Apparel Sourcing Week, 20 - 22 February 2020 - Bengaluru, India
18 - 20 February 2021
Bengaluru, India

Press Release 12 July 2021

E-commerce is not a passing fad, but a long-term retail strategy

The fashion e-commerce industry which was already on a growth path over the last decade has seen major traction with the onset of the pandemic. Estimates put the global market value of fashion e-commerce market at US $ 759.5 billion in 2021 and over the next five years, online fashion’s 7.18 per cent compounded annual growth rate will put the industry at US $ +1.0 trillion. Impressive indeed!
E-commerce platforms like Zalando reported a 32 per cent–34 per cent growth in GMV during the second quarter of 2020, while UK retailer Boohoo claimed a 45 per cent increase in revenue across all of its (primarily online) fashion brands during the same period. It is not surprising that most of the fashion brands and retailers have upscaled their e-commerce plans since the start of the Covid-19 pandemic.
Considered a relatively conservative market, yet in Europe alone, it’s expected that each consumer will spend US $ 921 on fashion-related items over the course of a year. But what is interesting is that though online sales of clothing in absolute numbers are steadily climbing, the worldwide revenue growth is slowing down - decreasing from 15.3 per cent in 2018 to 7.6 per cent by 2022. China is going to be the fast-growing e-commerce market with predicted growth rate of 14.1 per cent while the US and Europe will remain steady at 8.8 per cent and 8.7 per cent respectively.
Taking a look at what will propel growth of e-commerce in the long-term, 4 major drives that emerge are as follows:
1
Personalisation of the future
The premises of online retail are changing very fast and what was once a convenient pass time to check out fashion is now a serious buying platform. Recognising this shift, e-commerce platforms and retailers are going all out to personalise the experience to reflect either onsite behaviour or buying history of visitors. Moving into the future, shoppers will begin to expect this personalisation in the e-commerce fashion industry.
2
   Shopping on the move
The easy accessibility of e-commerce is going to widen the possibilities. Online shopping was always about comfort shopping, but now it’s also about mobility with 6 out of 10 shoppers saying the possibility to shop via mobile is an important factor in deciding which brands to purchase from. The urgency to meet customers wherever they are, on their mobile devices and not expect them to find their site by chance, is increasing.
3
 Stock on demand
Having borne the disruption in supply chain with loads of inventory, fashion e-commerce sites are ditching their stock—and, instead, ordering items on demand. Flexible locations, low overheads, and the promise of only paying for stock once you receive an order are appealing to retailers and make the process faster and more current for the customers also.
4
     Going global
E-commerce allows fashion to travel across borders faster and gives option to the buyer to access global brands sitting at his home. Because of the shift to online-first, as a buying option, fashion retailers are building their e-commerce websites to reach global customers. And as the competition becomes fiercer, retailers are moving fast to stand out and become customer-service-focused, by understanding local needs in a global world, much to the consumers’ delight.
 

About Apparel Sourcing Week 2020

Apparel Sourcing Week 2020, a three-day Sourcing Show not only provides the Asian manufacturers a platform to showcase their products & manufacturing capabilities to the Brands & Retailers from all over the world including India, but also extends them a chance to attend the multiple seminars (headed by industry experts), workshops, open-house discussions and networking opportunities organised during these three days, which would help the manufacturers get a better understanding of Indian and International Retail and evolving dynamics of sourcing in various markets and retail formats.

About the Organiser

Apparel Resources is well known for its benchmark publications – Apparel Online, StitchWorld and Resource Guide published from India, Bangladesh & Vietnam. These publications have been around in the industry for over 35 years, supporting, guiding and standing by garment exporters and the retail industry globally, providing them a platform to source better.