Online Apparel Retail Market Trend, Share, Growth, Size Analysis and Forecast 2032

Online Apparel Retail Industry Prospective:

The global online apparel retail market size was worth around USD 541.63 billion in 2023 and is predicted to grow to around USD 1,103.66 billion by 2032 with a compound annual growth rate (CAGR) of roughly 8.23% between 2024 and 2032.

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Online Apparel Retail Market: Overview

Online apparel retail refers to the process of buying and selling clothing products or other associated items through e-commerce platforms. It does not involve shopping in person and other activities that take place when shopping from brick-and-mortar shops. The digitization and the penetration of Internet technology have revolutionized shopping trends globally. Access to the Internet is one of the crucial pillars promoting higher growth in the online apparel retail segment. E-commerce shopping for apparel witnessed tremendous growth during COVID-19 and since then the market has flourished at an exponential rate.

However, the industry is also plagued with several concerns. One of the leading concerns affecting the e-commerce apparel retail industry is the rapidly rising levels of consumerism and excess shopping for clothing products leading to extensive use of essential resources. During the forecast period, the online apparel retail market is projected to witness significant growth but businesses will have to constantly evolve and offer new solutions to the customers to stay relevant in the highly competitive sector.

Key Insights:

• As per the analysis shared by our research analyst, the global online apparel retail market is estimated to grow annually at a CAGR of around 8.23% over the forecast period (2024-2032)
• In terms of revenue, the global online apparel retail market size was valued at around USD 541.63 billion in 2023 and is projected to reach USD 1,103.66 billion, by 2032.
• The market is projected to grow at a significant rate due to the growing number of apparel brands offering online shopping experience
• Based on end-user segmentation, women were predicted to show maximum market share in the year 2023
• Based on type segmentation, economic products were the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

Online Apparel Retail Market: Growth Drivers

Growing number of apparel brands offering online shopping experience will trigger high market growth

The global online apparel retail market is projected to grow owing to the increasing number of apparel companies and brands integrating online shopping experiences into their overall offerings. E-commerce or online selling offers several advantages. For instance, it is known to have an extensive consumer reach. In offline shopping, brands can only reach a limited number of buyers. Potential consumers located in remote regions may find it difficult to access products offered by a certain brand or company. Online retailing, on the other hand, does not pose this problem as customers can buy any product that they like using a smart device. Additionally, e-commerce shopping is a customer-oriented industry. It prioritizes customers' comfort over other aspects.

In recent times, online apparel retailers have worked toward establishing a robust supply chain. They have continuously upgraded their services by ensuring quick and on-time delivery. The customer services offered by online retailers remain unmatched with easy return and refund policies. This has led to more companies switching to online retailing along with physical stores as this strategy allows them to cater to the needs of as many customers as possible. For instance, in July 2022, Kappde, a women’s clothing brand, announced the launch of its website to become the world’s largest online brand offering women’s clothing.

Rising investments in logistics and operations infrastructure will encourage a higher growth rate

Infrastructure development all over the globe will assist the e-commerce logistics industry to grow in the coming years. Logistics companies and firms are additionally enhancing their offerings to aid online clothes merchants. Amazon inked a contract with the Inland Waterways Authority of India (IWAI) in November 2023 to boost cargo transport and delivery operations. Such initiatives should improve worldwide online apparel retail income.

Online Apparel Retail Market: Restraints

Promotion of excessive consumption through online apparel retailing may restrict market growth

The global online apparel retail industry is projected to be restricted due to the growing concerns over the promotion of excessive consumption due to the industry. Easy access to clothing items has created a higher demand for inexpensive clothing items. Such commodities are easily replaced with new designs in a short span. Fast fashion has gained popularity due to online apparel retailing. It is one of the largest environmental pollutants. Additionally, other parameters such as the consumption of fuel to meet transportation needs and excessive packaging further affect the quality of the environment.

Online Apparel Retail Market: Opportunities

Market expansion in emerging nations holds high growth opportunities

The global online apparel retail market will gain high growth opportunities by expanding into emerging countries that are registering a shift in consumer purchasing power. The rising disposable income as well as the steady introduction to new offerings is projected to generate higher demand among consumers in the coming years. International brands can collaborate with regional e-commerce companies instead of spending hefty amounts on creating a physical retail facility.

In October 2023, Amazon announced that it would inaugurate online shopping services in South Africa by 2024 thus promoting the regional e-commerce market. One of the key aspects that online apparel retailers must invest in is customizing product offerings based on regional preferences in addition to offering international products.

Integrating Artificial Intelligence (AI) with online apparel retailing will be helpful in the future

Several online apparel retailers are integrating AI technology with the portals. Artificial intelligence can help the players in the global online apparel retail industry to offer customized solutions to buyers. AI can be used for the detection of fraud and the implementation of virtual trials. As more investments are expected toward improvements in AI technology, the adoption rate in the online apparel retailing segment will simultaneously grow.

Online Apparel Retail Market: Challenges

Growing cases of online fraud will challenge market expansion

The global online apparel retail market will be challenged by the increasing cases of online fraud detected on e-commerce channels. The fraud cases are related to buyers and sellers alike. For instance, in some cases, the quality of the products advertised is different from the sold items. On the other hand, financial fraud detection is one of the leading concerns for online apparel retailers.

Online Apparel Retail Market: Segmentation

The global online apparel retail market is segmented based on end-user, type, and region.

Based on end-user, the global market is divided into children, women, and men. In 2022, the highest growth was observed in the women segment. Multiple reports suggest that women are the largest buyer group for apparel and accessories. However, in recent times, the purchase rate in the men's segment has improved drastically. A recent official survey concludes that more than 70% of women are more interested in fashion items whereas around 50% of the male population has shown inclination toward technology items.

Based on type, the global market is divided into luxury products and economic items. In 2022, the highest demand was observed in the economic products segment. The reason for the higher growth rate in the segment is due to the better affordability of the product. The mass population is more likely to buy economic products frequently as compared to luxury products. The growing number of economic products sellers may further promote segment growth rate. As per a recent report, more than 88.01% of customers in the US buy fast fashion.

Online Apparel Retail Market: Report Scope

Online Apparel Retail Market: Regional Analysis

Asia-Pacific will be holding the largest market share during the forecast period

The global online apparel retail market is expected to witness the highest growth in Asia-Pacific. The primary reason for the higher growth rate is the presence of a large consumer group. India and China are the world’s fastest-growing emerging nations and they are home to more than one-third of the world population. Additionally, these countries are also registering a change in consumer patterns. More consumers are buying everyday essentials.s The rapidly growing access to Internet connectivity and smart devices has further promoted the regional market growth rate.

As per official reports, more than 74% of the Chinese population currently uses the Internet. By 2030, Indian consumer electronics is projected to reach over USD 125 billion. The regional e-commerce industry is one of the leading sectors across the globe. Following the claims of official reports, Amazon, the e-commerce giant, is projected to invest an additional USD 15 billion by 2030. Europe is projected to witness rapid growth during the projection period. Europe has a high demand for apparel. The growing penetration of the fast-fashion industry will help deliver higher revenue during the projection period.

Online Apparel Retail Market: Competitive Analysis

The global online apparel retail market is led by players like:

• Zara Online
• Amazon Fashion
• Forever 21 Online
• ASOS
• Myntra (India)
• H&M Online
• Net-a-Porter
• Boohoo
• Revolve
• Shein
• SSENSE
• Nike Online Store
• Farfetch
• Alibaba's Tmall Global
• Adidas Online Shop.

The global online apparel retail market is segmented as follows:

By End-User

• Children
• Women
• Men

By Type

• Luxury Products
• Economic Products

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa