Over the past decade, online fashion shopping has skyrocketed in popularity across the globe. Where fashion retail was once dominated by brick-and-mortar stores, ecommerce sites are now capturing more and more market share each year. In 2020, ecommerce accounted for over 25% of total fashion sales worldwide as social distancing and lockdowns pushed more consumers to shop from home. Younger generations in particular have embraced online shopping for fashion, driving growth. According to recent statistics, over 75% of Millennials and Gen Z consumers make purchases in the apparel category via online retailers each month.
Convenience and selection are huge draws for online Fashion Ecommerce shopping. Customers can find a vast array of brands, styles, sizes and pricing all in one place without having to visit multiple physical stores. Websites and mobile apps allow for effortless browsing and impulse purchases from anywhere at any time. The rise of same-day and two-day shipping options have also made online retail even more appealing, satisfying the need for instant gratification. Customers want clothing, shoes and accessories delivered straight to their doorstep with minimal wait time.
The Asian Fashion Ecommerce Industry Boom
While North America and Europe still dominate global fashion ecommerce, the fastest growth is occurring in Asian markets. China has emerged as the largest online fashion retailer worldwide, with 2021 sales projected to reach over $150 billion. Chinese shoppers, especially millennials, have fully embraced mobile commerce through super apps like WeChat and Alibaba’s platforms Taobao and Tmall. Mobile payments via Alipay and WeChat Pay make online transactions seamless.
Other Asian countries are following swiftly in China’s footsteps. Japan’s online fashion market grew over 25% in 2020 and now accounts for one-third of total apparel spending. South Korea has seen ecommerce rise to 20% of fashion sales as young Korean consumers adopt a digitally-native lifestyle. India’s fashion ecommerce sector is exploding as well with startups like Myntra and LimeRoad addressing the country’s underserved markets outside major cities. As incomes rise and technology penetration deepens across Southeast Asia, more consumers are turning to online channels for fashionable clothing and accessories.
Multichannel Retailing is Key
In the modern omnichannel world, the line between offline and online retail is blurring. Top fashion brands realize they must adopt a seamless multichannel strategy to meet changing consumer behaviors. Customers may browse products online but still want to touch and try items on in physical stores before purchasing. Some like to order online for home delivery but also utilize store amenities like returns and exchanges.
Leading companies like H&M, Zara and Uniqlo have greatly expanded their online operations while enhancing in-store technologies. Sales associates now carry tablets allowing shoppers to check inventory availability across all channels. Stores double as fulfillment centers supporting buy online, pick up in-store or ship from store. Customers can place online orders and adjust sizes by trying on in boutiques. Omnichannel integration like these capabilities have enabled brands to synchronize digital and physical shopping experiences, driving greater loyalty and revenue.
Personalization is Key
With more fashion shopping done online, personalization will play a critical role in the customer experience of the future. Through AI, big data analytics and deep learning, online retailers are gaining unprecedented insights into individual customers’ preferences, purchase history and lifestyle patterns. This allows them to offer a highly tailored experience.
When shoppers visit retailer sites or apps, they will see personalized product recommendations and curated collections aligned with their tastes. Dynamic sizing guides, style quizzes and immersive product reviews can simplify discovery and selection. Personalized search will surface the most relevant items. AI may even generate custom clothing designs based on an individual’s profile. Automatic order tracking, 1-click reordering of favorite styles, and personalized discounts are examples of how fashion can be even more convenient. By delivering exceptional personalization at scale, online retailers will continue to build the loyalty necessary to thrive in a competitive global marketplace.
New Frontiers of Fashion Tech
From augmented reality (AR) and virtual reality (VR) to 3D product modeling and AI-generated materials, innovative technologies are opening new frontiers in fashion ecommerce. AR mobile apps now allow customers to digitally “try on” items using their device’s camera before purchasing. Retailers are introducing VR shopping experiences, virtual dressing rooms and custom avatar design studios. 3D product modeling and product configuration tools enable shoppers to visualize how different styles and colors will look on them.
On the supply chain side, blockchain is supporting traceability of raw materials and fighting counterfeiting. AI and computer vision are automating garment design, selection of fabrics and patterns. As new tech like smart fabrics emerge, clothing may one day alter fit, function or style via software updates. The intersection of fashion, ecommerce and emerging technologies will transform shopping into an even more personalized, gamified and immersive digital experience. Those companies managing to harness these innovations will cement their leadership for years to come in global online retail.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)