Online Apparel Retail Market: Global Industry Analysis and Forecast (2023-2029)

Online Apparel Retail Market was valued at US$ 735.76 Bn. in 2022. Global Online Apparel Retail Market size is expected to grow at a CAGR of 18.07 % through the forecast period.
Online Apparel Retail Market Overview:
Online retail is the sale of products and services over the internet using e-commerce platforms. Online apparel retail includes the sale of clothing through e-commerce or online platforms rather than traditional brick-and-mortar stores. Online clothing retailers display their items on respective websites or through mobile applications. It contains both B2B and B2C sales channels for products. Apparel, clothes, and accessories are all sold at this kind of store. Some significant reasons driving the online apparel retailing market include the increasing use of smartphones and the introduction of a large number of online apparel retailers that provide a diverse range of items. Consumers like the ease of buying from the comfort of their own homes or any other place of their choice, which is good for online apparel retail sales.To know about the Research Methodology :- Request Free Sample Report
Online Apparel Retail Market Dynamics:
Market Drivers:

Increased Digitization: Increased digitization and increased digital literacy rate are the main factors that are driving the Online Apparel Retail Market. Nowadays, with internet access and smart devices, users have practically everything at their fingertips. The most important factor driving the Online Apparel Retail Market is an advanced technology that allows customers to shop for retail clothing at their convenience as long as they have access to the internet and smart gadgets. The shift to internet buying has replaced traditional physical store shopping.

Option of “Buy-Now-Pay-Later”: More and more ecommerce apparel businesses are offering buy-now-pay-later (BNPL) services. Luxury brands have also increased dramatically in the previous year, with leading fashion brands like Finettchi and Gucci now providing customers the option of postponing payment. This is increasing the Online Apparel Retail Market. People use the buy-now-pay-later services to avoid paying credit card interest and to purchase items that are out of their budget. This factor is driving the Online Apparel Retail Market.

Lowered labour and personnel expenses: Because there is no need for actual interaction in online retailers, there is no need for labour or people, which lowers seller expenses. Another cost decrease for sellers is the elimination of the requirement for a physical store, which saves them money on rent. Many businesses have recently closed physical locations since the majority of their sales are now made online.

Market Restraints:

Unfavourable consumer attitudes during the pandemic: Due to the coronavirus epidemic, retail therapy has taken a back seat. Due to negative customer sentiment, online apparel companies are losing a lot of money. The COVID-19 epidemic is affecting online apparel sales from fashion firms dealing in jeans to shoe companies. That's because the global economy is in a recession as a result of a lack of free income flow. The requirement to purchase just essential products during the lockdown period contributes to negative customer sentiment about online apparel.

Lack of physical verification while shopping: Consumers are unable to see what they are purchasing and are often not satisfied with the received product. The exchange and return processes for Online Apparel Retail Market are time-consuming. This is a restraining factor for Online Apparel Retail Market.

Market Opportunities:

Use of Artificial Intelligence (AI): Artificial intelligence (AI) is common in almost every sector, including the online apparel market. AI-enabled shopping applications assist customers in making the appropriate fashion decisions. Machine learning (ML) algorithms are being used by e-commerce giants like Amazon and Walmart to monitor sales trends and analyse the different dynamics of the online apparel retail market.

Stitch Fix, an online personal style service, has similarly prioritized AI-assisted fashion to create a better consumer experience. ML algorithms are now used by players in the online apparel market to improve supply chains. Brands are using AI and data capabilities to better understand their customers' buying habits and preferences. The companies that use Artificial intelligence will have more opportunities for growth in the online apparel retail market.

In August 2022, Stars Design Group, an American apparel design, and production firm announced the purchase of INSPR, a New York-based apparel brand that produces limited-edition collections from its network of influencers. The acquisition sets up a new collaboration under the INSPR brand and increases its offerings to include design, production, brand development, marketing services, e-commerce, and brick-and-mortar growth.

Gap Inc. purchased eCommerce start-up, Draper, in August 2022 as part of the company's growing focus on digital sales. This effort enabled the garment shop from San Francisco to achieve its greatest second-quarter sales in a decade.
Online Apparel Retail Market Segment Analysis:
Based on Type, The Premium segment dominated the Online Apparel Retail market with a 49% market share. Consumers nowadays feel comfortable purchasing even premium things online, because the premium word itself gives an idea about the quality of the product. In case they're not satisfied with the final received product, they can always return the item.Based on the End User, The Men segment dominated the market with a 41% market share in 2022. This is due to changes in lifestyle, a more cosmopolitan culture, and increased exposure to the latest trends.
Online Apparel Retail Market Regional Insights:
The North America region dominated the market with a 38 % share in 2022. Canadian apparel manufacturers have shifted their focus to specialty markets, developing and producing sportswear and protective clothing. In order to adapt to fast-changing retail trends and manufacture high-end apparel, some multinational companies who have off-shored their apparel manufacturing to save money are also running short-run and restocking facilities in the region. Leading apparel manufacturers are implementing innovative technology and automation throughout the supply chain to stay competitive in the global market. The sector is increasingly adopting digital technology, which includes the development of an Omni or multichannel sales approach.

The Asia-Pacific region is expected to witness significant growth at a CAGR of 15.7 % through the forecast period. Because of the huge population, there is an increased demand in this region. The region's growing middle-class population, which is increasingly using digital technology for everyday activities, is favourable to the growth of the region's online apparel retail market. The convenience of online buying, as well as the wide variety of apparel to meet various budgets and doorstep delivery, make online apparel purchases attractive.

The objective of the report is to present a comprehensive analysis of the global Online Apparel Retail Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Online Apparel Retail Market dynamic, structure by analyzing the market segments and projecting the Online Apparel Retail Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Online Apparel Retail Market make the report investor’s guide.
Online Apparel Retail Market Scope: Inquire before buying



Global Online Apparel Retail Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 735.7 Bn.


Forecast Period 2023 to 2029 CAGR:
18.07%
Market Size in 2029:
US $ 2353.5 Bn.


 Segments Covered:
by Type
• Premium
• Economy
• Low


by End User
• Men
• Women
• Children



Online Apparel Retail Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Online Apparel Retail Market, Key Players are:
• Alibaba Group
• Amazon
• American Apparel Inc.
• Benetton Group
• Cotton On Group
• Diesel
• Dolce & Gabbana
• Levi Strauss
• Rakuten
• Giordano International Limited
• JD.com
• Walmart Inc.
• The Gap, Inc

Frequently Asked Questions:

1] What segments are covered in the Global Online Apparel Retail Market report?
Ans. The segments covered in the Online Apparel Retail Market report are based on Type and End User.

2] Which region is expected to hold the highest share in the Global Online Apparel Retail Market?
Ans. The North America region is expected to hold the highest share in the Online Apparel Retail Market.

3] What is the market size of the Global Online Apparel Retail Market by 2029?
Ans. The market size of the Online Apparel Retail Market by 2029 is expected to reach US$ 2353.5 Bn.

4] What is the forecast period for the Global Online Apparel Retail Market?
Ans. The forecast period for the Online Apparel Retail Market is 2023-2029.

5] What was the market size of the Global Online Apparel Retail Market in 2022?
Ans. The market size of the Online Apparel Retail Market in 2022 was valued at US$ 735.7 Bn.