by Consumer Adoption of Online Shopping
As the COVID-19 pandemic continued into 2021, consumers further embraced online shopping for clothes, shoes, and accessories. Ecommerce became the main shopping channel for fashion as many retail stores remained closed or operated at limited capacity throughout the year. According to market research firms, U.S. Fashion Ecommerce Market grew over 25% in 2021 compared to the previous year. The percentage of total fashion sales done online rose to over 30% by the end of 2021, up from around 20% pre-pandemic. Younger generations in particular have become more accustomed to browsing and purchasing items from their smartphones and desktops without visiting physical stores. This widespread adoption of online shopping is expected to continue even as restrictions ease and more people get vaccinated.
Expansion of Ecommerce Giants
Major retail giants like Amazon, Walmart, and Target significantly expanded their fashion product offerings and fulfillment capabilities over the past year. Amazon has poured billions into promoting third-party seller platforms and building out its own private label lines. At the same time, established online fashion retailers like Stitch Fix, Rent the Runway, and Asos expanded their assortments and started offering more subscription and rental options to attract new customers. Meanwhile, digitally-native brands like Revolve, Warby Parker, and Allbirds found continued success with their direct-to-consumer models. U.S. Fashion Ecommerce increased competition has pushed retailers of all kinds to improve their websites, online experiences, and shipping speeds. This has led to greater convenience and selection for consumers browsing and shopping across myriad digital channels.
Growth of Secondhand and Resale Markets
Second-hand and resale clothing sites experienced especially strong growth last year as more people looked to buy and sell used items online. Pioneering resale sites like ThredUp and Poshmark saw active user numbers surge as selling used clothes from home became an appealing side business for many. Even luxury resellers like The RealReal were able to operate through much of the pandemic processing consignments and orders. Younger demographics that came of age in the digitally connected world have also helped drive this trend, being comfortable buying pre-owned high-end designer items online. The growth has accelerated the mainstreaming of this market and spurred major retailers to launch their own resale platforms or partnerships to get a piece of this burgeoning business opportunity.
Personalization and Customization Trends
As AI and predictive algorithms advance, fashion brands and retailers have found more opportunities to provide personalized and customized shopping experiences at scale online. Companies like Nike and Levi’s expanded their “made to order” options to allow customers to mix-and-match colors, fits, materials, styles and details to create unique one-of-a-kind clothing and footwear. Meanwhile, digitally-focused brands like Anthropic offer a highly customized experience from the start by asking new customers survey questions to learn their precise tastes and measurements for a tailored first order. Some forward-thinking companies are also using innovative textiles that can continuously change color, pattern and fit based on a wearer’s environment, preferences or mood using inputs like temperature, music or biometrics. While still emerging, these adaptive clothing technologies represent an exciting intersection of fashion, computing and materials science that could shape the U.S. Fashion Ecommerce Market.
Mobile Commerce Acceleration
The past year saw further acceleration in m-commerce as consumers shopped fashion on their mobile devices more than ever before. Studies found over 80% of all online shopping sessions in 2021 began with a mobile search. In response, brands optimized their mobile sites for faster load times, larger images and one-tap checkouts. Many also doubled down on popular mobile apps for added convenience and personalization. Social media platforms like Instagram continued their important role inspiring user discoveries and driving online sales directly through built-in checkout options. This ongoing migration of fashion consumption and purchases to smaller smartphone screens will compel companies to innovate new mobile-first experiences like virtual try-ons, personalized recommendations and live events in augmented reality. With 5G expected to rollout more broadly in coming years, new interactive mobile shopping experiences may start to feel like stepping into a virtual store.
Logistics and Supply Chain Advances
To deliver on heightened consumer expectations for speed and selection, online retailers invested heavily in logistics infrastructure including fulfillment centers, warehousing capacities and last-mile delivery options. Amazon expanded its sprawling network of more than 200 delivery stations across metro areas to offer same-day and one-day shipping on thousands of fashion items. Target’s Shipt same-day delivery service grew rapidly through partnerships with brands and third-party sellers. Digitally-native brands also scaled up their distribution as needed by signing deals to fold inventory into other companies’ expansive facilities. Meanwhile, supply chain disruptions from the pandemic prompted more U.S. brands to onshore or nearshore some manufacturing to decrease future risks. Adopting new technology will be key such as RFID tagging for real-time inventory tracking and smart sorting systems for contactless fulfillment throughput. These important behind-the-scenes improvements have powered the ongoing rise in ecommerce convenience.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
