Smaller Markets Seeing The Biggest Apparel Boom

When the world thinks of U.S. fashion, it automatically envisions the catwalks of New York and Los Angeles. Rarely would one think of, for instance, Orlando, Florida.

But Orlando is one of several smaller markets that are driving the nation’s apparel industry, according to new research released by The NPD Group. Orlando and Washington, D.C., were the top markets for largest dollar volume increases and industry growth rates. When combined with online markets, New York and LA are even further outperformed.

“The big regions are no longer leading apparel industry sales growth,” said NPD chief industry analyst Marshal Cohen, according to a press release. “When New York and Los Angeles don’t even make it to the top 10 list of DMAs driving apparel growth, we have a big opportunity gap in the market. We need to understand the cause in order for the apparel industry to regain traction moving forward.”

While the majority of the Top 25 DMAs, or designated U.S. market areas, saw overall increased online dollar sales for the apparel industry for the first 12 months ending February 2015, just a few saw in-store sales increases. Total dollar sales for the market grew by 2 percent, the research found, but in-store apparel purchases actually declined by 2 percent.

Washington, D.C., was reportedly the only city that saw an increase of in-store apparel sales for this time frame, a growth of 14 percent from February 2014-February 2015.

It is difficult to explain why smaller markets like Orlando and Washington are now reigning, but it’s less complicated when examining why the online apparel market is seeing its own boost. According to Cohen, much of it has to do with impulse purchases, made all the more easier through online shopping. “Impulse purchases are the big growth driver, so the strategy of driving traffic to websites needs to exist in tandem with efforts to drive traffic to the stores,” he said.

Overall, regardless of market location, apparel industry players need to refocus on the consumer and engage with their buyers to offer a unique shopping experience, online or in-store, Cohen added.