Online Fashion Retail How Online Shopping is Transforming the Fashion Industry
The Rise of Online Fashion Retail
As internet and smartphone usage continues to grow around the world, so too does online shopping. According to recent statistics, global e-commerce sales reached nearly $3.5 trillion USD in 2019 and are expected to surpass $6 trillion by 2023. Within the retail sector, one of the fastest growing online categories is fashion and apparel. Major retailers and niche brands are embracing e-commerce platforms to reach wider audiences and remain competitive in this digital age.
Much of the growth can be attributed to the convenience offered by online shopping. Customers can browse thousands of products across different brands and styles from the comfort of their homes 24/7. Websites and mobile apps allow for seamless ordering, tracking, and delivery right to the customer's doorstep. The rise of fast fashion has also contributed, giving consumers access to affordable trends on a daily or weekly basis instead of traditional seasonal cycles.
Online Fashion Retail shopping provides an enhanced customer experience compared to physical stores alone. Detailed product photos and reviews give customers a better sense of fit, quality, and sizing before purchasing. Websites also allow for customized search filters by size, price, color, and other attributes to quickly zoom in on desired items. For any issues post-purchase, excellent return policies and customer service further reduce the risk of online orders.
New Online Native Fashion Brands Emerge
With barriers to entry much lower online than in the physical retail world, a new wave of direct-to-consumer fashion brands has emerged in recent years catering exclusively to e-commerce. Native digital brands are harnessing data, personalization, and membership subscription services to create loyal followings of customers.
Brands like Everlane, Reformation, and PrAna Designs share minimal brick-and-mortar footprints but market heavily through social media influencers, personalized emails, and seamless shopping experiences. Their abilities to forecast demand, control production and distribution in-house, and scale operations flexibly has allowed for rapid growth.
Established retailers are also launching online-only sub-brands, often with lower price points and trend-focused assortments. For example, Nordstrom launched a separate website called Halogen in 2010 initially targeting younger customers. And Target launched online-native brand Who What Wear in 2017 aimed at millennial shoppers. These secondary brands extend the main retailers' reach while testing new product categories and price tiers without major capital investments in new stores.
Retail Showrooming and Social Commerce Trends Emerge
As online shopping becomes the preferred method for browsing and researching purchases across all categories including fashion, major retailers find themselves in a difficult spot. Many have invested billions in physical store networks only to see more sales migrate online each year. However, new trends are emerging that highlight the continued role of brick-and-mortar in the digital age of commerce.
'Showrooming' refers to customers visiting stores to check out products in person before purchasing them for a lower price online once back home. This influences retailers to price items competitively both online and off, while understanding which products drive the most foot traffic into stores. Luxury retailers in particular are innovating new approaches for customers who increasingly blend digital and physical experiences.
The rise of social media has brought new shopping behaviors as well. 'Social commerce' allows customers to directly purchase fashion trending on Instagram and Facebook through embedded links. Retailers can improve conversion by curating exclusive hashtag collections and incorporating live video and try-on features. Customers also influence each other directly through social proof like reviews from friends and micro-influencers within their personal networks.
Personalization and Sustainability Move to the Online Fashion Retail
As fashion e-commerce continues gaining momentum globally, forward-thinking companies are tapping into emerging customer demands around sustainability and enhanced personalization. Younger generations in particular expect brands to be proactive about reducing their environmental impacts.
Transparency into sourcing and materials is becoming table stakes while innovations around eco-friendly fabrics, personalized resale markets, and rental/subscription-based models gain traction. Companies like Rent the Runway proved there is appetite for alternative ownership models versus fast consumption cycles. Consumers also seek out brands that plant trees or offset their carbon footprints with each order.
Simultaneously, mass personalization is an area of heavy investment as retailers harness AI, computer vision, augmented reality, and predictive analytics to deliver hyper-customized experiences. Tools like virtual changing rooms and personalized stylist services bridge the gap between offline fittings and online convenience. 3D product samples and inclusive universal sizing standards also reduce return rates from ill-fitting orders, a major expense for retailers.
The rise of online shopping has transformed nearly every aspect of the fashion industry from manufacturing to retailing. While major changes continue disrupting traditional players, innovative brands are tapping into emerging trends around sustainability, social commerce, and personalization to succeed in this digitally powered new retail landscape. The continued evolution of online fashion shopping offers endless opportunities for retailers and delight for ever more empowered consumers worldwide.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
(LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )
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