The fashion industry stands as a monumental force in the global economy. It’s frequently cited as one of the largest industries worldwide, significantly contributing to global GDP. If the global fashion industry were a country, it would rank as the seventh-largest economy globally.
Revenue within this sector is staggering. Before the disruptions of the Covid-19 pandemic, global fashion revenue was estimated to be between $1.7 trillion and $2.5 trillion. While the pandemic did cause a contraction, with the global apparel and footwear market shrinking by 18.1% in 2020, recovery has been robust. In 2021, the market rebounded, growing by 18.1% to reach $1.71 billion. Projections indicate continued growth, with an anticipated 7.5% increase in 2022 and 6.1% in 2023.
This recovery and sustained growth are significantly fueled by the burgeoning realm of online shopping. E-commerce has been on an upward trajectory for years, transforming how consumers purchase goods, including fashion.
In 2020, global e-commerce sales experienced a dramatic surge to $4.2 trillion, a trend that continued into 2021, culminating in an estimated $4.9 trillion in revenue and 2.14 billion online shoppers worldwide. The forecast for e-commerce remains optimistic, with projections reaching $5.5 trillion in 2022 and exceeding $7 trillion by 2025.
E-commerce’s share of the total retail pie is also expanding. In 2021, online sales accounted for nearly 20% of retail sales globally. This share is expected to rise to 21% in 2022 and approach 25% by 2025, demonstrating the increasing dominance of online channels in retail, particularly in the fashion sector.
Within the fashion e-commerce market, apparel leads as the segment with the most users. “Clothing” was the top online segment for global consumers in 2021, both for local and cross-border purchases. The online apparel market experienced accelerated growth in 2020 due to the Covid-19 pandemic, further solidifying the shift towards online fashion retail.
The global fashion e-commerce market was valued at $668.1 billion in 2021 and is projected to reach $744.4 billion in 2022. Statista estimates that the online clothing and apparel industry will soar to a value of $1.2 trillion by 2025. Research and Markets anticipates the e-commerce fashion industry to reach $1.1 trillion by 2026, underscoring the immense potential and expected expansion of online fashion retail.
The top online destinations for apparel purchases in 2021 included major platforms like Amazon and Shein. Asos also demonstrated strong popularity, particularly in the UK, while Target was a close competitor to Amazon in the US market. In Germany, online retailers such as Zalando and Zooplus were among the most frequently used platforms, highlighting the diverse landscape of online fashion shopping across different regions.
While online shopping is rapidly gaining ground, in-store purchases still represent a significant portion of fashion retail. Although global figures are not readily available, in the US, pre-Covid-19, 75% of fashion purchases were made in physical stores, indicating the continued importance of brick-and-mortar retail alongside the expanding online market. In 2014, online fashion retail sales were $253 billion, representing 14% of total fashion sales, further illustrating the substantial growth of online fashion retail in recent years.
