Online Fashion Retail Statistics

FASHION - STATISTICS Published On: January 12, 2021

Online stores are on the rise. The reason behind this high growth rate is the convenience and increased speed of delivery. Recently, the COVID-19 pandemic has also pushed millions towards shopping online.

Fashion is an important part of eCommerce. According to the latest data by Statista:

The combined global value of apparel, footwear and accessories being sold online was USD 664.5 billion in 2020.
The market is predicted to grow by up to $872 billion by the year 2023.
In the next five year, this value is expected to be $1003.5 billion.
Online apparel makes up to 65% of the total fashion market.
Footwear makes up to 25% followed by bags and accessories that make up to 10% of the global online fashion sales.

Online fashion industry has become a giant due to the rise of globalization, digital innovation and changes in customer spending habits and increased digitization in wake of the pandemic.

In this article, we are going to discuss the direction the online clothing retail market is taking by studying the stats and trends associated. This will allow brands to devise strategies to win fashion ecommerce in 2021.

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Let’s begin.

Comparison of Online and Offline Fashion Purchase Frequency:

According to latest online fashion statistics, 14.9% of the consumers will strictly stick to their in-store purchasing habits. More than 6.4% of the fashion good consumers in America would only purchase goods online.

Increasing Share of Online Fashion Sites

eCommerce has been encroaching on the space of brick-and-mortar in the fashion industry for some time now. By 2023, it was estimated that online outlets will have a share of 24% in the apparel market.

However, the COVID-19 pandemic has sped things up. According to BCG, 14% of consumers in the US have bought fashion goods online for the first time due to the outbreak.

Prevailing Trends in Online Fashion Retail Market:

Data from different researchers provide a good perspective on how the online apparel industry is fairing in 2021. Here some of the major trends in this space.

1. Millennial Customers Are Driving the Digitalization of Fashion

Studying the worldwide revenue data reported within The Fashion and Apparel Industry Report, it’s easy to conclude that the future of fashion is online. This industry made around $359.9 billion in 2017. It is expected to rise to $935 billion by 2024.

The growth of the eCommerce fashion market is somewhat astonishing.

Total growth of eCommerce fashion: 26.5% (2020)
Annual compounded growth rate: 9.4% (2020-2024)
eCommerce apparel growth: 29.6% (2020)

One the many reasons attributed to the growth of online apparel is the increasing purchasing power of millennials. Young shoppers are more tech savvy and fashionable, and are more likely to buy online.

5W Public Relations’ 2020 Consumer Culture Report shows millennials spent $1.4 trillion in 2020. By 2021, the number of potential fashion goods bought by consumers is expected to rise to $1.2 billion. The buying power of fashion consumers is also expected to improve. The majority of the online fashion goods consumers belong to the 16 to 24 and 25 to 34 age groups.

Some of the other factors driving the unprecedented growth of the online apparel market are:

The expansion of the global market beyond the western world
Easier access to the internet and smartphones
Increase in the disposable income earned by the middle class
The creation of experimental ecommerce using advanced technology such as Artificial Intelligence

2. Fashion eCommerce is Creating New Challenges for Popular Brands

The rise in online fashion consumption also poses some serious threats to the established brands. Some of these threats include:

Market fragmentation causing reduction in brand loyalty
Dealing with 50% high online return rates
Fast and customizable styles available on demand
Public awareness pushing brands to manufacture goods from green and ethically sourced material

Any known brand that fails to meet these challenges will suffer in the long-run. Many brands attracts new customers through their offers like ASKET offering $45 Off on T-shirts, you can avail it by using ASKET Coupon Codes.

3. Online Penetration is Increasing in Three Major Fashion Segments

Statista estimates that penetration of eCommerce in fashion will increase from 46.6% in 2020 to 60.32% in 2024.

Three major segments of this market are responsible for this:

eCommerce apparel is expecting to touch $475 billion by 2022. It will experience an extraordinary increase of more than $150 billion since 2018 according to Statista.

The shoe segment of the online clothing retail market will see a 6.6% increase in revenue. The net worth of this industry is expected to rise from $96 billion in 2018 to $135 billion in 2022.

Meanwhile, bags and accessories worth $103 billion are expected to be sold in 2022.

It’s important to remember that these are pre-COVID estimates, which means the actual growth might increase by a great margin.

4. China is Big Market but Not the Most Profitable Per Person

When it comes to overall consumption, China has a significant lead over other countries. In fact, it’s market is more than double to that of the United States.

China: $284.3 Billion
United States: $126.5 Billion
United Kingdom: $32.5 Billion
Japan: $23.9 Billion
Germany: $22.5 Billion

However, this doesn’t mean Europe and the United States are no more the dominant forces in the market. When it comes to Average Revenue Per User (ARPU), the customers in these regions outspend Chinese consumers by a significant margin.

Surprisingly, the gap between western and eastern fashion lover’s spending has even widened.

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5. Smartphone Bring in More Traffic But Have Less Conversion Rate

Both smartphones and desktop computers have their strengths when it comes to online apparel.

Here’s what mobile devices provide to online fashion brands:

65.4% of traffic
57.1% of the sales

This percentage is much higher as compared to the overall average sales of the retail industry.

But desktops still have their worth.

The Average order values (AOV) placed by US consumers online on the desktop is $103 per transaction as compared to $93 on mobile devices.

Similarly, the conversion rate remains superior on desktop devices with 3.6 conversions compared to 1.3% on smartphones

So while creating a good website experience on smartphones is important, desktops should remain a priority for businesses.

Reasons Behind the Rise of Fashion eCommerce

There are a number of reasons why people turn to the internet for style. Latest stats tell an interesting story.

It shouldn’t be a surprise that fashion lovers want variety. On the internet, one can explore a wide range of goods without walking from aisle to aisle.

Likewise, it’s easier to find a bargain on the internet. Redeeming digital coupon codes is easier than cutting clippings from a magazine. Customers also believe clothes online are cheaper than on retail outlets.

One of the interesting reasons people prefer online clothing stores is they can read reviews before purchasing the final product.

Cart Abandonment in Fashion is One of the Lowest

In fashion, the online cart abandonment rate is one of the lowest. This could be attributed to the relatively inexpensive rate of the products. While buying clothing items, people don’t put in a great amount of thought.

According to eCommerce fashion statistics Codeinwp:

74.13% is the cart abandonment rate in clothing eCommerce.
Comparatively, 87.87% customers leave their carts abandoned

Still, E-Retailers need to analyze why people leave their site at the tail-end of the shopping journey.

There are various reasons why shoppers might abandon a fashion good right before checking out according to the Sales Cycle. It might be a poorly functioning website or slow product delivery. Quality concerns, high pricing, no return policy, limited stock and a lot more can cause consumers to abandon their purchases.

By fixing these issues you can make sure that your website retains the visitors and converts them into your potential customers.

Digital Coupon Codes Are Now More Important Than Ever

One of the best ways to improve sales for fashion brands is to offer coupons and special offers to their customers. Just like brick and mortar stores, this trend has been rising in the online fashion retail sector as well. According to Coupon code facts and statistics, online retail stores offer a variety of discount deals that make shopping a wonderful experience for the customers. Discounts are offered in the form of promotional codes, coupon codes or discount codes. Sometimes companies also offer free shipping on a specific amount of online purchases. Like you can buy comfortable shoes by using Gram Shoes discount code.

Final Words

The world of eCommerce fashion retail is growing. In order to keep pace with this ever-evolving field, it is important to keep a track of the trends that come and go to stay at the top of your marketing and selling strategies. Keeping a close eye of the market trends can take you to the top of your niche and help you to maintain a high position in the market.