Home / Knowledge / News / Apparel/Garments / US retailers turn to online as consumer conduct changes
US retailers turn to online as consumer conduct changes
11
Jul '16
The retail industry in the US is going through a form of evolution, maybe even a revolution. E-commerce has changed the way retailers sell, so that the major brick-and-mortar companies are looking at their individual stores, potentially closing what they consider unprofitable stores, and investing in e-commerce to continue to grow their business.

These are some of the observations from Marc Heller, President, CIT Commercial Services, a division of CIT Group Inc. a leading provider of commercial lending and leasing services, in “E-commerce Drives Retail Revolution” (cit.com/heller), the latest piece of market intelligence in a series of in-depth CIT executive Q&As.

“In apparel, millennials and teen consumers have different buying habits than their parents, which is reflected in millennials' preference for 'buying' one specific item, even when at a mall or a store, rather than 'shopping' for multiple items,” said Heller according to a CIT press release.

“This difference can be attributed to the fact that millennials are often accustomed to buying a specific item online rather than browsing for items in multiple stores. Consumers whose shopping behavior was established before the rise of e-commerce could be more likely to browse through a store or a mall, leading to the discovery of new items and greater sales.”

According to Heller, consumers are now favoring experiences over products. The apparel side of the business, as well as accessories, has slowed down. In the recent past, handbags, watches and leisurewear were booming. Those areas seem to have taken a significant step back, while consumers are spending more on restaurants, vacations and health spas. Consumers are favoring experiences over products, and retailers are reengineering their businesses as a result.

He also underlined that the furniture sector remains strong. Feedback at the furniture show in High Point, North Carolina, indicated that the show was extremely busy. A looming question in the furniture sector is whether the Asian suppliers will go direct to retail versus using furniture companies in the US to distribute.

Heller noted that consumer product companies that sell to retail still pursuing mergers and acquisitions.

“Consumer product companies that sell to retail are looking to acquire the front ends of businesses, because that gives them an increase in revenue. If the acquirer already has the back office, warehousing and sourcing in place, an acquisition can add significantly to the bottom line, especially if the company is acquiring a brand that sells to customers it doesn't presently have. Acquisition at the right price can sometimes be the key to growth,” he said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

Trade & consumers want MDR free digital payments: CAIT

Apparel/Garments | On 12th Dec 2017

Trade & consumers want MDR free digital payments: CAIT

Transaction charges like the merchant discount rate (MDR) applicable...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search