American consumers are hungry for UK and European fashion, but brands are capturing only a fraction of the opportunity, says new research* from SoldThrough – a fashion logistics and marketplace management company that helps international brands launch, expand and scale across American marketplace channels and retailers including Nordstrom, Bloomingdale’s and Macy’s.
Findings from the US consumer survey, released today, found that 81 per cent say UK and European fashion brands offer something that US brands cannot match, from higher quality materials (25 per cent) and better craftsmanship (24 per cent), to better value for money (24 per cent), greater longevity (14 per cent) and heritage (12 per cent) .
At the same time, more than half (57 per cent) – equivalent to 157.7 million US adults – are already purchasing UK and European fashion, spending an average of $219.20 each a year, a figure that represents a $34.5bn annual market. The categories consumers most want to buy from UK and European brands are accessories (27 per cent), followed by shoes (26 per cent).
However, while demand is clear, for a significant proportion of the population, getting from interest to purchase is proving difficult. The report found that 26 per cent, which equates to an estimated 71.9 million US adults, are currently spending nothing on European fashion, representing a potentially untapped market of $15.7Bn**.
Shipping costs, confusing sizing, returns, delivery times, and customs are among the obstacles that approximately 215 million shoppers face, while one in ten say they can’t buy from a European fashion brand because it doesn’t ship to the US.
In fact, the research shows that when Americans do discover and buy European fashion, online retailers (25 per cent), department stores (21 per cent) and US-based brand websites (21 per cent) are the most common routes.
For European brands, the findings show a clear gap between demand and availability, says Dan Cate, CEO and Founder of SoldThrough.
He comments: “American consumers are telling us they value what European fashion brands bring to the market, and millions are already spending with them. But a consumer may know the brand, want the product, and believe it offers something different from what is available domestically, and still abandon the purchase if delivery is too expensive, sizing is unclear, or returning an item is difficult.
“The US is the world’s biggest apparel market, worth more than $373 billion, so the opportunity is clear, but too many European brands are making customers work too hard to buy from them.
“For UK and European brands looking to enter the US market, this is about understanding that the US customer expects to shop differently. Having the right retail channels, fulfilment and customer experience in place can make the difference between someone being interested in a brand and actually buying from it.”
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