US apparel industry reached a value of $338 billion in 2012

The US apparel industry generated total revenues of $338.7 billion in 2012, experiencing a compound annual growth rate (CAGR) of 2.9% between 2008 and 2012.

With rapidly escalating production costs, tremendous growth in e-commerce, invasion of the US apparel retail space by UK firms such as Topshop and Boden, and recessionary after-effects, the landscape in apparel in the US is changing.

Per capita spending on apparel in the United States peaked for the first decade of the new century in 2005 and then fell, gaining downward momentum with the onset of recession and the financial crisis that followed.

Complicating the downward spiral is the fact that apparel companies were caught somewhat off guard by the sharp decline in spending which lead to excess inventories.

Whilst increasing input costs put upwards pressure on prices, other factors, such as the intense competition and bargain-hunting shoppers, pulled prices down in the US apparel market.

Across apparel categories, value growth outpaced volume growth in 2012, with the difference most pronounced in footwear. Overall, clothing accessories saw the best performance in both volume and value terms. Clothing accessories can quickly and comparatively cheaply update an outfit or wardrobe.

Even though consumers are becoming increasingly comfortable with online shopping, selling apparel via the internet still poses some challenges, since shoppers cannot feel or try on the garments.

Given the tremendous potential of e-commerce, apparel marketers are making increased investments in internet retailing, with a two-pronged strategy. Improving the overall online shopping experience, from browsing to buying, is aimed at reducing consumers' hesitation and improving shopper satisfaction.

Meanwhile, specific strategies such as ship-from-store, integrated check-outs and partnerships with third-party solution providers help marketers to succeed in online retailing.

For more information on the US apparel market, see the latest research: US Apparel Market

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