{"id":150218,"date":"2023-07-12T13:54:42","date_gmt":"2023-07-12T13:54:42","guid":{"rendered":"https:\/\/www.similarweb.com\/blog\/?p=150218"},"modified":"2025-03-27T11:58:35","modified_gmt":"2025-03-27T11:58:35","slug":"consumer-spending","status":"publish","type":"post","link":"https:\/\/www.similarweb.com\/blog\/research\/market-research\/consumer-spending\/","title":{"rendered":"Digital Demand for Clothing Sustained Despite Inflation & Broader Downturn in Ecommerce"},"content":{"rendered":"

Price seems not to be decisive, as mid-market and premium retail transactions rise by 7%<\/h2>\n

At a time when much of ecommerce retail is struggling, fashion and apparel remain a strong digital market for both premium and fast fashion brands.<\/p>\n

The broader picture is that rising interest rates and soaring clothing inflation, alongside financial markets uncertainty, have eroded financial stability and confidence for most Americans, thus drastically impacting consumer spending in the US. According to a recent report from McKinsey<\/a>, year-on-year spending has declined for the second month in a row.<\/p>\n

Yet research from Similarweb\u2019s latest US Consumer Spending Report on 2,251 ecommerce players in the US shows that fashion retailers were among the least affected major online industry. Fashion retailers are still capturing digital demand, with converted visits growing 4.4% YoY (Nov \u201822-Apr \u201823). Converted visits are website visits that result in a sale.<\/p>\n

Mid-market and Premium Fashion propel growth (but it\u2019s just part of the story)<\/p>\n

\"Converted<\/p>\n

Conversion dynamics for the top 67 US fashion retailers showed that the majority of converted visits between November 2022 and April 2023 came from affordable <\/strong>fashion sites<\/strong>, with an Average Selling Price (ASP) of less than $75. <\/strong>However, consistent with what Ralph Lauren\u2019s CEO Patrice Louvet told CNBC in a recent interview<\/a>, we also found consumers are gravitating towards higher-price items in fashion.<\/p>\n

Why? Amidst a recession, consumers may prefer to invest in longer-lasting, quality pieces and, according to Ralph Lauren\u2019s CEO, in brands they trust.<\/p>\n

Younger consumers are the driving force for the increase in demand for higher-priced Fashion brands<\/h2>\n

\"Age<\/p>\n

According to Similarweb\u2019s survey about consumer sentiment on a panel of 2,507 US consumers revealed that 46% of Gen Z (18-24 years old) respondents reported having \u201ca little more or a lot more\u201d spare money than last year as of January 2023.\u201d For Millennials (25-34 years old), that figure was 44%.<\/p>\n

The survey answers match digital audience analysis data<\/a>: these demographics tend to over-index in mid-range to premium brands\u2019 viewership, in comparison to older age groups. Those in the younger age groups are more likely to be single and not responsible for children, which impacts some customers\u2019 savings. In fact, under 35 years old make up over 57% of online visitors to premium brands and retail sites.<\/a><\/p>\n

Reasons for this enthusiasm for higher-priced clothes include a greater interest in longer-lasting clothes (in opposition to super fast-fashion), and consumers wanting to \u201cflex\u201d and dress like their favorite celebrities\/influencers.<\/p>\n

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State of Consumer Spending<\/p>\n

Discover granular US consumer trends that convert even during inflation <\/p>\n

\n \n \n Download now <\/button>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n\n

How does it look like at the brand level?<\/h2>\n

If younger generations suffered less than middle-aged and older adults from the cost of living crisis, or have a different attitude to spending and thus tend to visit more expensive fashion sites, not all can afford a purchase.<\/p>\n

Most Visited Sites in Total Traffic Per Age Group<\/strong><\/p>\n

US, Desktop & Mobile Web, May 2022 – Apr 2023<\/p>\n

\"Most<\/p>\n