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The online apparel retailing market is estimated to increase by USD 220 billion and grow at a CAGR of 13.85% between 2022 and 2027. The growth of the market depends on several factors, including the rising popularity of digital payment systems, the rise in online spending and smartphone penetration, and the growth in the e-commerce industry. The extensive array of clothing and accessories accessible through e-commerce platforms has led consumers to adopt digital channels for their apparel purchases. Online shopping experiences are further enriched by features such as multiple payment options, shipment tracking, and round-the-clock customer support. Additionally, the presence of diverse payment methods, encompassing credit cards and cash on delivery, caters to a wide range of consumer preferences, notably in developing nations like India and China.
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This report extensively covers market segmentation by end-user (men apparel, women apparel, and children apparel), product (upper wear apparel, bottom wear apparel, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the men apparel segment will be significant during the forecast period. This segment is witnessing an increase in the sales of apparel due to the proliferation of apparel as a business casual attire in the corporate world. Apparel in the boardrooms of companies is also gaining prominence and becoming the new symbol of power dressing, which will increase segment growth during the forecast period.
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The men apparel was valued at USD 68.17 billion in 2017 and continued to grow by 2021. Men's apparel comprises clothing and related accessories such as hats, scarves, and gloves. Tops accounted for the largest share, followed by bottom wear, coats, jackets and suits, intimates, and sleepwear. Lifestyle changes, increasing cosmopolitan culture, and enhanced affluence have brought considerable variations in the existing wardrobes of men. Historically, fashion has been a domain of womenswear, however, the fashion values are crossing over to men's wear, and the sales have also been favorable. Over the coming years, the luxury apparel segment is expected to witness growth outside the developed markets as these markets remain relatively penetrated. Market growth contribution from the mature markets will continue but at a relatively moderate pace during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The US is the largest market for online apparel globally. The market is fairly distributed with strong rivalry due to the similarity of products and switching costs. Consumer choices are influenced by factors such as quality and fashion to signal social status. Consumer demand patterns are susceptible to advertising and branding. With improved economic conditions, greater demand for luxury wear, increasing disposable income, and availability of a wide variety of clothing lines, the market is expected to foresee good growth during the forecast period. Besides, the region is witnessing an increased demand for the retail market. This demand is driven by multiple factors, including the growing disposable income of people, the availability of a wide range of international and local products, and frequent sales. With this growing demand, vendors in the retail market are increasingly investing in opening stores in new locations, which will increase the market growth during the forecast period.
The Market is experiencing exponential growth, fueled by the proliferation of e-commerce platforms and the increasing popularity of online shopping for clothing and accessories. With the rise of digitalization and the widespread adoption of smartphones and smart devices, consumers are embracing online apparel retailers, leading to a shift from traditional brick-and-mortar stores to virtual shopping experiences. The availability of mobile applications and the expansion of both B2B and B2C sales channels further enhance accessibility and convenience for shoppers. As consumer behavior evolves and fashion trends continue to globalize, specialized online platforms and marketplaces cater to diverse preferences, emphasizing customer-centricity in the digital transformation of the fashion industry. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Market Driver
The Market is experiencing robust growth driven by the increasing popularity of digital payment systems and the convenience of online shopping. With a wide range of clothing and accessories available on e-commerce platforms, consumers are embracing digital channels for their apparel needs. Features like online payment options, shipment tracking, and 24/7 customer support enhance the online shopping experience. Moreover, the availability of various payment methods, including credit cards and cash on delivery, caters to diverse consumer preferences, particularly in developing countries like India and China. Retailers leverage cash on delivery options to build trust and encourage online purchases. Major players like Amazon, Google, and PayPal are investing in advanced technology to innovate digital payment services, further driving growth in mobile payments and shaping the future of online apparel retailing.
Significant Market Trend
Mobile commerce and network marketing are the major trends influencing the market growth. The growth in mobile commerce is driven by consumers buying new phones and retailers creating more ways for shoppers to shop. Some major retailers such as Amazon.com, Flipkart, Alibaba Group, and L'Oréal have also launched mobile apps in addition to their websites. As the popularity of shopping via mobile devices increases, retail sales of these devices are also likely to increase.
Most of the orders placed via smartphones are for apparel and others. To take advantage of the rise in shopping through mobile devices, most online retailers have launched mobile versions of their shopping portals. Amazon.com and eBay, two key vendors in the online space, have introduced mobile applications compatible with iOS, Android, and other operating systems, allowing users to shop conveniently using their mobile devices. As consumers slowly become comfortable with electronic cash, the use of mobile wallets is expected to grow in the future
Major Market Challenge
The presence of counterfeit products is a major hindrance to the market growth. China is a key source of counterfeit products, which are shipped to developed markets such as the US, the UK, Japan, South Korea, and Germany, and to emerging markets such as Brazil and India, where they are primarily sold online. For instance, according to the Organization for Economics. Co-operation and Development (OECD), the clothing industry is the second largest market in the top trade of fake goods.
In addition, the majority of these fake goods originated in Hong Kong and China. The US Department of Homeland Security issued a warning regarding counterfeit apparel products that use poor-quality cotton and other apparel raw materials. The influx of counterfeit products in the US is affecting its economy, with significant retail losses to legitimate American companies.
Key Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cottonongroup - The company offers online apparel retailing services under the brands Rubi, Factorie, and Typo. Also, through this segment, the company offers fashion clothing and stationery brands.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Men Apparel, Women's apparel, and Children's apparel), Product (Upper wear apparel, Bottom wear apparel, and Others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market is witnessing a paradigm shift with the rise of e-commerce platforms and digital transformation in the fashion industry. Online clothing retailers are leveraging advanced technology and omnichannel sales approaches to cater to diverse customer segments, from luxury brands like Gucci to specialty markets like sportswear and protective clothing. With increasing digital literacy rates and internet access, consumers are embracing mobile shopping and social commerce, driving globalization and changing consumer behavior. Artificial intelligence and machine learning algorithms enhance customer-centricity, while ethical and sustainable practices foster brand loyalty. The market encompasses a wide range of products, from formal dresses to casual wear, footwear, accessories like belts, bags, and jewelry, offering a diverse array of choices in the digital marketplace.
Moreover, the market is experiencing exponential growth, driven by the digitization wave and the proliferation of smart devices. Traditional brick-and-mortar stores are increasingly adopting B2B and B2C sales channels to tap into the online apparel retailing trend. With the convenience of internet buying and the popularity of buy-now-pay-later services like Finettchi, consumers are shifting away from traditional physical store shopping. Fashion firms, including jeans and shoe companies, are leveraging AI and ML algorithms for personalized recommendations and improved customer experiences. Multinational companies are embracing digital technology and omnichannel sales approaches to cater to the middle-class population's evolving preferences. Amidst these advancements, ethical practices and augmented reality are emerging as new trends, shaping the future of online apparel retailing.
Online Apparel Retailing Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.85% |
Market growth 2023-2027 |
USD 220 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.44 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
adidas AG, Alibaba Group Holding Ltd., Amazon.com Inc., ASOS Plc, BANGGOOD TECHNOLOGY Co. Ltd., Cotton On Group, Gap Inc., Gildan Activewear Inc., Giordano International Ltd., JD.com Inc., Kering SA, Levi Strauss and Co., LVMH Moet Hennessy Louis Vuitton SE, M. H. Alshaya Co. WLL, OTB Spa, Ralph Lauren Corp., SSENSE, Staples Inc., The Level Group S.r.l., and Walmart Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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