The e-commerce fashion industry in 2022
Two years ago, the Fashion and E-commerce industry faced the extraordinary challenge of the COVID-19 pandemic. As most of the consumers have been forced to work from home and scale back their regular social routines and expenditures, the perception of fashion e-commerce has taken a drastic change.
Dresses and formal wear have been swapped for sweatpants, heels and work shoes exchanged for comfortable trainers, it is apparent the “Athleisure” trend has dominated the sales of top fashion e-commerce platforms as consumers started preferring comfort over style.
The Fashion and Apparel Industry study has reported the estimated worldwide E-commerce revenue will continuously rise from $481.2 billion in 2018 to $712.9 billion by the end of 2022. Lockdowns and closures of brick and mortar stores have been also contributors to these factors:
- Millennials are now the majority customers and big spenders in Fashion e-commerce .
- Access to online shopping applications on smartphones has drastically increased.
- Widespread development of AI-powered personalization tools in the fashion e-commerce industry.
- Continuous development of innovative technologies being adopted by top fashion websites and Ecommerce sites.
- New emerging international markets.
With the start of 2022, retailers and online platforms will continue to further boost their sales and recover from other challenges caused by the pandemic, here are the trends fashion e-commerce companies are utilizing this year:
BLOG BODY [THE TRENDS]:
- Brick and mortar shops still remain in uncertain conditions with unplanned restrictions around the world. Major closures like fashion giant Topshop remain a learning curve for the fashion industry when it comes to the effects of the pandemic on retailers.
- Atheleisure still reigns supreme. The casual fashion segment has been at the top of most selling pieces on several major fashion e-commerce companies such as Fashion Nova, ASOS, Missguided, Boohoo etc. Predictions for the loungewear and sleepwear market is set to grow by around $19.5 billion by 2024.
- Size inclusivity is a necessity as the plus-size market has grown tremendously and continues to do so. In 2020, the plus-size market was estimated to be worth 31.9 billion USD.
- Sustainability is taking center-stage. Consumers are increasingly aware of the negative effects some fast-fashion practices have on the environment and are looking towards better sustainable practices and waste-reducing options. McKinsey conducted a survey which noted that figures between 63 to 67% of online consumers are considerate of a brand’s sustainability practices.
- Sales of luxury jewelry are set to increase due to the financial constraints of the pandemic. Consumers are now more inclined to pay full price for good quality and long lasting items instead of costume jewelry created out of cheaper materials.
- Retailers are launching online shopping apps or are partnering with a fashion e-commerce platform to increase their sales this year. Since lockdowns have been issued from 2020, people have been increasingly spending time on mobile apps by 20%.
- AI personalization as an innovative technology has successfully minimized the time consumers spend on the app or website “searching” for a specific item. Optional features such as “you may also like” which is based on the consumer’s purchasing history and browsing habits is proving beneficial for repeat purchases.
- Email marketing is increasingly becoming one the most utilized channels when it comes to fashion e-commerce due to its effectiveness in generating revenue. For every $1 spent on email marketing campaigns, the ROI averages around$42. The key is to keep subject lines personalized to generate a higher percentage of open rate emails. Automating software is recommended when emailing a large amount of recipients, and to tackle issues with abandoned carts.
Closing with CTA:
While there is no set date for when the world is able to return to a fully post-pandemic life, the fashion e-commerce industry is set to recover moving forward in 2022. With YOU app, our fashion vertical puts your fashion brand front and center to our users. Don’t miss the opportunity to gain more sales and boost your customer reach this year. Contact YOU app today to place your brand on our platform as a vendor.