to the retail store and essential to profitability," said Jeff Bradbury, senior marketing director, Hughes. "It’s not just about ecommerce but digital must be part of the entire customer journey – especially in the store, where the brand experience comes to life."
Click here to download the complete findings from Incisiv’s 2021 Apparel Digital Maturity Benchmark Report.
Incisiv’s 2021 Apparel Digital Maturity Benchmark Report is based on insights from its proprietary digital maturity benchmarking methodology. The insights span 104 retailers, 180 digital capabilities and five industry segments of apparel retail. The report assessed on measurable attributes in the areas of research & discovery, online ordering, fulfillment, and customer engagement & experience. Attributes are categorized as table-stakes or differentiating based on their impact on key digital performance metrics such as average order value (AOV) and conversion.
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at https://www.incisiv.com.
About Hughes Network Systems
Hughes Network Systems, LLC (HUGHES), an innovator in satellite and multi-transport technologies and networks for 50 years, provides broadband equipment and services; managed services featuring smart, software-defined networking; and end-to-end network operation for millions of consumers, businesses, governments, and communities worldwide. The Hughes flagship Internet service, HughesNet®, connects more than 1.5 million subscribers across the Americas, and the Hughes JUPITER™ System powers Internet access for tens of millions more worldwide. Hughes supplies more than half the global satellite terminal market to leading satellite operators, in-flight service providers, mobile network operators and military customers. A managed network services provider, Hughes supports nearly 500,000 enterprise sites with its HughesON™ portfolio of wired and wireless solutions. Headquartered in Germantown, Maryland, USA, Hughes is owned by EchoStar. To learn more, visit www.hughes.com or follow HughesConnects on Twitter and LinkedIn.
EchoStar Corporation (NASDAQ: SATS) is a premier global provider of satellite communication solutions. Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in secure communications technologies through its Hughes Network Systems and EchoStar Satellite Services business segments. For more information, visit www.echostar.com. Follow @EchoStar on Twitter.
©2022 Hughes Network Systems, LLC, an EchoStar company. Hughes and HughesNet are registered trademarks and JUPITER is a trademark of Hughes Network Systems, LLC.
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Ketner Group (for Incisiv)
Sharyn Nerenberg, Hughes