The fashion industry is continuously evolving. Seasons change. Preferences transform. Fads come and go.
When measured by the value of industry shipments, the textile and clothing business in the United States is worth approximately $70 billion. It is still one of the most important areas of the manufacturing sector, and it ranks among the top export markets in the world in terms of export revenue.
Companies are recently concentrated on reconfiguring their operations, creating e-commerce websites, developing more efficient work processes, investing in specialized goods and markets, managing costs using sophisticated technology, and reshoring/nearshoring manufacturing.
How Covid has impacted the fashion market
The fashion industry is undergoing exponential changes due to Covid-19. Digital innovation, growing globalization, and changes in consumer purchasing patterns have sent the fashion business into a whirlwind.
The worldwide fashion e-commerce business was predicted to fall from $531.25 billion in 2019 to $485.62 billion in 2020. The coronavirus pandemic is primarily responsible for the -8.59% negative compound annual growth rate (CAGR). However, the market is expected to rebound and reach $672.71 billion by 2023.
In the United States alone, the online fashion sector has accounted for 29.5% of fashion retail sales in 2020. The US market has taken a big bite out of worldwide forecasts, reaching approximately $100 billion in 2021.
Despite the situation of coronavirus and lockdowns across countries, fashion online retailers have soared. Brands such as Zalando noted a 32–34% rise in GMV in the second quarter of 2020.
Stats of clothing and shoe segment
Reducing digital barriers to entry for all apparel businesses has opened up the possibility of marketing, selling, and fulfilling orders internationally and seamlessly. As a result, both global revenue and average revenue per user (ARPU) are expected to rise.
The athleisure market size was valued at $155.2 billion in 2018 and is set only to rise. Athleisure is predicted to have a CAGR of 6.7% from 2019 to 2026 and reach $257.1 billion.
As a segment of e-commerce fashion, the shoe, accessories, eyewear, and luxury goods will see peaks in the market value. The compounded annual growth rates over the next five years are up and to the right for fashion at large as well as every subcategory.
Let’s run through some major highlights for the fashion market in the US
Data source: Statista
Trends and strategies for the e-commerce fashion industry
Six out of ten customers say that the ability to purchase online is one of the key factors in deciding whether to buy from a brand or not. Thus, online shopping is on the rise than ever before. Fashion businesses must meet their clients wherever they are, on their mobile devices, rather than expecting them to find their store by chance.
As a brand dealing in the fashion market, it is inevitable to develop an easy-to-operate e-commerce website where customers can check out products and order around the clock.
Having a fully functional e-commerce website will let you provide sheer convenience for your customers and offer a wide range of products in a single place. It enables you to serve a bigger market while saving immense funds that incur in running a physical store.
Netflix personalizes program visuals depending on a user’s previous viewing behavior. It’s a technology that generates $1 billion in client retention value each year. Similarly, e-commerce stores can be customized to match onsite activity or purchasing history.
Shoppers in the online fashion sector will come to demand the same level of customization in the future of e-commerce, just like Netflix. These product recommendations, in their most basic form, are identical to the item a customer is actively exploring.
Including personalization on your website can help you generate 2X clicks and sales.
To sum up,
As a fashion retailer, you have to stand out. With the growing numbers, you need to move fast, and you have to focus on providing exceptional service to your customers. What worked two years ago is no longer relevant, owing primarily to the coronavirus epidemic, which has disrupted traditional purchasing habits and driven brick-and-mortar shops to move online.
So, have you jumped on the bandwagon of fashion e-commerce? If not, Sankhala Info Solutions is here for you! Contact us to get all services related to e-commerce website development and start building your online fashion store today.