Media Alert: Adobe Analytics Shows Online Apparel Sales Putting Pressure on In-Store Sales
June 23 2017 - 9:00AM
Business Wire
7,000 New Apparel Products Appear Online Each Day; Data Shows
Online Prices Drop Faster than Offline
Adobe (Nasdaq:ADBE) today released its first Digital Price Index
(DPI) for the apparel category, leveraging data from Adobe
Analytics Cloud. The DPI data reveals tremendous choice, volume and
velocity in the online apparel category. Nearly half of the 7,000
new apparel products that appear online each day are targeted at
women (3,150), while one-quarter (1,750) at men and the rest to
children, babies and footwear. Nearly one-third (30.8 percent) of
all spending on women’s clothing went toward products that are one
month old or less, while 18.0 percent of spending on men’s apparel
was for items that were one month old or less.
The May DPI apparel data shows prices for apparel online drop
faster than offline. The DPI found 4.3 percent YoY price deflation
in May, compared to the Consumer Price Index’s relatively flat
deflation rate at 0.9 percent in May. Data also points to the
biggest discounts for the highest and lowest priced apparel online.
High-end apparel, the top 25 percent most expensive items online,
show a 5.5 percent drop in prices YoY while low-end apparel, the
lowest 25 percent, saw prices decrease by 7.5 percent over the same
time period. Compare this to the middle 50 percent of apparel,
which shows minimal deflation YoY.
“With retail chains closing stores at a record pace, we’ve been
closely watching the impact on the e-commerce world,” said Mickey
Mericle, vice president, Marketing and Customer Insights at Adobe.
“For the first time, we’re seeing that apparel sold online is
clearly developed with a specific velocity in mind, and an
incredibly high turnover rate, compared to other categories we
track.”
About the DPI
Adobe leverages Adobe Sensei, AI and machine learning
capabilities in Adobe Analytics Cloud, to surface economic insights
from billions of data points. By tracking seven dollars and 50
cents out of every 10 dollars spent online with the top 500 U.S.
retailers* and over six dollars out of every 10 dollars spent
online with the top 100 European retailers** the DPI is able to
analyze billions of digital transactions. Adobe is the first
company to conduct a digital-centric analysis based on real-time
access to price-paid data and actual quantities sold. Unlike other
models, Adobe Digital Insights leverages the Fisher Ideal Price
method, which uses actual quantities purchased to measure inflation
and is recognized by leading economists as the gold standard for
the calculation of inflation. Specific to the apparel data
introduced this month, the DPI utilized a new methodology, looking
at grouping products by subcategories given the fast pace of
product rotation and steep discounts retailers often offer. To
produce the May DPI, Adobe analyzed 15 billion U.S. website visits,
one billion U.K. website visits and online transactions for over
2.2 million products sold online.
The full Digital Economy Project report for May 2017 can be
found here.
* Source: Internet Retailer’s 2016 Top 500 eGuide**
Source: Internet Retailer’s 2016 Europe 500
About Adobe
Adobe is changing the world through digital experiences. For
more information, visit www.adobe.com.
© 2017 Adobe Systems Incorporated. All rights reserved. Adobe
and the Adobe logo are either registered trademarks or trademarks
of Adobe Systems Incorporated in the United States and/or other
countries. All other trademarks are the property of their
respective owners.
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version on businesswire.com: http://www.businesswire.com/news/home/20170623005078/en/
AdobeAshley Levine, 415-832-4161aslevine@adobe.comMelissa
Chanslor, 415-832-5489chanslor@adobe.com
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