Online retail is a booming industry in the downturn, with the clothing sector proving to be the most profitable, a new report has suggested.

The IMRG Capgemini e-Retail Sales Index for July revealed that online shoppers in the UK spent £4.2 billion, rising by 15.7 per cent from June.

According to IMRG’s director of information Tina Spooner, ecommerce is continually outperforming traditional shopping on the high street – suggesting that online marketing services are promoting their brands well.

"It is evident that online merchants are becoming more sophisticated in their marketing efforts and email communications to their customers," she said, adding that the consequences of this could be seen in the increased conversion rates.

The clothing, footwear and accessories sector saw a continued growth of 18 per cent month-on-month and of 17 per cent over the year.

A digital advertising workshop for those in the industry has been set up by Econsultancy, aimed at helping marketers develop their online video strategies.

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