September 2023

Clothes Do Make the Sale

In Style with Top-Notch Tech

Fashion has always been at the forefront of commerce, and it is no different when it comes to e-commerce. Accordingly to Statista, fashion e-commerce is at an all-time high, increasing from $481.2 billion in worldwide revenue in 2018 to $712.9 billion by 2022, and it is expected to reach $821 billion in 2023 worldwide and $230 billion in Europe.

The Technology & Fashion Meld

The meteoric rise in online fashion shopping has presented e-commerce businesses with several significant opportunities, due to both technological advancements and the increasingly widespread presence of the Internet. 

Asian and other non-Western markets have entered the global online scene, especially due to smartphone and mobile device penetration, providing online retailers with potential new customers. 

Technological innovations such as virtual and augmented reality have allowed for experiential e-commerce, boosting the potential quality of user experience for consumers.

Certain current fashion e-commerce trends also bear taking note, chief amongst them the growing interest in secondhand or ‘pre-loved’ apparel, engaging consumers who are either financially or environmentally aware. With dedicated online stores popping up and premium brands and retailers offering pre-loved clothes and shoes in their stores, the global resale market is expected to reach over 200 billion USD by 2026.

On the Go

With mobile shopping expected to account for 43% of global e-commerce retail in 2023, an increase from 2022, 41.8%, particularly due to Millennials and Gen Z having increased spending power and still being primary sources of online word-of-mouth, online retailers have all the motivation needed to focus on providing their mobile shoppers with the best possible experience.

While browsers are completely serviceable on mobile devices, apps are a major source of growth, and many brands and retailers have already created their own, allowing for easy browsing on smaller screens, and one-click checkouts, which are considered particularly convenient to consumers.

The proliferation of smartphones and mobile devices has had a marked effect on fashion e-commerce. This goes hand in hand with the growing importance of social media as both a marketing tool and a sales channel.

Social media sites and apps such as Facebook, Instagram, and TikTok offer direct shopping, and innovations in shoppable content have allowed consumers to buy products during influencer live streams.

All About the Personal Style

Personalization in fashion e-commerce has been a growing benefit to retailers both large and small. Keeping track of consumer activity through algorithms allows, among other things, an online store to offer new items they might be interested in and notify a consumer about previously browsed items that are now on sale or back in stock. 

Artificial intelligence can aid these algorithms in creating tailored recommendations and even personalised deals and discounts, making for a truly unique experience for each individual customer.

Personalization greatly improves customer experience, as long as retailers don’t overstep – because there are privacy and security concerns. Various research has shown that retailers and brands get a little too familiar with their customers – be it on the page or by flooding their inbox with newsletters and offers – are three times more likely to lose them.

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