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The online apparel retailing market size is forecast to increase by USD 278.8 billion at a CAGR of 15.2% between 2023 and 2028. The growth of the market depends on several factors, including the rising popularity of digital payment systems, the rise in online spending and smartphone penetration, and the growth in the e-commerce industry. The extensive array of clothing and accessories accessible through e-commerce platforms has led consumers to adopt digital channels for their apparel purchases. Online shopping experiences are further enriched by features such as multiple payment options, shipment tracking, and round-the-clock customer support. Additionally, the presence of diverse payment methods, encompassing credit cards and cash on delivery, caters to a wide range of consumer preferences, notably in developing nations like India and China.
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Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Cotton On Group - The company offers online apparel retailing services under the brands Rubi, Factorie, and Typo. Also, through this segment, the company offers fashion clothing and stationery brands.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Adidas AG, Alibaba Group Holding Ltd., Amazon.com Inc., ASOS Plc, BANGGOOD TECHNOLOGY Co. Ltd., Cotton On Group, Dolce and Gabbana S.r.l., Gildan Activewear Inc., Giordano International Ltd., JD.com Inc., Kering SA, Levi Strauss and Co., LVMH Group., M. H. Alshaya Co. WLL, OTB Spa, Ralph Lauren Corp., SSENSE, Staples Inc., The Gap Inc., and Walmart Inc.
Qualitative and quantitative analysis of market growth and trends of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, market growth and forecasting it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is thriving with the proliferation of mobile shopping and increased digitization, offering consumers wide product selection and convenience in online buying. Retailers emphasize personalization and ease of returns, enhancing customer experience and fostering cost savings. The market benefits from social media integration for global expansion and ethical shopping, promoting sustainability in fashion choices. Subscription services like Finettchi cater to luxury brands and diverse consumer preferences, leveraging smartphones and smart devices for seamless transactions. As internet access and digital literacy grow, the ecommerce apparel sector capitalizes on technological advancements to meet the demands of a digitally-driven market, ensuring a competitive edge in the online retail landscape. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The market is experiencing robust growth driven by the increasing popularity of digital payment systems and the convenience of online shopping. With a wide range of clothing and accessories available on e-commerce platforms, consumers are embracing digital channels for their apparel needs. Features like online payment options, shipment tracking, and 24/7 customer support enhance the online shopping experience. Moreover, the availability of various payment methods, including credit cards and cash on delivery, caters to diverse consumer preferences, particularly in developing countries like India and China. Retailers leverage cash on delivery options to build trust and encourage online purchases. Major players like Amazon, Google, and PayPal are investing in advanced technology to innovate digital payment services, further driving growth in mobile payments and shaping the future of online apparel retailing.
Mobile commerce and network marketing are the major trends influencing the market growth. The growth in mobile commerce is driven by consumers buying new phones and retailers creating more ways for shoppers to shop. Some major retailers such as Amazon.com, Flipkart, Alibaba Group, and L'Oréal have also launched mobile apps in addition to their websites. As the popularity of shopping via mobile devices increases, retail sales of these devices are also likely to increase.
Most of the orders placed via smartphones are for apparel and others. To take advantage of the rise in shopping through mobile devices, most online retailers have launched mobile versions of their shopping portals. Amazon.com and eBay, two key vendors in the online space, have introduced mobile applications compatible with iOS, Android, and other operating systems, allowing users to shop conveniently using their mobile devices. As consumers slowly become comfortable with electronic cash, the use of mobile wallets is expected to grow in the future.
The presence of counterfeit products is a major hindrance to the market growth. China is a key source of counterfeit products, which are shipped to developed markets such as the US, the UK, Japan, South Korea, and Germany, and to emerging markets such as Brazil and India, where they are primarily sold online. For instance, according to the Organization for Economics. Co-operation and Development (OECD), the clothing industry is the second largest market in the top trade of fake goods.
In addition, the majority of these fake goods originated in Hong Kong and China. The US Department of Homeland Security issued a warning regarding counterfeit apparel products that use poor-quality cotton and other apparel raw materials. The influx of counterfeit products in the US is affecting its economy, with significant retail losses to legitimate American companies.
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The market share growth by the men apparel segment will be significant during the forecast period. This segment is witnessing an increase in the sales of apparel due to the proliferation of apparel as a business casual attire in the corporate world. Apparel in the boardrooms of companies is also gaining prominence and becoming the new symbol of power dressing, which will increase segment growth during the forecast period.
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The men apparel was valued at USD 97.6 billion in 2018. Men's apparel comprises clothing and related accessories such as hats, scarves, and gloves. Tops accounted for the largest share, followed by bottom wear, coats, jackets and suits, intimates, and sleepwear. Lifestyle changes, increasing cosmopolitan culture, and enhanced affluence have brought considerable variations in the existing wardrobes of men. Historically, fashion has been a domain of womenswear, however, the fashion values are crossing over to men's wear, and the sales have also been favorable. Over the coming years, the luxury apparel segment is expected to witness growth outside the developed markets as these markets remain relatively penetrated. Market growth contribution from the mature markets will continue but at a relatively moderate pace during the forecast period.
APAC is estimated to contribute 51% during the forecast period.
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The US is the largest market for online apparel globally. The market is fairly distributed with strong rivalry due to the similarity of products and switching costs. Consumer choices are influenced by factors such as quality and fashion to signal social status. Consumer demand patterns are susceptible to advertising and branding. With improved economic conditions, greater demand for luxury wear, increasing disposable income, and availability of a wide variety of clothing lines, the market is expected to foresee good growth during the forecast period. Besides, the region is witnessing an increased demand for the retail market. This demand is driven by multiple factors, including the growing disposable income of people, the availability of a wide range of international and local products, and frequent sales. With this growing demand, vendors in the retail market are increasingly investing in opening stores in new locations, which will increase the market growth during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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The market continues to expand rapidly with statistical data guiding strategies for convenience and accessibility in shopping experiences. Consumers benefit from perks like free shipping and rely on customer reviews for authentic brand experiences, building consumer trust. Efficient reverse logistics and product quality management ensure smooth operations, while inventory management and optimizing shipping costs address challenges such as last-mile delivery and rising advertising costs in a competitive landscape. The market adapts to changing consumer trends and regulatory compliance amidst the shift from traditional brick-and-mortar stores to dynamic online clothing platforms for both B2B and B2C sales. Emerging trends like AI and machine learning enhance fashion decisions and digital sales, catering to diverse needs from sportswear to protective clothing in global and local markets.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.2% |
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Market growth 2024-2028 |
USD 278.8 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
12.88 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 51% |
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Key consumer countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
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Key companies profiled |
Adidas AG, Alibaba Group Holding Ltd., Amazon.com Inc., ASOS Plc, BANGGOOD TECHNOLOGY Co. Ltd., Cotton On Group, Dolce and Gabbana S.r.l., Gildan Activewear Inc., Giordano International Ltd., JD.com Inc., Kering SA, Levi Strauss and Co., LVMH Group., M. H. Alshaya Co. WLL, OTB Spa, Ralph Lauren Corp., SSENSE, Staples Inc., The Gap Inc., and Walmart Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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