April 13, 2024
Asia Fashion Ecommerce Market

Asia Fashion Ecommerce Market Driven By Rising Millennial Spending Capacity

The Asia fashion ecommerce market has witnessed rapid growth over the past decade supported by expanding middle class and rising millennial population in countries such as India, China, Indonesia and Vietnam. The easy availability of a wide variety of affordable apparel, footwear and accessories from both domestic and international brands on various ecommerce platforms has boosted the market. Customers can now browse through numerous styles and products from the convenience of their homes and mobile devices. The increasing preference for online shopping among younger shoppers who are heavily influenced by fashion and brand trends has propelled sales.

The Asia Fashion Ecommerce Market is estimated to be valued at US$ 521 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.

Market Key Trends:

One of the key trends driving growth in the Asia fashion ecommerce market is the rising popularity of social media and influencer marketing. Fashion and lifestyle bloggers and Instagram influencers in Asia have become extremely influential in promoting new clothing lines, accessories, makeup and skincare products to their millions of followers. They provide aesthetic visual content that inspires young consumers. Ecommerce platforms partner with social media influencers to increase brand awareness and drive sales of promoted products. This emerging marketing strategy is highly effective in connecting with younger audiences and boosting online fashion shopping.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants is moderate in the Asia fashion ecommerce market due to the need for significant capital to compete with major players such as Alibaba and JD.com.

Bargaining power of buyers: The bargaining power of buyers is high as there are many players providing similar fashion products in the market, giving consumers alternatives.

Bargaining power of suppliers: Fashion brands and manufacturers have low bargaining power due to the huge volume of products sold through online platforms.

Threat of new substitutes: The threat of substitutes is moderate as online fashion can be replaced by offline retail, but online offers more convenience and variety.

Competitive rivalry: Competition is intense among major players to capture market share.

Asia Fashion Ecommerce Market Segmentation:

Segmentation in the Asia fashion ecommerce market is vital for businesses to target specific customer groups effectively. It enables them to tailor their product offerings, marketing strategies, and user experiences to meet the unique needs and preferences of different segments within this diverse and dynamic market. The Asia fashion ecommerce market can be segmented into several categories based on various factors.

  • By Product Type
  • Apparel
  • Footwear
  • Accessories
  • Jewelry
  • Bags
  • Watches
  • Others (cosmetics, perfumes, personal care)
  • By End User
  • Men
  • Women
  • Unisex
  • Kids
  • Others (Baby)
  • By Price Range
  • Premium
  • Mid
  • Low
  • By Category
  • Western Wear
  • Ethnic Wear
  • Sports Wear
  • Inner Wear
  • Loungewear
  • Swimwear
  • Others (sleepwear, maternity)
  • By Distribution Channel
  • Company owned
  • Marketplace
  • Multi-brand Retailers
  • Others (flash sales)

Key Takeaways:

The Asia Fashion Ecommerce Market Size is expected to witness high growth driven by the expansion of ecommerce platforms and rising internet and smartphone penetration in the region. The Asia Fashion Ecommerce Market is estimated to be valued at US$ 521 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023-2030.

Regional Analysis: China dominates the Asia fashion ecommerce market with the largest customer base for online shopping. Other major countries include India, Japan, and Southeast Asian countries. The Southeast Asian region is projected to be the fastest growing market led by countries such as Indonesia, Thailand, and Vietnam.

Key Players: Key players operating in the Asia fashion ecommerce market are Alibaba, JD.com, Amazon, Zalora, Lazada, Flipkart, Myntra, Shopee, Shein. Major players are focusing on expanding their product offerings and strengthening logistics and supply chain capabilities to capture more market share.

1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it