The E-commerce Fashion Industry: Top Data & Trends

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).

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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: