Ecommerce Fashion Industry: Trends and Statistics

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Ecommerce Fashion Industry: Trends and Statistics

Ecommerce Fashion is a dynamic industry that is always changing. Tastes change as the seasons do. It’s a fact of life that trends change throughout time. Subjectivity is king in this fragile industry, and it has little to do with aesthetics. 

Fashion eCommerce businesses are always adapting their business models to meet the needs of their clients. The fashion industry is being shaped by a combination of new technologies, shifting markets, and increased profitability. 

If you want to break into this highly competitive field, you must learn how to stand out from the competition. And thus, you need to know the most important eCommerce fashion industry statistics that are now ruling the business. 

In order to achieve more success in the fashion eCommerce industry, let’s take a more in-depth look at the essential fashion industry statistics.

Here are some of the statistics and trends that are shaping the business of fashion:

Ecommerce Fashion Industry Latest Statistics

Apparel and Clothing

Because of the low digital barriers, businesses can easily market, sell, and fulfill orders around the world. Therefore, the fashion industry’s revenue is anticipated to increase.

These aren’t just numbers from the fashion business. It’s predicted that each European consumer will shell out $921 a year on fashion and cosmetic products in 2024.

Shoes

In the following three years, shoe sales are expected to expand at a rate of 11.6%. Fashion labels would be wise to pay attention to the footwear part of their business and have shoes that complement their apparel. Shoes will make up around a third of the whole market. 

Bags and accessories

The e-commerce market for accessories and handbags is expected to increase by 8.5%, with an aggregate penetration rate of 25% in the fashion industry. 

Jewelry and other high-end goods

It’s expected that jewelry and high-end fashion will rebound in the years to come. In 2020, this market was estimated at $228 billion, and by 2025, it is predicted to be worth $307 billion. In 2025, luxury timepieces are estimated to account for around $9.3 billion in revenue. 

Statistics from all over the world

According to The Fashion and Apparel Industry Reports’ insightful analysis, the global fashion industry’s revenue is expected to rise from $481.2 billion in 2017 to $712.9 billion in 2022. There are three important prospects that will keep this growth going: 

  • Smartphone adoption and web usage are on the rise. 
  • Economies around the globe are growing. 
  • Technology advancements in e-commerce store design and management. 
  • Future fashion consumers are expected to have higher purchasing power. 

Leading Fashion Brands

Few fashion brands have been able to create value in these difficult times. This year, Nike, Inditex, and LVMH were the three most profitable firms in the fashion industry. These top companies surpass their competitors in terms of asset utilization and profit margin thanks to their cutting-edge products and first-rate customer service. 

These firms outperform the rest of the market by an impressive 6%, with a gross profit margin of 54%. Additionally, they have a low cost of capital, using only 55% of the invested capital, compared to the market’s 66%. 

E-commerce fashion’s 2022 Trends and Tactics 

Now that we’ve talked about some important statistics let’s look at some trends to watch in 2022. 

Use AI to give personalized recommendations

Customers want brands to cater to their specific needs. The use of artificial intelligence (AI) can help accomplish this goal. Ecommerce merchants can deliver customized product recommendations based on a customer’s previous purchases, browsing history, and situational targeting using artificial intelligence to track consumer behavior. 

Put AR to Work

Using augmented reality and 3D technology, you can create smart-fitting solutions. This will allow buyers to determine their right size by showing exactly what an item would appear like on the user or a dummy. So, if you want to keep up with the trend, make sure you include AR fitting rooms on your website. 

Branding over paid ads 

Younger Gen Z shoppers want to buy from a brand, not its promotion. The prime example of this is Lonely Ghost. Indy Blue Severe was an American YouTuber who got paid by big brands to stay and eat at hotels as long as she published about her experiences. At the age of 24, she decided to quit her job and start her own clothing line, Lonely Ghost.

Her new look was a hit with her fans, and the rest, as they say, was history. Severe now has a successful streetwear brand with a devoted following. Fashion businesses must focus on creating their brands rather than spending money on advertising in order to influence young consumers. 

Sustainability 

Fast-fashion retailers have come under fire for their use of toxic chemicals in their production processes. Today consumers are more aware of the environmental impact of their purchases than they were even ten years ago. More than 40% of the world’s consumers buy eco-friendly products. As a fashion industry, we need to show our customers that we’re doing our part to reduce our environmental footprint. 

E-commerce and social media 

Social media isn’t going anywhere anytime soon. Still, Facebook has the most users who use it every day and every month. The average social media user spends about 15% of their free time on the platform. The most important thing should be to compete for these users. It’s here where brand-building and promoting in-app shopping come into action. 

Conclusion

The eCommerce fashion industry is developing and changing at a rapid pace, and as technology continues to evolve, this rate of growth will only increase. But if you follow the current fashion trends and keep an eye on the statistics, you can create an exceptional eCommerce experience for your customers.

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