by The Covid-19 pandemic has significantly impacted consumer shopping behavior across the world. With lockdowns and social distancing norms in place, consumers were confined to their homes for several months. This led to a massive surge in online shopping as it became one of the only ways for consumers to purchase goods. The fashion and apparel industry was among the sectors that saw a huge shift to ecommerce platforms. Restrictions on non-essential retail caused in-store shopping to come to a standstill. As consumers turned to digital shopping to fulfill their fashion and clothing needs, global fashion ecommerce saw unprecedented growth rates.
According to a report by McKinsey & Company, the apparel sector witnessed 40-60% growth in online shopping sales in the initial months of the pandemic in countries like the US, UK, France and Germany. Major fashion retailers like Gap, H&M and Urban Outfitters reported significant increases in their online revenues. Fast fashion brands with established online stores like Zara and Uniqlo were better able to adapt to this new reality. New online shoppers accounted for over 25% of total fashion sales in the US and UK during this period. The pandemic accelerated the shift to online channels and expanded the customer base for Fashion Ecommerce players.
Growth Fashion Ecommerce
The increasing popularity of digital shopping transcended geographical boundaries. Both developing and developed countries saw healthy growth in fashion ecommerce volumes. China has been one of the top performers in this domain. Statistics revealed that apparel sales on Chinese ecommerce platforms grew by 40% year-on-year during the peak pandemic period. Indian fashion retail also migrated online amid lockdowns, leading to triple digit growth rates. Other popular Asian markets like South Korea and Japan recorded 50% spikes in fashion online sales.
In the US and European countries heavily impacted by the virus, fashion ecommerce saw unprecedented boosts. The UK apparel retail ecosystem demonstrated over 100% digital growth. American consumer spending on fashion related ecommerce rose by more than 80%. Germany noted increases of 55-65% in online apparel shopping sales during this phase. Even smaller fashion markets saw drastic changes, like 70% growth in Spain’s online apparel category. The pandemic took global fashion retail to a new digital orbit, redefining industry metrics across continents.
Rise of D2C Brands and Social Commerce
Along with boosting established multinational and domestic retailers, the pandemic has augmented another important segment – direct-to-consumer (D2C) fashion brands. These independent labels market themselves heavily on social media platforms and sell directly via their own websites and apps. With showrooms and physical retail out of bounds during lockdowns, D2C labels capitalized on their robust digital presence and marketing know-how.
Popular brands like Reformation, Frank & Oak and Everlane all recorded significant spikes in sales driven by social commerce. Influencers played a pivotal role in driving traffic to these websites, with “shoppable” social media posts thriving during this period. Live shopping experiences also emerged as a new format adopted by D2C players to effectively engage housebound customers online. The shift to digital opened promising avenues for innovative independent brands to expand their consumer reach.
Rise of Online Marketplaces
Digital marketplaces consolidating numerous indie brands garnered exponential traction amid the crisis as well. Global giants like Amazon, ASOS, Zalando and Shein all leveraged their robust logistics network and customer bases to spur online shopping. Individual merchants leveraged these popular platforms to stay connected to audiences and boost revenues. Amazon Fashion sales surged by over 20% quarter-on-quarter in some key markets during 2020.
ASOS reinforced its presence as one of the leading online fashion destinations in Europe, reporting a near 30% rise in annual sales. Shein, already growing at a frenetic pace, experienced fivefold increase in U.S. consumer spending within the apparel category. Customers enjoyed seamless shopping journeys and convenient shipping options offered by these marketplace juggernauts. Their centralized operations and backend support became valuable partners for brands and retailers to sustain business continuity online. The pandemic proved pivotal in strengthening the ecosystem of global online fashion marketplaces.
Sustained Growth in Post-Pandemic Scenario
Even as physical stores reopen gradually with economic recovery, industry experts suggest fashion ecommerce has established itself as a consistent sales channel going forward. The shift towards digital that emerged as a necessity during lockdowns is now viewed as a long-term consumer behaviour change by analysts. Customers exposed to frictionless online shopping find it a convenient alternative worth continuing with. Recent surveys report over 60% consumers intend to increase or maintain their current online apparel shopping levels post-Covid as well.
Fashion brands are looking to weave robust omnichannel integrations catering to varied shopping preferences. While in-store experiences will retain importance for discovery, touch-and-feel needs – digital touchpoints are becoming imperative for purchase journeys. Investments in AI, virtual try-ons and immersive tech aim to bridge the gap between online and offline. The accelerated adoption of ecommerce spells optimism for the future of the global apparel industry in the coming years as it navigates the post-pandemic consumer landscape with a renewed digital playbook.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
