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Geographically, the fashion sector in the e-commerce world has developed more in some areas than in others. China leads with a value of 427 million dollars, followed by the US, scoring a total of 364 million dollars quota. Germany and Japan remain far behind, with almost an equal value of about 65 million dollars in the fashion sector.
Growth in the fashion sector is constant but even in this case there are categories that excel over others. In fact, the sub-category of clothing for both adults and children currently occupies the largest share of the market, but other sub-categories are also extremely relevant for the sector, such as: shoes, bags and accessories, and jewellery. The shoes sector saw a rise in market value from $365.5 billion in 2022 to a predicted $530.3 billion in 2027. In the jewellery sector, luxury watches are of strategic importance as by 2027 is forcasted that people will spend $9.3 billion just for those products, a big chunk of overall jewellery sales.
But what are the trends that can be detected along all sub-categories of the fashion industry?
1.Secondhand resale:
The resale market grew 24% in 2022 alone and is expected to reach a $218 billion market valuation by 2026. Secondhand displaced nearly one billion new clothing purchases in 2021 that normally would have been bought new.
2.Personalizing the customer journey:
Personalization has long been hailed as the secret of modern e-commerce. By analyzing visitor data and utilizing it at the right time, brands can create a data-driven strategy that optimizes the customer experience of each visitor based on their preferences and needs. Additionally, by using predictive algorithms, brands can analyze visitor data even more closely and identify the conversion probability of visitors or their interest in specific products to enhance sales.
3. The metaverse’s experimentation
One type of item that functions both in and out of the metaverse is non-fungible tokens (NFTs)—unique digital tokens that can only be owned by one person, usually paid for in virtual currency like crypto. Fashion brands are using metaverse to create immersive experiences for users and reach Gen Z audiences. This is just the beginning for fashion brands in the metaverse. As our world becomes more and more digitized, it’s likely that we’ll see even more brands experiment with NFTs and other virtual reality experiences.
4. Sustainability
Statista’s research shows 42% of global customers purchase eco-friendly and sustainable products. Some 65% of customers plan to purchase more durable fashion items, with 71% planning to keep the items they already have for longer. (McKinsey & Co.)
Patagonia, an apparel brand, has sustainability rooted in its brand values. The retailer actively campaigns for the environment and demonstrates its commitment to sustainability with its Worn Wear program. The program is aimed at encouraging people to take care of their clothes by rasing awareness on washing instructions and sharing repair guides.
5. Social commerce
Social media plays an integral role in the e-commerce marketing strategy of many online fashion brands. The typical social media user now spends about 15% of their time glued to an online networking app.
Social commerce sales are expected to nearly triple by 2025, with more than one-third of Facebook users planning to make a purchase directly through the platform in 2022.
Social media engagement rates for global fashion brands are abysmal:
Find out more insights on the fashion industry and what digital strategy is more suited for your brand by participating in the EU CBEC Forum 2023. All major e-commerce trends will be addressed by our main stage speakers. Write to us at info@crossborderforum.com or fill in the form on the dedicated page for the details on how to participate.