The fashion e-commerce industry is one of the fastest-growing online markets due to its key benefits that customers simply love: innovative and always surprising product descriptions, inspiring visualization methods, high level of human presence as seen in reviews, testimonials, and social sharing. Online shopping has become very similar to shopping in the brick and mortar stores due to these elements. Though, these are only some basic things that any fashion online shop should provide for customers to improve conversion rate.
The online fashion industry has been the second sector in retail e-commerce sales in the US for the last 4 years and it is predicted to almost triple the sales number by 2016 ($73 billion) compared to 2010 ($28 billion). Computer and consumer electronics take first place with a sales growth from $35,7 billion (2010) to an estimated 80,2 billion dollars in 2016. So, if you want to be successful in this very competitive industry, it is vital to adapt your e-shop to the customer’s needs and offer them something new that will place you as a top-of-mind brand in fashion e-commerce.
Key Takeaways
- Significant Growth: The e-commerce fashion industry is projected to grow significantly, potentially reaching a $1 trillion valuation by 2024.
- U.S. Market Expansion: Sales in the U.S. fashion e-commerce sector reached $204.9 billion, with an expected 13% increase this year.
- Driving Factors: Global expansion, increased online and smartphone access, rising global middle-class income, and celebrity influence are key growth drivers.
- Industry Challenges: Challenges include diminishing brand loyalty, demand for ethical production, and adapting to new technologies like NFTs and the metaverse.
Segment Insights
- Clothing and Apparel: Projected to exceed $300 billion by 2027 in the U.S.
- Footwear: Global market size expected to reach $530.3 billion by 2027.
- Accessories and Bags: Forecasted CAGR of 12.3% from 2016 to 2026.
- Jewelry and Luxury Goods: Set to reach $307 billion by 2025.
E-commerce Successes: Notable examples include Kotn’s sustainable impact, SKIMS’ social media prowess, and Aimé Leon Dore’s effective brand positioning.
Ideas You Can Test on Your E-commerce Fashion Store
1. Innovative Product Presentations
It’s a known fact that in an online store, people cannot feel the texture of clothes. The key solution to eliminate this fear is to bring the real-life experience of shopping in your e-commerce store so that people can analyze the fabrics and even feel the garments.
Here are some examples of what you can do to have a mind-blowing product presentation:
360 Degree Product Images
Image Source
Provide a 360-degree system so that people can see the product from different perspectives. You can either use several pictures from front to back (such as in the example below from Next) or you can provide a rotating system (such as Schuh does).
Catwalk
Having the possibility to observe the clothing item on a catwalk gives customers another chance to analyze how the product looks on a real person. In this way, it’s easier for customers to imagine how the dress would fit them.
Zoom-in System
A zoom-in system allows customers to almost feel the clothing texture, fine cuts, and fabrics. But, a zoom-in system is useless without you having high-quality pictures and clear product images.
Here’s a quite nice example from Boden
2. Fabrics & Care Section on The Product Page
Let your customers know how to treat the product so that they can enjoy it for a long time and provide information on how to clean it, if it’s suitable for ironing, if it’s waterproof, etc.
3. Fit & Features Information
It’s important to communicate the height of the posing model and the product size in the picture. Why? So that the visitors look at the product to estimate how it would fit them and compare it with their sizes. Write down as many details as you can. For example, Aquascutum provides useful information for this coat: model heights, sleeve length, garment length, pockets, collar, front panel, etc.:
4. Original Product Stories
It’s easy to create a story around your product, especially in the fashion industry, because you can tell visitors the designer’s or brand’s ideas behind it. Read more about the power of storytelling and content marketing in e-commerce.
As I have said in a previous article, Howies is a great example when it comes to storytelling in e-commerce and original product descriptions. For instance, when looking up a base layer clothing item, you discover the beautiful story of what is a Merino Base Layer and how it helps your body regulate its temperature
5. Easily Available Size Guide
Display as much information as you can regarding the available sizes of products. Also, describe sizes converted in different regions of the world (UK, US, Europe) and write down the dimensions in centimeters and inches for every size. In this way, all visitors will know what size to look for on your e-commerce website.
For example, on Cathkidson.com, you can find all the necessary details about sizes for clothing (women, men, babies and kids) and shoes:
6. Personalized Looks
People like to relate to other people and always keep up with the fashion trends. When the lack of inspiration strikes, people search for features, actual fashion trends, and new looks to wear. Include a “Today’s look” or “This week’s top 10 picks” section, where fashion icons share their opinion on how to create a trendy clothing combination to make you look fabulous.
Once again, Asos is a great example. They have launched ASOS fashion finder, a platform where visitors can analyze trends, identify the perfect look and outfit, and participate in design competitions. You can learn how to “layer up in a classic leather jacket”, “stay stylish come casual brunch”, “step out in neutral camel shades” or “discover new ways to wear your denim”. Using the headline “create, share and shop”, ASOS includes the social sharing component subtly. Later on in this article, I’ll present the main aspects of social sharing in e-commerce.
Another big pro for fashion e-commerce is to have inspiring looks for customers, such as “This Fall/winter 2015 trends” or “What to buy now: Paris fashion week inspiration”. Become an inspirational and creative resource for customers:
7. Online Stylists
Nowadays, personalization is essential if you want to have a successful company in fashion e-commerce or any other sector. Everybody thinks alike and it is easier to persuade visitors by addressing them in a personal tone of voice. Help visitors to make the best buying decision by purchasing the outfit that goes best for them. An online designer can show customers tips and tricks on how to choose their clothes according to their personality or how to combine old clothing items and get a fresh new look.
8. Social Sharing Buttons
Social sharing buttons on the product page have become a common feature for all fashion e-commerce sites. Using these buttons increases the chances of spreading the word about products. Word of mouth is probably the best advertising channel because it is free and it generates organic traffic. The best fashion e-commerce sites are increasingly using social sharing buttons due to their great power of engagement.
The biggest players in the fashion e-commerce industry (as you will see in the examples below) choose to display Facebook, Twitter, Pinterest, and Google + buttons. Select those channels that your audience most uses, that are relevant for customers, and that match their online behavior. Research to find out this information.
When it comes to choosing where to place the social buttons, there are several key positions you should consider:
- Below are the product images, such as Forever21 does
- Below the Call to Action button, colored, such as Jabong does
- Below the Call to Action button, B&W, such as Net-a-Porter does
H&M places a “Share” button below the product image. When clicking it, a pop-up displays the sharing options
9. Social Proof
Social proof is one of Cialdini’s principles of persuasion, defined as the tendency of people to behave and act like others. Through social proof examples, you show customers that you are a reliable player in the business, and, also, people will trust the brand even more because the product they want to purchase has been socially approved by others.
On the product page, make sure you include social proofs such as:
- Star rating review system
- Testimonials (quite useful in the fashion e-commerce industry, because it shows real people telling real stories about their own experiences)
- Testimonials associated with human pictures (it makes visitors feel more comfortable)
10. Personalized Offers
Once you have reached considerable traffic on the fashion e-commerce site, it is time to divide it, selecting your main target to focus on. Identify the main traffic segments and see which one is the most effective and high converting. All these steps being done, address every segment with personalized content. Synchronize the messages with the customer’s behavior and needs.
A great strategy to convert shoppers into buyers is to create personalized offers, based on their purchasing history or the searched products. It’s not mandatory to give discounts or vouchers. For example, any fashion e-commerce company can display an on-exit pop-up offering a “Today’s fashion icons”, “How to dress for less” or “How to create the perfect look for you” guide.
If you want to find out more about how web personalization works and what are its main benefits, read this article on “How to use web personalization to stand out”.
Another trick you can test on the fashion apparel e-commerce is to use a recommendation system. You can simply suggest a similar product to can simply suggest similar products to the one the customer is looking at or you can create a “complete the look” section, such as Next does:
Starting a fashion e-commerce business seems like a good idea if you follow some basic steps and plan the conversion rate optimization goals according to an organized strategy.
E-commerce Fashion Industry Insights
According to Statista, the e-commerce fashion sector is expected to experience a compound annual growth rate (CAGR) of 14.2% from 2017 to 2025, reaching a valuation of $1 trillion by 2024.
In the United States alone, sales of apparel, footwear, and accessories reached $204.9 billion, with projections indicating a 13% increase for the current year. This growth is driven by several key factors
- Expansion into global markets
- Increased online access and smartphone penetration
- The rise of the global middle class with disposable income
- Influence of Celebrities and social media Influencers
Conversely, the industry faces significant challenges, including
- Decreasing brand loyalty due to an oversaturated market
- Consumer demand for ethically sourced and environmentally friendly materials
- Technological advancements, including virtual reality and the integration of NFTs and the metaverse
These issues will be addressed in detail later. Now, let’s delve into the performance of specific subverticals within the industry.
Clothing and Apparel
Digital advancements have lowered barriers to entry, enabling clothing retailers to market, sell, and fulfill orders globally. The U.S. fashion e-commerce market increased to $183 billion in 2021, with forecasts suggesting it will surpass $300 billion by 2027.
Footwear
The footwear segment has seen substantial growth, with the global market expected to rise from $365.5 billion in 2022 to $530.3 billion by 2027. In 2022, the average U.S. consumer spent nearly $600 on footwear. Asia holds a dominant 54% share of the global market, far outpacing Europe and North America.
Athletic footwear is also on the rise, projected to reach $63.5 billion in 2023, up 23% from $51.4 billion in 2020.
Accessories & Bags
The bags and accessories market is poised for robust growth, with a predicted CAGR of 12.3% from 2016 to 2026. The Asia-Pacific region is expected to be the fastest-growing market, highlighting the sector’s strong potential despite its relatively small size.
Jewelry & Luxury Goods
In 2020, the global jewelry market was valued at $228 billion and is expected to reach $307 billion by 2025. E-commerce is anticipated to account for 20.8% of luxury goods sales this year. Luxury watches will significantly contribute to this segment, with an expected expenditure of $9.3 billion in 2025.
Despite economic downturns, the luxury market tends to recover quickly, as consumers return to investing in high-quality, timeless items. The growing affluence in Asia-Pacific and the Middle East has increased the average revenue per luxury consumer to $313.
The main challenge for the luxury sector is the rise of the affordable luxury market, posing questions about market expansion strategies and the impact on consumer perceptions of true luxury.
Spotlight on Successful Fashion E-commerce Brands
Before concluding, let’s highlight some prominent fashion e-commerce brands that have achieved significant success:
Kotn
Kotn focuses on sustainability and affordability, significantly impacting the Egyptian communities from which they source their materials. The company has built 18 schools in Egypt, enhancing the lives of over 100,000 individuals through improved work and educational opportunities.
SKIMS
Founded by Kim Kardashian, SKIMS has redefined fashion e-commerce through effective social media use and strategic partnerships, including with the NBA and Swarovski. The brand is known for its inclusive marketing, showcasing products on diverse body types.
Aimé Leon Dore
This New York-based brand has captured the attention of fashion enthusiasts with its simple designs and high-profile collaborations with New Balance and Porsche. Aimé Leon Dore has mastered the art of blending streetwear with luxury, appealing to a broad audience and thriving in the aesthetics-driven online fashion market.
Frequently Asked Questions
What are the most effective ways to handle returns and exchanges in fashion e-commerce?
Managing returns and exchanges effectively in fashion e-commerce involves clear communication of policies, making the process as easy as possible for customers, and possibly integrating technology that can predict fit issues before purchase to reduce return rates.
How can fashion e-commerce sites enhance mobile shopping experiences?
Enhancing mobile shopping experiences can be achieved by optimizing site design for mobile devices, improving page load speeds, simplifying the checkout process, and using mobile-specific features like touch enhancements and geolocation services.
What role does AI play in improving customer experiences in fashion e-commerce?
AI can significantly improve customer experiences by personalizing shopping experiences through recommendation engines, automating customer service with chatbots, and optimizing inventory and pricing models to better meet consumer demands.
How can fashion e-commerce sites effectively measure customer satisfaction?
Customer satisfaction in fashion e-commerce can be effectively measured through customer surveys, net promoter scores, monitoring social media feedback, and analyzing product return data to identify patterns that may indicate dissatisfaction.
What are the best practices for ensuring website security for fashion e-commerce sites?
Best practices for ensuring website security include using secure sockets layer (SSL) certificates, complying with PCI DSS standards, employing robust malware detection and prevention systems, and educating customers about secure shopping practices
3 Responses
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