Home / Knowledge / News / Information Technology / “Returns can displace stated apparel sales” – Fits.me
“Returns can displace stated apparel sales” – Fits.me
10
Dec '13
The higher rates of returns associated with online sales, combined with a probable – but unknown – record proportion of online sales, will put retailers at risk of providing misleading estimates of their ‘net Christmas’.

Heikki Haldre, co-founder and chief executive of virtual fitting room provider Fits.me, said: “There is always a rush in January to proclaim Christmas a success or a failure – even official bodies like the ONS publish provisional December figures by mid-January. 

"This strikes me as simply too soon to guarantee any kind of accuracy; in borderline cases there is a risk that shareholders may be led to believe Christmas sales were up, when in fact net Christmas sales were down.”

“Why?  Because, in every sector, the return rates associated with online sales are higher than return rates for offline sales.  For clothing, the rate is an average of five times higher – 25% online versus 5%. 

This means that even an average retailer, now seeing online sales accounting for 22.5% of sales compared with 19.7% last year, will need to sell 0.62% more garments in order to ensure the same net – that is to say post-returns – sales,” he explained.

In January 2013, the ONS estimated that, compared with December 2011, the quantity of goods bought (all retailing seasonally adjusted sales volumes) in December 2012 had increased by 0.3%. 

So, while 0.62% may seem a small percentage, it would be more than enough to turn an apparent increase in retail sales into a damaging decrease if similar trading conditions are experienced in December 2013.

Fits.me provides virtual fitting room solutions for clothing retailers that help to deliver an online buying experience similar to the offline experience – specifically by enabling shoppers to try on clothes “virtually” before they buy. 

This largely eliminates the biggest single reason (“fit”) why shoppers later return garments bought online, contributing to a significant reduction in overall garment return rates.

Fits.me

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Arvind Saraf
Triveni Sarees

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

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Steve Cole
Xerium Technologies

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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