1) The majority of US consumers have purchased apparel both online and offline, however, brick-and-mortar is still the dominant transaction channel. 2) In fact, US consumers’ attitude towards fashion and their purchase behavior has changed little over the past five years. 3) We expect brick-and-mortar to remain the dominant store format for US apparel and footwear retail in the near future. 4) As retailers have shifted their budgets to digital advertising, the influence of all major media channels has decreased in the past five years, except for social media and mobile video. 5) Among millennials, the influence of social media on apparel purchases is on par with traditional media like TV and magazines.

1. US Consumer Analysis:
Apparel and Footwear
February, 2017

2. 2
US Consumer Analysis:
Apparel and Footwear
Influences on Apparel and Footwear Purchases
About this Report
Key Takeaways and Market Overview
Purchase Behavior: Apparel and Footwear
01
02
03
04

3. 3
About this Report
About this Report
This report is a collaboration between Fung Global Retail & Technology and Prosper
Insights & Analytics. It uses propriety data from surveys conducted by Prosper in the
US that track shopping behaviors and the future purchase intentions of consumers.
Survey Methodology
The Prosper Insights & Analytics Monthly Consumer Survey provides insights into the
US consumer market from multiple datasets and multiple sources. It surveys more
than 6,000 consumers 18+ in the US on an ongoing basis.

4. 4
Key Takeaways: Brick-and-Mortar to Remain the Dominant
Transaction Channel for US Apparel and Footwear
1. The majority of US consumers have purchased apparel both online and offline,
however, brick-and-mortar is still the dominant transaction channel.
2. In fact, US consumers’ attitude towards fashion and their purchase behavior has
changed little over the past five years.
3. We expect brick-and-mortar to remain the dominant store format for US apparel
and footwear retail in the near future.

5. 5
Key Takeaways: Social Media has Become a Major
Influencer in Apparel Purchases Among Millennials
1. As retailers have shifted their budgets to digital advertising, the influence of all
major media channels has decreased in the past five years, except for social
media and mobile video.
2. Among millennials, the influence of social media on apparel purchases is on par
with traditional media like TV and magazines.

6. 6
Consumer and Category Insights

7. 7
US Consumer Confidence Solid in 2016, Following an
Improvement in 2013–2015
52%
20%
30%
40%
50%
60%
Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Source: Prosper Monthly Consumer Survey – US/University of Michigan/US Census Bureau/US Department of Commerce
% of Respondents Feeling Confident or Very Confident in the
Economy in the Next 6 Months
98.5
50
60
70
80
90
100
Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Index of Consumer Sentiment (University of Michigan)
4.85
3.0
3.5
4.0
4.5
5.0
2011 2012 2013 2014 2015 2016
US Retail Sales (US$ trillion)
110.7
100
105
110
115
2011 2012 2013 2014 2015 2016
US Personal Consumption Expenditures Price Index (2009=100)

8. 8
278 282 285 287 293 292
26 30 34 39 46 55
310 317 324 331 343 353
0
100
200
300
400
2011 2012 2013 2014 2015 2016
Other nonstore-based
retailing
Online
(Internet retailing)
Offline
(store-based retailing)
The Internet is Not Yet a Significantly Large Channel in
Terms of Apparel and Footwear Purchases
Size of US Apparel and Footwear Market (US$ billion)
Source: Euromonitor
15.5%

9. 9
But it Increasingly Influences How Consumers Shop for
Apparel Offline
49% 44% 38%
32%
26% 20%
40%
45% 50%
55%
61%
66%
11% 12% 12% 13% 14% 14%
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016
Online
Web-influenced offline
Offline only
Apparel Retail Sales in the US, by Type
Source: Think with Google

10. 10
105
85
76
87
86
78
40
60
80
100
120
Nov-11 May-12 Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16
Children’s Clothing
Men’s Clothing
Men’s Dress Clothing
Shoes
Women’s Casual Clothing
Women’s Dress Clothing
Children’s Clothing Shows the Most Seasonality in Apparel,
Affected by Back-to-School and Holiday Shopping
Spending Score of Respective Apparel Category
Source: Prosper Monthly Consumer Survey – US
A spending score higher than 100 means more consumers are planning to spend more on that category
over the next 90 days than are planning to spend less on it.

11. 11
Consumer Purchase Behavior:
Online or Offline

12. 12
The Majority of Consumers Search and Purchase Some of
Their Apparel Online
78% of Consumers Searched for
Clothing/Footwear Online
Frequency of Clothing/Footwear Online Search
(Jan 2016)*
25%
53%
22%
Regularly Occasionally Never
80% of Consumers Who Purchase
Children’s Clothing Shop Online
% of Respective Item Purchased Online (2016)
29%
33%
20%
47%
43%
39%
43%
29%
28%
28%
37%
23%
Women’s Clothing
Men’s Clothing
Children’s Clothing
Footwear
Source: Prosper Monthly Consumer Survey – US
* No significant changes in the past five years * Sample: Moms with kids aged 9 and below
0% (do not buy online) 1%–50% bought online 51%–100% bought online

13. 13
Brick-and-Mortar Still the Dominant and Most-Used
Channel for Apparel and Footwear Purchases
Around 10% of Consumers Made Purchases via
Mobile Sites
Shopping Method Used in the Past 30 Days (Nov 2016)
10%
11%
39%
39%
63%
78%Apparel and
Accessories
Footwear
Brick-and-Mortar is the Most-Used Store Format
82%
71%
77%
62%
3%
4%
3%
9%
6%
8%
12%
10%
7%
15%
8%
18%
Women’s Clothing
Men’s Clothing
Children’s Clothing
Footwear
Source: Prosper Monthly Consumer Survey – US
Physical store Online site Mobile sitePhysical store Internet Others No preference
Most-Used Store Format to Purchase Respective Items (Nov 2016)

14. 14
Women’s Clothing Men’s Clothing Children’s Clothing Footwear
More Consumers Use the Internet the Most Often to Purchase
Apparel, but are Still a Niche Segment
1%
3%
1%
4%
1%
3%
4%
9%
Nov 2011 Nov 2016
Those Who Use the Internet the Most to Purchase Respective Items (Nov 2011 and Nov 2016)
Sample: Women’s Clothing: All Women / Men’s Clothing: All Men / Children’s Clothing: Moms with kids aged 9 or below / Shoes: All respondents
Source: Prosper Monthly Consumer Survey – US

15. 15
For Women’s and Men’s Apparel, Heavy Online Shoppers
Show a Preference for Specialty Stores
Sample: Women’s Clothing: All Women / Men’s Clothing: All Men / Children’s Clothing: Moms with kids aged 9 or below / Shoes: All respondents
Source: Prosper Monthly Consumer Survey – US
0%
10%
20%
30%
40%
Department Store
Discount Store
Specialty–ApparelCatalog
Others
Most Often Shopped Retail Category for Women’s
Clothing (Excluding Internet, April 2016)
0%
10%
20%
30%
40%
Department Store
Discount Store
Specialty–ApparelCatalog
Others
Most Often Shopped Retail Category for Men’s Clothing
(Excluding Internet, June 2016)
All Shoppers Heavy Online Shoppers (Those who made 51-100% of their purchases online)

16. 16
Heavy Online Shoppers Also Show a Preference for
Specialty Stores in Children’s Apparel and Footwear
Sample: Women’s Clothing: All Women / Men’s Clothing: All Men / Children’s Clothing: Moms with kids aged 9 or below / Shoes: All respondents
Source: Prosper Monthly Consumer Survey – US
0%
10%
20%
30%
40%
Department Store
Discount Store
Specialty–ApparelCatalog
Others
Most Often Shopped Retail Category for Children’s
Clothing (Excluding Internet, October 2016)
0%
10%
20%
30%
40%
Department Store
Discount Store
Specialty–ApparelCatalog
Others
Most Often Shopped Retail Category for Footwear
(Excluding Internet, July 2016)
All Shoppers Heavy Online Shoppers (Those who made 51-100% of their purchases online)

17. 17
Macy’s and Nordstrom are Relatively More Popular Among
Heavy Online Shoppers
Source: Prosper Monthly Consumer Survey – US
Sample: Women’s Clothing: All Women / Men’s Clothing: All Men / Children’s Clothing: Moms with kids aged 9 or below / Shoes: All respondents
0%
10%
20%
30%
40%
50%
Retailers Shopped at in the Past 90 Days for
Women’s Clothing (April 2016)
0%
10%
20%
30%
40%
50%
Retailers Shopped at in the Past 90 Days for
Men’s Clothing (June 2016)
All Shoppers Heavy Online Shoppers (Those who made 51-100% of their purchases online)

18. 18
In the Children’s Clothing Category, Specialty Stores are
Relatively More Popular Among Heavy Online Shoppers
Source: Prosper Monthly Consumer Survey – US
Sample: Women’s Clothing: All Women / Men’s Clothing: All Men / Children’s Clothing: Moms with kids aged 9 or below / Shoes: All respondents
0%
10%
20%
30%
40%
50%
Retailers Shopped at in the Past 90 Days for
Children’s Clothing (October 2016)
0%
10%
20%
30%
40%
50%
Retailers Shopped at in the Past 90 Days for
Footwear (July 2016)
All Shoppers Heavy Online Shoppers (Those who made 51-100% of their purchases online)

19. 19
Consumer Purchase Behavior:
Attitudes

20. 20
44% 43% 42% 43% 44% 43%
37% 38% 38% 39% 37% 38%
19% 19% 21% 18% 19% 19%
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16
Newest trends and styles are
important to me
I prefer a traditional
conservative look
Fashion is less important than
value and comfort to me
Consumers’ Attitude Toward Fashion has Changed Little in
the Past Five Years
Feelings about Fashion (2011–2016)
Source: Prosper Monthly Consumer Survey – US

21. 21
50% 50% 49% 50% 50% 47%
50% 50% 51% 50% 50% 53%
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16
Important
Not important
Slightly More Consumers Regard Labels as Important
Compared With Last Year
Importance of Labels When Buying Clothes (2011–2016)
Source: Prosper Monthly Consumer Survey – US

22. 22
23% 23% 22% 22% 23% 22%
63% 62% 61% 63% 62% 62%
13% 15% 16% 15% 15% 16%
Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16
Sales are not important to me
when buying clothing
I usually buy clothing when it is
on sale
I only buy clothing when it is on
sale
The Majority of Consumers Usually Buy Clothing When it is
On Sale
Importance of Sales (2011–2016)
Source: Prosper Monthly Consumer Survey – US

23. 23
Media Influence on Apparel
Purchases

24. 24
Retailers are Shifting Their Focus to Digital Advertising
Advertising Spending of the US Retail Industry, 2013 vs. 2015 (US$ million)
Source: Total Advertising Spend - Kantar Media
42% 38%
25%
15%
11%
9%
8%
6%
10% 27%
4%
4%
11,827
13,295
0
5,000
10,000
15,000
2013 2015
Other
Internet display
Magazine
Radio
Newspaper
TV

25. 25
The Influence Power of All Major Media Channels has
Decreased for Apparel Purchases, Except for Social Media
and Mobile Video
Source: Prosper Media Behaviors & Influence™ (MBI) Study
25%
20%
10%
6%
24%
26%
20%
10%
25%
18%
14%
9%
19%
18%
12%
8%
0%
5%
10%
15%
20%
25%
30%
35%
Email Advertising Internet Advertising Social Media Video on Mobile
Device
TV/Broadcast Magazines Newspaper Radio
Dec '10
Jan '16
Those Who Were Influenced by the Respective Media Channel when Purchasing Apparel, 2010–2016
Digital Media Traditional MediaNew Digital Media

26. 26
25%
18%
14%
9%
19%
18%
12%
8%
32%
26%
23%
18%
22%
23%
11%
12%
0%
5%
10%
15%
20%
25%
30%
35%
Email Advertising Internet Advertising Social Media Video on Mobile
Device
TV/Broadcast Magazines Newspaper Radio
All Respondents
18–34 (Millennials)
Influence of Social Media is On Par with TV and Magazines
Among Millennials
Source: Prosper Media Behaviors & Influence™ (MBI) Study
Those Who Were Influenced by the Respective Media Channel when Purchasing Apparel, Jan 2016
Traditional MediaDigital Media New Digital Media

27. 27
25%
18%
14%
9%
19%
18%
12%
8%
18%
12%
5%
2%
15%
13%
16%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Email Advertising Internet Advertising Social Media Video on Mobile
Device
TV/Broadcast Magazines Newspaper Radio
All Respondents
55+ (Boomers and
Silvers)
Boomers are Less Influenced by Both Digital and
Traditional Media Channels, Except Newspaper
Source: Prosper Media Behaviors & Influence™ (MBI) Study
Those Who Were Influenced by the Respective Media Channel when Purchasing Apparel, Jan 2016
Traditional MediaDigital Media New Digital Media

28. Find our research at
www.FungGlobalRetailTech.com