The business of fashion is more than big; it’s the biggest of the big. With a global market value of $759.5 billion in 2021, apparel, accessories, and footwear are the number one eCommerce sector in the world. Statista The global fashion eCommerce industry was expected to decline from $531.25 billion in 2019 to $485.62 billion in 2020. The negative compound annual growth rate (CAGR) of -8.59% is largely due to the coronavirus pandemic. However, the market is set to recover and hit $672.71 billion by 2023.
Online shopping is skyrocketing, with six out of 10 shoppers saying the possibility to shop via mobile is an important factor in deciding which brands to purchase from. Consumers prioritise convenience over cost —they’re willing to spend more to get what they need. Deloitte
Driving this growth are five notable opportunities Statista:
- Expanding global markets
- Increasing online access and smartphone penetration
- Emerging worldwide middle classes with disposable income
- Innovating technologies to create experiential ecommerce
- Harnessing the power of celebrity and influencer culture
And the biggest threats to established brands include:
- The death of brand loyalty due to market fragmentation
- The cost of combating online return rates as high as 50%
- Pressure from consumers to use ethically sourced and green manufacturing materials
Â
Â
