Fashion eCommerce Industry - Statistics, Trends & Strategies for 2022

The fashion business has a long history of embracing new technologies. According to reports, DTC brands in fashion and apparel account for 13 out of the top 20 DTC brands. 

When it comes to the fashion sector, technological advancements, globalization, and changes in consumer buying habits are causing seismic transformations. On the other hand, the coronavirus-accelerated retail calamity has made the garment business more volatile than in the past. 

A look at the eCommerce fashion market in 2022 and beyond is provided in this guide, which includes stats, trends, and tactics. 

eCommerce fashion industry: statistics  

Industry-wide data  

Statista predicts that the eCommerce fashion business’s annual compound growth rate (CAGR) will be 14.2 percent between 2017 and 2025, and an expected market value of $672.71 billion by 2023. 

eCommerce fashion industry: trends and strategies for 2022  

 

There are still many opportunities for fashion and apparel stores to thrive despite significant shifts in consumer behavior and global trade patterns. 

Here are a few of the most recent eCommerce trends to consider-  

The balancing act of Personalization 

Personalization is the latest eCommerce superpower to have. Giving shoppers what they want or retargeting them based on their past activity on your eCommerce platform gives them a personalized online shopping experience. 

Research predicts that 44% of customers are happy with brands using their personal information to improve customer experiences. However, there’s a limit as shoppers’ privacy concerns are rising.  

Brand-building over paid ads  

Saturation in fashion eCommerce is an understatement. Consumers have more options than ever, making it hard to keep customers coming back to their online stores. In addition, firms are up against thousands of competitors. This is why 40 percent of brands expect to increase paid search spending.   

Due to financial challenges, paid search ad costs have jumped 15% between the second and third quarters of 2021. Coupled with the “death of the cookie,” the picture is dismal. Google, for instance, plans to stop collecting cookies in its browser by 2023. Yet, surprisingly, 28% of technology decision-makers expect the new regulations to stifle growth. 

 Let’s understand how fashion brands can build their brand  

A customer that is so aligned with your beliefs and offers that they don’t care about price will be drawn to your firm if you apply this method.  
  • Recognize the aspects of the product or service that can be utilized to build a USP. 
  • Examine your competitors and decide how you want your clients to see you. 
  • Identify your ideal customer as someone who actively seeks your products and services to solve their concerns. 
  • Plan a communication plan that connects with your audience while excluding unwanted leads. 

Sustainability at the forefront  

Fashion is no stranger to criticism. Fast-fashion firms are frequently criticized for their manufacturing and inventory management practices. However, in light of these complaints and customers’ rising dedication to halting climate change, 52% of buyers say they’re more likely to buy from a firm that shares their beliefs.  

Today’s fashionista is conscious of sustainability. According to Statista, 42% of global buyers purchase green products. Online buyers in Vietnam, India, and the Philippines are more likely to buy sustainable products. It is interesting to note that the pandemic is changing buying habits. Customers intend to spend more on durable fashion products while keeping their existing items longer. As a result, the fashion resale business has exploded growing 11 times faster than traditional retail. 

Social commerce

Many fashion labels use social media as a part of their eCommerce marketing strategies. But unfortunately, our smartphone addiction is out of control. The average social media user spends 15% of their waking time on mobile apps. The truth is that buyers no longer follow fashion trends on social media. The problem is that most branded content is advertising under the guise of entertainment and buyers see through it. 

Thankfully, social networking and fashion are designed for each other, even with branded content, especially on Instagram. Brands just have to try harder. This is why many social media platforms are expanding their business models to support in-app shopping, to assist online retailers to reach active buyers  

What works for fashion brands?  

Before buying, 46% of buyers want to see product videos. However, platforms like TikTok and Instagram are praised for generating sales.  

Beyond social media influencer marketing, multi-channel eCommerce merges native off-site selling to develop direct buying paths where your audience at Instagram Shopping, Facebook Shops, and Pinterest buyable pins are just a few instances.  

Facebook and Instagram live streams increase conversion rate by 30%and reduce product returns. This is evidence that livestream shopping is becoming quite popular. Last year, Nordstrom created a streaming shopping channel. 81% of businesses aim to grow or maintain live streaming sales channels soon  

​​The transition back to brick-and-mortar 

Shopping is more complex than ever, especially in fashion. Online returns account for 22% of all returns. Unending challenges are pushing many fashion firms back into traditional retail. 

Moreover, the Future of Commerce research shows that multichannel commerce isn’t going away soon. Online and offline sales channels must work together to satisfy modern consumers. If a product is available online, 54% of consumers are likely to research and purchase it in a physical store. However, 53% see themselves doing the opposite, shopping in a store and then making a purchase on the internet. According to a new survey, customers prefer to shop online and see what’s available in their local businesses. BOPIS is used by more than half of all adult customers, with 67% adding additional goods to their shopping carts if they can pick them up right now. 

Embrace the future with Concord  

Retail fashion is going through a renaissance with rapid changes. A lot of what worked two years ago is no longer relevant as shifting consumer preferences. Concord’s connected commerce platform can help you take your Retail Fashion business to the next level. Get in touch with us to learn how. 

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