You will be amazed to see how far the fashion eCommerce industry has come from where it used to be. The global fashion eCommerce market is expected to exceed 1.2 trillion U.S. dollars in 2025. The tremendous growth of this industry can be attributed to the fact that it gives people the liberty to shop whenever and wherever they want. Moreover, digital innovation, changing consumer spending patterns, and globalization has contributed to further advancement of fashion eCommerce.
Despite the huge growth opportunities, fashion commerce retailers face certain challenges that can lead to the failure of the fashion eCommerce brand. Here are the most prominent roadblocks that can come in the way of an online fashion business:
According to Forrester Research, the return rate in the fashion eCommerce industry in India alone is around 25-35%. On a global level, it reaches 30% to 50% in some apparel markets.
Reasons for high return rate:
Troubleshooting the problem of high return rate:
Different devices render colors differently. Therefore, the product description doesn’t match the product delivered and customers are compelled to return the products. The screen and background color combination also influence the user’s color perception in addition to the device’s screen and brightness settings.
Workaround:
New brands keep entering the field of fashion industry each day. So, it poses a challenge to survive in the saturated marketplace. Moreover, it is difficult to create brand visibility and market your eCommerce store effectively. History is the witness of brands going obsolete despite the marketing efforts.
To overcome these issues, you must:
81% of the global respondents believe that businesses are accountable for the environment. Therefore, brands must focus on creating a sustainable brand instead of producing fashion items at scale.
To create an environment-friendly brand, you should:
There is a disruption in the supply chain of the fashion industry because of resource crunch, logistical delays, lack of materials, and energy crisis. Consequently, the manufacturing and distribution cost reach an exorbitant figure.
Companies can overcome this issue of supply chain management by:
Fashion eCommerce has grown into a 821.19 U.S. dollars market size with a CAGR of 10.3%. Digital innovations have compelled the fashion retailers to adapt to the changing consumer demands, technology, market behavior, and social media boom. As supply and value chains are getting more complex, the fashion eCommerce industry has become more efficient and sustainable. These technological advancements have paved avenues for new trends that shape up this industry.
Let’s discuss the top trends dominating the fashion eCommerce world.
Shop by look or Shop the look feature allows you to create shoppable looks on your eCommerce store. Customers will be able to see the products in action and make better decisions. It will also let them use a single click to add different products to the cart. It is a win-win situation for you as well as your customers. Consequently, customers will be able to find an entire look which will increase the average order value.
Virtual try-on is a feature through which customers can try the products virtually on their hand-held devices. It makes the use of Augmented Reality so that users can try different products before making the decision. This feature can be used for clothing, jewelry, glasses, makeup, nail polish, headwear, watches, or any other fashion accessory.
If your ecommerce store deals with high-end expensive products, virtual try-on will be a helpful feature facilitating the decision making for users. It is recommended that you incorporate this element on your website and app so that it becomes accessible for everyone.
44% of customers don’t mind brands using their personal information to send personalized messages. They like receiving product recommendations based on their purchase history and browsing behavior. It makes them feel special and inspires them to make the purchase. You can automate all these marketing communications to target your customers with the right message at the right time.
Automation does not refer to a single platform. It refers to imparting an omnichannel experience by running automation campaigns across different channels like email, SMS, and social media platforms.
For example: If a user has purchased a black dress from your eCommerce store, you can share relevant product recommendations featuring black heels or earrings that would complement the dress. You can use emails, retargeting social media campaigns, and push notifications to promote these items.
Metaverse helps in building a seamless shopping experience for the shoppers in the world of virtual reality and Web3. It will allow the users to feel, touch, and try the fashion products in virtual reality. In addition, they will be able to buy digital items with cryptocurrency or unique NFTs. Eventually, it will reduce the carbon footprint and beckon a sustainable era.
eCommerce websites and mobile apps are not enough anymore. You have to be active on social media platforms like Instagram, Facebook, and WhatsApp too. Customers should be able to buy your products without having to leave the app and that’s exactly what social commerce is all about. Gen Z uses Instagram to discover new brands and products. The social commerce market is expected to grow to 604.5 billion U.S dollars by 2027. Stores with at least one social account observed 32% more sales on an average when compared the ones without a social media account. All these facts and figures reflect the importance of social commerce and how important it is to survive the competitive bottleneck.
Are you intrigued by all these trends and wondering how to make it big in the fashion eCommerce industry?
Well, there are some growth strategies you can apply in your business and emerge as a winner amongst all the giants.
Let me give you a sneak peek into all those actionable tips.
Keen to learn more about surviving in the competitive ecosystem and acquiring maximum customers? Our growth guide, ‘From Wishlist to Wardrobe: A Playbook for Fashion eCommerce Success’ has you covered.
Regardless of the size of your fashion business, it has some great insights that will take your business to the next level. Keep checking this space for more details!
Meanwhile, if you wish to thrive in your Fashion commerce business, we can help you garner all the latest development and integrations for a feature-rich, modern eCommerce store. Get in touch with us!
Minal Joshi is a content marketer at Krish with a flair for eCommerce and Digital Commerce aspects. She is a MarTech fanatic with a knack of writing with which, she helps brands to curate, create, & commence digital brand positioning. Sharing insights via articles, case studies, eBooks, Infographics, and other forms of content creation is what she lives for. Being an ardent traveler, when not writing, you'll find her sipping coffee into the mountains or petting a stray.
14 July, 2018 According to Euromonitor International, fashion has become a $1.2 trillion global industry, with more than $250 billion spent annually on fashion-products in the US.
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