Online Fashion Retail Market Report 2024

The online fashion retail market size has grown rapidly in recent years. It will grow from $38.88 billion in 2023 to $45.6 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The growth during the historic period can be attributed to rising global internet usage, the expansion of e-commerce, the proliferation of smartphones, the influence of social media, and increasing disposable incomes.

The online fashion retail market size is expected to see rapid growth in the next few years. It will grow to $86.62 billion in 2028 at a compound annual growth rate (CAGR) of 17.4%. The growth anticipated in the forecast period can be attributed to omni-channel retail strategies, global market expansion, sustained e-commerce growth, sustainability initiatives, and the rise of social commerce. Major trends expected during this period include personalized shopping experiences, technological advancements, the adoption of digital platforms, augmented reality, and digital payment systems.

A growing preference for digital shopping due to its convenience and safety is expected to drive the expansion of the online fashion retail market in the coming years. Digital shopping, or shopping online, involves purchasing products or services via an internet connection through a mobile app or website. The appeal of shopping from home, the extensive range of online products, and the ease of comparing prices and finding deals make digital shopping a more attractive and efficient option for consumers. Online fashion retail benefits from this trend by offering convenience, a broad product selection, and personalized shopping experiences through advanced technologies such as artificial intelligence and virtual try-ons. For example, according to the European ecommerce report 2022, a Europe-based organization for the retail and wholesale sector, the percentage of internet users purchasing goods or services online reached 74% in 2021, with a forecasted increase to 76% in 2022. Therefore, the shift towards digital shopping for convenience and safety is fueling the growth of the online fashion retail market.

Leading companies in the online fashion retail market are incorporating virtual reality (VR) and augmented reality (AR) technologies to enhance the online shopping experience and gain a competitive edge. Augmented reality filters are digital overlays applied to real-time camera feeds, typically used in apps or social media to alter or enhance the user's appearance or surroundings. For example, in November 2022, H & M Hennes & Mauritz AB, a Sweden-based clothing company, introduced five augmented reality filters through its app as part of its metaverse design story lineup. Developed in collaboration with the Institute of Digital Fashion, a UK-based design agency, these AR fashion lenses, powered by Snap, enable virtual try-ons and bridge the gap between physical and digital experiences. This initiative allows customers to express their style both in real life and online, enhancing brand engagement and interaction.

In February 2024, Coupang Inc., a South Korean-based e-commerce company, acquired Farfetch for $500 million. This acquisition will bolster Coupang's global presence and diversify its product offerings by integrating Farfetch's luxury fashion portfolio. It aims to attract high-end shoppers and extend its reach beyond South Korea, aligning with its goal of becoming a leading global e-commerce platform. Farfetch Ltd., a UK-based e-commerce company, specializes in luxury clothing and beauty products.

Major companies operating in the online fashion retail market are Amazon.com Inc., Alibaba Group Holding Limited, Adidas AG, H & M Hennes & Mauritz AB, Nordstrom Inc., Levi Strauss & Co., Flipkart Private Limited, Saks Fifth Avenue LLC, Farfetch UK Limited, Ssense Inc., YOOX Net-a-Porter Group S.p.A., Depop Limited, Myntra Designs Private Limited, Shoppers Stop Ltd., Lane Crawford Joyce Group, MATCHESFASHION Limited, Smilegroup Entertainment Ltd, LimeRoad, Lyst Ltd., Paytm Mall, Yebhi, Styletag, Koovs plc, Yepme.

North America was the largest region in the online fashion retail market in 2023. The regions covered in the online fashion retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the online fashion retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Online fashion retail involves selling fashion products such as clothing, accessories, shoes, and cosmetics through internet platforms. This model allows customers to browse, select, and purchase items from a diverse range of brands and designers without needing to visit physical stores. It often features virtual fitting rooms, detailed product descriptions, customer reviews, and convenient payment options, making it a popular shopping choice globally.

The main product categories in online fashion retail include clothing, footwear, jewelry, cosmetics, bags, and accessories. Clothing encompasses a wide range of garments and apparel, catering to various styles, sizes, and seasonal trends. Online platforms provide an extensive selection, from casual wear to formal attire, accessible to global consumers seeking convenience and variety. The business models include business-to-business and business-to-consumer, with end users spanning children, men, and women.

The online fashion retail market research report is one of a series of new reports that provides online fashion retail market statistics, including online fashion retail industry global market size, regional shares, competitors with an online fashion retail market share, detailed online fashion retail market segments, market trends and opportunities, and any further data you may need to thrive in the online fashion retail industry. This online fashion retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The online fashion retail market consists of revenues earned by entities by providing services such as personal styling services, customization, and subscription services. The market value includes the value of related goods sold by the service provider or included within the service offering. The online fashion retail market also includes sales for athletic wear, home textiles, apparel items, and beauty products. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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