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The US online fashion retail market size is forecast to increase by USD 294 billion, at a CAGR of 16.82% between 2023 and 2028. The online fashion retail market in the US is experiencing significant growth, driven by the rise in online spending and the expanding online sports apparel and footwear industry. Consumers' increasing preference for convenience and the ability to shop from anywhere at any time are fueling the growth of this market. However, the market faces challenges such as rising security and privacy concerns related to consumer data. With the increasing number of data breaches, consumers are becoming more cautious about sharing their personal information online. Retailers must address these concerns by implementing strong security measures to protect consumer data and build trust. Overall, the online fashion retail market in the US is poised for growth, but retailers must navigate the challenges to succeed.
The online retail sales in the fashion segment, including clothing, shoes, and accessories, are projected to experience significant growth in the US market. Tech advancements have revolutionized the fashion e-commerce industry, enabling digital shelf analytics and personalized shopping experiences for online shoppers. Apparel and footwear brands are leveraging digital channels to reach a wider audience, with millennials and Gen Z leading the charge. Fashion executives are focusing on social media marketing and influencer-based live streaming to engage with consumers and drive sales. Tech innovations, such as non-fungible tokens, are also gaining traction in the luxury fashion sector. The rise of digital demand for athletic apparel, loungewear, and other trending categories continues to shape shopping patterns. Online businesses are adapting to these trends, with Worldpay reporting a wave in e-commerce transactions in the fashion industry. Overall, the future of fashion retail is digital, with brands and executives embracing technology to enhance the shopping experience and stay competitive.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The women segment is estimated to witness significant growth during the forecast period. The online retail sales in the US fashion segment, which includes clothing, shoes, accessories, jewelry, watches, and luxury goods, have seen significant growth in recent years. Tech advancements have revolutionized fashion e-commerce, enabling digital shelf analytics and hyper personalization for apparel, footwear, and fashion accessories. Gen Z and millennial consumers increasingly prefer digital wallets and mobile commerce for their convenience. Sustainability and the resale ecosystem are also gaining traction, with subscription clothing boxes and app downloads driving innovation.
Luxury fashion brands are embracing digital platforms, offering transparency and traceability to build trust with consumers. Hyper personalization, driven by data analytics, is a key trend, enabling fashion businesses to deliver customized experiences. Omnichannel retail is the new norm, with brands leveraging digital fashion, non-fungible tokens (NFTs), social media marketing, and influencer-based live streaming to engage with online shoppers. Fashion leaders and executives are recognizing the importance of adapting to these trends to stay competitive in the evolving online retail landscape.
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The women segment accounted for USD 73.60 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in online spending is the key driver of the market. The digital channels of retailing in the US fashion landscape continue to gain traction, with consumers increasingly opting for online shopping due to its convenience and time-saving features. According to a recent survey, the average transaction value and frequency of online purchases in the US are on the rise. This trend is particularly prominent in categories such as athletic apparel and loungewear. Social-media platforms have emerged as key influencers in shopping patterns, with many consumers discovering new brands and making purchases directly through these channels. Online retailers are responding to this shift by offering enhanced security features for online payments, free deliveries, and improved customer service to build customer loyalty. These factors are expected to drive the growth of the online fashion retail market in the US during the forecast period.
The growing online sports apparel and footwear industry is the upcoming trend in the market. The US fashion landscape has witnessed a significant shift towards digital channels, with athletic apparel and loungewear categories leading the charge. A recent survey revealed that consumers' shopping patterns have evolved, favoring the convenience and accessibility of e-commerce platforms over traditional retail stores. Brands have responded by increasing their online presence, making their sports apparel and footwear available through various digital marketplaces. Social-media platforms have also emerged as crucial touchpoints for customer engagement and sales. E-commerce platforms offer services such as same-day delivery and discounts, enabling consumers to place pre-paid orders and schedule deliveries as per their convenience. The ongoing pandemic has accelerated this trend, with many sportswear brands adopting digital strategies to reach consumers at home.
Rising security and privacy concerns related to consumer data is a key challenge affecting the market growth. The online fashion retail market in the US continues to evolve, with digital channels increasingly becoming the preferred choice for consumers' shopping patterns. Athletic apparel and loungewear categories have seen significant growth, reflecting the shift toward comfort and convenience in the fashion landscape. According to a recent survey, social-media platforms are the primary source of fashion inspiration for over 50% of consumers. Retailing through digital channels offers numerous benefits, including greater convenience and access to a wider range of products. However, concerns regarding the safety and privacy of consumer data persist.
Further, a recent incident involving Next Level Apparel, a US clothing manufacturer and e-commerce operator, highlighted the risks associated with online transactions. In October 2021, the company reported a phishing-related breach, resulting in the exposure of sensitive consumer data, including social security numbers, financial information, and medical records. This underscores the importance of vital cybersecurity measures to safeguard consumer data and maintain customer loyalty.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adidas AG - The company offers online fashion retail products such as Pureboost 23 Running Shoes, AAC Shorts, Graphics Cloudy Trefoil Tee, Trefoil Essentials Tee.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis 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; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The online retail sales in the fashion segment, including clothing, shoes, accessories, jewelry, watches, and luxury goods, have witnessed significant growth in the US market. Tech advancements have revolutionized fashion e-commerce, enabling digital shelf analytics, hyper personalization, and omnichannel retail experiences for apparel, footwear, and luxury fashion brands. Gen Z and millennials lead the digital demand, favoring mobile commerce, digital wallets, and social media marketing. Tech giants, such as WorldPay, facilitate seamless transactions. Sustainability and the resale ecosystem are gaining traction, with subscription clothing boxes and app downloads driving engagement.
Further, tech innovations, like NFTs and influencer-based live streaming, are redefining luxury fashion. Brands and online businesses leverage data analytics, transparency, and traceability to build trust and loyalty. Digital fashion and tech-driven accessories are emerging trends, shaping the future of the industry. Fashion leaders and executives continue to explore new opportunities, harnessing the power of digital platforms and e-commerce to cater to the evolving needs of online shoppers.
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Market Scope |
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Report Coverage |
Details |
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Page number |
143 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.82% |
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Market Growth 2024-2028 |
USD 294 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.99 |
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Key companies profiled |
Adidas AG, Amazon.com Inc., ASOS Plc, Backcountry.com LLC, Costco Wholesale Corp., Forever21 Inc., Frasers Group plc, Industria de Diseno Textil SA, Nike Inc., Nordstrom Inc., Penney OpCo LLC, PVH Corp., Ralph Lauren Corp., The Gap Inc., and Under Armour Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
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 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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