Trends in fashion e-commerce businesses must understand

Recent statistics show that the global fashion e-commerce market will continue to expand significantly in the next few years. From 2021 to 2022, the market is expected to grow from US$668.1 billion to US$744.4 billion, a compound annual growth rate (CAGR) of 11.4%. The market is then predicted to grow to US$1,102.96 billion by 2026, a CAGR of 10.3%. What do these statistics by the 2022 Fashion E-Commerce Global Market Report mean for businesses in this industry? 

If you're thinking of selling apparel online, now is the time to jump on the bandwagon. Fashion e-commerce is one of the most efficient ways to reach a wider audience and increase sales. That is, only if it is done the right way. To successfully grow your business and turn one-time buyers to lifelong fans, you will need to constantly be on the lookout for the latest trends in the industry and capitalise on them.

What are the latest trends shaping the e-commerce fashion industry?

1. Increased focus on personalisation and customisation 

For starters, there has been a trend towards increased personalisation across all industries in recent years. Customers want to feel like they're being heard, and they want products that are specifically tailored to their needs and preferences. In the fashion industry, this trend manifests itself in things like size inclusivity, diverse models, and personalised style suggestions. To get started, you may offer customers automated product recommendations based on previous purchases or browsing history on your e-commerce store as well as send abandoned cart emails with unique discount codes. 

2. Use of augmented reality (AR)

Augmented reality (AR) is quickly becoming one of the most popular shopping tools among millennials and Gen Zers. AR allows customers to ‘try on’ clothing before they buy them, which takes the guesswork out of online shopping. AR is also a great way to make the retail shopping experience more fun and engaging. Luxury brands like Burberry and Gucci have been investing in AR technology, and more and more fashion retailers are starting to follow this trend. Beyond AR, you can also consider integrating other high-tech applications like virtual reality (VR) or even the Metaverse to enhance customers’ fashion e-commerce experiences.

3. Continued growth of social commerce 

Social media platforms have already had a huge impact on the fashion industry, and that impact is only going to grow in the coming years as social commerce continues to rise in popularity. As the future of online retail, social commerce refers to any type of commerce that takes place on social media platforms like Facebook, Instagram, Snapchat, or Twitter. This could include things like allowing customers to buy clothing directly from an Instagram post or providing them with exclusive discounts if they purchase through a certain social media platform.

4. Shift to more sustainable practices 

As consumers become more conscious of the impact their purchases have on the environment, they are looking for mass-market and luxury fashion brands that share the same values. Not only do consumers prefer sustainable products, but they also want sustainable packaging – which means that eco-friendly solutions should be at the top of your list when planning your fashion e-commerce strategy. 

Whether you are selling men’s and women’s clothing or accessories, there are a variety of sustainable practices you can easily implement to reduce your business' carbon footprint. This includes using recycled materials, investing in biodegradable packaging solutions, or partnering with a carbon offsetting programme. By prioritising sustainability, you can show your customers that your e-commerce business is committed to making a positive impact – and that you are the kind of brand they want to support.