Fashion Marketing

November 4th, 2011 |

Fashion Marketing news: A slew of studies, data, and articles seem to point out the growing success of niche sites, especially in the fashion industry. Hype or Fact? How can big online retailers and local fashion stores benefit from internet niches?

I like reading about pragmatic ideas to boost online sales of fashion goods, from apparel to accessories. I think that too much time is wasted in theorizing about internet marketing, and not acting about it.

Yet, I am going to talk about hard-core statisical studies and hype. Why?

Make money online by not carrying best-sellers

First, the article titled “A world without bestsellers” dabbles with buying patterns specific to internet consumers.

These patterns make up the Long Tail. You may or you may not know about it. For a concise explanation, go the Long Tail page on Wikipedia. Let’s just say that consumers can find and buy online products that a regular store could not carry. For instance, 40% of Amazon.com’s book sales reportedly consist in unknown titles that your regular Barnes and Noble cannot afford to carry in the bookstore next door.

The same seem to apply to fashion goods. For instance, in the INC. article, Zappos’ Tony Hsieh says that:

“Today the company sells more than three million products across 1,000 brands. The top 20 percent of products account for half of revenue, the bottom 80 percent, the other half.”

So, at Zappos, the 20 best-selling items represent only 50% of the revenues. This is a far-cry from the usual 80/20 rule that usually applies offline, when the top 20 best-sellers make up 80% of the revenues. The 80/20 rule is drawn from the works of economist Pareto.

Online sales of fashion goods make Pareto Principle redundant

This is the gist of a February 2007 study called “Goodbye Pareto Principle, Hello Long Tail: The Effect of Search Costs on the Concentration of Product Sales.” It was written by researchers at the Sloan School of Management at the MIT. Better, this study is based on “several years of sales data at a private-label women’s clothing company that offered the same merchandise through its catalog and its Internet store.”

Fashion goods are really at the forefront of this trend. Think about all the sites of the specialty sites that have sprung up, from sites selling discontinued lines of products to sites selling only to a sub-demographic. Buyers will turn to the web for hard-to-find glasses or for styles that regular retailers would deem too original to carry.