Londoners’ online fashion spend is growing steadily, according to new figures from Business Insights, the data analytics arm of American Express.
Business Insights found Londoners increased their online fashion spending by 11% in the first half of 2012 compared to the same period last year. Online shopping accounts for 8% of all Londoners’ fashion shopping and over 30% of all consumers have made an online fashion purchase in the first half of 2012.
The growth in online fashion spend is driven by Londoners buying more often (the number of times people purchased is up 8%) and spending more (spend per customer is up 7%), said researchers.
Increased consumer comfort with the online channel has led more shoppers to venture online for luxury fashion, resulting in a 28% increase in the number of consumers purchasing in this category compared to the first half of 2011. In fact, a small but growing number of luxury online shoppers, 14%, who had never purchased luxury goods previously, went online to experience luxury shopping for the first time during this period.
Londoners boosted spending on high-end fashion by 18% in the first half of 2012 compared with the same period last year, said Business Insights. As a result, over 25% of all online fashion spending by Londoners during this period was in the luxury category. This trend is led by Gen X and Y (18 to 45 years old) who made up 74% of luxury online purchases in the first half of the year.
“E-commerce has not only become the norm, but has changed the way Londoners shop and engage with fashion brands,” said Sujata Bhatia, vice president, international merchant marketing and business insights, American Express.
“We’re seeing more consumers embrace online shopping with increased spending on luxury purchases. The deepening of luxury online spend is driven by Gen Y and Gen X consumers who have increased spending power. With these insights, American Express is able to help retailers maintain the momentum and continue engaging consumers online.”