The UK Fashion Ecommerce Market size was valued at US$ 31.19 Billion in 2023 and is expected to reach US$ 85.51 Billion by 2030, grow at a compound annual growth rate (CAGR) of 15.5% from 2023 to 2030. The market comprises of online sales of fashion products including clothing, footwear, accessories, jewelry, bags and others. The growth is driven by increasing internet and smartphone penetration, convenience of online shopping, and growing popularity of fast fashion brands.
The UK Fashion Ecommerce Market is segmented by product type, end user, price range, distribution channel and region. By product type, the market is segmented into clothing, footwear, accessories, jewelry, bags and others. The clothing segment accounted for the largest share of the UK fashion ecommerce market in 2022. The growth in this segment is attributed to rising demand for trendy and affordable fast fashion clothing among millennials and Gen Z consumers.
UK Fashion Ecommerce Market Drivers:
- Convenience and Flexibility: The convenience and flexibility offered by online fashion shopping is a major driver of the UK fashion ecommerce market. Busy lifestyles have led consumers to appreciate the ability to shop from anywhere, anytime on their smartphones, tablets or computers. Ecommerce offers consumers a seamless experience to browse, compare products and place orders with just a few clicks. Online shopping saves time and effort of travelling to physical stores. Customers also have the flexibility to return products easily that don't fit well or meet expectations. The hassle-free and personalized shopping experience provided by online fashion retailers continues to attract consumers.
- Rise in Internet and Smartphone Penetration: The increasing internet and smartphone penetration among UK consumers has led to the rapid growth of the online fashion industry. High-speed mobile internet enable consumers to conveniently browse and shop for fashion products on the go. Smartphones allow customers to shop 24/7 at their comfort. Rising ownership of internet-enabled devices like smartphones, tablets and laptops provide consumers access to online fashion stores from any location. According to estimates, there will be over 53 million smartphone users in the UK by 2025. This presents a significant growth opportunity for fashion e-tailers.
- Influence of Social Media: The popularity of social media platforms like Instagram, Facebook, YouTube and TikTok is driving the growth of the UK online fashion industry. Fashion brands leverage social media for marketing campaigns, promotions and influencing customers’ purchase decisions. Many customers discover new fashion trends on social media and directly purchase styles promoted by influencers online. The rise of social media fashion influencers who create content on latest styles and trends has supported the market growth. Retailers also run targeted ads on social media to reach customers.
- Rising Online Spending: The UK has one of the highest internet retailing penetration rates globally. Over the years, UK consumers have rapidly adopted online shopping across categories. Fashion is one of the most popular ecommerce categories. The COVID-19 pandemic further accelerated the shift to online channels, with consumers forced to shop digitally. According to ONS, online sales accounted for 27% of total UK retail sales in January 2021, indicating the dominance of ecommerce. UK consumers are highly comfortable purchasing fashion products through digital channels today.
UK Fashion Ecommerce Market Opportunities:
- Technology Innovation: Technology innovation presents a major opportunity in the UK online fashion market. Artificial intelligence can be leveraged by retailers to provide personalized product recommendations based on consumer preferences and search history. Augmented reality can enable virtual trial rooms, allowing customers to digitally try clothes and accessories. Drone delivery, automated warehouses and other emerging technologies provide scope for faster deliveries in the future. Innovation in digital payment solutions also provides growth opportunities in the market for retailers.
- Sustainability: Sustainability and ethical production have emerged as key trends in the fashion industry, providing scope for growth in eco-friendly and fair trade fashion. UK consumers, especially millennials and Gen Z, are increasingly conscious of the environmental impact of fast fashion. They prefer to shop from brands that use recycled materials, engage in sustainable manufacturing and provide transparency. Online retailers have an opportunity to tap this trend by adding sustainable fashion collections, communicating their values clearly and providing transparency.
- Omnichannel Approach: Many customers still value an in-store experience for factors like trial rooms. Adopting an omnichannel strategy presents an opportunity for fashion e-tailers to integrate their physical and digital channels. Many UK fashion retailers are now offering services like click-and-collect, in-store returns of online purchases, virtual trial rooms and in-store screens for browsing products. Omnichannel retail provides customers the flexibility to shop seamlessly via any channel, enhancing the experience.
- Personalization: Use of AI, machine learning and data analytics presents the opportunity for UK online fashion retailers to offer personalized experiences to each customer. Features like recommending products based on past purchases, size preferences and style profiles help retailers provide an individualized shopping experience. Personalized promotions, customized product recommendations and tailored advertisements help build loyalty. Offering personalized experiences both online and in-store can be a differentiating factor.
UK Fashion Ecommerce Market Report Coverage
||Market Size in 2023:
||US$ 31.19 Bn
|Historical Data for:
||2018 to 2021
||2023 - 2030
|Forecast Period 2023 to 2030 CAGR:
||2030 Value Projection:
||US$ 85.51 Bn
- By Product Type: Clothing, Footwear, Accessories, Jewelry, Bags, Others
- By End User: Men, Women, Kids, Unisex, Plus Size, Pet Fashion, Others
- By Price Range: Premium, Mid-Range, Economy, Luxury, Super Luxury, Discount/Value Retail, Others
- By Distribution Channel: Online Only, Omnichannel, Brick and Mortar Only, Department Stores, Specialty Stores, Direct to Consumer, Others
H&M, Zalando, Amazon Fashion, Primark, Topshop, River Island, Missguided, PrettyLittleThing, ASOS, Boohoo, Next, Very, Marks & Spencer, John Lewis, New Look, JD Sports, Farfetch, Gymshark, Reiss, AllSaints
- Rising internet and smartphone penetration
- Convenience and flexibility of online shopping
- Influence of social commerce and social media
- Increasing online spending and adoption of ecommerce
|Restraints & Challenges:
- Delivery issues and high logistics costs
- Security and privacy concerns
- Low brand loyalty and lack of personalized experience
UK Fashion Ecommerce Market Trends:
- Mobile Commerce: Mobile commerce is a growing trend in the UK online fashion market, with customers increasingly using smartphones to browse, purchase and get inspiration. Fashion retailers are creating mobile apps and mobile-optimized websites to tap this trend. Apps provide easy access to the online fashion store along with features like notifications, discounts, easy payments and save for later options. Checkout processes are being simplified for mobile conversions. Mobile fashion apps also enable access to catalogues, product discovery tools and promotions.
- Voice Commerce: Voice commerce is an emerging shopping trend, allowing customers to use voice assistants for online shopping. Voice assistant devices like Amazon Alexa provide a hands-free and convenient way to place orders. UK retailers can tap this trend by making their sites voice assistant enabled. Customers will be able to add items to carts and complete purchases through simple voice commands in the future. Voice search is also growing, allowing consumers to use voice to search for fashion products.
- Video Commerce: Video commerce is on the rise with young consumers increasingly using platforms like YouTube, Instagram and TikTok for fashion inspiration. Many online retailers are leveraging videos for styling tips, fashion tutorials, product demonstrations and behind-the-scenes content. Shoppable video ads and livestreams enable direct purchase of featured products. Interactive video shopping experiences provide engagement and help drive conversions. The use of videos is expected to continue rising in online fashion retail.
- Social Commerce: Social commerce is a fast-growing fashion ecommerce trend. Social media platforms like Instagram and Snapchat have launched in-app checkout and shop features, enabling users to shop directly through social apps and posts. Retailers have also added social buying options allowing shoppers to seek opinions from friends before purchase. Tools like shoppable livestreams and post tags drive social commerce. As social media becomes more transactional, social commerce will gain traction in online fashion.
UK Fashion Ecommerce Market Restraints:
- Delivery Issues: Delivery related issues pose a major restraint for UK fashion ecommerce. Customers expect fast and reliable delivery at low costs. However, factors like poor logistics infrastructure in some areas, inefficient processes, returns and exchanges can negatively impact delivery experiences. Delayed shipments or damaged, inaccurate orders can discourage consumers from repeat purchases. Investing in delivery capabilities is essential for retailers to overcome this barrier.
- Security and Privacy Concerns: Despite growth, security and privacy concerns regarding the safety of online payments and personal data continue to make some consumers wary of fashion ecommerce. Instances of online fraud, phishing scams and hacking make shoppers apprehensive about risks like theft of financial information. Retailers need to implement robust cybersecurity measures, assure customers about transaction safety and ensure compliance with regulations around data protection to build trust.
- High Logistics Costs: The logistics costs associated with operating fashion ecommerce are quite high. Costs include warehousing, inventory management, packaging, shipping and potential returns processing. These reduce profit margins, especially when trying to offer conveniences like next day delivery. Order values in fashion tend to be lower compared to categories like electronics. Optimizing supply chains and logistics will be key for the profitability and growth of fashion ecommerce.
New product launches
- In March 2022, online fast fashion retailer Boohoo launched a new sustainable ready-to-wear collection made using recycled polyester. The move aligns with the company's aim to build a more sustainable business.
- In January 2021, Asos launched its first circular fashion collection in partnership with the Centre for Sustainable Fashion. The collection featured long-lasting pieces made using recycled fabrics.
- In September 2020, Zalando launched its dedicated Pre-Owned category to promote circular fashion. Customers can buy and sell secondhand fashion items.
Acquisition and partnerships
- In March 2021, Hut Group acquired Dermstore, a leading US online retailer of skincare and beauty products, for $350 million. This strengthened THG's presence in the US beauty ecommerce market.
- In June 2020, Boohoo acquired the online operations of Oasis and Warehouse, expanding its portfolio of brands targeting a slightly older demographic.
- In October 2019, Asos acquired Topshop, Topman, Miss Selfridge and HIIT brands from Arcadia Group for £265 million after its collapse. This helped Asos expand its fashion range.
Figure 1. UK Fashion Ecommerce Market Share (%), By Product Type, 2023
Top companies in UK Fashion Ecommerce Market
- Marks & Spencer
- John Lewis
- New Look
- Amazon Fashion
- River Island
- JD Sports
Definition: The UK Fashion Ecommerce Market refers to the online retail sales of clothing, footwear, accessories, jewelry, bags and other fashion products in the United Kingdom. It covers the business to consumer sales of fashion goods and products through ecommerce channels such as company owned websites, marketplaces, and mobile apps. The market has grown rapidly over the past decade driven by factors like rising internet and smartphone adoption, busy lifestyles, and the convenience of online shopping.
Few other promising reports in Smart Technologies Industry
Facial Recognition System Market
Marketing Analytics Software Market
Virtual Shopping Assistant Market
Corporate Relocation Service Market