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ΕλληνικάE-commerce applications and statistics in the fashion industry
Physical stores are no longer the only way customers interact with brands, especially those in the fashion industry. As customers increasingly expect mobile shopping, same-day shipping and 24/7 customer service, fashion retailers are changing the entire way they shop.
Fortunately, the fashion industry is already a master of change, with seasonal trends appearing and disappearing before you have time to breathe. The digital transformation of the fashion world may be its biggest change yet. From larger, luxury brands to smaller ones, retailers across the industry are adjusting their e-commerce strategies to attract customers and adapt to the changing circumstances.
According to analysis by the Ecommerce Europe and EuroCommerce Associations – 2021 European E-commerce Report, the online sales market in Europe reached a value of 757 billion euros, up 10% from the previous edition of the report. This growth clearly shows how the solution is growing year after year.
If we’re talking about e-commerce, the leader in Europe is Zalando, a German mail-order online store based in Berlin. Sales focus mainly on footwear and fashion, with a wider assortment available including jewellery, watches, decorative products, sunglasses and the like. The company is present in more than a dozen European countries, being at the forefront of popularity. A distinguishing feature of the platform is the ability to make free returns for up to 100 days from the date of order delivery[1].
More people than ever are using online stores for fashion shopping. The amount of revenue created by these people is now an integral part of their success. The high revenue generated through e-commerce has also allowed companies to grow. Statistics show that e-commerce is now an essential tool for the fashion industry. In 2018, the industry generated global revenue of 481 billion dollars.
Here are a few more noteworthy statistics that contributed to the growth of e-commerce in the fashion industry:
- 75% of brand consumers are satisfied with personalized messages, offers and products, so they are more likely to buy such products more often
- 43% of purchases are made after personalized recommendations (especially through advertising)
- China was the country that spent the most freely in 2019, spending 740 billion dollars on e-commerce. That is 179 billion dollars more than was spent in the US (the second largest market)
- 77% of people in South Korea made online fashion purchases in 2019. That’s the most of any country in the world.
What is more, according to Statista, the compound annual growth rate (CAGR) of the fashion e-commerce industry is expected to be 14.2% from 2017 to 2025, and by 2023 the industry will be worth 672.71 billion dollars[2].
When it comes to the characteristics and specifics of e-commerce in the fashion industry, it is characterized by a number of features. These primarily include:
- Excellent service – Many top online retailers use promotion and customer service together. By interweaving the two, it ties customers to the brand and creates long-term brand loyalty.
- Presentation – The design of any e-commerce site is its driving force. Not only must it be easy to read and use, but it must also stand out. It must also fit in with the realities of the sector.
- Live chat – This is an easy way for customers to get in touch with you if they have any questions or comments about your products or placing an order. A very helpful tool to meet the expectations of each buyer.
- Loyalty programs – The simplest and most effective way to build brand loyalty. Rewarding returning customers to a brand will make them even more likely to choose a particular brand the next time they shop. Loyalty schemes are on display in almost every e-commerce-based company.
- Automation – The whole process can also be done without talking to another person. It only takes a few clicks to make a purchase, which saves time and greatly simplifies the entire selling and buying process.
- Alternative marketplaces – Major brands offer other ways to buy their products, whether it’s through Amazon, eBay, Facebook Marketplace or other sales platforms. In this way, they increase the chances of selling as many products as possible[3].
The above-mentioned features are key to building a good e-commerce strategy, and thus to maximize the reach, recognition, and consequently sales of the products offered by a fashion brand.
[1] Fintek.pl “E-commerce i rynek mody. Globalne trendy i prognozy” https://fintek.pl/e-commerce-i-rynek-mody/
[2] Shopifyplus “The State of the Ecommerce Fashion Industry: Statistics, Trends & Strategies to Use in 2022” https://www.shopify.co.uk/enterprise/ecommerce-fashion-industry
[3] Christian Smales “The Importance of eCommerce to the Fashion and Apparel Industry https://www.datafeedwatch.com/blog/ecommerce-and-the-fashion-industry