April 22, 2008

Apparel Sale :: Canadians Shy Away From Online Shopping

While the vast majority of consumers seem enthusiastic to shop online for merchandise - including fashion - Canadians still aren't doing it.In terms of online prowess, the Canadians certainly have it.  They use the Internet to do everything from paying bills to booking trips to Brazil.

 Yet Canadians stop short when it comes to online shopping.

The question is why.  Peter Woolford, vice president of policy development and research at the Retail Council of Canada seems to think it's simply a cultural difference.  He references the age of catalogue shopping and says that, even then, "Americans were far more active in 'distance shopping.'"  According to Woolford, "They just like shopping in person apparently." 

The other possibility, which I think is far more likely, is that for clothing retailers that are not able to establish Canadian headquarters, consumers have to pay hefty import taxes or duties to get their new duds to their doorstep.  So consumers either end up paying a premium for the clothing they want, or retailers don't even bother offering the option of international shipping. 

Henna Singh, who runs the very popular blog "Canadian Beauty," sees this as an issue.  "I don't understand why [American retailers] wouldn't want that extra business…..there are lots of consumers in Canada, but if companies won't ship here, that's a problem."

So, what does the future hold for Canadian's and online fashion purchases?  Really, only time will tell.  But my opinion is that the future looks pretty bright and filled with possibilities.

Already, major retailers like GAP, Inc., who operates GAP, Banana Republic, and Old Navy, are looking in to ways to capture this segment of the marketplace and investigating changes in their system that will allow it to accept international orders.  Tara Wickwire, a company spokesperson, says, "we agree that brining our online stores to everyone in the world is a critically important strategic objective for us." 

If the GAP manages to make this happen, other retailers are sure to soon follow.   But where does this leave the Canadians who "apparently like to shop in person?" Considering how frequently they use the Internet for everything else, I don't think it's a huge stretch to imagine them purchasing merchandise online, just like the rest of us.  

After all, "if you build it, they will come."

Filed under Apparel Sale, Fashion Marketing, Increase Online Sales, Marketing Research, Online Retail by

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