Trends And Strategies Related To Ecommerce And The Fashion Industry
1. Industry-wide data
Global fashion eCommerce was predicted to go to $485.62 Billion in 2020 from its 2019 levels of $531.25 Billion. The coronavirus pandemic is responsible for the negative compound annual growth rate of -8.59%. The market should reach $672.71 million by 2023 once it begins to go back up again.
The eCommerce fashion industry in the US accounted for 29.5% of fashion retail sales in 2020. Global predictions predict that the US market will be worth $100 billion by 2021.
These five opportunities are key to this growth:
- Expanding global markets
- Increased smartphone and online access
- Increasing disposable income levels.
- The expansion of innovative technologies
- The rise of influencers in our culture.
- Established brands are being threatened in the following way:
Market fragmentation is causing brand loyalty to die.
The reduction of return rates can be as high as half of the price.
The creation of new styles related to the fashion industry.
Consumers are urged to use ethically sourced, green manufacturing materials.
We’ll discuss strategies later. Let’s now examine the impact of these large numbers on what are called sub-verticals and how this plays a vital role within the many industries that rely upon these topics.
2. The COVID Impact
Last year’s fashion eCommerce predictions were ruined by the coronavirus pandemic. Global lockdowns in March 2020 led to 27% of US consumers saying they would spend less on fashion and luxury items than they had previously budgeted.
Online fashion retailers have seen a surge despite this. Zalando, for example, reported a 32%-34% increase in GMV during its second-quarter 2020. Boohoo, a UK retailer, reported a 45% rise in revenue for all its fashion brands for sales on the Internet when compared to this exact same period of time.
Fashion retailers, that generate revenue on a global scale, haven’t updated their e-commerce plans after the COVID-19 pandemic simply because the rise in revenue has been very beneficial for their businesses.
Athleisure is the fastest-growing fashion retail segment. In 2018, the athleisure market was worth $155.2 billion. This number is only going to increase. Athleisure is expected to grow at 6.7% between 2019 and 2026, reaching $257.1 billion which is an outstanding number, considering the number of people that are currently unemployed but seem to have the time to spend money on their products.
Nearly 25% of Americans chose athleisure clothing over brick-and-mortar fashion shops and schools when deciding how to spend money, especially the money they received as a result of the stimulus money that was provided to millions of people.
What did the result look like? The result?
3. Apparel and clothing
All clothing merchants have fewer problems, especially when compared to brick-and-mortar businesses, which allows them to sell and fulfill orders worldwide virtually automatically. Both worldwide revenue (ARPU) and revenue per user globally are expected to increase.
It is expected that every consumer in Europe will spend $921 annually on fashion-related products, shapewear takes up a proportion of this.
While clothing’s absolute numbers continue to rise, global revenue growth, as measured by the compound annual growth rate, is now beginning to slow down significantly. It dropped from 15.3% in 2018 down to 7.6% by 2022. Between 2017 and 2024, the CAGR for fashion eCommerce is only 3.3%.
This trend is most likely to be caused by a form of saturation, especially when looking at Western markets where a large volume of sales are made every day. This reality is even more dire when compared to the growth rates in China, Europe, and the US.
CAGR is forecast to stabilize at 8.8% between 2017 and 2022 in the US
- 8.7% in Europe
- 14.1% in China
- 8.8% in the US
4. Shoe segment
The shoe industry also experienced a similar market value increase which seems to parallel the success of these other markets. The global market for footwear will grow from $365.5 billion to $530.3 billion by 2027, according to estimates.