On this weblog sequence, Mintel critiques the most recent retailer advertising and improvements, together with new retailer openings, on-line developments, new idea or class launches. For this month’s spotlight, our retail consultants weigh in on three thrilling developments within the European trend retailer market.
Europe: Inditex sees income and gross sales soar because of autumn and winter collections
The multinational clothes firm Inditex has continued to see rising gross sales and revenue throughout 2023, highlighting its primary trend model Zara as one of many profitable retailers of 2023. Zara’s concentrate on improved digital shops with a handy self-checkout, in addition to a cell app that seamlessly hyperlinks the in-store and on-line, permitting consumers to test for inventory, pre-book a becoming room and click on and accumulate inside two hours, has been one of many key cornerstones of its success. Mintel’s lately printed Clothes Retailing – UK – 2023 exhibits that Zara has seen a surge in its buyer base within the final 12 months, with a giant rise in Millennials and Gen Zs procuring there, with these younger customers exhibiting a desire for hopping between on-line and in-store channels when shopping for trend.
Nevertheless, it’s price noting that Inditex has reported a slowdown in progress within the three months to the tip of October 2023, with gross sales solely rising by 6.6%, in contrast with double-digit progress throughout the identical interval within the final two years. Whereas the style sector has benefited from customers persevering with to deal with themselves to new outfits for socialising and holidays within the first half of the 12 months, the unsure financial outlook could also be beginning to dampen spending and result in a diminished urge for food for brand new trend purchases.”
France: Dimension? reopens its Parisian boutique
Dimension?, the sports activities and life-style model owned by JD Sports activities, continues the rollout of its new idea shops throughout the UK and Europe, with the most recent retailer open in Paris. The brand new retailer is a reopening of Rue Berger in Les Halles, and follows the idea that was unveiled in a number of the Dimension? shops within the UK originally of the 12 months. The brand new design contains a number of digital installations, together with transactional kiosks permitting prospects to buy the in depth Dimension? on-line, in addition to a digital display on each flooring.
Spanning over 160 sq m, the shop affords a variety of males’s clothes and sneakers “from a number of the most coveted manufacturers in streetwear” together with Nike, Salomon, Adidas Originals and The North Face.
Our 2021 report, Footwear Retailing – France discovered that sports activities retailers have been the preferred place to purchase footwear in France and our forthcoming report Clothes Retailing – France discovered the channel was the second hottest place to purchase clothes (34% of French customers had shopped for clothes at sports activities retailer within the final 12 months, surpassed solely by the grocery channel at 38%). Decathlon, Go Sport and Intersport are the main retailers on this channel in France, they usually have benefited from the elevated demand for casualwear in the course of the pandemic, and the extra normal development over the previous few years in direction of a extra casualization of society and the office.
Mintel analysis discovered that Gen Z are the most certainly to buy at a sports activities items retailer (39%) for clothes, highlighting the significance of concentrating on this demographic. This Dimension? retailer does this, with a wide range of digital instruments to reinforce omnichannel procuring, additionally delivering a variety of companies and the all vital “experiences” to tempt consumers into shops.
UK: Bershka launches digital becoming rooms to chop returns and increase on-line gross sales
Bershka has partnered with AI-powered digital becoming room platform 3DLOOK because it appears to cut back return charges and supply a extra “seamless on-line procuring expertise”. The rollout of the digital try-on service is hoped to “eradicate the match and sizing guesswork” and increase ecommerce gross sales.
Accessible on all cell units and laptops, the service asks prospects to take two pictures – entrance and facet views. Powered by synthetic intelligence, a voice assistant guides prospects by the method, making certain optimum posing for correct outcomes. The 3D mapping know-how of 3DLOOK – YourFit, mixed with its superior dimension advice system, delivered quick recommendation on probably the most appropriate dimension whereas creating a practical and correct digital becoming expertise.
With each sizing and the speed of returns being two main points inside the trend sector, AI instruments akin to this one launched by Bershka ought to show profitable and encourage funding by different retailers in related instruments to assist customers when procuring on-line. One of many primary obstacles to purchasing trend gadgets on-line is the problem with judging an merchandise’s match, significantly for ladies, with greater than 6 out of ten feminine web shoppers citing this as a problem, as outlined in Mintel’s Vogue & Know-how market report. Mintel analysis additionally exhibits that nearly half of web shoppers agree that it will be useful for retailers to make use of dimension suggestions instruments, with the likes of Bershka’s newest digital becoming room catering to that demand. Points with match and sizing lead customers to return their gadgets, so discovering the right dimension the primary time round can profit each retailers and customers, and scale back prices. The ‘see the way it suits me’ widget also needs to show in style with Bershka’s core buyer – Gen Zs are most certainly to battle to visualise whether or not an merchandise will go well with them when shopping for on-line.
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