All You Need to Know about E-Commerce

Last year, more than 1,875 fashion retailers shut down. This year, projections reported by WWD place the number at just under 10,000, “up 53 percent from the number of doors that went dark amidst the Great Recession in 2008.”

Digital innovation, rising globalization, and changes in consumer spending habits have catapulted the fashion industry into the midst of seismic shifts. To explore where we are and where we’re heading, this article takes a detailed look at … the statistics, trends, and strategies shaping the e commerce fashion industry in 2019 and beyond:

  1. Industry-Wide Data
  2. Clothing and Apparel
  3. Anywhere Ecommerce

Industry-Wide Data

Cumulative data compiled within The Fashion and Apparel Industry Report paints a bright portrait with worldwide revenue expected to rise from $481.2 billion in 2018 to $712.9 billion by 2022:

Driving this growth are four notable opportunities:

  • Expanding global markets outside the West
  • Increasing online access and smartphone penetration
  • Emerging worldwide middle-classes with disposable income
  • Innovating technologies to create experiential ecommerce

Fashion consumers will also have more buying power, as the number of potential customers is projected to grow to more than 1.2 billion by 2020. The good news for fashion is that the majority of these new consumers are within the 16 to 24 and 25 to 34 age groups.

The biggest threats to established brands include the:

  • Death of brand loyalty due to market fragmentation
  • Cost of combating online return rates as high as 50%
  • Fast fashion’s ability to create and release styles on-demand
  • Pressure from consumers to use ethically sourced and green manufacturing materials

We’ll get into strategies to combat these issues later. For now, let’s examine how these big numbers play out in industry sub-verticals.

Clothing and Apparel

Lower digital barriers to entry for all clothing merchants offer the opportunity to market, sell, and fulfill orders globally and automatically. As a result, worldwide revenue and revenue per user (ARPU) are both projected to grow:

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