Global e-commerce fashion & apparel sector sees steady growth: Report

Top players in the fashion and apparel industry must quickly adapt to local and global cultural trends. Environmental awareness, economic concerns, and cultural influences are pivotal in shaping the industry's evolution.

Despite most of the top ten countries by total traffic following consistent trends from 2022, they are experiencing a gradual decline in visits YoY. An exception to this trend is Japan, which has emerged as one of the fastest-growing countries in the industry. The United States continues to be the biggest market in terms of traffic, accounting for over 25 per cent of global traffic. Canada, while only holding 2.6 per cent of global traffic, has entered the top ten and is experiencing steady growth, as per ‘the State of Ecommerce 2024: Digital Trends and Strategies For Success’ report.

Despite high inflation, Argentina is the fastest-growing country in fashion and apparel, with a 20 per cent YoY increase. Russia follows with a 17.7 per cent growth, likely driven by the limited availability of international brands due to the ongoing war. The influence of K-culture is evident in South Korea, where demand for fashion and apparel has grown by 14.2 per cent YoY. Mexico, categorised as upper-middle-income, shows 11.2 per cent YoY growth, driven by increasing internet penetration.

As consumers become more aware of fashion's environmental impact and economic conditions remain challenging, demand for pre-owned apparel is on the rise. Vinted leads this segment with an impressive 80 per cent YoY growth, followed by Depop at 40 per cent growth. These platforms are at the forefront of the fastest-growing websites in the industry.

Argentina’s market growth is dominated by sports brands and retailers, with the top eight websites in this space capturing over 40 per cent of industry visits. Nike, the second-largest website in Argentina, launched its local direct-to-consumer (DTC) website in April 2023, expanding its product offering and enhancing customer relationships. While Adidas has seen the largest website growth, direct brand searches have declined by 9 per cent, whereas Nike’s volume has grown by 37 per cent.

App usage is increasingly becoming the primary mode of interaction between customers and fashion brands, mirroring trends in the marketplace industry. In the US and UK, despite a decline in visits to top fashion websites, app usage has surged by 38 per cent and 25 per cent respectively, offsetting the overall decline. Conversely, in France and Germany, app usage and web traffic have both declined, though app usage at a slower rate. Overall, consumers’ shift towards apps is helping mitigate the impact of declining website visits, the report added.

Low-price retailers are significantly driving the growth of app usage. Shein stands out as one of the fastest-growing fashion apps, with growth rates of 63 per cent in the US and 49 per cent in the UK. In the UK, Vinted also plays a major role in boosting app usage, with app sessions increasing by 72 per cent. Other low-price retailers contributing to this growth include Sports Direct in the UK, Kiabi in France, and C&A in Germany.

Fibre2Fashion News Desk (DP)