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Consumer Shopping May 21017
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CONSUMER BUYING HABITS
May 2017
SALES LANDSCAPE - U.S. Census bureau reports - total retail sales for Q1 2016 increased by 2.2%. Ecommerce was up 15.2%, a 7.8% increase from 2015. For 2017, we are showing steady growth, up .4% in April. Dot com was up 11.9% YTD in April.
Sales Increase Areas for April: - Home Improvement Stores - Restaurants - Sporting Goods - Hobby Stores - Music & Books sales (down for the year) - Auto Sales
- Overall, outlooks for Q2 looks good based on sales and buying power of the consumer.
BUYING HABITS - HOME - Cotton Inc. Reports – Millennials want more of an experience and education when they shop.
- Shoppers don’t want to wait in lines or go into messy changing rooms. Retailers really need to be on top of their games in- stores. - According to The Monitor, 78% of millennials would be more brand loyal if they could customize their clothes. - Nordstrom reported growth in off price to HTT, siting it as 30% of it’s business and the largest source of new customers. - Macy’s is having success with Backstage with plans to open more stores. Gennette reports a better fleshed out home assortment in Backstage than full line stores.
IN STORE VS. ONLINE - 65% of shoppers research clothes online before purchasing, but 79% of purchases happen in store. True in home too. - This shows how important omnichannel is for the success of any retailer. - Ruelala, an ecommerce site, is known for fun fashion and great storytelling, recently teamed up with Cotton Inc to offer an exclusive pop store event in Boston. - Ecommerce recognizes the importance of brick and mortar for the tactile shopper, just as stores recognize the importance of .com for ease and research. - Men are more likely to purchase online than women. - When consumers shop online they mostly use a computer vs. smart phone or tablet.
HOME
- U.S Home Textile spending was $54.4 Bil in 2016. - It is projected to grow 1/5 to $66.5 bil by 2030
Purchasing Decisions for Home Textiles: - Laundering/Washing most important in bedding. - Absorbency only important in towels. - Color most important in bedding.
BEDDING
- Most research online, purchase in stores. - Most people buy bedding/sheets for replacement of told textiles.
BEDDING
- In-store displays are #1 source for finding out about bedding/sheets. - Mass merchants are still the go-to destination. - Most important factor is comfort, followed by quality and price.
BEDDING
Performance features of most interest: - Shrink resist #1 - No pill #2 - There is more interest in buying sheets with performance features than bedding. - People are at
least 63% more likely to buy a performance feature in cotton vs. synthetic fiber.
BEDDING
- 74% prefer cotton rich.
- 66% likely to purchase USA
bedding, and 71% purchase USA sheets (cotton).
TOWELS
- Towels account for 1 in 5 home textile products imported into the US based on fiber weight.
- 3 in 5 customers are not brand loyal in towels. - 54% of people research online, but only 23% buy online. - 77% of people purchase towels in store. - Conclusion – websites need to be a destination for stories and education. - In store displays account for 45% of purchases.
TOWELS
- 100% Cotton bath towels far surpass any other fabrication. - Softness is the most important feature. - Quality, price and absorbency all tie at a close second.
- Opportunities: - Cotton INC logo - Enduraweave - Silvadur
SOURCES
- http://lifestylemonitor.cottoninc.com/create-a-shopping-experience/ - http://lifestylemonitor.cottoninc.com/tag/shopping-habits/ - https://www.wgsn.com/news/online-leap-makes-april-us-retail-sales-shine-consumers- upbeat-in-early-may-outlook-for-q2- rises/?utm_source=newsletters&utm_medium=email&utm_campaign=fashion-daily- bulletin&product=wgsn&mkt_tok=eyJpIjoiTkRVME16WmhaV015WTJVdyIsInQiOiJoanl3 OTlUSmVsSG9PSk1LOUJlXC9GM0ZBRUkxbzRrSjk3MkVIemxlRU13UEc0NUxDY1RuW UVrenRxSUpIV0w1T3REc2kyellcL21JamM1ZG9RS3VUS2JPVlwvTXZcL2VPc3QyNEkwU GdQYjBmWDhUNkFvV2NKdzl0bllRNWNQUGFqdkYifQ== - http://www.homeandtextilestoday.com/article/543024-nordstrom-price-fastest-growing- business - http://www.homeandtextilestoday.com/article/542989-macys-plans-aggressive-price- rollout?utm_source=hs_email&utm_medium=email&utm_content=51825254&_hsenc=p2A Nqtz-_n5q7oeSaby-eGh6CWnPqKJ-fQauO9rCk8HCD_Xn3EzTxbArWMEUpEO3haeOg- As5BQ0LbpJ3sgbpf7mFIrJwEWryUyb4JzwHpsc3cPgJV7DZYTqE&_hsmi=51825254 - http://lifestylemonitor.cottoninc.com/home-textiles-bath-towels/ - http://lifestylemonitor.cottoninc.com/home-textiles-sheets-bedding/ - http://lifestylemonitor.cottoninc.com/coming-home/ - http://lifestylemonitor.cottoninc.com/reviving-consumer-demand-for-home-textiles/