In 2018 apparel increased 14.7% to over $103 billion. It was largest single e-commerce product category, making up 19.7% of total retail ecommerce sales. And although revenue across apparel categories is only expected to rise in the future, consumer demand and increased competition is making it more challenging to increase profit margins.
From little leagues to rec leagues to schools to the pros, not to mention, local stores and big box outlets; keeping athletes big and small dressed and equipped to perform their best is no small feat. While sporting goods are reaching farther and wider than ever before, along with an increased demand from consumers requiring faster and cheaper delivery, a focus on efficiency and sustainability has never been more important. Taking a new approach from an operational and environmental perspective provides cost savings and increased performance. Here are three actions that can improve the sustainability of your sporting goods supply chain.
By 2018 over 1.35 billion online originated deliveries are expected to be made annually. Clothing and footwear are expected to maintain the highest percentage of these deliveries. As the volume of these orders continues to grow, so will the importance the last mile delivery. The “last mile” is defined as the movement of people and goods from a transportation hub to the customer’s door. With online retail making up 10% all purchases, supply chains have adapted to address the challenges of omni-channel fulfillment. But as consumers discover more options, and demands in terms of speed, cost, and convenience increase, this last mile can create new obstacles.
Consumers have changed the way they shop, and with this change in behavior and expectations has arrived a landscape littered with loaded shopping carts. Not literally of course, but digitally. In fact, a BI Intelligence report shows that over $4 trillion worth of items are left in online shopping carts each year. Why so much? The top reason stated was due to unexpected shipping costs. This holiday season, streamlined operations can result in reduced shipping costs and ideally higher online conversions.
Infrastructure will always be a major, yet necessary investment for any business. Nowadays, new technology makes improvements a more efficient and affordable task, but at the end of the day it still requires a large amount of capital and resources. However, much like you don’t watch the same TV or even the same channels you did 30 years ago, your warehouse shouldn’t operate on decades old design and technology either.
The women’s apparel sector alone was a $116.4 billion industry in 2013, up 4% from the previous year according to Global Biz Circle. Although revenue across apparel categories is only expected to rise over the next decade, new consumer demands and increased competition is making it more challenging for apparel companies to increase profit margins.
In a market with increased competition and stringent demands, anything that can create speed and, reduce costs is highly valuable. The apparel market in the United States is expected to grow from $225 billion in 2012 to $285 billion by 2025. This significant amount of growth means that clothing companies will be expected to move more inventory, quicker and more accurately at lower costs. There is one key development within the warehouse that can make this tall task possible: mobile technology.
The pressure of meeting cost and time demands on distribution centers stems from a growing direct-to-consumer market. While overall fulfillment operations are being put to the test on a daily basis, the swift pace of technology is making it possible for a facility’s main circulation system to meet these new demands. The expectation of same-day, next-day and two-day delivery options coupled with different packaging, like bags and envelopes of varying dimensions, can overwhelm sortation systems designed for totes and cartons. Accuracy issues, error rates and downtime can all be addressed with these 4 tips.
The processes in place to get a product from the warehouse to the customer are very similar to driving your car to your house, very well-rehearsed and effective. However, just like driving in reverse up a 45 degree incline in the dark can be a difficult task, so is managing reverse logistics. Whether you’re negotiating bicycles, garage doors and the family dog or managing returns, refunds and in-transit inventory, streamlining reverse logistics can create key bottom line opportunities and advantages.
With the emergence of e-commerce as the preferred way to shop for clothing and apparel, there is a convenient alternative to the mall. On-line shopping is seeing double digit growth year over year, ending 2013 up 16.9%. More and more people are choosing the comfort and convenience of their laptop, tablet or phone to make purchases. This makes the apparel sector ripe for disruption. This disruption is coming in the form of e-retailers. While this is a growing sector, it is also quite competitive. Here are three tips that can generate success in your e-commerce apparel operation.