Fashion E-Commerce Global Market COVID 19 Opportunities and Strategies to 2030: COVID-19 Growth and Change

The fashion e-commerce market consists of sales of fashion goods and its related services through online channels by entities (organizations, sole traders or partnerships) that that are primarily involved in retailing fashion goods through e-commerce. Fashion goods include fashion accessories, clothes, shoes, bags, jewellery, cosmetics, and other luxury goods.

The global fashion e-commerce market reached a value of nearly $549,550.39 million in 2020, having increased at a compound annual growth rate (CAGR) of 7.7% since 2015. The market is expected to grow from $549,550.39 million in 2020 to $929,378.49 million in 2025 at a rate of 11.1%. The growth is mainly due to the increasing awareness about e-commerce among the population and increase in mobile phone usage which is expected to drive the demand for fashion e-commerce. The market is expected to grow from $929,378.49 million in 2025 to $1,896,829.88 million in 2030 at a CAGR of 15.3 %.

Growth in the historic period resulted from increase in online mode of payment, rise in disposable income, increased internet penetration and low interest rate environment. Factors that negatively affected growth in the historic period were increased raw material cost and privacy and security concerns regarding the online data.

Going forward, increasing new payment modes, rising awareness about e-commerce, global economic growth, increasing mobile phone penetration, changing customer preferences, and rapid urbanization will drive the growth. Factors that could hinder the growth of the fashion e-commerce market in the future include growing privacy concerns, reduction in free trade, and rising concerns over the quality of the product.

The fashion e-commerce market is segmented by product into apparel/clothing, accessories, footwear, cosmetics, and others. The apparel/clothing market was the largest segment of the fashion e-commerce market segmented by product, accounting for 54.3% of the total in 2020. Going forward, the accessories segment is expected to be the fastest growing segment in the fashion e-commerce market, at a CAGR of 15.2% during 2020-2025.

The fashion e-commerce market is also segmented by end-user into men, women, and kids. The women market was the largest segment of the fashion e-commerce market segmented by end-user, accounting for 53.9% of the total in 2020. Going forward, the men segment is expected to be the fastest growing segment in the fashion e-commerce market, at a CAGR of 12.3% during 2020-2025.

The fashion e-commerce market is also segmented by model type into business to business (B2B) and business to consumer (B2C). The business to consumer (B2C) market was the largest segment of the fashion e-commerce market segmented by model type, accounting for 85.4% of the total in 2020. Going forward, the business to consumer (B2C) segment is expected to be the fastest growing segment in the fashion e-commerce market, at a CAGR of 11.5% during 2020-2025.

Asia Pacific was the largest region in the global fashion e-commerce. market, accounting for 32.0% of the total in 2020. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the fashion e-commerce market will be the South America and Middle East, where growth will be at CAGRs of 16.7% and 15.7% respectively during 2020-2025. These will be followed by Africa and Eastern Europe, where the markets are expected to grow at CAGRs of 13.1% and 12.1% respectively.

The global fashion e-commerce market is fragmented, with large number of players. The top ten competitors in the market made up to 12.1% % of the total market in 2019. Major players in the market include Amazon, Zalando, Alibaba, eBay, Flipkart, ASOS, Stitch Fix, Boohoo.com, Global Fashion Group, and Farfetch.

The top opportunities in the fashion e-commerce market segmented by product will arise in the apparel/clothing segment, which will gain $155,324.7 million of global annual sales by 2025.The top opportunities in the fashion e-commerce market segmented by type of end-user will arise in the women segment, which will gain $186,287.0 million of global annual sales by 2025.The top opportunities in the fashion e-commerce market segmented by modal type will arise in the business to consumer (B2C) segment, which will gain $340,983.0 million of global annual sales by 2025.The fashion e-commerce market size will gain the most in the USA at $61,990.2 million.

Market-trend-based strategies for the fashion e-commerce market include use of artificial intelligence (AI) powered virtual assistants, use of augmented reality, increasing demand for sustainable and ethical fashion. Companies should also look at investing in social media marketing tactics to increase profits. Player-adopted strategies in the fashion e-commerce market includes acquiring emerging companies, expanding brand portfolios through new product launches and expanding business operations in other regions.

To take advantage of these opportunities, the publisher recommends the fashion e-commerce companies to consider using new technologies such as AI and augmented reality, which not only enhances customer experience but also help companies to make quicker and better decisions over time. We also recommend expansion in developed markets such as the UK and the US offer a large end-user base with high disposable incomes and good awareness.

Companies in the fashion e-commerce market should consider broadening their scope and product portfolios, using mergers and acquisitions. This enables them to increase revenues, gain a competitive edge in the market and reach different regions of the world. They should try practicing competitive pricing, keeping in mind the average prices of the market.

For promotion they should try to increase customer engagement via social media platforms, influencer marketing and MLM marketing schemes. Companies should consider consumer preferences and target more millennials as their preferences continuously evolve according to different occasions, among other strategies.