Online fashion market worth €175 billion in 2025
The European online fashion retail market is set to grow 50 percent by 2025. The online turnover of this market will reach 175 billion euros, which equals 33 percent of the retail branch’s total. Cross-border marketplaces are the biggest drivers behind these growth.
The fashion retail branch is expected to grow its total turnover in its 16 biggest markets with 10 percent, to 525 billion euros. Online websites and apps such as Vinted will drive the market’s online growth, according to a report from Cross-Border Commerce Europe.
Online fashion market dominated by marketplaces
The report also looked into the current online fashion market. It is dominated by popular online marketplaces such as Amazon, Zalando and eBay. According to the report, Zalando has the biggest share of the online market.
Inflationary pressures on demand
The researchers expect that the demand for fashion items will be influenced by the steep increase in prices in 2022. The current rising prices of freight, energy, raw material and labor costs are passed on in the prices that consumers pay.
‘The increase in online returns can be explained by inflationary pressures.’
“Given the significant increase in online returns, inflationary pressures appear to be impacting online consumer behavior. It describes how, after making a purchase, customers may discover that they do not have as much money to spend as they thought when they look at their bank account”, says the report.
‘Online shopping here to stay’
On the other hand, the researchers expect that consumers who had to shop online during the pandemic will continue doing so. “Much of the online shopping behavior that emerged during the pandemic is here to stay”, says Carine Moitier of Cross-Border Commerce Europe.