When it comes to brands that stand out in online apparel shopping segment, subscription services are leading the pack.
Apparel subscription services, like Stitch Fix and Trunk Club, and introduction of Amazon’s Prime Wardrobe are disrupting the apparel segment. While the subscription method of shopping for apparel is still in its infancy, consumer reach — and interest — is growing, according to research from The NDP Group.
Stitch Fix, Trunk Club and Le Tote subscription membership grew to nearly 5% of online shoppers. Their average annual spend per purchase increased 5% to $170, according to NPD’s Checkout Tracking E-commerce information.
The Stitch Fix subscriber gave one-third of their online apparel wallet to Stitch Fix. Trunk Club subscribers gave 40% of their online apparel wallet to Trunk Club.
“We have entered a new world of retail where the traditional leaders are faced with unconventional channel competition, and subscription services are the newest player,” said Marshal Cohen, chief industry analyst, The NDP Group.
“Consumers are more critical about the purchases they make today and no longer purchase just for the sake of purchasing,” he added. “The personalized approach of subscription services complements the shift toward more prioritized spending.”
While only 15% of consumers have ordered subscription boxes, another 14% haven’t yet ordered them but plan to. However, 35% don’t even know what these services are — which presents an untapped customer segment for subscription-based retailers.
Some subscription services are also adding an additional dimension to the emerging retailing genre. From Amazon’s
Prime Wardrobe to Stitch Fix, Trunk Club and Floravere, these retailers are giving shoppers the opportunity to “try before you buy.” With no upfront charge or added fee, shoppers can return unwanted pieces and pay only for the items they keep. One feature that gives Amazon’s soon-to-launch service a leg-up on its competition however, is that it enables shoppers to pick out their own clothes — without paying a styling fee.
“There is a great deal of room to grow within the subscription model, and the competitive field will continue to expand as online retailers develop subscription services and options for auto-replenishment of fashion basics,” added Cohen. “This kind of innovation, delivering personalization and convenience, will continue to change the face of retail for fashion.”