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~ Digital River ~

Cross-border operations are complex; that’s a fact. But if we add to the equation the
already challenging and competitive global apparel market, the complexity of developing
a successful cross-border operation can be daunting. That’s why, to help any brands or
entrepreneurs who want to be successful in the global apparel market, Digital River has
developed an insightful guide to help brands and businesses thrive in this complex scenario.

Let’s dive into the detail and what aspects you should consider before creating your global
apparel strategy!

ulture, logistics, and fashion… a complex mix Size does matter
First things first, we need to understand what we Meanwhile, the fact that clothing is also a personal expression
Care aiming at here. Apparel is the number one and is bound to your own body heavily impacts buying
category purchased online across all geographies. With behaviour – and, in turn, shapes clothing fulfilment needs.
the total addressable market expected to reach beyond $1
trillion by the end of 2024, the industry isn’t just rebounding Returns are standard, and many buyers will purchase the same
but thriving in the wake of pandemic-related declines. So, item in multiple sizes with the intent to return the extras. In
without question, the apparel sector is a fertile ground for any fact, the average return rate of online apparel orders in the US
brand aiming at global expansion. is 24.4%, following Coresight Research estimates based on
a proprietary survey of decision-makers at US-based apparel
Still, the apparel market has specific challenges that add brands and retailers. The number is similar in Europe, where
to the already taxing world of cross-border operations. For a report made by WebSiteBuilderExpert claims that, on
example, consumer expectations and cultural considerations average, in 2022, Europeans returned close to 21% of all the
can make apparel fulfilment incredibly difficult. More than clothes and apparel they bought online, mostly due to size
any other product category, there’s a lot of nuance in the issues.
apparel industry. Much of that has to do with the products
themselves. Taken altogether, these challenges unique to clothing
and fashion fulfilment mean you must build your strategy
For example, selling high-fashion goods requires an entirely carefully and fully understand your target market when
different set of sales strategies, marketing techniques, and deciding which geographies to sell to. With all this in mind,
consumer experiences compared with clothing intended for it becomes clear that a brand wishing to be successful requires
mass markets. High fashion also goes out of style quickly, and developing a pretty straightforward strategy.
inventory is expensive. So, if you can’t fulfill orders promptly,
you could jeopardise revenue. Creating a successful, capable cross-border clothing
fulfilment network
Beyond the products themselves, there are also cultural and It can be difficult, expensive, and time and resource-heavy to
personal components that make apparel challenging from a become in-house experts on fulfilment and logistics. To avoid
fulfillment perspective. For example, some geographies are this cumbersome obstacle, we need to establish a fulfilment
more affluent and can therefore be more style and image- network. But how? Our partner at Digital River has the path
conscious. Buyers in these markets will likely expect the white laid down for us:
glove treatment for luxury goods, including packaging and
communication that reflect the premium price. • Conduct extensive market research
Identify fulfilment preferences in your target market and
In emerging economies with less affluence, consumers value work to understand buying behaviours in detail. Understand
clothing much differently. Businesses may be able to adopt clothing and fashion’s place in the broader culture, ascertain
a different approach to apparel fulfilment in these markets essential consumption habits, and establish whether there’s a
– but only after an in-depth look at prevailing attitudes and clear need or sufficient demand for your particular offerings.
norms.
• Decide where you want your inventory
Of course, differences in habits across markets can be much Whether you adopt a “ship-to” or “ship-from” model, ensure
more practical, too. The way consumers want to pay for you can move product quickly. To have warehouses in-
apparel can vary significantly by region. For instance, buy country, you must account for local acquiring and payment
now, pay later methods are rising in popularity in France, yet methodologies.
in Japan, paying with cash on delivery remains common.

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