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The online apparel retailing market is estimated to grow at a CAGR of 13.85% between 2022 and 2027. The size of the market is forecast to increase by USD 220 billion. 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.
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.
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The rising popularity of digital payment systems is notably driving market growth, although factors such as the presence of counterfeit products may impede the market growth. 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 Online Apparel Retailing Market Driver
The rising popularity of digital payment systems will fuel the growth of the online apparel retailing market. The availability of a wide range of products, online payment options, online shipment tracking, 24/7 customer support, wider internet coverage, and cheaper costs have increased the demand for online shopping among people. Currently, several payment options are available to customers such as credit cards, cash on delivery (COD), online banking accounts, bills of exchange, and cash on delivery. In developing countries like India and China, consumers are wary of sharing their debit card or credit card details online, particularly with small and less well-known merchants.
Moreover, the retailers offer COD options to build trust among customers and encourage them to shop online. Digital payment services allow consumers to make payments at the point of sale through a mobile device. Large players like Amazon.com, Google, MasterCard, and PayPal are investing heavily in technology. Digital payment applications are being used innovatively to improve the consumer experience. Several factors are expected to increase the growth of mobile payments.
Significant Online Apparel Retailing Market Trend
Mobile commerce and network marketing are the major trends influencing the online apparel retailing 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 Online Apparel Retailing Market Challenge
The presence of counterfeit products is a major hindrance to the online apparel retailing 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 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 Hongkong 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 Online Apparel Retailing 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 Online Apparel Retailing 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 vendors, 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 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 in online apparel retailing. 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.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. Although the outbreak of COVID-19 severely affected the growth of the apparel industry, the market recovered in the second half of 2020 due to the initiation of large-scale vaccination drives across North America. This has led to the resumption of production in manufacturing facilities, including apparel. Moreover, the e-commerce industry in North America is growing significantly, which is driving vendors in the market to shift their businesses online.
Technavio categorizes the global online apparel retailing market as a part of the global apparel, accessories, and luxury goods market, within the textiles, apparel, and luxury goods market. The parent market, the global apparel, accessories, and luxury goods market, covers products and companies engaged in the manufacturing/marketing of apparel, accessories, and luxury goods. The market also includes companies offering apparel, accessories, and luxury goods rental services. The market excludes manufacturers of shoes. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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).
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 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 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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