The fashion industry is constantly evolving. Seasons indeed change and tastes transform and fads come and go but the fashion market keeps evolving and this is not just a matter of style. The way fashion e-commerce brands operate is also changing. New technologies, the shadow of profitability, and shifting markets at both the geographic and the economic levels are the reasons behind this shifting trend. For the e-commerce industry, COVID increased its sales figures. Almost 5 years of growth happened in just one year. Moreover, this also overturned traditional loyalties. The popular eCommerce stores have been able to earn huge profits from this.
Apparel retailing market research reports, analysis, and trends
The apparel retailing industry comprises those companies that operate by selling the apparel to men, women, and children of all ages. These apparel retail stores buy clothes and accessories from wholesalers and manufacturers and market these products to the general consumers without making any kind of alterations to the general apparel. The fashion trends and the consumer income are the most important drivers of the demands in this industry. The clothing store reviews will help you understand the best stores to purchase clothes from. You can check out.
The apparel industry is expected to rise over the next 5 years. Per capita, disposable income is also expected to increase and the confidence of the consumers is again expected to rise. The e-commerce and online shopping industry is expected to mitigate industry gains and will be able to gain more profits. The industry establishments are expected to focus more on providing various options to the customers so that they can compete with the major retailers and the e-commerce stores. The international market might also prevent the growth of this industry as online shoppers will start having increasing access to boutique clothing in the international markets.
Moreover, the number of firms in the industry is also expected to grow over the next 5 years. Women’s clothing will account for as much as 59.1% of the industry revenue and it is almost double the men’s apparel bringing only 33.4% of the revenue. Women tend to buy a wider variety of items to suit the needs of the different occasions. Formal wear includes a wide variety of items to suit different occasions.
The E-commerce fashion industry grows to $1 trillion by the year 2025
The fashion business is more than just big. It is rather the biggest of the big. The global value of apparel, footwear, and accessories is number 1. The E-commerce sector in the world. Over the next 5 years, the growth rate of the fashion industry compounded annually will put the industry at +$1.0 trillion. Two main factors are fueling this growth- penetration rate and the e-commerce share of retail fashion. The estimates project an increase in eCommerce penetration from 46.6% this year to 60.32% in the year 2024. This is applied to the three major fashion segments:
· Apparel: +12.7%
· Footwear: +11.6%
· Bags & Accessories: +8.5%
This represents a rise in the total market share from 21.03% in the year 2020 to 23.66% in the year 2023.
Global expansions continue in the East, but ARPU rules the West
If you look at it geographically, the consumption tends to tilt towards China. Its figures in 2020 space the combined sales of the next four countries.
- China: $284.3B
- United States: $126.5B
- United Kingdom: $32.5B
- Japan: $23.9B
- Germany: $22.5B
The dominance of China will intensify further in the future. But the international data should not be used to downplay North America and Europe’s role in shaping the preferences worldwide. The marketer report shows 9% growth in the US and there has been a step-change in its percentage of the total retail sales from 26% to 37%.
The lower digital barriers to entry have allowed all the clothing merchants to provide the opportunity to market, sell and fulfill the orders globally and automatically. As a result, the worldwide revenue and the revenue per user are projected to grow. Just in the United States alone, the apparel and the accessory industry accounted for about 29.5% of the e-commerce sale in the year 2021. It is expected in Europe that by 2025, each consumer will spend $999 on fashion-related items over one year.
Profitability and the sustainability storm
The struggle to make good profits in business is not new. Its casualties started mounting even before the COVID pandemic. The DTC darlings line Everlane, Outdoor voices, Bonobos, and AWAY have all found themselves beneath the headlines with a single theme: at scale, the economics of e-commerce do not work.
