Online fashion retailing is a process in which customers can search, select, and purchase fashion products, services, and information over the internet. Fashion products include, cloths, cosmetics, jewelry, footwear, and bags and accessories.
Factors Driving Growth of the Global Online Fashion Retail Market
Increasing use of mobile applications is a major factor propelling growth of the online fashion retail market. Mobile apps offer important features such as smart filters, latest trend news, virtual trial room, offers and deals, which help consumers to search products of their choice. Moreover, smartphones are an ideal platform for retailers to directly sell products to consumers. Therefore, increasing sells of smartphones is expected to drive the market growth. According to Coherent Market Insights’ analysis, around 134 million smartphones were sold across India in 2017. Social media also plays an important role in growth of the online fashion retail market. According to Coherent Market Insights’ analysis, in 2018 over 200 million Instagram users worldwide follow at least one fashion account and in the U.K., 45% of Instagram users follow fashion accounts.
Furthermore, growing e-commerce industry is expected to drive growth of the online fashion retail market. According to Coherent Market Insights’ analysis, the total number of online transactions in India was 200 million in 2017 and is expected to increase by 65% by 2020. According to the same source, 60 million of the 200 million transactions in 2017 belonged to online fashion shoppers and it is projected to reach 120 million by 2020.
Moreover, increasing focus of online fashion retailers towards offering consultation and customer services is also expected to boost the market growth. For example, Amazon offers information about how to correctly measure body circumference and how to correctly interpret size charts. Increasing adoption of computer-aided graphic technologies and chatting platforms is also expected to boost the online fashion retail market growth. Technologies such as three dimensional effects (3D), Augmented Reality (AR) and Virtual Reality (VR) help in better presentation of products on various online platforms.
Online Fashion Retail Market: Regional Insight
On the basis of region, online fashion retail market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Asia Pacific is expected to witness significant growth in the online fashion retail market during the forecast period. India is expected to witness significant growth in the market, owing to growing e-commerce market and increasing use of smartphones. According to India Brand Equity Foundation (IBEF), e-commerce market in India is expected to reach US$ 200 billion by 2026, from US$ 38.5 billion in 2017.
Key players in the global online fashion retail market
Key players operating in the global online fashion retail market include, Amazon, Flipkart, Paytm mall, Snapdeal, Jabong, Yepme, Myntra, 20Dresses.com, 99labels, Alibaba.com, American Swan, Naaptol, Fabindia, FashionandYou, Fetise, HomeShop18, KOOVS, Limeroad, StalkBuyLove.com, Shopclues.com, ShoppersStop, Shopping.indiatimes, Shopping.rediff, Styletag, Stylista, and Yebhi.
Online Fashion Retail Market: Taxonomy
By Product Type