According to new research into U.S. customers’ appetite for European fashion brands “the challenge is not demand, it is converting that demand into revenue.”
LONDON — The love affair between U.S. consumers and European fashion brands may be heating up, but like most other relationships, it’s loaded with risk, misunderstanding and unmet expectations.
According to a new white paper called “Dressed for America: The U.S. Opportunity for U.K. and European Fashion Brands,” U.S. customers are particularly hungry for European handbags and footwear, but they often abandon their online shopping baskets due to unexpected charges and confusion over sizing or returns.
The paper, published this week by SoldThrough, a Texas-based provider of third-party logistics, said more than half of American adults, or 157.7 million people, buy from European fashion brands, representing an estimated $34.5 billion in annual spend.
Some 81 percent of consumers say those European brands stand out compared to domestic labels for “better materials, sharper craftsmanship, and stronger value for money.”
Despite shoppers’ enthusiasm, European brands are still finding it difficult to grow in the U.S. due to barriers such as high shipping costs, sizing confusion, complicated returns, long delivery times, and unexpected duty and customs charges.
The paper said 78 percent of U.S. consumers face at least one “avoidable barrier” when purchasing European fashion.
“The research reinforced what we already knew, that the American consumer craves European product, and that they’re willing to spend on it. There is not a demand problem, there is an access and logistics problem, with de minimis having a massive impact,” Dan Cate, founder and chief executive officer at SoldThrough, said in an interview.
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