Media Alert: Adobe Analytics Shows Online Apparel Sales Putting Pressure on In-Store Sales

23/06/2017

SAN JOSE, Calif.--(BUSINESS WIRE)--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.

LINK:	http://news.adobe.com/press-release/experience-cloud/media-alert-adobe...
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