1. Industry-wide data

A decline of well over $40 billion, from 2019 to 2020, was seen in the global fashion industry relative to e-commerce. Nearly 9% of the compound annual growth rate diminished due to the pandemic. Recovery, however, seems to be on the way, reaching as much as $670 billion by the year 2023.

You just look at fashion retail sales, going back to 2020, you can see that in the United States this accounted for nearly 30% of retail sales. This value represented a large amount of money and was able to reach a hundred billion dollars by 2021.

Currently, there are five opportunities worth noting in regard to this growth potential:

  • Global markets expanding rapidly that are not in the US
  • The ability of smartphones and online access to influence online sales
  • The amount of disposable income spent by the middle class
  • Technologies that have really helped the e-commerce industry
  • The way that influencers and celebrities have used their power to influence the market

There are also threats that should be addressed:

  • The fragmentation of brand loyalty
  • Return rates that are excessively high
  • The ability to create and produce new styles for sale
  • The manufacturing of green products for those that will buy them
  • Combat strategies will be presented later. Let’s first look at sub-verticals and how they affect the market.

2. The COVID impact

Going back to the prior year, it is obvious that the pandemic had an influence on e-commerce predictions. Most US consumers had stated they would spend less money on these products.

However, retailers have profited more than ever before. Certain brands are able to boast over 32% growth, and that was just in the second quarter of 2020. Companies in the UK had seen nearly a 50% growth in revenue, and this mostly came through online sources when selling fashionable brands on their websites.

It is because of these increases that retailers have not had to make any adjustments at all for their retail plans.

Athleisure is perhaps the most notable type of attire that has seen great improvements in sales. Valued at about $155 billion back in 2018, this is going to continue to rise. For example, CAGR statistics have shown that during a seven-year period of time, between 2019 and 2026, it will grow to over $250 billion.

When the pandemic was in full force, many stores and schools were closed down, but athleisure clothing was still being purchased, likely by the stimulus money that was given to the people.

How do we look at all of this data? Athleisure, which is sold by Nike and other companies, really didn’t do well during the pandemic.

3. Clothing and apparel

One of the reasons for this success is how easy it is to sell things online, especially for clothing merchants that can automate the entire process. As a result of this, you can see projections for growth when considering ARPU data.

Take Europe for example. Consumers in this area of the world spend about $1000 per year on clothing. If you are looking for plus size shapewear then see here.

However, despite the high numbers, there is a prediction that the markets will continue to drop in regard to compound annual growth rates: in 2018, when it was at 15.3%, it is now projected to drop to below 8% by 2022. The data for the CAGR predictors has shown that e-commerce in general, specifically in the area of fashion, will drop over 3% over the course of the next few years.

It is thought that Western market saturation is likely causing this downward trend. To understand if that is the case, you have to look at China, Europe, and the US, and when you do it doesn’t look good.

Looking at the years of 2017, going up to 2022, CAGR provides us with the following data:

  • 14.1% in China
  • 8.8% in the US
  • 8.7% in Europe

4. Shoe segment

The market value in the shoe industry has seen a gradual increase. The global market size of footwear will likely see an increase of nearly $175 billion by the year 2027.