What's wrong with online fashion?
)
As I mentioned in a previous article, eCommerce is going through a tough period at the moment. Following the huge growth online during the lockdowns, it has fallen away consistently as we’ve entered a different phase: the cost of living era. Some product categories are experiencing the worst impacts of this downturn more than others, and fashion is certainly in that camp.
It’s been an odd few years for fashion online. As a category it has long been a large and popular one amongst shoppers. The pandemic was deeply disruptive to that trend, with clothing seeing 0% growth in 2020 while many other categories saw the kind of volumes they’d never seen before, and may not see again for a long while. Demand for formalwear fell through the floor.
The Decline in Clothing Growth
There was some inevitable balancing out across 2021, but since then clothing has seen a level of performance that has been at times indifferent and other times outright poor. In 2023 growth for that category decreased by more than -6%, against a start-of-year forecast of 0%. With the exception of gifts, which has been the category most negatively impacted by the cost-of-living shifts in demand, clothing has been hit worse than most other categories. So what’s going on?
Conversion on retail sites has fallen against where it was prior to 2022, but having done so in many categories it has then stabilised; for clothing it continued to decline in 2023 as well. There are three primary reasons as to why clothing has experienced a worse downturn than many others.
Economic Crisis and Changing Shopping Habits
The first is the obvious one: we are in the midst of an economic crisis, recently in a recession in the UK, and that has changed how people are shopping for clothes. They are taking longer to make purchase decisions and, when they do, they are not necessarily just going for the cheaper option – instead they are often buying reasonable quality in the expectation it will last longer. The consequence of that is them not buying as frequently as they were before.
The second is very British: the weather. Last year we had a mild Winter, a dry Spring, wet Summer and 30 degrees in September. This makes it difficult to merchandise the items retailers have bought in to fit the anticipated seasonality. With climate change, this is likely to be a continuing issue.
Which brings us to point three: sustainability. Whether it is happening for ethical or financial reasons, in the past 12 months second-hand apps such as Vinted have become a major part of shopper behaviour. For a long time it’s been possible to buy and sell clothes on the internet, but these apps seem to have caught the zeitgeist effectively, and that represents a clear challenge to clothing retailers who will see a dip in demand to some extent because of that shift to these apps.
Some fashion retailers also point to the entry of Chinese retailers to the UK, such as Shein and Temu, bringing a very low price point to the make-up of the competitive landscape in which they are operating.
Looking Ahead
There appears to be numerous factors conspiring against online fashion retailers at the moment; many are hoping that we start to see some more positive developments in the near future.
Latest News
-
)
Meet Robert Manning, Head of Direct to Consumer & eCommerce at Biotiful, who's spearheading the launch of ambient products through DTC channel in the rapidly growing gut health market. -
)
In a recent conference session, Andrew Ostcliffe, Oxfam's Head of eCommerce & Retail Innovation, shared key strategies for managing rapid eCommerce growth while integrating with physical store offerin ... -
)
In this conference Helen Slaven, Chief Revenue Officer at Poq, and Jennifer North, Head of Digital Experience at Hobbycraft, shared valuable insights into the pivotal role of mobile apps in driving cu ... -
)
2024 started off badly for eCommerce sales in the UK and it looked like demand might actually be getting even more suppressed; a real blow to a market that has seen 35 consecutive months of negative m ... -
)
If you haven’t started your entries already to the eCommerce Awards there is still plenty of time to start your winning journey… -
)
Recognising excellence in the world of eCommerce the ceremony will take place after day one of eCommerce Expo. -
)
Explore Martin's journey into AI, and discover his insights on integrating AI into business operations and how can AI enhance creativity. -
)
Learn eCommerce success essentials from Chloë Thomas: adapt, profit, engage. Test and innovate to thrive in today's competitive market. -
)
As I mentioned in a previous article, eCommerce is going through a tough period at the moment. Following the huge growth online during the lockdowns, it has fallen away consistently as we’ve entered a ... -
)
Discover essential insights into eCommerce talent sourcing trends with Andy Davies, from Vertical Advantage. Learn about salary shifts, leadership gaps, and strategies for sustainable growth. -
)
IMRG’s recent session highlighted key insights for eCommerce growth: 🎧 Listen to the Full Session In This Session: eCommerce Downturn: 2022 saw negative growth in the UK's eCommerce sector, largel ... -
)
Learn how to go composable with Lampoo, luxury second-hand fashion retailer. -
)
With trading conditions proving to be very difficult over the past few years, it was perhaps a surprise that peak trading fell in line with forecasts for online retail. -
)
Discover key insights with Paul Walsh, Founder of All Things Amazon. -
)
Meet Paul Kirby, Trustpilot's Enterprise Customer Success Manager, sharing his journey from media advertising to guiding eCommerce leaders through reviews. -
)
IMRG reveal industry customer acquisition rates, how long customers should be staying with you, and if you’re spending too much to acquire new customers. This session uses IMRG’s unique market dataset ... -
)
Meet Manuel, the Director of Client Strategy at Bloomreach. -
)
Brands that succeed in 2024 are likely to be those that connect brand and customer experiences seamlessly, digitally and physically in everyday life: at home, in play, in retail, and more. Faced with ... -
)
A pretty good Christmas for retailers, but… For many retailers selling in the UK market, the past few years have been notable for a clear dip in customer demand; the economic downturn has been reflec ... -
)
What does it take to gain 1 million active mobile app users monthly? How do you reach the ability to deploy any applications or API changes worldwide in 5 minutes or less? Well, Formidable’s Director ... -
)
Discover the secrets behind Pandora's colossal success as the world's largest jewellery brand in a session titled "How Product Information Management Powers Pandora's Global Retail Growth." The world’ ... -
)
Explore the dynamic landscape of Cross-Border eCommerce and its role in unlocking global growth. This expert panel discusses key strategies, technologies, and trends, offering valuable insights for bu ... -
)
Moonpig's Director of New Markets & Ventures, Alexander Toft, shared invaluable insights during the conference session on "Taking an established brand to new markets." Here are the key takeaways: Star ... -
)
The Livestreaming eCommerce market in China is forecast to reach 700bn RMB (£80bn) in 2023, roughly equivalent to the entire eCommerce market of South Korea. Chinese consumers show an increasing appet ... -
)
Discover key insights with experts from Propeller, Boots Media Group, Microsoft and NielsenIQ -
)
Henry is a fixture in millions of homes in the UK, and part of their success can be attributed to the hyper-focused view on their customers’ experience and loyalty. -
)
A checklist for improving your key KPIs with Composable commerce while avoiding the most common pitfalls - drawing from practical experience from Lars Petersen, CEO of Uniform, Tomas A. Krag and Malgo ... -
)
In today's highly competitive world, where customers have numerous options and heightened expectations, retailers face the challenge of fostering mutually valuable and long-term relationship with thei ... -
)
In this session, uncover how Sitecore Commerce breaks away from the one-size-fits-all approach, empowering brands with unique products to maintain their distinctiveness and deliver unmatched customer ... -
)
Explore the aftermath of Black Friday 2023 with Andy Mulcahy's analysis.
)
)
){kind=logo}
)
){kind=logo}
){kind=logo}
.png/fit-in/500x500/filters:no_upscale())
){kind=logo}
)
)
){kind=logo}