The eCommerce fashion industry has been growing at an exponential rate.
Perk up your ears, especially if you own an online fashion store.
Increasing authoritative data suggests the eCommerce Fashion Industry revenue will nearly DOUBLE by 2022 from 2018.
We can say with conviction, the data did not predict the CoronaVirus pandemic and the predicted growth is likely nowhere close to those statistics… it is going to be MORE, an insane amount of MORE.
Nobody can predict right now how much, so we will just roll with those statistics.
In numbers – The worldwide revenue of eCommerce fashion is expected to rise from $481.2 billion in 2018 to $712.9 billion by 2022.
(Source – Fashion and Apparel Industry Report)
Add to this the impact of COVID-19 and how anxious consumers are choosing to shop online from the safety of their homes instead of physical stores, and we don’t have double, triple, or quadruple growth.
Ladies and gentlemen, we are most likely to witness an exponential amount of growth – Not just Vertical, but Vertical AND Horizontal Growth!
Meaning, not just a rise in numbers, but a rise in scope.
Here’s a fancy chart for you 😉
We are not for jumping on every industry trend that is well…trending. But, such a trend as we are experiencing right now happens only every hundred years or so.
And if you don’t catch it, jump on it, hold onto it tightly, you are going to find yourself holding your head in your hands.
We don’t wish this for you. It’s time to make decisions and implement faster. Today we have a powerful article for you with lots of stats and numbers, which will help you make an informed decision going forward.
Don’t miss it!
The rise of AppCommerce in fashion retail industry
CCI stated that the year-over-year revenue growth for US retailers online is already up by 68% as of mid-April, surpassing the peak of 49% in early January. The report also goes on to suggest that there has been a 129% increase in the number of orders placed online in the US and Canada alone and a 146% growth in all online retail orders.
But that’s not all. Statista also reports that there has been a 70% increase in mobile device usage as the world went into lockdown.
^^^ This ^^^^.
Read that again – a 70% increase in mobile device usage due to Corona, and the habit is here to stay.
Consumers are spending more time on their mobile devices for personal and professional purposes.
And that reason is ENOUGH for fashion retailers to make the next move – embracing AppCommerce like you would embrace a loved one after being separated for 5 years for whatever reason.
You get my point.
According to our study, Shopify stores saw a 41% increase in their revenue through their mobile apps from February 2020 to April 2020 in the US alone, as compared the revenue generated from November 2019 to January 2020. The number further increased by 117% as the fashion retailers entered April 2020. It started when consumers started to go under lockdowns due to COVID-19, looking at ways to keep themselves engaged and order what they need online to now online shopping becoming a way of life.
Of course, your results will differ.
Simply put, as we advance into the new normal, it is imperative for fashion and apparel retailers to adapt their strategy to mobile.
But with more brands going online and increasing competition, it’s important to take your mobile strategy a step further from mCommerce (mobile responsive sites) and find a way to improve ‘brand stickiness’ – A strategy that will have consumers coming back to your brand over and over again, irrespective of the offers being made to them – a mobile app.
But, there’s a catch. Some people are fast to adapt to trends, and early adopters always have the biggest advantage.
The late-comers always miss out, be it in school, or be it in business. You don’t want to keep waiting for market saturation to begin turning your store into an app. Act fast.
Think about how many times you opened the Amazon app in the last two months. Be it to purchase essentials or wishlist items that you want to order after the stay-at-home order is lifted.
Why do fashion and apparel retailers need a mobile app?
Online shoppers prefer mobile apps to mobile sites
The need for being mobile-ready has been spoken about endlessly. But what a lot of businesses don’t take into account is why consumers choose to purchase from retailers like Amazon instead of their stores.
The difference is having the option to download an app that they can open in a fraction of a minute to make purchases or simply browse through vs having to wait for each mobile web page to load and sign in each time (biggest drop-outs happen here).
According to our survey, more than 50% of shoppers choose to use a mobile app instead of a mobile browser to access online stores. They feel that a native app makes it much easier for them to shop, especially if they want to interact with a brand more than once.
It offers a far more personalized shopping experience, with personalized offers, suggestions, notifications, and discounts, all of which you can offer through an app.
Other reasons stated for this preference include not having to remember store URLs, logins, better security and speed of mobile apps as compared to the mobile browser.
Mobile apps improve brand stickiness and improve customer loyalty
In times where every fashion retailer is considering going online, the increase in competition for consumer attention is skyrocketing.
A typical consumer has the choice of making a purchase from at least ten online fashion stores today. Each one of them offers a competitive deal, discount, a first-purchase offer or a varied range of products they’re interested in. In times when the consumer has become more price-conscious and open to exploring new brands due to the extra time they have, loyalty is taking a hit.
Think about the number of ads you see on Instagram every day. You check out one new store that offers home furnishings and you are later shown ten more in less than a week. By the end of the week, you’ve forgotten the first store you visited.
Consumers who choose to download your store’s app show a higher level of commitment to your brand. They’re more aware of what your brand has to offer and are more likely to be closer to making purchases due to engaging push notifications and marketing campaigns you can offer through the app.
On the other hand, shoppers that access a mobile site are most likely just exploring new brands or trying to get more details about what you have to offer.
While studying consumer behaviour, we noticed that shoppers also spent 4X more time in apps than on mobile sites. Additionally, Criteo found that mobile app users are twice as likely to return to your store within 30 days as compared to shoppers who simply accessed your site in a mobile browser.
AppCommerce ensures an enhanced mobile shopping experience
The rise of mCommerce is owed to the need for offering mobile shoppers a seamless online shopping experience. But as time progressed, this need for frictionless shopping and instant gratification grew.
Right from being able to navigate through a store, searching for specific products, being shown product recommendations to the ability to wishlist items, they would want to purchase later and more, the new-age consumer seeks a more enhanced shopping experience.
On a mobile responsive site, you would typically have to take away a few design elements to streamline the load time and on-screen visual experience. This often results in not being able to offer the same shopping experience to mobile shoppers like the ones using the desktop get to interact with.
By adapting to AppCommerce or creating a mobile app, you get to offer a holistic shopping experience to consumers. You get to offer features like creating wishlists, saving items to collections, filtering search results and more, providing high interactivity.
The shoppers don’t have to struggle with limited navigation or having to click multiple times on elements that don’t seem as intuitive – take for instance the ‘heart’ button below the images of the products!
Mobile apps reduce your response time to online interaction
The load time of your Shopify store has a big impact on the conversions you get. In comparison to a mobile responsive site, a mobile app offers a significantly lower response time to complete any action.
Let’s take into account how long it takes for you to open Amazon on your mobile browser vs the amount of time it takes you to launch their app. The latter is faster and hence you end up being able to find the product you were looking for and completing the purchase in minutes, as compared to the amount of time you would have spent on their mobile site.
That’s because mobile apps retrieve data much faster.
Faster the response time, the quicker the shopper is able to start their online shopping journey with the brand.
Adapting to AppCommerce increases conversion rates
The easy access to a brand’s store, seamless interaction and high usability obviously lead to higher conversion rates. Surveys suggest that having an app increases the percentage of users who complete the desired action as compared to those accessing the store on desktop or mobile web. Be it signing up for a newsletter, creating a customer account, creating a wishlist, exploring more products or adding a product to cart and completing the purchase.
We noticed that Shopify stores with a mobile app saw a 27% increase in their conversion rate. Additionally, the enhanced on-the-go shopping experience also leads to shoppers browsing through 4X more products, increasing the chances of them purchasing a product during the session.
Shopify stores have also seen a 130% higher average order value on mobile apps as compared to desktop and mobile sites.
Mobile apps have also proven to have a lower cart abandonment rate due to their intuitive interface and simplified checkout process. The ability to complete a purchase in just a few clicks leaves less room for distractions that could take a shopper away from making a transaction.
Want to know more about the impact of a mobile app on your fashion and apparel retail store’s conversions? Contact us to get access to an exclusive study.
Increased engagement. Better customer loyalty. Increased conversions and repeat purchases. More revenue.
But that’s not all. With a mobile app, your fashion retailers can use a phone’s inbuilt features to further enhance customer engagement and ease of shopping.
For instance, stores can consider enabling ordering via voice search using the microphone. They can use GPS to identify a shopper’s location to customize their in-app experience by displaying only products that are being delivered in their area.
And now the one reason why investing in creating a mobile app for your store only means more revenue for your brand.
AppCommerce is purely organic revenue (mostly!)
According to the study we conducted, mobile app revenue is purely organic. Once you’ve set up your app, all you need to do is inform your customers about it through social media, email, SMS or even Messenger. A simple announcement bar on your desktop and mobile site do the trick too! No paid push – a simple announcement.
The mere ease of shopping through a mobile app makes consumers want to install the app right away. In addition to quick adoption, they also tend to recommend it to others in their network. Consider the number of times you’ve recommended someone to download the Amazon Prime app to make it easier to shop daily groceries.
So the revenue that comes through AppCommerce, is purely organic. But if you do want to give it an additional push, you can set aside some promotional budget for it.
Transitioning to mCommerce takes online fashion retailers years to perfect. That’s why many are sceptical about moving to AppCommerce.
But with increased competition and changing consumer behaviour, it is crucial for fashion retailers to take the next step.
How can fashion retailers adapt to AppCommerce?
1. Converting their online fashion store into native mobile apps
Gone are the days when it took months to set up an eCommerce mobile app. Using our platform, the Shopify Plobal Mobile App, your store can create native Android and iOS apps in just a few days. The app offers a simple drag and drop builder that requires no coding skills and has many stunning pre-created app designs you can customize into your own.
You can upload unlimited product listings, organize catalogs by category and also enable real-time auto-sync with your Shopify store to ensure your apps remain up-to-date at all times.
Ready to turn your Shopify store into a mobile app? Install PlobalApps today.
2. Making mobile app checkout seamless and faster
A few rules remain the same across eCommerce, mCommerce and AppCommerce. If it’s going to take the shopper too long to complete a purchase, there’s a high chance that they will abandon the cart despite the best of products and deals you’re offering.
With a native mobile app, you can offer a seamless shopping experience to consumers and a frictionless checkout. You can enable easy payment methods with Apple Pay and Android Pay integrations along with other payment gateways for lightning-fast checkouts.
This gives lesser room to an online shopper to re-think their purchases, decreasing your cart abandonment rate and increasing conversions.
3. Setting up push notifications for better engagement
While creating a mobile app will get you a base of customers that are committed to your brand, it is still important to keep them engaged for driving a higher number of sessions. This is similar to how the apps on your phone remind you of a new feature you were exploring or the last time you opened the app.
You can do this by setting up push notification campaigns within PlobalApps. Promote your ongoing sales and discounts, or offer an exclusive coupon to those who install the app and make a purchase through it. Remember to keep your message crisp and clear to grab the mobile user’s attention immediately.
Pro tip: Consumers have complete control over the push notifications they receive. So make sure that you’re adding value to them and not spamming their notification centre.
4. Creating a customer loyalty and rewards program
In times when a typical fashion shopper has the choice of purchasing from various brands – some new and some old, it is important for fashion retailers to focus on customer retention. Even though installing your mobile app is an indication of a customer’s loyalty to your brand, it’s a good idea to ‘motivate’ them to remain this loyal.
You can do this by setting up customer loyalty and rewards programs on your Shopify store and enabling sync of accounts with your mobile app. This enables a shopper to earn and avail the rewards they get from purchases and other store interactions on both the platforms, making them more likely to come back to your desktop and mobile sites, as well as your mobile app for more sessions.
For instance, you can offer rewards on making their first purchase from your mobile app, creating a customer account, setting up their wishlist with 10 products they like or sharing their purchase on social media.
Implementing this strategy right from the point of adopting AppCommerce will enable you to improve the stickiness of your app. At the same time, it will also encourage more app sessions leading to higher conversions and purchases.
5. Localising your mobile app to resonate with your target market
The aim of adapting to AppCommerce is to make it easy for shoppers to engage with and purchase from your brand online. But certain markets require a personalized and localized approach to convert shoppers into customers. Think about the number of times you chose to buy from a brand that was local to your area or you understood the language they were promoting their offers in.
You can customize your mobile apps with local languages using PlobalApps and Langify integration. This enables you to promote your mobile app to new customers from different locations, offer a more local experience to those that install your app and increase your conversions with lesser chances of drop-offs, refunds and returns.
Does your fashion and apparel brand need to adapt to AppCommerce?
Even though the lockdowns across the world are easing out, shopping has changed forever. Consumers are going to choose to make online purchases for years to come, limiting their exposure to physical retail stores for absolutely bare minimums.
This changed consumer behaviour will lead to an increase in demand for an easy interaction on devices they’re more likely to use – mobile. While mobile responsive sites have been doing their part in letting consumers shop on mobile devices, they will no longer be able to keep up with the increased expectations for experiential and seamless eCommerce.
Now considering how fashion consumers are projected to have more buying power, with the potential number of customers estimated to grow more than 1.2 billion by the end of 2020, it’s important for retailers to catch up on trends and technologies that appeal to this new audience.
Ready to take your fashion and apparel retail business to your customer’s mobile?
Want to learn more about the impact of AppCommerce on the fashion and other retail industries?