Since the very beginning, the fashion industry has been an early adopter of e-commerce. Over the years, fashion has grown into the largest B2C e-commerce market segment, and its global size has reached approximately $666 billion in 2020 🚀.
In this blog post, we’ll take a detailed look at the fashion vertical - an absolute leader in the global e-commerce industry - presenting you the latest stats and trends to watch out for 👀. Following this, we’ll shed light on the top strategies to help your e-commerce fashion businesses stay ahead of the curve.
Sounds interesting? Let’s dive right in!
The e-commerce fashion industry overview: stats & trends
The COVID-19 outbreak and continuous lockdowns raised up concerns about an existential crisis of the fashion industry. “No-one wants to buy clothes to sit at home in,” as Simon Wolfson, CEO of Next, put it.
In line with this thinking, experts projected that the global e-commerce fashion industry would decline from around $530 billion in 2019 to $486 billion in 2020. However, it turned out to be the other way around 🤩.
As the chart below exhibits, the global market value of the e-commerce fashion industry continued to grow. It reached approximately $666 billion in 2020, despite the ongoing pandemic.
Moreover, the statistical predictions for the e-commerce fashion industry's future are optimistic 🔥: the revenue of the global e-commerce fashion market is projected to grow to $759.5 billion by the end of 2021. With a compounded annual growth rate of 7.18% over the next 5 years, it’s forecasted to reach $1.0 trillion by 2025 🚀💰.
Next, we’ll unfold the top strategies and technological innovations to consider for your long-term fashion e-commerce business growth💡.
Personalization is the key to fashion e-commerce success
By nature, the fashion industry and personalization strategy fit perfectly with each other 🙌. Ever since modern fashion shifted its focus to self-expression, a hyper-personalized shopping experience meets a fashion consumer's fundamental demand.
Broadly speaking, the key to e-commerce success lies in providing customers with a personalized experience at every touchpoint. This is made even more clear by the fact that 71% of consumers claim they feel frustrated when a shopping experience is impersonal 😩. Furthermore, 83% of consumers are willing to share their data in exchange for a more personalized experience 😀, as per Accenture’s recent study.
Implementing personalization strategies in your e-commerce store can be challenging. But don't worry, Clerk has you covered 😎. Being the #1 rated e-commerce personalization platform, Clerk.io powers 2,500 + webshops worldwide to automatically improve CX, increase sales, and drive revenue 💰.
Powered by cutting-edge AI technologies, Clerk achieved innovative advances and developed ClerkCore™, our proprietary personalization technology 🏆. ClerkCore™ is based on an algorithm specifically designed and particularly tailored to the needs of modern e-commerce stores. Moreover, ClerkCore™ has a much better prediction rate and superior data efficiency, which differs from the older generation of personalization technologies (such as collaborative filtering and neural networks).
Using Clerk to drive sales with personalized recommendations
Clerk allows e-commerce stores to generate AI-driven product recommendations based on a number of behavioral data points (visitor's click history, order history, search history, etc.) as well as product data points (best sellers, trending, best-cross sell products, etc.). This ensures consumers get a long-desired, hyper-personalized shopping experience 🥰. In fact, a recent study demonstrated how valuable personalized recommendations can be to the growth of an e-commerce fashion brand by revealing that 43% of consumers made purchases after receiving personalized recommendations 🛒.
For example, Ugleunger utilizes Clerk to help their webshop visitors discover relevant products more easily through personalized product recommendation banners:
As displayed, when a customer is browsing the product page of a onsie, Ugleunger uses Clerk to present not only similar alternatives but also trending products other customers are currently buying. In doing so, Ugleunger is able to provide customers with a more effortless shopping experience and sell more products.
50% of Ugleunger's customers have bought products via recommendations. Furthermore, those who use recommendations purchase almost 2 more products per order on average and are 6.5x more likely to convert than those who do not 🎉.
For more trends that you can apply to your fashion e-commerce strategy, check out our recent articles on m-commerce (mobile commerce), digital payments, omnichannel strategy, and big data applications in e-commerce.
If you want to learn more about how Clerk can help your e-commerce business grow 🚀, get started by talking to one of our specialists today: