Online Apparel Retailing Market Report Overview
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The global online apparel retailing market size was USD 430.160 billion in 2022. As per our research, the market is expected to reach USD 1,091.99 billion in 2031, exhibiting a CAGR of 10.9 % during the forecast period.
The global COVID-19 pandemic has been unprecedented and staggering, with online apparel retailing market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Online retail refers to the sale of goods and services through e-commerce websites. Online platforms, as opposed to conventional brick-and-mortar storefronts, are used in online apparel retail to sell garments. On their individual websites or through mobile applications, online clothes stores present their merchandise. It has product sales channels for both B2B and B2C customers. This sort of store sells apparel, clothing, and accessories. The growing use of smartphones and the emergence of several online clothes retailers offering a wide variety of goods are some key factors propelling the online apparel retailing market size. Customers like how simple it is to make purchases from the comfort of their homes or any other location of their choosing, which is beneficial for online apparel retailing market size.
The market is also being stimulated by the decline in labour and staff expenses. Since there is no need for in-person interaction in online businesses, there is also no need for labour or staff, which lowers the cost to the vendor. The fact that there is no requirement for a physical store means that merchants may save money on the expense of maintaining one. Many businesses have started shutting their physical locations recently because the majority of their purchases are now being made online. Saving time and making adjustments based on customer trends and behaviour are both advantages of the online apparel retailing market.
COVID-19 Impact: The Pandemic Had Conflicting Effects On The Online Apparel Retailing Market
The need for online apparel retailing market in Europe has increased as a result of the growing number of COVID-19 cases. For instance, in 2020, the virus spread more frequently in Germany, France, and Italy. Due to the rise of COVID-19 instances in Europe, Q1 2020 saw stringent lockdowns and the temporary shutdown of offline retail stores. In the region, demand for online clothes goods increased as a result in 2020. For instance, the number of people shopping online increased 5%–10% more than it did in 2019 in nations like Germany, Denmark, and Spain. The market under consideration is anticipated to develop steadily over the next years as more vaccination efforts are conducted and more online stores are launched to make up for losses suffered in 2020.
Latest Trends
"The Expansion Of The Online Clothes Retailing Market Is Significantly Influenced By Mobile Commerce And Network Marketing"
Consumers who buy new phones and merchants who provide customers more shopping options are the two factors driving the growth of mobile commerce. Major merchants including Alibaba Group, Amazon.com, Flipkart, and L'Oréal have all released mobile applications in addition to their websites. Retail sales on mobile devices are projected to rise as the practice of shopping on them becomes more common. The majority of smartphone orders are for clothing and other items. The majority of online merchants have built mobile versions of their shopping portals in order to capitalize on the surge in shopping via mobile devices. Two prominent online retailers, Amazon.com and eBay, have released mobile apps that are compatible with iOS, Android, and other operating systems, enabling customers to effortlessly shop using their mobile devices. Future predictions predict an increase in the use of mobile wallets as people gradually get used to using electronic money.
Online Apparel Retailing Market Segmentation
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- By type
Depending on online apparel retailing given are types: Upper Wear, Bottom Wear, Online Apparel Retailing. The Upper Wear type will capture the maximum market share through 2031.
- By Application
The market is divided in Men, Women, Children based on application. The global online apparel retailing market players in cover segment like men will dominate the market share during 2022-2031.
Driving Factors
"The Expansion Of The Online Clothes Retailing Industry Will Be Fueled By The Increasing Acceptance Of Digital Payment Methods"
The demand for online shopping has grown as a result of the accessibility of a broad variety of goods, online payment methods, online shipment tracking, 24/7 customer service, expanded internet reach, and lower prices. Right now, clients may pay using credit cards, cash-on-delivery (COD), online banking accounts, demand draughts, and cash-on-order, among other methods. Customers are hesitant to share their debit card or credit card information online in emerging nations like China and India, especially with unassuming small businesses. Retailers therefore provide COD alternatives to foster consumer confidence and to entice customers to purchase online. Consumers can use a mobile device to pay at the point of sale using digital payment systems. Major companies are making significant investments in technology, including PayPal, MasterCard, Google, and Amazon.com. Innovative methods are being utilised to enhance the user experience of digital payment systems. The expansion of online apparel retailing market growth is anticipated to be accelerated by a number of reasons.
"AI-Based Fashion Innovations To Improve Customer Experience And Strengthen Supply Chains Boosting Market Growth"
The multi-billion dollar online clothing sector is growing more and more used to acquisitions and brand alliances. Additionally, AI (Artificial Intelligence) is practically a part of almost every industry, including the online clothes market. Shopping applications with AI capabilities are assisting users in selecting the appropriate clothing, enabling them to capture things they see online. Machine learning (ML) algorithms are being used by e-commerce behemoths like Amazon and Walmart to monitor sales trends and comprehend the numerous aspects of the online garment business. In order to create a better client experience, Stitch Fix, an online personal styling service, has maintained AI-advanced fashion at the heart of its strategy. Additionally, businesses in the online clothing sector are utilizing ML algorithms to improve supply chains resulting in online apparel retailing market growth.
Restraining Factors
"The Expansion Of The Online Clothes Selling Business Is Significantly Hampered By The Availability Of Counterfeit Goods"
The majority of these items are sold online and are sent from China to develop markets like the US, UK, Japan, South Korea, and Germany as well as emerging countries like Brazil and India. For instance, the garment industry is the second-largest market in the top trade of counterfeit products, according to the Organization for Economic Co-operation and Development (OECD). Furthermore, the bulk of these counterfeit items came from China and Hong Kong. The US Department of Homeland Security has issued a warning about fake clothing made with subpar cotton and other textiles for clothing. The US economy is being impacted by the rise of counterfeit goods, which has resulted in considerable losses for online apparel retailing market growth.
Online Apparel Retailing Market Regional Insights
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"North America To Dominate The Market Globally Owing To Number Of Big Market Players"
The North America region took the top spot in 2021 with a highest online apparel retailing market share. Canadian clothing manufacturers are now focusing on specialty markets, designing and producing athletic and protective apparel. In order to keep up with fast changing retail trends and make high-end clothing, certain multinational businesses who offshored their textile manufacturing operations are now running short-run and restocking facilities in the region. Leading clothing manufacturers are implementing cutting-edge technology and automation across the supply chain in order to stay competitive in the global market. An Omni or multichannel sales strategy was developed as a result of the increasing adoption of digital technologies by the sector.
Through the projection period, the Asia-Pacific online apparel retailing market share is anticipated to increase significantly at a good CAGR. There is a higher demand in this area due to the large population. The region's expanding middle class, which uses digital technology more often for daily tasks, is favourable for the expansion of the region's online clothes retail business. Online clothing purchases are appealing due to its ease, large selection of clothing to suit all budgets, and doorstep delivery.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- Alibaba Group (China)
- Amazon.com(U.S)
- JD.com(China)
- Rakuten (Japan)
- Walmart (U.S)
- American Apparel (U.S)
- Benetton (U.S)
- Cotton On (Australia)
- Diesel (Italy)
- Dolce & Gabbana (Italy)
- DKNY (U.S)
- Giordano International (Hong Kong)
- Levi Strauss (U.S)
- Ralph Lauren (U.S)
- Wovenplay (U.S)
Report Coverage
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 430.16 Billion in 2022 |
Market Size Value By |
US$ 1091.99 Billion by 2031 |
Growth Rate |
CAGR of 10.9% from 2022 to 2031 |
Forecast Period |
2023-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global online apparel retailing market expected to touch by 2031?
The global online apparel retailing market is expected to touch USD 1,091.99 billion in 2031.
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What CAGR is the online apparel retailing market expected to exhibit during 2023-2031?
The online apparel retailing market is expected to exhibit a CAGR of 10.9% over 2022-2031.
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Which are the driving factors of the online apparel retailing market?
Increasing acceptance of digital payment methods and ai-based fashion innovations to improve customer experience are the driving factors of the online apparel retailing market.
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Which are the top companies operating in the online apparel retailing market?
Alibaba Group, Walmart, Amazon.com, JD.com are some of the top companies operating in the online apparel retailing market.