Deep Dive 8 minutes Premium

Fashion Online to Offline

Executive Summary

The fashion industry underwent significant changes over the past decade and continues to evolve quickly. Driven by advancements in digital channels, digitally native retailers are adapting to consumer preferences – but are also opening brick-and-mortar stores. In this report, we analyze the online-to-offline fashion market and look at what drives digital natives to get physical:

  • Pure-play digital retailers are creating physical storefronts to provide an “all-channel” experience.
  • Digital ad costs are becoming more expensive than other media – and digital is becoming less effective. Digitally native brands find physical locations help fill that need.
  • Physical stores are a point of discovery for emerging brands: New stores generate an average 45% lift in web traffic, according to an International Council of Shopping Center (ICSC) survey.
  • New York remains the top city for offline stores and pop-ups, a testament to the perceived power of internationally renowned flagship cities for fashion discovery.

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