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Online Fashion Retail Statistics

Online stores are on the rise. The reason behind this high growth rate is the convenience and increased speed of delivery. Statista has revealed that the net worth of the online fashion retail market in 2018 was $533 billion. It is predicted to grow by up to $872bn by the year 2023. The online apparel market makes up to 65% of the total online fashion market. Footwear makes up to 25% followed by bags and accessories that make up to 10% of the global online fashion sales.

There are various factors that have been playing their part in catapulting the online fashion industry. These factors include:

  • Rise of globalization
  • Digital innovation
  • Changes in the spending habits of the consumers 

In this article, we are going to discuss the direction the online fashion retail market is taking by studying the stats and trends associated. This will allow brands to devise strategies to win fashion ecommerce in 2020. So, join us as we unfold the secrets to success in the online fashion retail market. 

Comparison of Online and Offline Fashion Purchase frequency:

According to online retailers, 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.

Trends in online fashion retail market: 

Cumulative industry data: 

Studying the worldwide revenue data reported within The Fashion and Apparel Industry Report, we come to the conclusion that the future of the online fashion retail market is very bright. This industry made around $481.2 billion in 2018. It is expected to rise up to $712.9 billion by 2022. 
There are four factors that have been driving the unprecedented growth of the online fashion retail market:

  • 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 

By 2020, the number of potential fashion goods consumers is expected to rise up 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.

Threats to established 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

After analyzing the opportunities and threats retailers have to face while establishing their online fashion business, it gets easier for us to devise strategies to improve fashion businesses’ standing in the market. 

Segments of fashion ecommerce industry:

The fashion ecommerce industry can be divided into the following segments including:

  • Apparel 
  • Footwear
  • Bags and Accessories 
  • Jewelry 

Data shows that the worldwide revenue and revenue per user (ARPU) related to the online apparel industryis projected to grow:

Even though the number of clothing absolutes is increasing, the worldwide revenue growthcompound annual growth rate (CAGR) is gradually slowing down. The CAGR in 2018 was 15.3%. It is expected to come down to 7.6% by the year 2020. 
The shoe segment of the online fashion 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.

While studying the trends related to the bags and accessories segment, we observe that even this strong growing market will go through a dip. The growth rate is expected to fall down from 15.6% in 2018 to 8.7% by 2022.

The jewelry segment of the online fashion retail market makes up to 4-5% of the total sales. However, this year it appears that these sales are going to rise by 10-15%50

Devices used to access online fashion retail websites: 

The best way to convert mobile traffic into sales is to launch a mobile first fashion website. The website that caters to both desktop and mobile devices often grow faster than the ones without a mobile version. Mobile accounts drive over 65.4% of the traffic to online fashion retail company. It generates up to 57.1% of the sales for the online fashion retail sector. This percentage is much higher as compared to the overall average sales of the retail industry. 

The average value of orders placed online:

With access to the internet, more and more people are switching to online outlets to shop for their desired items. The increase in the usage of mobile phones has also contributed towards the rise in the value of the products purchased online. Even though a large percentage of people use mobile phones to shop online, the majority of the American and British consumers purchase their desired goods online using desktop. The Average order values (AOV) placed by US consumers online on desktop is $103 per transaction as compared to $93 on mobile devices.

Difference between the conversion rates of mobile and desktop purchases: 

It has also been observed that desktop websites convert more visitors as compared to mobile websites. This makes it important for the brands to invest time in money in the development of progressive websites that offer the best user experience on both desktop and mobile devices. These websites should fit every screen size and offer easy navigation.

Why do people purchase online fashion retail items? 

Now we are going to discuss why people purchase online fashion retail items.  There are various reasons why people shop online. Some of them include:

  • Easy price comparison: 

One of the major reasons why people go for online fashion retail shopping is that they have the convenience to view a number of products from a number of different stores. That too, from the comfort of their homes. They can review similar products and their pricing without having to burn fuel to visit different stores. It is time and cost efficient for them. Moreover, various websites offer discount coupons to make customers’ shopping experience more valuable for them for example Modibodi Discount Codes.

  • More variety: 

The majority of online fashion retail websites stock a wide variety of fashion related goods. Most of the times, consumers find a variety of products from every segment of the fashion sector on the same website. This makes it easier for the shoppers to access their desired goods without having to walk from aisle to aisle and store to store. Moreover, each of these items can be availed at a discounted price since online retailers offer promocodes to add to the value of the purchase customers make online. One of such offers includes SAVAGE X FENTY Promo Codes

  • Better Pricing: 

The majority of the online retail fashion websites offer regular discounts only on their online stores. However, when it comes to online retail categories such as clothing, the consumers want to try on and feel the fabric physically. To avail the best offers and value for money, these consumers visit physical stores and turn to online stores to make purchases. Some of these offers include PURELEI Discount Codes that make your purchases worthwhile. 

  • Reviewed products: 

Online fashion retail websites ask their customers to post reviews about their products. This is another major reason why people prefer to make online purchases. Product reviews help them to figure out whether or not a product works for them. The majority of the avid online shoppers base their shopping decisions on the reviews they read on the fashion retail website.

  • Time efficiency: 

Time is the only resource that rivals the power of money today. Online shopping allows customers to access their desired items at the lowest possible rates in no time. The consumers find the best deals from the comfort of their homes in their free time. 

The reason why shoppers abandon their online clothing purchases:

There are various reasons why shoppers might abandon a fashion good right before checking out. 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. You can also offer Single Price Free Delivery Discount Codes deals to make more customers buy your products.

The rising trend of digital couponingin the online fashion retail sector:

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. 

This is what makes coupons one of the best ways for the shoppers to save money on their purchases made online. The stats from June 2019 show that more than 60% of the online shoppers all across the world searched for coupons and discount code while going through a new online fashion retail website.According to Cyber Monday statistics, this trend is on the rise during events such as Black Friday, Cyber Monday and during special events and occasions.

Final words:

The world of online 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.

Published On: April 14, 2020