Fashion Ecommerce Industry: Global Fashion Ecommerce Driving the Future of Retail

The Rise of Fashion Ecommerce Industry

The last decade has seen tremendous growth in online shopping across the world. According to eMarketer, global ecommerce sales reached $3.4 trillion in 2018 and are forecasted to grow to $6.5 trillion by 2023. Asia, in particular, is driving this growth with a projected annual growth rate of over 15% through 2023. Changing consumer behavior and increasing internet access have contributed to more people turning to online shopping for fashion and apparel. Consumers now have access to a huge selection of brands from any location at any time through their mobile phones and desktops. The growth of fast fashion retailers like Zalando and ASOS in Europe and domestic online players like Myntra and Limeroad in India have made online fashion shopping more mainstream.

Establishing an Omnichannel Presence

Major global fashion brands have realized that they need to establish an online presence to successfully reach customers in international markets. Multichannel retailing that integrates both physical and digital shopping experiences has become essential. Leading retailers like H&M, Zara, and Uniqlo have heavily invested in developing robust ecommerce platforms along with mobile apps to complement their strong brick-and-mortar footprints worldwide. Asian brands like SHEIN have established themselves primarily as digital-only retailers with an inventory of hundreds of thousands of affordable styles uploaded daily. Analytics tools and AI are helping retailers better customize product recommendations, sizing guides, and checkout experiences for each customer. Convenience-led generations like Gen Z are the backbone of this growing online apparel market.

Hyperlocal Fulfillment and Fashion Ecommerce Industry

To compete with marketplaces like Amazon that offer fast and affordable delivery, Fashion Ecommerce retailers are focusing on streamlining fulfillment and ensuring orders are dispatched quickly from nearby warehouses. Favorable government policies have paved the way for foreign investment in logistics infrastructure across Asia, Latin America, and Africa. Global brands have partnered with local logistics providers like Delhivery in India to distribute products from hyperlocal fulfillment centers located near key cities for one or two-day deliveries. Domestic retailers have optimized inventory allocations and fulfillment processes to guarantee fast local deliveries to the last mile. Customers now expect orders to be shipped within 24-48 hours and returned effortlessly if unsatisfactory, and retailers are meeting these expectations to keep them loyal to their brand.

The Rise of Resale and Rental Platforms

Sustainability and reuse of fashion items have emerged as important themes in recent years. Resale marketplaces like ThredUp and Vestiaire Collective let customers seamlessly buy and sell pre-owned luxury brands while earning extra income in the process. Rental platforms like Rent the Runway have expanded internationally as women seek affordable access to special occasion styles without long-term ownership commitments. Major brands are collaborating with such platforms to promote a circular fashion economy that extends the lifecycles of existing products. Resale and rental are predicted to account for over 15% of the global fashion market in 2023. Online resale marketplaces provide an eco-friendly alternative while still satisfying fashion appetites among young demographic segments focused more on experiences over possessions.

Power of Influencer Marketing

Fashion and lifestyle influencers have leveraged social media followings into successful digital careers by partnering with brands on product reviews, launch announcements, and sponsored content. Platforms like Instagram provide cost-effective means for global retailers to authentically connect with niche target audiences across borders through influencers in various locations. Well-known influencers like Chiara Ferragni have collaborated with premium fast fashion labels on exclusive capsule collections with great success online. Engaging top influencers to promote new seasonal collections with authentic reviews and styling ideas have emerged as a prominent marketing tactic for both emerging and established brands. Partnerships leverage influencers' credibility while also helping brands gain valuable audience insights from their engaged subscribers. Advanced tracking tools provide transparency into content performance and revenue generation.

In Summary, fashion ecommerce is poised to disrupt traditional retail across the world at an even faster pace. Immersive technologies like virtualtry-on mirrors and augmented reality will help bridge the gap between online and offline shopping experiences. Cryptocurrencies with fast global settlements can facilitate new direct selling channels between creators and buyers. AI and machine learning will deliver hyper-personalized recommendations pushing targeted customers from browsing to buying within just a few clicks. Fashion brands and retailers will need to strategize omni-channel experiences centered around convenience, quality virtual experiences, and loyalty to retain customers accustomed to next-day deliveries and easy returns on phones and PCs. The digital transformation happening across not just developed markets but emerging economies will prepare global fashion for a future that is increasingly personalized, sustainable, and technology-driven.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)