Global Fashion Report 2023

RXSFS23RP
RetailX
Global Fashion
2023
In partnership with:
£499 September 2023 www.retailx.net

GLOBAL FASHION REPORT 2023 | INTRODUCTION RXSFS23RP © 2023 retailx.net
Introduction global fashion ecommerce – $217bn, or around

one-quarter of the total.
Contents
Market context 03
The global online fashion sector turned over $863bn Europe sees the highest levels of fashion Regional analysis 07
in 2022, accounting for around a fifth of the world’s ecommerce, with 44% of consumers regularly Market segments 12
ecommerce. Despite being down on 2021’s peak of shopping this way. Uptake in the Americas sits at Fashion consumers: Behaviour 17
$901bn, the sector is significantly ahead of its pre- 37%, with low internet availability in South America Fashion consumers: Channels 20
pandemic level of $590bn and early reports from offsetting the higher-than-average use
Fashion consumers: Sustainability 23
2023 suggest that there are even signs of growth. of ecommerce in the US and Canada.
Fashion consumers: Transatlantic focus 26
Here’s what we discovered: 80% of online fashion shoppers are driven by Partner Perspective 37
convenience and 70% by price. They also shop more Largest 100 39
KEY FINDINGS across other ecommerce sectors, such as cosmetics, Company Profile: Asos 41
The decline in global fashion ecommerce revenue flowers and gifts. Company Profile: Charlotte Russe 42
is global, with the most turbulence in Africa, Company Profile: Converse 43
which saw the highest growth (59%) in 2020 and the Fashion is still dominated by physical retail, with just
Company Profile: Footlocker 44
sharpest fall (-10.8%) in 2022. 36% of global consumers shopping fashion online.
Of these, 61% use mobile devices. However, online Company Profile: Gap 45
High inflation and energy prices plus increasing and mobile play a significant role in fashion research Company Profile: M&S 46
wage costs have eroded profitability for fashion and inspiration. Company Profile: Shein 47
manufacturers, brands and retailers, while a high Company Profile: YOOX 48
cost-of-living has dampened consumer spending. 52% of global fashion shoppers use Instagram to Company Profile: Zalando 49
find and buy fashion, with 71% of Chinese shoppers
Company Profile: Zara 50
Online, apparel outsells accessories by nearly two actively shopping on social media. Half of Brazil’s
to one and footwear almost four to one. Women’s shoppers are influenced by social media. Company Snapshots:
clothing accounts for 50% of these apparel sales. boohoo, Eobuwie, Karen Millen 51
89% of Chinese fashion shoppers consider Company Snapshots:
Asia has by far the most online fashion shoppers buying sustainable fashion to be important or very Hibbert Sports, LaModa, Myntra 52
(1.4bn), the majority from China, and more than the important, while the proportion of global fashion Company Snapshots:
total of all other regions combined. However, they that is now deemed sustainable has risen from 2.1%
Simmi, ThredUP, US Polo Association 53
spend the least per person. in 2013 to 4.3% in 2022.
Company Snapshots:
At 60%, South Korea sees the highest uptake 75% of UK consumers are inclined to shop with Warehouse, West49, YesStyle 54
of fashion ecommerce of anywhere in the world. brands they know or recognise, while 55% of those The road ahead 55
However, China, with a lower usage rate, has such in the US do so. Cost is the overarching driver for Figures59
a large population that it contributes the most to shopping online fashion in both the US and the UK. End Matter 61
2 | RetailX | September 2023

GLOBAL FASHION REPORT 2023 | MARKET CONTEXT RXSFS23RP © 2023 retailx.net
Market context Fashion ecommerce revenue ($bn), 2018-2022

Global fashion, while impacted by
1000 901.0
macroeconomic factors, is proving resilient 836.0 Footwear
752.0
thanks to its youthful consumer base 499
Apparel
598.0 459
528.0 414 Accessories
Accounting for one-fifth of the world’s total 500
324
ecommerce spend[1], fashion has become one of 284
retail’s key online sectors, mirroring its place in 228 273 261
mainstream physical retail. 183
0
2018 2019 2020 2021 2022
Worth around $863bn in 2022, more than half of
the sector’s total sales come from fashion apparel –
Source: Statista Digital Market Insights RetailX 2023
a proportion that has been relatively consistent RXSFS23-2-v2
across the past decade. Similarly, accessories – bags,
belts, some jewellery and hats – have consistently
made up around a quarter of fashion sales, while
footwear makes up the remainder.
Annual percent change in fashion ecommerce revenue by category (%), 2018-2022
Sales of online fashion have been consistent in their 30.0
growth, rising each year from 2018 to 2019. However, Accessories
sales across all segments of the fashion sector saw 20.0
Apparel
a slowdown globally in 2022. Sales across every
10.0 Footwear
segment fell between 2021 and 2022, with percentage
revenue growth – which had been slowing in 2021 – 0.0 Total
plummeting into the negative during 2022.
−10.0
Rising energy prices, rising inflation, rising wages and 2018 2019 2020 2021 2022
a near-global cost-of-living crisis have all conspired to
slow the rise of online fashion sales. The good news is
that the decline can be seen more as a reset following RXSFS23-4-v2
an artificial peak across the pandemic and that
throughout 2022 and into 2023, the sector remains
significantly above where it was in pre-Covid 2019.

MACROECONOMIC CLIMATE
This is reflected in how average consumer online Average spend of the fashion e-shopper by category ($), 2018-2022
spend on fashion has tailed off, especially in 500.0
the more dominant categories of apparel and Accessories
accessories, with footwear less impacted. 400.0
Apparel
300.0 Footwear
The fall across 2022, which has continued into 2023,
has been driven by a number of interconnected 200.0 Total
global economic factors. The cost of the pandemic,
100.0
accrued through furlough schemes and lost
productivity, has finally started to affect the 2018 2019 2020 2021 2022
economies of most countries, putting pressure on
their GDPs.
RXSFS23-5-v3
At the same time, the Russian invasion of Ukraine
created unprecedented energy instability across
many developed markets, not least in Europe and RAW MATERIALS AND MANUFACTURE Many retailers in fashion are looking at ways to
Africa. This ignited a massive rise in inflation in these Rising fuel prices push up the costs of raw materials, compensate for this, seeking out new suppliers in
markets and saw the cost of most items – fashion manufacturing process and transport. All players in regions less impacted by rising fuel prices, as well as
included – rise dramatically across all regions in this value chain have been forced to up their prices looking to renegotiate much longer-term contracts
2022. In Africa, this has been more pronounced than to maintain margin, with the cost passed on to the with suppliers, both parties betting on lower costs
in most markets, with inflation continuing to rise fashion brands and wholesalers. These costs are further down the line off-setting higher costs today.
even as rates in other regions falls. then passed on directly to consumers, where brands
sell D2C, or to retailers who sell to consumers. Either way, these inflationary pressures are likely
To counter the pressures of inflation, many central to reshape the fashion industry, pushing retailers
banks globally have been forced to raise interest In the former instance, the brand selling D2C has to re-evaluate not only their supply chain contracts
rates to try to control inflation. This rise in the cost of some control over its own costs – particularly if but also the size of their outlets, the amount
borrowing, combined with rapidly rising prices, has it sells via ecommerce – and can manage its own of warehousing and even the location of their
seen consumer spending drop significantly across all margins and discounts accordingly. warehouses and distribution hubs.
sectors. Fashion, being something of a discretionary
spend, has been impacted significantly. Yet retailers selling to consumers face a stark choice
of either swallowing those extra costs and hoping
However, since clothing is a necessity, this broader to accrue more sales, or passing them onto the
sector has been more resilient than most and is set consumer. Most have opted for the latter, seeing
to see something of a bounce back during 2023. prices rise and demand fall.

SUPPLY CHAINS
Current supply chain issues are starkly demonstrated In ation rate, by region, 2020-2023
by data from the fashion industry itself, which has
outlined how rising costs of raw materials and Africa
20.0
shipping costs are among their chief concerns. 15.5%
Asia and Paci c
14.3% Australia and New Zealan
12.8%
Supply chains in global fashion are notoriously 10.6% 9.9%
10.0 9.0% 8.7% Europe
7.9% 7.0%
complex, bringing together farmers who grow 6.7%
6.6% 6.6%
5.8%
5.4% North America
4.7% 4.6%
the silk, cotton and linen, the chemical industry 3.5%
3.4%
2.0% 3.2% 3.5%
3.0%
1.6% 1.4%
1.1%
1.0% World
producing man-made-fibres, manufacturers of raw 0.0
cloth, manufacturers of the garments themselves, 2019 2020 2021 2022 2023
distributors of these goods and the retailers who
sell them. All of these are linked by a web of logistics In ation rate= Annual per cent change in average consumer prices
providers moving materials around at each stage
of the chain. Source: International Monetary Fund (IMF) RetailX 2023
RXSBC23RP-1-v7
The complexity of fashion supply chains is

compounded by a need to produce garments that
are ‘on-trend’ on demand, before distributing them which has had the knock-on effect of seeing supply Together, these factors are contributing to a lack
in a very short time-frame. This urgency is made chains struggling to return to their pre-pandemic of confidence among fashion brands and retailers
even more challenging by having to this at the lowest norms. Retailers and brands in fashion are now that is slowing investment and expansion – putting
cost, since much of fashion is sold cheaply into an keenly aware of the wider risks of both further further downward pressure on the sector.
extremely competitive market, where price remains international conflict and unexpected, open-ended
a key driver of sales. business shut-downs as seen during the pandemic. Consumers are also troubled, with many restraining
spending in case of a repeat of national and global
While this makes it an already complex and Additionally, the cost of shipping throughout the lockdowns due to a resurgence of Covid-19, as well
challenging environment in which to operate, the fashion supply chain has been impacted first by as fearing an escalation and spread of the Russia-
international nature of this supply chain business is labour issues due to the pandemic and then by Ukraine conflict.
also highly exposed to global political and economic rapid rises in fuel costs and wages as a result of
events. This was clearly demonstrated by the the Russian-Ukraine conflict. Container costs, for
pandemic, with lockdowns not only closing retail example, rose by 570% between May 2020 and May
outlets but preventing workers from going to work. 2022[2], while the cost of diesel spiked at an all-time
high globally in September 2022. While this has since
The subsequent surge in online fashion shopping fallen, it remains well above its pre-pandemic level.
seen by bored, locked-down consumers led to high
demand at a time when supply was hampered,

14/08/2023, 18:34 RXSFS23-6-v1.html
A WORLD GONE MOBILE Shopping channel share by revenue for fashion multichannel shoppers (%), 2018-2022
Despite the impact of macro-economics on the
100.0 100.0 100.0 100.0 100.0
sector, fashion has continued to grow its online 100 Online
23% 26% 36% 39% 36%
reach across the past five years. Once seen as a O ine
sector that could well be immune to ecommerce – 77% 74%
with shoppers looking to try on clothes before they 50 64% 61% 64%
buy, rather than just buying them on sight – fashion
has embraced the internet and become one of the
major sectors driving ecommerce growth globally.
0
2018 2019 2020 2021 2022
Immediately before the pandemic, around a quarter
of fashion sales globally were online, a fraction that
rose to nearly one-third during lockdowns. While the Source: Statista Digital Market Insights RetailX 2023
14/08/2023, 18:35 RXSFS23-7-v1 (3).html RXSFS23-6-v1
proportion peaked in 2021 and fell back in 2022, it is
still sitting at the pandemic level of 2020, accounting Device usage share by revenue for fashion online shopping (%), 2018-22
for 36% of fashion sales.
100.0 100.0 100.0 100.0 100.0 Mobile
100
This is driven by fashion largely being the preserve 58% 60% 60% 61% 61%
Desktop
of the younger end of the consumer market, most
of whom are mobile-first, not just in their fashion
shopping but in every facet of their lives. 50
42% 40% 40% 39% 39%
By 2021, the proportion of fashion ecommerce
taking place on mobile sat at 60.6% rising to 61.3% 0
2018 2019 2020 2021 2022
by 2022. This proportion continues to rise.
Much of this is driven globally by mobile increasingly Source: Statista Digital Market Insights RetailX 2023
being the internet access method of choice for most RXSFS23-7-v1
consumers. In developing markets across Africa and
Asia, mobile has leap-frogged fixed line as the mass In many Sub-Saharan African markets, mobile usage [1] www.statista.com/topics/9288/fashion-e-commerce-
market method of web access, which has driven the ranges from 50% to 93% of the entire population, worldwide/#topicOverview
growth in ecommerce in these regions, making a depending on country, while fixed line broadband [2] www.statista.com/statistics/1250636/global-container-freight-index/
significant contribution to the worldwide growth in sits at between 4% and 8%. Even in countries where [3] www.statista.com/statistics/220717/fixed-and-mobile-broadband-
ecommerce and mcommerce seen worldwide. uptake of both is low, the proportion is similar[3]. penetration-in-africa-by-country/

GLOBAL FASHION REPORT 2023 | REGIONAL ANALYSIS RXSFS23RP © 2023 retailx.net
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Regional analysis
While global sales may be down on
the whole, fashion ecommerce uptake
continues to rise worldwide
The revenue decline seen across ecommerce in the
global fashion sector translates regionally into drops
in all markets. While rising inflation and cost-of-
living pressures have slowed fashion market growth
everywhere, different regions have experienced it to
different degrees.
The most turbulence has been seen across Africa,

which saw the largest revenue growth in 2020 of 59%
and then the steepest fall in 2022, plunging by 10.8%.
14/08/2023, 18:59 RXSFS23-11-v2.html
While all regions have seen their markets shrink in
2022 (bar the Americas, which have remained flat),
Africa has been by far the hardest hit. This is a result
of many African economies being heavily reliant on
Russian oil and gas for their energy needs. While not
part of the sanctions regime against Russian energy
exports, the economies of these nations have still
been hit by a 14-fold rise in energy prices.
This economic hit has impacted the earnings and

spending power of people in these African nations
proportionately harder than elsewhere. North
America, for example, is much less reliant on Russian
oil and gas in the main so here fashion ecommerce
growth has bucked the trend. While sales have still
not been on the rise, they have at least remained flat.

10/08/2023, 20:15 RXSFS23-16-v1.html
GLOBAL ONLINE FASHION USAGE
While the overall market for fashion ecommerce
contracted in 2022, ecommerce uptake in the sector
has uniformly grown across all regions between 2018
and 2022. Rising internet use generally, along with
growing use of mcommerce have been the main
contributing factors here, along with organic growth
in familiarity with ecommerce. The lockdowns of
2020 and 2021 also aided this uptake, although
to a lesser degree than maybe expected, with no
significant overall spike in growth when the data is
assessed across the whole five-year period.
The highest ecommerce usage is seen in Europe,

where 44% of consumers now use ecommerce for
fashion purchasing. This has risen impressively from Fashion ecommerce market saturation by country Fashion ecommerce revenue by country ($bn), 2022
30% five years ago. Uptake in the Americas is slightly (%), 2022
behind this on 37%, with the lower availability of China 217
internet in South America offsetting the considerably UK 64%
higher access and subsequent ecommerce use in USA 142
North America. South Korea 60%
UK 37
However, even across the high-use regions of Germany 59%
Europe, there are sub-regional differences, with Japan 33
Germany, the UK, Belgium and Austria having Belgium 58%
very high levels of ecommerce, with the nations South Korea 24
of Eastern and Central Europe still lagging behind. Austria 58%
This gap is closing fast though, with parity expected Source: Statista Digital Market RetailX 2023
within the next five years. Source: Statista Digital Market RetailX 2023 Insights RXSFS23-8-v1
Insights RXSFS23-9-v1
Asia exhibits a similar disparity. South Korea has one
of the highest fashion ecommerce levels globally
at 60% – ahead of Germany, Belgium and Austria
– but from a revenue perspective sits an order of share of Asian online fashion revenues. Many of its also a force to be reckoned with within Europe and
magnitude behind the huge Chinese market. Indeed, fashion retail sites are starting to make inroads into the US, as well as the developing markets in Latin
China, with a lower uptake of fashion ecommerce other markets too, setting China up to not only be America and Africa.
but an enormous market, is responsible for the lion’s the powerhouse of Asian fashion ecommerce, but

GLOBAL USERS AND SPENDING 10/08/2023, 20:20 RXSFS23-15-v2.html

The enormity of the Asian online fashion market
can be clearly seen in the number of users, which at
1.4bn is more than twice the total of all other regions
combined. This base of Asian shoppers is growing at
a much more rapid rate than any other region, more
than doubling since 2018.
This rise has been driven by the rapid emergence

of younger, middle class Chinese shoppers and
their love of smartphones driving not only surging
fashion ecommerce but also the use of super apps
that combine messaging, social media, retail and
payments. Aimed squarely at the youth market,
these apps such as WeChat, Alipay and Meituan,
have driven rapid expansion in all things mobile, with
fashion being one of the sectors to benefit the most.
While the number of ecommerce users has risen

across the same period in Europe, the Americas
and Africa, it has been to a far lesser extent, since
shoppers in these regions remain more closely and
culturally wedded to physical retail.
This vast market in Asia, however, is of much lower

value. Average spend per user in Asia has remained
almost flat for five years and tracks well below all the
other regions, bar Africa. The highest per shopper
spend is in Australia and Oceania, a reflection
more of the higher cost of living in this region than
perhaps a greater love of online fashion. Spending
here has, along with Europe, seen a dramatic tailing
off between 2021 and 2022, with the impact of global
economic pressures more keenly felt.

GLOBAL FASHION
SUSTAINABILITY REPORT
REPORT 2023 | REGIONAL ANALYSIS
| INTRODUCTION RXSFS23RP © 2023 retailx.net
14/08/2023, 19:12 RXSFS23-13-v1.html

CHANNELS AND DEVICES
The predominance of online – and especially mobile Shopping channel share by revenue for fashion multichannel shoppers by region (%), 2022
– in Asian fashion sales can be seen clearly in the
data. While all regions bar Africa have a strong and 100.0 100.0 100.0 100.0 100.0 Online
100
growing ecommerce uptake, Asia is by far and away 36% 40% 30% 33%
92% O ine
the region with the largest proportion of fashion
sales made online. 64%
70% 67%
50 60%
The role of mobile in this is dramatic: 76% of online
fashion revenue in Asia now comes from mobile over
desktop. This compares with all other regions, where 0
Africa Americas Asia Australia & Oceania Europe
the split is almost uniformly 50:50, even in Africa,
where fixed line internet usage is quite low.
This skew towards mobile in Asia is the result of RXSFS23-13-v1
rapidly expanding mobile phone infrastructure
across the region at the same time as a surge in
young, middle class – and hence fairly affluent –
consumers coming to market. This is especially true 14/08/2023, 19:13 RXSFS23-14-v1.html
in China, although the phenomenon is being seen
elsewhere in the region. Device usage share by revenue for fashion online shopping by region (%), 2022
Aside from the technologically advanced yet 100.0 100.0 100.0 100.0 100.0 Mobile
100
relatively small markets of Japan and South Korea, 50% 49% 76% 46% 47%
Desktop
Asian markets are increasingly seeing mobile
infrastructure leapfrog fixed line internet usage that 50
is more reliant on legacy telecoms infrastructure. 50% 51% 54% 53%
Ecommerce in these countries has seen 24%

0
extraordinary growth, since many outlying cities Africa Americas Asia Australia & Oceania Europe
are poorly served by mainstream retail outlets and
international brands, so online has filled this gap.
RXSFS23-14-v1

GLOBAL FASHION
REPORT 2023 | REGIONAL ANALYSIS
AFRICA: ONLINE FASHION’S FRONTLINE Currently operating in 14 African countries, Until recently, many of these brands and
While Africa is rarely cited as a hotbed of the company sells everything from food to designers had no effective way to realise this
ecommerce or fashion, it is seeing some of the fast-moving consumer goods to fashion and international interest. Yet spurred on by the
fastest growth rates of anywhere in the world. cosmetics. In South Africa, Jumia operates growing domestic ecommerce market, a number
While the data shows it lagging some way behind under the brand name Zando focusing only on of companies that sprung up to first handle
all other regions, it has the potential to be a online fashion retail. In its other markets, the ecommerce logistics within Africa are now
hugely lucrative market for both the burgeoning company saw fashion sales surge during and extending their reach outside. Industrie Africa,
domestic African fashion ecommerce world and post-pandemic as a whole cohort of new online Afrikrea, Kisua and The Folklore are attracting
for retailers spread elsewhere in the world – not shoppers came onboard. As of the end of 2022, designers wanting to gain awareness among
least China. the company sealed its position as the leading customers outside Africa. They facilitate cross-
ecommerce brand in Africa, posting a 24% rise border shipping, as well as marketing and the
According to Statista, the African fashion market in revenues to hit $221.9m for the year[2]. other often overlooked aspects of ecommerce
is already worth $6.4bn and is set to grow strongly that can hinder expansion for smaller sellers.
at 12.3% per annum over at least the next five But Jumia is not alone. Other marketplaces
years. Current user usage of around 20% is set to and fashion sites are springing up across the
rise to 28.3% by 2027, driving user numbers on continent, including the likes of Kilimall, Konga [1] www.statista.com/outlook/dmo/ecommerce/fashion/africa
the continent up to around 393mn[1]. and Bidorbuy, each of which has started life in one [2] www.thisdaylive.com/index.php/2023/02/22/jumia-declares-24-7-
country and slow spread to sell in multiple African increase-in-revenue-to-221-9m-in-2022#
As of 2022, the largest players by revenue were a markets. The range of selling models seen by
host of Western companies, led by Amazon, Asos, these players points to the growing sophistication
Gap and H&M. There is also a growing long tail of the African fashion consumer base who,
of Chinese retailers and sellers that are targeting despite being behind the adoption curve, are
Africa, helped by China’s long standing quasi- rapidly embracing online and mobile commerce.
political involvement in several African nations.
While these companies each take only a tiny share These sellers, along with a host of African
of the market, together they form a significant list designers, manufacturers and retailers, are
of sellers tapping into this still nascent market. now looking to build on this domestic growth
and expand by selling African fashion overseas.
However, a crop of domestic African sellers are The international nature of the internet – and
now making significant inroads into the market, especially that of social media – has seen many
with Jumia taking 20% of sales volumes and African designers and retailers attract attention
dwarfing Amazon’s 7% share. Launched in Nigeria from overseas clients. Many are African expats,
in 2012, Jumia is a pan-African tech company that while others are drawn to African designs for their
©Shutterstock
runs marketplaces, payment services and logistics uniqueness in fashion, the continent being much
across the continent for more than 100,000 overlooked in the wider fashion world.
individual African sellers.

GLOBAL FASHION REPORT 2023 | MARKET SEGMENTS RXSFS23RP © 2023 retailx.net
Market segments Share of fashion ecommerce revenue by category,

THE GLOBAL FASHION MARKET
IN PERSPECTIVE
2022 • This sector produces more than 150bn
While apparel, footwear and individual items each year, yet only around
accessories have all seen recent 80bn of these are actually sold[1].
declines in sales, growth is coming Accessories
31.2% • 183.81tn fashion ‘pieces’ were consumed
For the sake of this report, the online fashion sector worldwide in 2022. By 2026, 197.32tn
constitutes three main segments: apparel, footwear Apparel garments are forecast to be in use[2].
and accessories. Each of these is sub-segmented into 54.9%
more specific sub-genres of items, which are analysed • On average, every person’s closet contains
in more detail over the subsequent pages. Footwear 148 individual items of clothing[3].
13.9%
Top line, however, fashion is dominated by the • The most important import country for
apparel segment, which constitutes 55% of the Source: Statista Digital Market RetailX 2023 apparel sales worldwide is the USA, with an
sector’s sales by revenue globally. This comprises Insights RXSFS23-3-v1 annual sales volume of $12.42bn. Germany
wearable clothing items, typically the outer wear follows in second place, with $38.43bn[4].
such as trousers, skirts, shirts, blouses, t-shirts,
coats, jackets and jeans. • With an export value of $154.15bn, China
items, but also because they are more challenging to exports the most textiles worldwide (2020).
Footwear – all forms of shoes for outdoor use, be buy online due to their dependence on comfort, size India is in second place with one-tenth of
that for formal wear, sports and leisure or specialist and fit as well as style. the export volume, worth $15.04bn[4].
pursuits – accounts for the smallest proportion of
fashion sales online, taking just 14%. While all fashion sales ideally work best when tried
on, shoes are perhaps the hardest to get right. By
The remaining 31% is accessories, which covers a contrast, accessories – with the exception of eyewear
broad catch-all of everything from hats, scarves and – are far less dependent on fit and can be bought on-
bags to watches, jewellery, gloves and even eyewear. sight. Online sizing technology is also more advanced
in clothing than it is in footwear. This goes some
These proportions reflect the relative importance way to explaining the relatively high proportion by
of each segment to shoppers, as well as offering revenue of these items. [1] https://bedbible.com/plus-size-industry-market-size-
statistics/
some insight into the relative ease with which their
[2] www.statista.com/outlook/cmo/apparel/worldwide#revenue
sale works online. There has been a rapidly growing
[3] https://fashionunited.com/global-fashion-industry-statistics
market for online fashion, yet footwear trails behind
[4] https://de.statista.com/statistik/daten/studie/260495/
the other two segments not only because fewer umfrage/wichtigste-importlaender-fuer-bekleidung-weltweit
shoes are sold relative to apparel or accessories

APPAREL
The apparel segment of the global online fashion Annual revenue for the Apparel market ($bn), Worldwide, 2018-22
market is dominated by women’s clothing, which
accounts for almost twice the level of revenues from 499.0 Women's Apparel
459.3
the next-largest sub-segment, men’s apparel. 414.3 238.6 Other Apparel
400.0 216.4
324.0 196.1 Men's Apparel
Luxury and children’s apparel, while both significant 283.8 153.7
135.3 Luxury Apparel
revenue generators and interesting sub-segments 200.0 142.4
117.7 129.6 Children's Apparel
in their own right, make up just 17% of revenues
between them. While revenues for all these
0.0
sub-segments have been in decline since 2021, 2018 2019 2020 2021 2022
the proportion of revenue made up by each has
remained largely consistent across the years.
RXSFS23RP-ALL-ST-12-v1
Women’s apparel attracts the largest spend among
consumers, as well as generating the most revenue,
with menswear not far behind. Both outstrip
spending and revenue in all other segments.
Average spending of the Apparel e-shopper ($), Worldwide, 2018-22
Average spending on each reflects this gender split, 308.9
with women typically spending around $250 annually 300.0 285.3 Children's Apparel
258.4 253.6 245.9 253.2
on apparel in 2022 and men spending $202. This 228.2 Luxury Apparel
203.6 201.4 202.3
amount has declined dramatically for both since 200.0 Men's Apparel
the online fashion peak in 2020 and early 2021, with Other Apparel
revenues for both declining by 9.3% for womenswear 100.0 73.9 73.3 83.0 88.7 84.4
49.8 49.6 56.5 59.5 49.5 Women's Apparel
and 8.9% for menswear between 2021 and 2022. 38.6 37.6 39.8 38.4 32.1
Childrenswear and luxury apparel saw 7% falls in the
0.0
same period. 2018 2019 2020 2021 2022
This dwindling spend on apparel is a direct result

of rising global inflation and the attendant fall Source: Statista Digital Market Insights RetailX 2023
in consumer confidence. Sales of apparel online
continue, although the market is now much more
competitive and is set to continue to be so until at
least 2024.

FOOTWEAR
The footwear segment has seen even larger declines Annual revenue for the Footwear market ($bn), Worldwide, 2018-22
in sales in its two key sub-segments, textile and
leather footwear, dropping 12% in 2022, down 129.4 Textile & Other Footwear
115.5
from strong and consistent growth around 20% in 109.9 55.2 Sneakers
100.0 49.1
previous years. 84.2 90.6 47.2
Other Footwear
36.3 38.8
Luxury Footwear
As with apparel, this is the result of the global 50.0
Leather Footwear
economy’s travails harming both consumer 40.3 35.1
27.8 33.9
confidence and spending power. Footwear is 25.7
0.0
particularly susceptible because it is a more 2018 2019 2020 2021 2022
considered and often more expensive purchases,
while shoe replacement has a slower turnover
cycle than apparel. RXSFS23RP-ALL-ST-21-v1
This is reflected in the overall annual spending per

user on all types of footwear, which comes in at just
$48 on average globally – far below the spend seen
on apparel ($250 on women’s wear, for example).
This lower spend demonstrates how, while often Average spending of the Footwear e-shopper (USD), Worldwide, 2018-22
a more expensive purchase, footwear is generally 61.7
61.0 60.2 62.7
60.1
56.0 58.7
replaced less often than clothing. 60.0 54.8 Leather Footwear
48.2
47.2 Luxury Footwear
However, the slower rate of revenue decline in 40.0 Other Footwear
luxury footwear and sneakers shows that those 24.6 23.2 24.4 24.4 Sneakers
shoppers driven by fashion rather than necessity are 20.1
20.0 16.3 14.8 15.7 16.2 Textile & Other Footwear
13.0
continuing to purchase at a slightly more elevated 9.2 8.3 8.9 9.1 8.2
rate than in other areas of practical footwear sales.
2018 2019 2020 2021 2022
The only sub-segment still growing in 2022 was
‘other’, which includes specialist outdoor and sports
footwear, both of which continue to be purchased RXSFS23RP-ALL-ST-20-v1
at a consistent rate.

GLOBAL FASHION
REPORT 2023 | MARKET SEGMENTS
ACCESSORIES
Perhaps the segment least impacted by global Annual revenue for the Accessories market ($bn), Worldwide, 2018-22
economics has been accessories. While there have
been declines in revenue across the sub-sectors, this 300.0 Watches & Jewelry
has been far less pronounced than the both apparel 231.7 223.3 Other Accessories
and footwear. 200.0 193.4 121.5 112.5 Luxury Leather Goods
156.2 101.5
136.6 83.9 Luggage & Bags
Eyewear, which is at the more expensive end of 100.0 73.4
the segment, saw the largest decline in sales (-10%) Eyewear
between 2021 and 2022, with clothing accessories Clothing Accessories
and watches and jewellery also declining (each by 0.0
2018 2019 2020 2021 2022
around -7%) over the same period.
These higher-end items are most likely to be hit by Source: Statista Digital Market Insights RetailX 2023
a reining in of discretionary spending. Even watches
and jewellery, which had been seen in recent years
as both staples of the gifting and longer-term
investment shopping culture, have been affected.
This is contradicted somewhat, however, by sales Average spending of the Accessories e-shopper (USD), Worldwide, 2018-22
of luxury leather goods, bags and luggage and other 111.4
108.7 103.7 107.4 Clothing Accessories
accessories, which have continued to generate
100.0 90.5
revenue growth. Eyewear
Luggage & Bags
Much of this can be attributed to the re-opening 48.1
45.2 46.1 49.0
47.9 50.6
50.0 47.0
45.2
50.0 40.6
37.3 43.2
38.1 39.8
39.1 41.6
39.4 37.3 Luxury Leather Goods
35.9 33.6
post-pandemic of travel, which has driven a surge Other Accessories
in sales of luggage. Since luxury is often shopped 10.5 9.8 10.5 11.0 8.6 Watches & Jewelry
at airports and other global transport locations, as 0.0
well as cruise ships and cruise ship destinations, 2018 2019 2020 2021 2022
increased travel numbers have prompted some
encouraging sales figures.

GLOBAL FASHION
REPORT 2023 | MARKET SEGMENTS
RESHAPING FASHION: SPORTSWEAR, is worked into their routine. It is now acceptable

ATHLEISUREWEAR AND OUTDOORWEAR to arrive for a Zoom meeting in sportswear fresh
The apparel, footwear and accessories markets from a workout or a bike ride. The sportswear
have long been clearly defined from a fashion industry has been quick to combine this and the
perspective but in recent years, the line between increasingly fashion-forwardness of its clothes
‘fashion’ and sportswear, athleisurewear and to create garments that satisfy both needs. As a
even outdoor clothing has blurred. Street fashion result, the global athleisure market was worth an
has been inspired by both haute couture and estimated $ 330.97bn in 2022 and is expected to
sportswear, so now these three fashion outliers reach $358.08bn in 2023. The market is expected
from make a considerable contribution to fashion to grow at a compound annual growth rate of
sales across all three segments. 9.1% from 2023 to 2030 to reach a staggering
$662.56bn by 2030, making it one of the most
Sportswear – the propensity for sportswear to be lucrative sub-segments of global fashion[1].
seen as fashion wear has played a role in driving
sales of the sports segments. Indeed, this sub-sub- Outdoorwear – Outdoor pursuits have continued
segment has been a key driver of the sports sector to grow in popularity post-pandemic, with
and arguably has been what has kept it growing, consumers embracing the great outdoors as place
albeit slowly. This has increased the competition to exercise and to relax. As with sports-inspired
between key sportswear brands and fashion apparel, outdoor wear is increasingly seen as both
brands and retailers, with each seeing the other a lifestyle choice and as fashion clothing, with
as a threat to their already stagnating growth. As brands such as The North Face and Jack Wolfskin
a result, the global sportswear market was worth becoming as much about fashion as they are
around $190bn in 2022, growing 17% between about outdoor pursuits. This sub-segment has
2020 and 2021 and, despite the global economic seen the strongest growth in 2022, hitting 4.3%.
climate, bucking the rest of the fashion market It is tipped to be worth in excess of $34bn in
trend for negative growth with a 2% rise between 2022, rising to as much as $44bn by 2027[1].
2021 and 2022[1].
Athleisurewear – A combination of sportswear

and leisurewear, athleisurewear was already a key
trend pre-pandemic but the blurring of the work-
home life balance saw its sales increase across
2020 and 2021. Additionally, consumers continue
©Shutterstock
to put a healthy lifestyle ahead of other pursuits, [1] https://internetretailing.net/report-hub/global-sports-sector-
setting exercise up as part of their daily life and report-2023
something that

GLOBAL FASHION REPORT 2023 | CONSUMER BEHAVIOUR RXSFS23RP © 2023 retailx.net
16/08/2023, 20:36 RXSFS23-17-v2.html
Fashion consumers: Age split of fashion e-shoppers (%), 2022 Income split for fashion e-shoppers (%), 2022
behaviour
> 54 45 - 54
19.0% 21.1% middle higher
34% 37%
Global fashion consumers are
35 - 44 16 - 17
dedicated ecommerce users of all 18.0% 14.2%
ages who are reshaping global retail
across all sectors 25 - 34
18 - 24 lower
14.6% 30%
17.7%
WHO SHOPS FASHION ONLINE? Based on 1,571 fashion e-shoppers in Germany, France, Brazil, Based on 1,571 fashion e-shoppers in Germany, France, Brazil,
Any notion that fashion, and indeed ecommerce, is Australia, USA and UK, aged 16+, Aug 2022. Question: "What do Australia, USA and UK, aged 16+, Aug 2022. Question: "What do
the preserve of the young is dismissed in RetailX’s you shop for online?-Fashion". you shop for online?-Fashion". Lower income: >38k USD, Middle
consumer survey data of 1,571 fashion e-shoppers in income: 38-98k USD, Higher income: >98k USD
Germany, France, Brazil, Australia, USA and UK, aged Source: RetailX Consumer RetailX 2023
Observatory RXSFS23-17-v2 Source: RetailX Consumer RetailX 2023
16+, in August 2022. This survey clearly shows that Observatory RXSFS23-19-v2
across all age groups from 16 to 54+ online fashion
is shopped by all. In fact, it is older age groups that
have the slight edge. well-off enough to have a larger discretionary spend. In developing markets, the skew is more towards
Younger shoppers may be mobile and online-first, those who are affluent enough to have access to
Younger shoppers aged 16 to 24 make up around yet they have less spending power, with many relying online and who want to shop fashion. This too has
30% of those who shop fashion online. Those on their Millennial, Gen X and Boomer parents to been skewed to older shoppers – over 35s – yet the
aged 45 upwards account for more than 40%. This make or at least fund their online fashion purchases. growing ubiquity of mobile will see the demographic
is reflected in where the income levels of online here shift to the younger end of the market. Again,
fashion shoppers lie. Middle-income and higher- These more developed markets have also had this shift may well see more older shoppers –
income shoppers are increasingly likely to shop access to the internet and ecommerce for longer, parents – conducting purchases for their kids.
online for fashion, accounting for almost three- making it more familiar to a much wider proportion
quarters (71%) of all online fashion consumers. of the population. Older shoppers, once wedded to
physical fashion retail, have had the time to embrace
The reasons for this vary from region to region online – often at the behest of their children.
although broadly speaking, in developed markets,
those who shop online generally are the people Additionally, the impetus to shop online during the
most familiar with online shopping. These tend to be pandemic opened up ecommerce to a much broader
Millennials and Gen X shoppers who have grown up swathe of the population in these markets.
with ecommerce and who are now old enough and

16/08/2023, 20:39 RXSFS23-22-v1.html
HOW THEY SHOP ONLINE Frequency of online purchase, fashion e-shoppers (%), 2022
The global RetailX consumer sample shows that
online fashion shoppers are keen ecommerce users, 41% 38% 39%
32% Fashion e-shoppers
with 77% of them shopping online more than once
General e-shoppers
a month and 38% shopping online more than once 7% 6% 10% 13%
a week. When looking specifically at how they shop 2% 4% 0% 3% 2% 2%
fashion online, the figures are very similar, with these Mo Mo Mo Mo Mo Ne Les
re re re re re s th ver
tha tha tha tha tha a
shoppers shopping more frequently for fashion than no no no no no no
nce
nce nce nce nce nce
general items more than once a week. ad aw am eve ay ay
ear
ay eek on ry t ear
th hre
em
Despite the income levels seen on the previous on
ths
page, these hardcore online fashion shoppers shop
frequently but are typically low spenders. 44% of Based on 1,571 fashion e-shoppers and 2,863 general e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug
2022. Question: "How often do you shop online?".
them are spending between $12 and $120 a month
online on fashion, with 49% of the sample spending Source: RetailX Consumer Observatory RetailX 2023
the same on their general online shopping. 16% of RXSFS23-22-v1
them are spending more than $300 a month online
in any category, a figure that rises only slightly to 16/08/2023, 20:40 RXSFS23-21-v1.html
20% of fashion shoppers.
Monthly online spend, fashion e-shoppers (%), 2022
Here, the global data is skewed by the price point of
goods in different regions. Online fashion shoppers 44% 49% Fashion e-shoppers
35% 31%
in Brazil, for example, are increasingly buying General e-shoppers
fashion online, yet their overall online spend is low. 13% 11%
3% 5% 5% 4% 2% 1%
Data shows that, in 2020, the average Brazilian
ecommerce spend per capita per year was 2,618 $12 Be Be Be Be $1,
or twe twe twe twe 200
les en en en en o
Brazilian Reals ($540)[1], which equates to around s $12 $120 $30 $61 rm
ore
and and 0a 0a
$50 per month – putting Brazilian consumers very $12 $30
nd
$61
nd
$1,
much in the lower echelons of global ecommerce 0 0 0 200
spenders. Those in Europe, by contrast, spend an
average of €340 ($375) online a month[2].
Based on 1,571 fashion e-shoppers and 2,863 general e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug
2022. Question: "How much do you spend on average per month online?".
Much of this dichotomy can be attributed to price
variations across regions according to standard of Source: RetailX Consumer Observatory RetailX 2023
living levels as much as the quantity that they buy. RXSFS23-21-v1

10/08/2023, 21:22 RXSFS23-26-v1.html
WHY THEY SHOP ONLINE Other goods purchased online by fashion e-shoppers (%), 2022
Compared to other consumers, fashion shoppers are
61%
much more at home shopping online, buying a range 55% Fashion e-shoppers
of other key sector goods in greater numbers than 48% 48% 46% General e-shoppers
41% 43%
general ecommerce shoppers.
34% 31% 31%
Perhaps unsurprisingly, fashion shoppers buy more
allied products such as cosmetics and jewellery,
but they are also more prolific when it comes to
buying flowers, gifts, stationery and liquor. This is Cosmetics Flowers or gifts Stationery Jewellery Liquor
due to these items having some degree of ‘fashion’
associated with them. It also cements the familiarity Based on 1,571 fashion e-shoppers and 2,863 general e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug
with online shopping exhibited by fashion shoppers 2022. Question: "What do you shop for online?".
who have become keen users of ecommerce.
Source: RetailX Consumer Observatory RetailX 2023
RXSFS23-26-v1
Globally, the overarching driver of online fashion
shopping has become convenience, with 80% of the
sample researched saying it is their main reason for
doing so. Price, which has long been seen as one of
the key attributes of online shopping – with wider Reasons for shopping online, fashion e-shoppers (%), 2022
choice leading to more competitive pricing – is still
important to 70% of shoppers, although it’s losing 80%
70%
its edge as ecommerce becomes more entrenched
59%
within the framework of retail. 53%
The wider choice afforded by online, along with 24%

delivery options and reviews, are all of less
importance to fashion shoppers. Ecommerce has
now become so well entrenched in the consumer Convenience Price Choice Delivery options Reviews
retail journey that online reviews in particular are
given status. While only 24% of shoppers claim
they are important, this belies the actually role that Based on 1,571 fashion e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug 2022. Question: "Why do you
shop online?".
reviews play in the shopping process.
[1] www.statista.com/statistics/1111418/expenditure-e-commerce-user- RXSFS23-20-v1
brazil/
[2] https://newsroom.uk.paypal-corp.com/e-CommerceIndex2022

GLOBAL FASHION REPORT 2023 | CHANNELS, SOCIAL COMMERCE AND ADVERTISING RXSFS23RP © 2023 retailx.net
10/08/2023, 21:40 RXSFS23-34-v2.html
Fashion consumers: Channels for product discovery, fashion vs general e-shoppers (%), 2022
Instagram 52%
channels, social
50% Fashion e-shoppers
52%
Facebook 46% General e-shoppers
commerce and
50%
Google search (standard search) 42%
41%
YouTube 39%
advertising TikTok
‘Google Shopping’ search 23%
28%
27%
28%
How do global online fashion consumers Pinterest 13%

16%
find what they want and where does social Based on 1,571 fashion e-shoppers and 2,863 general e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug
media and advertising play its part? 2022. Question: "On which channels or services do you most often see product ads that you end up clicking on?". The data shows the
di erence between cosmetics and general e-shoppers
WHERE DO CONSUMERS FIND WHAT THEY BUY? Source: RetailX Consumer Observatory RetailX 2023
While convenience may no longer be the primary RXSFS23-34-v2
reason many global fashion consumers shop online,
the ability to use the internet to find what they want
– and moreover to be inspired to find what they
might want to buy – is one of ecommerce’s greatest
gifts to retail. Global fashion consumers make full
use of this.
In recent years, Google search has slipped from

being the leading way in which shoppers of fashion
and everything else sought inspiration, to be
replaced by Instagram and Facebook. 52.4% of
global fashion e-shoppers now use Instagram, 51.6%
Facebook and 49.8% Google search in RetailX’s
data. Social sites YouTube (41.2%) and TikTok
(28.1%) make up the rest of the top five, clearly
demonstrating social media’s position as a key
discovery channel in fashion. nature of social media, combined with the growing example, is predicted to grow at an extraordinary
role of influencers and the rise of social commerce, rate between now and 2030, worth $913bn in 2023
Fashion and social media have long made for natural continue to cement the two industries together, but potentially hitting a staggering $4,745bn by the
bedfellows. The visual and somewhat boastful each driving the other on. Social commerce, for end of the decade (see above).

10/08/2023, 21:45 RXSFS23-27-v1.html
THE INFLUENCE OF SOCIAL Likelihood of in uencer recommendations leading to purchase, fashion e-shoppers, by country (%), 2022
This rise in social commerce is spurred on by
influencer culture, which plays a growing role in how Australia
shoppers are inspired – and do the inspiring – across
40 Brazil
fashion and general retail. Around the world, the
majority of consumers in all regions say they are Germany
somewhat likely to make purchases recommended France
20
by an influencer, with around 40% in all regions UK
doing so. USA
0
Very likely Somewhat likely Somewhat unlikely Very unlikely Not sure
Brazil bucks the trend, with almost half of all
consumers here saying they are very likely to
purchase based on social media influencers. Brazil Based on 470-500 fashion e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug 2022. Question: "In your
experience, how likely are content creators such as social media in uencers to point you to buy products?".
is recognised as one of the most social media-led
markets in the world, having slowly and steadily Source: RetailX Consumer Observatory RetailX 2023
built up a strong ecosystem of content creators and RXSFS23-27-v1
influencers made up of both celebrities and these
same content creators. As mobile internet and
smartphone use has exploded in the country, these Item types purchased using social media, China, 2023
influencers have become the main way in which
Brazilians seek inspiration, particularly in fashion. Clothing 71%
Food, snacks, and non alcoholic beverages 63%
Bags and shoes 60%
Social media in China has also led to a staggering
Cosmetics and beauty products 59%
rise in social commerce. Here, consumers aren’t Consumer electronics 51%
so driven by influencers but more through ‘super Household and decorative items 48%
apps’ that combine messaging, social, commerce Fashion accessories 46%
and payments and that form the bedrock of mobile Dietary/Nutritional supplements 29%
commerce among younger Chinese consumers. Alcoholic beverages 24%
Pet supplies 23%
Other 3%
71% of Chinese shoppers now use social media to
buy clothing, 60% to shop for bags and shoes and Based on 7,108 individuals in China, aged 16+, 9-28 Feb 2023. Original question: "What item(s) did you purchase on social media?
Choose all that applies."
46% for fashion accessories. Along with food, snacks
and cosmetics, social commerce is now central to Source: Rakuten Insight RetailX 2023
fashion ecommerce in China. RXSFS23-29-v6

10/08/2023, 21:48 RXSFS23-18-v2.html

HOW ONLINE ADVERTISING PLAYS
While there has been a huge swing towards social Frequency of advertisements leading to purchase, fashion e-shoppers, by country (%), 2022
media influencers, super apps and social commerce
to drive online fashion retail globally, online Australia
40
advertising continues to play a potent role. Brazil
Germany
While the impact online advertising has on driving 20 France
fashion sales is less pronounced than social media UK
influence, it remains significant. The bulk of this
USA
impact occurs across a longer time frame than social 0
media influence, with around a quarter of the world’s Daily Weekly Monthly A few times a year Once a year Less than once a year
online fashion shoppers being persuaded to buy
something after seeing an ad every week, compared Based on 470-500 fashion e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug 2022. Question: "How often is
to a similar level of those doing so monthly and just it that seeing a product ad on a channel or service leads you to make a buying decision?".
a few times a year.
RXSFS23-18-v2
This is indicative of the impact of more traditional
advertising being perhaps more subtle than social
and is more akin to the impact advertising has on 04/09/2023, 12:38 RXSFS23-23-v4.html
general ecommerce shoppers. Online advertising is,
like all advertising, often a more subliminal sell, with Frequency of advertisements leading to purchase, fashion e-shoppers (%), 2022
shoppers buying due to a more subconscious push
based on brand familiarity seen earlier in an ad. 25% 26% 26% 24% Fashion e-shoppers
23% 22%
16% 15% General e-shoppers
However, Brazil again bucks the trend. Here, 45% of 8% 9%
2% 3%
consumers say that online advertising leads them to
make daily purchases, with a further 30% inspired Da We Mo Af On Les
ily ekl nth ew ce s th
y ly time ay an
by ads to make weekly purchases. Again, this is the sa ear on
yea ce
result of the mass market in Brazil coming relatively r ay
ear
late to the internet – through a surge of mobile
use – seeing online advertising having a similarly
disproportionate impact on shopping habits to Based on 1,571 fashion e-shoppers and 2,863 general e-shoppers in Germany, France, Brazil, Australia, USA and UK, aged 16+, Aug
social media influencers. 2022. Question: "How often is it that seeing a product ad on a channel or service leads you to make a buying decision?".

RXSFS23-23-v4

GLOBAL FASHION REPORT 2023 | SUSTAINABILITY RXSFS23RP © 2023 retailx.net
Fashion consumers: Revenue share of sustainable apparel worldwide, 2013-2026

sustainability 6.1%
6.0 5.6%
Consumers are increasingly looking 5.1%
4.7%
for more sustainable fashion, which is 4.3%
3.9%
creating a new sales channel for brands 4.0 3.3%
3.6%
2.8% 3.1%
2.4% 2.6%
Images of tonnes of discarded fast fashion items 2.1% 2.3%
washing up on distant shores in the Summer of 2023 2.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* 2024* 2025* 2026*
has confirmed to many consumers that they really
do care about sustainability in fashion. And rightly so
– the fashion industry makes a huge impact on the Data provided by Statista Market Insights are estimates. *: Forecasted data
environment (see page 24), while its customers are
Source: Statista Consumer Market Insights and Statista RetailX 2023
among the most environmentally engaged. RXSFS23-31-v5
The rise of fast fashion across the world during

the 2010s has started to be tempered by more
environmentally conscious consumers turning away
from the disposable aspects of this fashion trope Value of circular fashion business models worldwide by category ($bn), 2030
and embracing more sustainable fashion. 476
Data shows that the proportion of global fashion

that is now deemed sustainable has risen from 2.1%
in 2013 to 4.3% in 2022 – not exactly swamping the
167
market, but certainly starting to make a dent.
32 16
The move towards sustainable fashion is particularly
prevalent in Asia. Around 89% of Chinese fashion Resale Rental Repair Remaking
shoppers consider buying sustainable fashion to
be important or very important[1], while 86% of Based on 23 percent of linear production being replaced by circular business models. Calculated in Nov 2021.
Vietnamese shoppers, 71% of those in Indonesia and
68% in both the Philippines and Malaysia all say that Source: Ellen MacArthur Foundation and BCG RetailX 2023
RXSFS23-33-v6
they have purchases sustainable fashion[2].

Fashion brands and retailers have been quick Fashion companies barriers to improving consumers' views on their sustainability, 2022
to seize this opportunity by using it as a selling
point and market differentiator to enhance their Lack of standards to assess sustainability
performance 79%
reputation among their customer base, as well as Cost of sustainable materials 68%
to shift their production and distribution methods Compliance 39%
in order to have a real impact on how the industry
Quality of sustainable materials 35%
interacts with the environment. Around 50% of Reduction of environmental impact linked with
fashion brand globally now claim to have some form supply chains 28%
of sustainable sourcing in place[3], with the ethical E+ective marketing/PR 22%
fashion market set to reach $7.5bn in 2022[4]. Insu,cient budget to invest in sustainability 22%
Hiring talent with sustainability expertise 9%
REUSE, RESALE AND RECYCLING
Based on 196 Fashion executives worldwide, Aug-Oct 2022.
The ethical fashion market is not confined to the sale
of ethically sourced products. A growing proportion Source: The Business of Fashion and McKinsey & Company RetailX 2023
of fashion sales are also now coming from second- RXSFS23-32-v9
hand goods, repurposed items and even the repair
and revitalising of old clothing.
crop of marketplaces online that specialise in ‘pre- to assess sustainability performance is chief among
This ‘circular economy’ model already generates loved’ fashion, such as Vinted, Depop, FarFetch and these, with cost also a sizeable issue for many – with
significant revenues, with resale of second-hand Vestiaire Collective. many more having insufficient budgets to create a
clothing set to garner $476bn worldwide by sustainability strategy. For some, this has resulted in
2030, while repair and repurposing/remaking will In China, only around 15% of fashion shoppers say making sustainability claims that are unfounded. This
contribute $32bn and $16bn respectively. that they have purchased second-hand clothing, so-called ‘green washing’ has begun to attract the ire
but a further 40% are keen to try, demonstrating of many younger consumers, who now view most
In Europe, 42% of Gen Z and Millennial fashion a large untapped market in the region[1]. This gap companies’ sustainability claims with scepticism.
shoppers say they are likely to buy second-hand is attracting the attention of retailers, with China’s
fashion. This trend is particularly strong in France, leading marketplace Alibaba’s Idle Fish – its eBay
Germany and the UK, where more than half of simulacrum – already taking 70% of the total resale [1] https://daxueconsulting.com/wp-content/uploads/2022/04/green-guilt-
shoppers are open to buying second-hand fashion, market looking to expand the second-hand fashion report-sustainable-consumption-in-china-by-daxue-consulting.pdf
or are already actively doing so. that it sells. Likewise, its competitor Tencent has [2] www.statista.com/statistics/1366085/sea-consumers-who-purchased-
opened ZhuanZhuan to tap into this market. Start- sustainable-fashion-by-country/
These countries are up there with the US, where up GoShare is also targeting second-hand trading [3] https://blog.gitnux.com/sustainable-fashion-industry-statistics/
the second-hand and vintage market is thriving[5]. among young female shoppers. [4] www.researchandmarkets.com/reports/5740762/ethical-fashion-global-
Where once this segment was dominated by market-opportunities
charity shops and eBay – which still has a thriving For more traditional fashion sellers, there are [5] https://internetretailing.net/report-hub/retailx-european-fashion-sector-
second-hand fashion clientele – there is now a barriers to making this work. Lack of any standards report-2023

FASHION’S GLOBAL ENVIRONMENTAL IMPACT accounting for 3% of global CO2 emissions.

Contributing 1.2bn tonnes of greenhouse gases However, shipping is the most environmentally
to the environment in 2022, the fashion industry’s friendly means of long-haul bulk transport.
environmental impact has several facets. The
manufacture of first materials and then garments • Delivery to stores and customers – Shipping
accounts for a sizeable part of this, although raw materials to manufacture, moving goods to
shipping of goods from manufacture to sale – markets and then, in the case of ecommerce,
often literally on the other side of the world – and on to the customer, produces even more CO2,
the subsequent disposal of discarded items, often since much of this movement is handled by road
involving long-haul shipping from developed – with road haulage accounting for 30% of global
countries to the developing world, produces CO2 emissions.
enormous amounts of pollution. The addition of
collection of old clothes for recycling, repair and • Returns – Ecommerce fashion purchases has
remaking also adds to this environmental impact. the added environmental impact of many items
being returned – and shipping items back and
• Raw materials and fabric manufacture – The forth can only exacerbate the transportation
global fashion industry contributes around 4% carbon emissions. There is the added impact
of global carbon emissions annually, with a here of packaging, which is often consigned to
proportion of this coming from the cultivation, waste when opened. When returned and resold,
harvesting and transport of the raw materials these goods are subsequently repacked, vastly
used in making the materials used in making increasing packaging waste.
the clothes. The market is dominated by two
main fibres: man-made polyester and naturally • Disposal – Both fast and slow fashion items
occurring cotton – which is bridgeable. Cotton, eventually come to the end of their useful life
while having some impact in terms of fertilisers and need to be disposed of. Currently, much of
and water, is less impactful than fossil-fuel this is sent to landfill – both in the market where
derived polyester. As a result, there has been it was used and overseas – or is incinerated.
a swing towards using cotton, alone and as a Both produce vast quantities of CO2 and other
blend with polyester. toxic chemicals. Dumping in places such as the
Atacama Desert or in the sea is also starting to
• Shipping to market – It is extremely rare to become a headline-grabbing alternative, with
find raw material cultivation and processing clothing washing up on beaches worldwide in
along with manufacturing all taking place in vast quantities. Biodegradable materials can
©Shutterstock
the same location. Sales certainly usually occur help reduce this widespread marine damage.
elsewhere. This produces a significant amount
of environmental impact, with shipping by sea

GLOBAL FASHION REPORT 2023 | A TRANSATLANTIC FOCUS RXSFS23RP © 2023 retailx.net
Fashion consumers: a transatlantic focus

The UK and the US are two of the biggest markets for online fashion, so what does each one look like up close?
UK online shoppers at a glance US online shoppers at a glance

WHO: 500 UK consumers aged 16 to 79 in July 2023 WHO: 500 US consumers aged 16 to 82 in July 2023
WHERE: 17% live in a village or smaller, 36.8% live in a town, 26.2% live in a small city, WHERE: 14.4% live in a village or smaller, 31.4% live in a town, 28.6% live in a small city,
20% live in a large city 25.6% live in a large city
WHEN: 4.2% make on online purchase at least once a day, 33% make an online purchase WHEN: 5% make on online purchase at least once a day, 31% make an online purchase
more than once a week, 46.8% make one more than once a month, 12.2% make one more more than once a week, 42% make one more than once a month, 16% make one more
than once every three months, 3.8% make one more than once a year or less than once every three months, 7% make one more than once a year or less
WHY: Direct delivery to their home is the primary reason among 45% for shopping online, WHY: Direct delivery to their home is the primary reason among 48% for shopping online,
40% for cheaper prices, 38% for time saving, 32% for offers, 29% for greater choice, 37% for cheaper prices, 36% for time saving, 33.5% for offers, 28.5% for greater choice,
27.5% for ease, 23% for ‘always open’, 15% to compare and contrast 23% for ease, 24% for ‘always open’, 15% to compare and contrast
WHAT: Fashion and apparel is the most popular online category for 51% of UK shoppers, WHAT: Groceries are the most popular online category for 52% of US shoppers,
groceries 50%, cosmetics and beauty 40%, homewares 38%, sports and leisure goods 38%, fashion and apparel 51%, cosmetics and beauty 42%, consumer electronics 40%,
music TV and films 37%, books 37%, consumer electronics 30%, flowers and gifts 28% homewares 35.5%, books 33%, hobby supplies 31%, music film and TV 30%,
sports and leisure 30%

UK and US Monthly fashion online shopping expense, United Kingdom, 2023
consumers Less than $13 11%
$13-$130 50%
Consumer spends, trends and attitudes
$130-$320 21%
Consumer attitudes to online fashion shopping in
$320-$640 11%
the UK and US are very similar. Each is a mature
ecommerce market with tech savvy and well- $640-$1,300 5%
connected shoppers. As a result, online fashion
More than $1,300 2%
shopping is well established.
Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'In the last year, how much have you spent on average per
Keeping up with fashion trends is important or very month buying fashion products?'
important to 37% of UK consumers and a broadly
comparable 42% of US consumers (see over). Source: ConsumerX RetailX 2023
RXSFS23RP-GB-CS-20-v3
However, where they turn to sate this need does

differ. 75% of UK consumers are inclined to shop with
brands they know or recognise, while 55% of their Monthly fashion online shopping expense, United States, 2023
opposite numbers in the US do so, opting instead to
spread where they shop around a host of sites. As we Less than $13 14%
shall see, this behaviour is driven by cost and choice
$13-$130 39%
primarily and exposes how there are many more
online fashion retail options for US shoppers than $130-$320 27%
those in the much smaller UK market.
$320-$640 11%
The impact of recommendations and social media $640-$1,300 6%
are near identical in the two markets, again reflecting
their similar levels of maturity. This greater choice More than $1,300 3%
and the wider use of ecommerce in the US sees these Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'In the last year, how much have you spent on average per
shoppers, on average, spend slightly more online on month buying fashion products?'
fashion, with 61% of UK shoppers spending under
$130 per month, compared with 53% in the US, where Source: ConsumerX RetailX 2023
RXSFS23RP-US-CS-20-v3
27% are spending between $130 and $320 a month.


What drives online Importance of factors as drivers of fashion purchase, United Kingdom, 2023
fashion consumers The cost 36% 18% 14% 10% 6% 7% 9%
7
in the US and UK? The style

The quality of materials and manufacturing and
the product’s durability
14%
19%
22%
24%
19%
17% 11%
14%
10%
13%
12%
11%
8%
6%
6
5
Cost is the overarching driver for shopping online How easy it is to return an item I dislike 10% 11% 17% 20% 15% 16% 11% 4
fashion in both markets among 36% of UK shoppers The environmental impact of the materials, 8% 7% 12% 18% 22% 19% 14%
3
and 35% of those in the US. However, when looking at manufacturing, and shipping 2
the top three reasons, cost is more important to UK How recyclable or biodegradable the product is 8% 10% 12% 16% 17% 19% 18%
1
shoppers than those in the US. The styles available Whether people I admire are wearing something 5% 8% 10% 11% 17% 17% 33%
similar
and quality of products are the key drivers for looking
online to purchase fashion in both countries. Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'Please rank the following factors in terms of importance
when choosing to buy fashion products' (1-most important, 7- least important)
While the internet offers a much wider choice of items, Source: ConsumerX RetailX 2023
consumers are currently much more price-conscious RXSFS23RP-GB-CS-3-v4
than anything else. They still want to shop fashion,
but with cost-of-living pressures still present, are
doing so with greater circumspection. Interestingly,
68% of both US and UK consumers rate cost as one Importance of factors as drivers of fashion purchase, United States, 2023
of their top three drivers for shopping fashion online,
The cost 35% 17% 15% 10% 7% 5% 9%
7
despite the UK economy being subject to much higher
interest rates, higher inflation and lower performance The style 21% 23% 20% 15% 9% 9% 6
and confidence than that of the US at the time of the The quality of materials and manufacturing and 20% 21% 20% 11% 10% 11% 6% 5
the product’s durability
survey (July 2023). 4
How easy it is to return an item I dislike 7% 15% 17% 20% 16% 12% 13%
3
While nowhere near as important to consumers, the How recyclable or biodegradable the product is 5% 8% 10% 14% 20% 24% 19%
The environmental impact of the materials, 2
environmental impact of manufacture is starting to 5% 9% 11% 16% 23% 21% 14%
manufacturing, and shipping 1
show up as a top three driver for some consumers. Whether people I admire are wearing something 5% 7% 7% 13% 15% 18% 34%
It is currently still less important to them than cost similar
and choice but it is more important than whether the Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'Please rank the following factors in terms of importance
goods can be recycled or if they are being endorsed by when choosing to buy fashion products' (1-most important, 7- least important)
influencers. It marks a subtle shift in how consumers
Source: ConsumerX RetailX 2023
are driven to buy online fashion and shows that, RXSFS23RP-US-CS-3-v2
despite cost-of-living issues, the environmental impact
continues to strike a chord.

Consumer choice Importance of factors for online store choice, United Kingdom, 2023
of online stores Augmented reality technology that shows me what I

20% 36% 22%
Very unimportant
would look like wearing or using the product Unimportant
The key to online fashion sales for the advanced Neither important nor unimportant
clientele found in the UK and US lies in photography
Photos from several angles and in di erent light Important
and images. Conveying the look – and, to some extent, conditions 33% 49% 14%
Very important
the feel – of clothing online has long been seen as one
of the main barriers to online fashion taking flight.
Videos of the products being modelled or used by
others 16% 38% 28%
The data on fashion ecommerce globally show that this
is no longer the case, with both UK and US consumer Based on 495 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'How important to you is the availability of the following
bases placing imagery and good photography at the features when choosing which online store to shop from?'
heart of what has made fashion ecommerce work.
According to RetailX consumer data, both UK and US RXSFS23RP-GB-CS-6-v4
online fashion shoppers are drawn to ecommerce
sites that feature good photography. In the UK, 89%
of consumers say that photography from multiple Importance of factors for online store choice, United States, 2023
angles and in different light conditions is important
or very important factors in choosing online fashion Augmented reality technology that shows me what I Very unimportant
stores in which to shop. In the US, that figure sits at a would look like wearing or using the product 26% 26% 21% 15%
Unimportant
comparable 81%. Neither important nor unimportant
Photos from several angles and in di erent light Important
As technology – and bandwidth – have improved, the conditions 33% 48%
role of video in showcasing the flow and cut of styles Very important
has also started to garner greater relevance in the
Videos of the products being modelled or used by
online fashion shopping journey and is now seen as others 17% 38% 28%
important or very important by 54% of UK consumers.
The impact of video on US consumers, while still
Based on 478 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'How important to you is the availability of the following
important, sits at a much lower 44%. features when choosing which online store to shop from?'
Counter-intuitively, this discrepancy is actually the Source: ConsumerX RetailX 2023

result of the US consumer and US online fashion world RXSFS23RP-US-CS-6-v2
being more technically advanced than that of the UK.

In the US, there is a greater draw towards much

higher-tech solutions to look and feel issues online. Importance of try on clothing availability for fashion retailer choice, United Kingdom, 2023
For example, a similar proportion of US shoppers
(38%) sees augmented reality (AR) – showing what the Very important 33%
clothes would look like on them – as being important
or very important when choosing a vendor. This is Important 48%
much more in line with the 44% of UK consumers Neither important
15%
who rely on video. AR, meanwhile, sits at a lowly 28% nor unimportant
in the UK, where the technology is far less widely
Unimportant 4%
available and isn’t, currently, part of the online fashion
shopping zeitgeist. Very unimportant 1%
This is backed up by further RetailX data showing that Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'How important is the availability of clothing to try on in a
82% of US shoppers rate the ability to virtually ‘try on’ store when selecting a fashion retailer?'
clothing from fashion retailers as important or very
important. In the UK, this sits at a comparable 81%, RXSFS23RP-GB-CS-7-v4
indicating that, while UK shoppers don’t yet expect AR
and other virtual try-on tools, they would see them as
a distinct advantage when shopping fashion online.
Importance of try on clothing availability for fashion retailer choice, United States, 2023
Retailers that add this tech to their websites are
therefore likely to sell more, upping margin. We Very important 38%
have already seen how US consumers spend more,
on average and more regularly, than their UK Important 44%
counterparts, something that can partly be attributed
Neither important
to the greater use of video and AR as tools in online nor unimportant 15%
fashion retail.
Unimportant 3%
Allowing better selection and the ability to virtually
Very unimportant 0%
try on goods can also help cut returns, generating
particularly impressive savings for many online Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'How important is the availability of clothing to try on in a
fashion retailers operating on very tight margins. store when selecting a fashion retailer?'


The role delivery Importance of online purchase delivery time, United Kingdom, 2023
plays in consumer Very important 38%
behaviour Important
Neither important
50%
11%
While try on tech and better imagery and videos play nor unimportant
a significant role in the consumer’s choice of which
Unimportant 1%
fashion websites they shop from, delivery is also a key
consideration. While many consumers are motivated Very unimportant 0%
by price and will be attracted to sites that offer them
good sight of the merchandise, getting it quickly is Based on 495 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'For online orders in particular, how important is the delivery
often what clinches the sale. time?'

According to RetailX survey data, 88% of both UK and RXSFS23RP-GB-CS-4-v4
US consumers cite delivery time as important or very
important when looking to buy fashion online. Across
both markets, speed on all or more than half of orders
is a key factor. In the UK, 28% of shoppers expect fast Importance of online purchase delivery time, United States, 2023
delivery on all orders, while 53% demand it on more
than half. In the, US the split is a similar 32% for all and Very important 40%
51% for more than half.
Important 48%
For consumers, speed in fashion is of the essence for Neither important
a number of reasons. Firstly, fashion shopping has nor unimportant 10%
long been an impulse purchase – both physically and
Unimportant 2%
online – with shoppers browsing, finding and buying
as much for the serotonin hit as for staying on-trend.
Very unimportant 1%
The notion that they can buy it and have it same-day,
or worse case, next-day feeds into this impulsive Based on 478 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'For online orders in particular, how important is the
approach online. delivery time?'
Secondly, many shoppers may well be looking for Source: ConsumerX RetailX 2023
an item or outfit for a particular occasion and need
it quickly, much as they might had they headed to a

conventional boutique. Being able to order knowing

it is coming imminently for this outing again feeds into Share of online orders for which delivery time is important, United Kingdom, 2023
consumer mores.
All 28%
The final consumer driver lies in the somewhat shady
world of serial returns, where the shopper buys
multiple examples of the item they want in a range of More than half 53%
sizes and colours and wants them to arrive ASAP so
that they can try them and return the ones that don’t Fewer than half 17%
work. While retailers don’t like this – and video, AR and
good imagery can help cut it down – shoppers still see None 2%
this as the ‘instant’ way to get what they want.
Based on 495 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'For what fraction of your online orders is delivery time
Aside from the serial returns aspect, providing rapid important?'
delivery on items is proven across all ecommerce to
help drive conversions. In such a competitive market Source: ConsumerX RetailX 2023
as online fashion, where price and choice are fairly RXSFS23RP-GB-CS-5-v3
uniform across like-for-like competitors, it is those
merchants that can deliver rapidly that will get the
sale. Data suggests that not only does rapid shipping Share of online orders for which delivery time is important, United States, 2023
lead to more purchases and higher average order
value, it also suggest that 41% of consumers are All 32%
willing to pay more to make this happen[1].
More than half 51%
Fewer than half 15%
None 1%
Based on 478 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'For what fraction of your online orders is delivery time
important?'
[1] www.dhl.com/discover/en-sg/e-commerce-advice/e-commerce-best-
practice/Why-Faster-and-Same-Day-Delivery-is-a-Competitive-Edge-for-E- Source: ConsumerX RetailX 2023
Commerce-Businesses

Marketing, data Attitudes towards personal information sharing with fashion retailers, United Kingdom, 2023
and privacy
concerns
Very comfortable 14%
Somewhat comfortable 58%

Consumers are driven to use online fashion sites
that offer competitive pricing, wide selections, good
technology and fast delivery – but how do they know Somewhat uncomfortable 22%
which ones do what?
Very uncomfortable 7%
Here, newsletters, advertising, social media ads and
even billboards and magazines continue to play a key Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'How comfortable are you sharing your personal information
role. In 2021, the US apparel and accessories sector with fashion stores in exchange for more personalized experiences or discounts?'
spent $656mn on traditional advertising[1], while the
global spend on social media marketing sits at around RXSFS23RP-GB-CS-10-v4
$173bn each year[2].
But does it work? According to RetailX consumer data, Attitudes towards personal information sharing with fashion retailers, United States, 2023
61% of UK and 57% of US consumers see fashion
retailer comms content as somewhat relevant (see
Very comfortable 26%
over). Just 11% in the UK and 22% in the US see it as
very relevant. Conversely, 43% of both UK and US
consumers are receptive to fashion retailer newsletters Somewhat comfortable 51%
more than once a week – something put into context
by the 17% and 21% of UK and US consumers Somewhat uncomfortable 15%
respectively who say they are never receptive.
Interestingly, 72% of UK fashion shoppers and 77% of Very uncomfortable 8%

those in the US are somewhat or very comfortable with
sharing personal data with fashion retailers in return Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'How comfortable are you sharing your personal
information with fashion stores in exchange for more personalized experiences or discounts?'
for a better targeting of goods, offers and discounts.
[1] www.statista.com/statistics/470617/apparel-and-accessory-stores-industry- RXSFS23RP-US-CS-10-v3
ad-spend-usa
[2] www.statista.com/outlook/dmo/digital-advertising/social-media-
advertising/worldwide

Fashion retailer communication content relevance, United Kingdom, 2023 Fashion retailer communication content relevance, United States, 2023
Very relevant 11% Very relevant 22%
Somewhat relevant 61% Somewhat relevant 57%
Somewhat irrelevant 25% Somewhat irrelevant 18%
Irrelevant 3% Irrelevant 3%
Based on 413 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'Considering the Based on 394 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'Considering the
announcements you receive from fashion retailers about discounts, new products, or general announcements you receive from fashion retailers about discounts, new products, or general
information in their newsletters, how relevant is their content to you?' information in their newsletters, how relevant is their content to you?'
Source: ConsumerX RetailX 2023 Source: ConsumerX RetailX 2023

RXSFS23RP-GB-CS-9-v4 RXSFS23RP-US-CS-9-v4
Regularity of fashion retailer newsletter reception, United Kingdom, 2023 Regularity of fashion retailer newsletter reception, United States, 2023
More than once a day 9% More than once a day 11%
More than once a week 34% More than once a week 32%
More than once a month 30% More than once a month 29%
More than once a year 10% More than once a year 7%
Never or less than once a year 17% Never or less than once a year 21%
Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'How regularly do you Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'How regularly do you
receive newsletters or other noti cations from fashion brands and retailers, on average?' receive newsletters or other noti cations from fashion brands and retailers, on average?'
Source: ConsumerX RetailX 2023 Source: ConsumerX RetailX 2023

RXSFS23RP-GB-CS-8-v4 RXSFS23RP-US-CS-8-v3

UK and US Requirements for trusting fashion brands' sustainability claims, United Kingdom, 2023
consumer views The company’s statements on the matter without
11%
on sustainability
providing evidence
Transparent information about products and

manufacturing 46%
With sustainability increasingly playing a role in
how consumers choose the brands that they shop Independent veri cation 31%
from, how retailers convey their own sustainability
credentials now has the power to influence shoppers
to buy from one retailer over another. Where once None of the above 13%
it was enough just making bold claims as to what a
brand or retailer was doing to lessen its environmental Based on 500 online shoppers in the UK (aged 16-79), Jul 2023. Question: 'Which of the following would make you trust fashion brands
when they say they are being sustainable?'
impact, consumers in the UK and the US are now wise
to ‘green washing’ and demand a much higher level of Source: ConsumerX RetailX 2023
justification for any claim being made. RXSFS23RP-GB-CS-11-v6
In the UK, 46% of consumers want to see transparent

information about products and manufacturing, yet Requirements for trusting fashion brands' sustainability claims, United States, 2023
31% demand independent verification of these claims.
Only 11% believe company claims with no evidence. The company’s statements on the matter without
providing evidence 8%
The picture in the US is similar, with 49% wanting to
Transparent information about products and
see transparency about manufacture and products, manufacturing 49%
27% wanting that to be independently verified and
just 8% taking the company’s word for it. Independent veri cation 27%
This is indicative of the increasing reluctance of

consumers – especially younger ones – to accept None of the above 16%
unsubstantiated green claims. More importantly, this
lack of trust shapes where and how they shop, since Based on 500 online shoppers in the USA (aged 16-82), Jul 2023. Question: 'Which of the following would make you trust fashion
brands when they say they are being sustainable?'
they eschew brands and retailers that are considered
bad at sustainability practices, as well as those that Source: ConsumerX RetailX 2023
don’t back up the claims they make about the good RXSFS23RP-US-CS-11-v3
practices they have in place.

GLOBAL FASHION REPORT 2023 | PARTNER PERSPECTIVE RXSFS23RP © 2023 retailx.net
Expert insight footprint, but economic pressures have certainly use machine learning and artificial intelligence to
led to rapid changes in their core messaging and assess whether a specific visitor needs an incentive to
How agility is on priorities. convert based on similar journeys.
trend for success Talk of pricing brings us onto a thorny subject:

margins. Discounts have become more prevalent
If moving excess stock is a key challenge, brands need
tools and on-site features to push certain products
in recent months as brands look to encourage when the opportunity arises. The same advice applies
Simon Bird, Co-Founder and CEO, RevLifter purchasing from cash-strapped consumers. Rather to increasing order values by cross-selling customers
than turning to sitewide offers, forward-thinking through recommendations.
The fashion industry finds brands have opted for a more selective approach by
itself in a place where the issuing incentives only when it makes business sense. Fashion shoppers largely expect tailored experiences,
only constant is change. Think of small discounts for customers showing signs interactions, and offers. As brands actively look to
With the knock-on effect of abandoning their cart or rewards for spending safeguard margins, it makes sense to treat customers
of Covid-19 continuing to above a certain amount. as individuals and determine what they need to
impact everything from generate a positive outcome.
consumer spending to Stock levels are another swinging pendulum to
supply chains, industry contend with and an area where agility pays out. More In the current climate, it seems best to save ‘one-size-
leaders have torn up the old than half of UK fashion retailers (62%) were left with fits-all’ for accessories rather than discounts.
rulebook to place a renewed excess stock after a slow start to 2023. Meanwhile,
focus on profitability, reports indicate a slow recovery from the inventory
customer experiences, and agility in pursuit of growth. pileup that faced US apparel brands in 2022. It’s been
no surprise to see fashion brands increasing their
Ever-present concerns like growing average order daily or weekly deals to move their low-selling stock,
values, reducing abandonment and moving excess offering free products when spending goes above a
stock have been compounded by a host of fresh certain level, and using product recommendations to
challenges. However, of the retail verticals impacted push them as complimentary suggestions. RevLifter gives retailers like Foot Locker,
by the same concerns, fashion has arguably been ASOS, M&S, and New Balance the insight and
among the quickest to respond. From RevLifter’s perspective, the fashion brands rising control they need for profitable growth. By
to the current challenges and capitalising on new delivering intelligent offers based on real-
Take the example of sustainability. While advertising opportunities share a common trait. They can react time customer signals, RevLifter’s innovative
campaigns initially mirrored consumers’ rising to changing circumstances and priorities through an platform helps brands solve challenges
appetite for eco-conscious brands, the cost of living intelligent offer strategy. around abandonment, managing inventory,
crisis felt around much of the developed world and generating profitable sales.
has led to reports of shoppers now valuing price If protecting margin is an issue, brands should only www.revlifter.com
over sustainable fashion. Brands themselves don’t issue discounts to convert priority customers or
appear to have backtracked on reducing their carbon highly profitable sales. Some fashion retailers even

GLOBAL FASHION REPORT 2023 | LARGEST 100 RXSFS23RP © 2023 retailx.net
The Solution to Fashion’s

Biggest Challenges
The online fashion space has come a long way over Enter RevLifter’s Intelligent Offer Platform.
the past 10 years, but the same problems remain.
The Intelligent Offer Platform gives brands the insight and control they need for profitable growth.
Carts are continually abandoned. Excess stock is Rather than treating every customer the same, it deploys offers based on real-time data.
hard to move. As for order values, they could always
do with a nudge in the right direction. The platform is a single place for creating, launching, managing, and optimising intelligent incentives.
Retailers use promotions to solve these challenges. Retailers can reduce abandonment by showing offers when customers display exit-intent signals.
However, they're often deployed as a short-term fix. They can preserve margin by only issuing discounts for high-value customers. They can
Sitewide offers dig into margins and fail to provide a recommend the right products when the right chance presents itself.
personalised experience. Customers demand
incentives, but retailers guess their way around In an era where sitewide discounts have become unviable,
planning and delivering them. RevLifter’s platform is giving fashion brands a profitable path.
Trusted by leading brands Find out more
Book a demo at:

38 | RetailX | September 2023 revlifter.com/demo
Largest 100 global RETAILERS

Largest 100 global fashion sellers
DOMAIN TRAFFIC HQ LOCACTION
fashion sellers ZALANDO ZALANDO.DE 593,245,963 GERMANY
SHEIN SHEIN.COM 581,976,568 CHINA

The brands, retailers and marketplaces
H&M HM.COM 290,727,816 SWEDEN
that dominate the global fashion market
cover a broad spectrum of sales models ZARA ZARA.COM 282,682,116 SPAIN
KOHL’S KOHLS.COM 260,127,390 UNITED STATES OF AMERICA

Fashion is both a global phenomenon and one
that is wedded to local culture, customs and tastes. UNIQLO UNIQLO.COM 191,443,546 JAPAN
The Largest 100 global online fashion sellers offer
GAP GAP.COM 187,447,576 UNITED STATES OF AMERICA
an intriguing mixture of massive, internationally
renowned retailers, brands and marketplaces, sitting NORDSTROM NORDSTROM.COM 180,729,052 UNITED STATES OF AMERICA
alongside sellers that are either regionally or even
BONPRIX BONPRIX.DE 94,854,266 GERMANY
country-specific in focus.
MYNTRA MYNTRA.COM 91,053,238 INDIA
The two most trafficked sites globally are Zalando and FARFETCH FARFETCH.COM 89,838,223 UNITED KINGDOM
Shein, both effectively fashion marketplaces selling
their own brand and other brand fashion. Zalando EOBUWIE.PL EOBUWIE.COM.PL 76,450,370 POLAND
generates much of its traffic from the DACH region REDOUTE, LA LAREDOUTE.FR 74,218,708 FRANCE
in Europe, which accounts for some 40% of its sales.
URBAN OUTFITTERS URBANOUTFITTERS.COM 72,906,803 UNITED STATES OF AMERICA
However, it has grown to have a significant presence
in 25 nations, covering all EU countries, the UK and ZAPPOS ZAPPOS.COM 71,876,123 UNITED STATES OF AMERICA
Romania, Slovenia and Estonia.
NEXT NEXT.CO.UK 673,313,20 UNITED KINGDOM
Shein, by contrast, generates a similar amount of DAFITI DAFITI.COM.BR 65,463,110 BRAZIL

traffic to Zalando from selling globally to 41 countries
LAMODA LAMODA.RU 63,120,923 RUSSIA
spread across every region of the world. The bulk
of its traffic comes not from China or even Asia, but DSW DSW.COM 56,401,344 UNITED STATES OF AMERICA
from the US, followed by Brazil and France. Indeed, RESERVED RESERVED.COM 52,073,752 POLAND
it doesn’t sell in China, only producing goods there.
This means that it can sell without paying Chinese SSENSE SSENSE.COM 50,894,779 CANADA
VAT and consumer taxes, while also paying lower SAKS FIFTH AVENUE SAKSFIFTHAVENUE.COM 50,168,530 UNITED STATES OF AMERICA
Chinese corporation tax.
ANTHROPOLOGIE ANTHROPOLOGIE.COM 49,904,326 UNITED STATES OF AMERICA

BERSHKA BERSHKA.COM 47,735,784 SPAIN

Other key international players on the list are
Sweden’s H&M and Spain’s Zara, both of which are MUSINSA MUSINSA.COM 46,778,771 SOUTH KOREA
retail brands with their own ranges and, while having YOOX YOOX.COM 43,385,347 ITALY
HQs in each of these countries, have considerable GRAILED GRAILED.COM 42,257,821 UNITED STATES OF AMERICA
international reach.
THREDUP THREDUP.COM 39,851,705 UNITED STATES OF AMERICA
Traffic wise, H&M and Zara are neck-and-neck, LOUIS VUITTON LOUISVUITTON.COM 39,411,574 FRANCE
both generating around half the amount of traffic HUDSON’S BAY THEBAY.COM 38,564,617 CANADA
seen by Zalando and Shein. This suggests that the
AJIO AJIO.COM 37,947,151 INDIA
marketplace model suits fashion shoppers and
brands more than the dedicated brand model. SHOWROOMPRIVE SHOWROOMPRIVE.COM 37,394,335 FRANCE
YESSTYLE YESSTYLE.COM 37,102,011 HONG KONG
While well-known fashion brands figure prominently DILLARDS DILLARDS.COM 36,570,200 UNITED STATES OF AMERICA
in the list of Largest 100 sellers, it is these
NEIMAN MARCUS NEIMANMARCUS.COM 35,606,797 UNITED STATES OF AMERICA
marketplace sites pulling together variety and range
that have the edge in terms of generating traffic. ARITZIA ARITZIA.COM 33,301,082 CANADA
ICONIC, THE THEICONIC.COM.AU 33,297,930 AUSTRALIA
It is worth noting that many of the brands on this
LEVI’S LEVI.COM 32,960,370 UNITED STATES OF AMERICA
list will also be generating significant traffic through
these marketplace sites, adding to their reach. HOLLISTER HOLLISTERCO.COM 32,279,785 UNITED STATES OF AMERICA
STRADIVARIUS STRADIVARIUS.COM 316,750,16 SPAIN
SHOPSTYLE SHOPSTYLE.COM 31,488,320 UNITED STATES OF AMERICA
PATAGONIA PATAGONIA.COM 31,392,066 UNITED STATES OF AMERICA
FASHION NOVA FASHIONNOVA.COM 30,371,603 UNITED STATES OF AMERICA
RENNER LOJASRENNER.COM.BR 29,443,723 BRAZIL
SINSAY SINSAY.COM 29,142,215 POLAND
ABOUTYOU ABOUTYOU.DE 28,657,495 GERMANY
CONVERSE CONVERSE.COM 27,762,699 UNITED STATES OF AMERICA
MADEWELL MADEWELL.COM 27,724,623 UNITED STATES OF AMERICA
MASSIMO DUTTI MASSIMODUTTI.COM 27,431,806 SPAIN
BUYMA BUYMA.COM 27,131,124 JAPAN

GLOBAL FASHION REPORT 2023 | COMPANY PROFILE RXSFS23RP © 2023 retailx.net
Asos at a glance
Company: Asos
HQ: Paris, London, England
Founded: 2000
Employees: 3,351
Revenues 2022: $4.99bn (£3.93bn)
Web visits 2022: 700mn
Fashion segments: Apparel, footwear, accessories,
eyewear, cosmetics and grooming
Brands: 850 brands from all over the world,
including but not limited to: Abercrombie &
Fitch, Adidas, All Saints, Asics, Asos, Barbour, Ben
Sherman, Calvin Klein, Caterpillar, Clarks, Converse,
Diesel, Dr Martens, Estee Lauder, Fred Perry, Now selling more than 850 brands, including year-on-year, with the fastest growth in the UK,
French Connection, GANT, Gillette, Helly Hanson, its own-label items, Asos has morphed into a Germany and the US.
Hollister, Jack Wolfskin, Kangol, Kickers, Lyle & quasi-marketplace for fashion, selling and shipping
Scott, Moschino, New Balance, Office, Paul Smith, to 196 countries globally. However, increasing competition and business
Quick Silver, Ray-ban, River Island, Schuh, Spitfire, inefficiencies baked in by the company’s growth saw
Timberland, The North Face, Topman and Vans However, it is starting to face growing competition. the company post a £31.9mn pre-tax loss in the year
Where it made gains in lockdown, many other to 31 August 2022, despite sales of almost £4bn.
fashion retailers are starting to catch up, having
Asos had almost two years to reinvigorate their online
services. This can be seen in its shrinking web traffic
To address this, the company has turned to
revamping its marketplace technology stack and
Founded in 2000 in Bristol in the UK, Asos pioneered across the analysis period, falling 18% in 2022. has teamed up with end-of-line luxury fashion
online fashion retail, targeting young, web-savvy marketplace Secret Sales in a bid to right-size its
adults with affordable online fast fashion. As a In response, Asos purchased the Topshop, Topman portfolio. It has also rolled out AI to create better
result, when the pandemic struck, it was well placed and Miss Selfridge brands from the collapsed targeted offers to customers that will, says the
to service the switch to online shopping – and its Arcadia group in 2021, as well as buying the Topshop company, “surprise and delight customers with
revenues show just how that worked. The company flagship store on London’s Oxford Street to create a relevant offers”.
has tracked upwards at a rapid pace since 2019, physical retail presence. Sales of Topshop brands
growing by 22% in 2020 and a further 18% in 2021. on the Asos platform grew by more than 200%

Charlotte Russe at a glance

Company: Charlotte Russe
HQ: San Diego, California, USA
Founded: 1975
Employees: 6,500
Revenues 2022: $42mn
Web visits 2022: 2.3mn
Markets operational in: United States
Fashion segments: Women’s own brand apparel,
footwear and accessories
Charlotte Russe merged by the investment firm of Saunders Karp & Two months later, in April 2019, the brand had
Founded in California in 1975, Charlotte Russe Megrue (SKM). These new owners had expansion emerged from bankruptcy and was bought by
– named after an obscure 19th Century dessert plans, evolving it into a national chain of shopping Toronto-based YM Inc.
created for George III’s wife Queen Charlotte and mall stores. SKM took Charlotte Russe public in 1999
translated as ‘Russian Charlotte’ – is a US-only retailer until Advent International acquired it in 2009. As Today, it operates stores and ecommerce across
of women’s clothes, aimed at those aged between President and CEO, Jenny Ming led Charlotte Russe 48 of the 50 US states and has 194 stores. The brand
15 and 35. into a private holding once again. has attracted new clients during the 2020s through
concentrating on ecommerce, with its free and fast
The company operates two different chains of However, the market for mall-led fast fashion saw delivery appealing to users, as well as the hefty
apparel stores, Charlotte Russe and Rampage. The a marked decline during the 2010s and sales started discounts it offers.
Charlotte Russe stores target women who want to slide once more. The brand was seen to be
established fashions at reasonable prices, while increasingly out of line with fast-paced changes to This approach has seen web traffic numbers start to
Rampage stores offer higher priced, more cutting- fast fashion and the company eventually filed for improve, with the rapid decline in sales seen in 2020
edge clothes and accessories. Chapter 11 bankruptcy protection on 4 February starting to be reversed in 2021 and 2022.
2019, a victim like so many fast fashion retailers of
Following rapid growth in the mid-1990s, the rising ground rents, falling footfall and the increasing
company’s fortunes waned and the two brands were dominance of pureplay fashion retailers.

Converse at a glance
Company: Converse
HQ: Boston, Massachusetts, USA
Founded: 1908
Employees: 4,407
Revenues 2022: $2.35bn
Markets operational in: 91 countries across North
America, Europe, Asia and Africa
Fashion segments: Footwear, apparel
and accessories
Brands: Converse
basketball boot, the company soon grew alongside In April 2001, Footwear Acquisitions purchased the
the sport of basketball into a national brand and brand from bankruptcy. Then, in July 2003, rival Nike
Converse national all-American sport. paid $309mn for the company.
Founded in 1890 in rainy Boston by Marquis Mills Through to the mid-1970s, Converse had a near Taking the brand online in 2010 has seen Converse
Converse, the Converse & Pike company was created monopoly on sports shoes, until a surge in street cement its position in global fashion, with web traffic
to sell waterproof rubber boots to bedraggled locals. sports fashion saw the market become increasingly to the site seeing impressive growth in 2019 and
Coincidentally, a year later, James Naismith nailed crowded with upstart brands such as Nike, Adidas 2020, rising by 44.4% during the pandemic. After a
a peach basket high up a wall in Kansas, inventing and Puma. correction in 2021 once stores reopened, 2022 saw
the game of basketball. a 42% growth in online sales of Converse worldwide.
Although its high-tops regained popularity in the
Fast forward to 1909 and the newly named Converse 1980s as casual footwear, Converse eventually The bulk of this ecommerce growth has been driven
Rubber Shoe company is shifting 5,500 pairs of became too dependent on the ‘All Stars’ basketball by the domestic US market, which accounts for
rubber galoshes a day, while also creating rubber- brand, whose market collapsed in 1990. By 2000, around 75% of the company’s online sales. However,
soled shoes – the non-slip properties of which Converse was slipping repeatedly into receivership its shoes are sold increasingly online worldwide by
prove advantageous in the small but growing world and the company eventually filed for bankruptcy other online fashion and footwear retailers, which
of basketball. With charismatic salesman Charles in January 2001. That March, its last manufacturing is also generating sales revenue growth for the
‘Chuck’ Taylor taking to the road wearing the All Star plants in the US closed down. company. In 2023, Converse turned over $2.35bn.

Foot Locker at a glance

Company: Foot Locker
HQ: New York, New York, USA
Founded: 1974
Employees: 32,175
Markets operational in: 29 countries across North
America, Europe, Asia, Australia and New Zealand,
with a franchised store presence in the Middle East
and Asia
Fashion segments: Footwear, apparel Foot Locker currently sees around 17% of its global which already works with luxury brands such as
and accessories sales coming from online, although it plans to Versace and Bergdorf Goodman. GOAT already
Brands: 80 brands including, but not limited to, increase that to 25% by 2026, generating $2.5bn boasts 50mn members and one million sellers
Adidas, Calvin Klein, Converse, Crocs, Helly Hansen,
in revenue digitally. While strong online growth in across 170 countries on its platform and it turned
New Balance, Reebok, Under Armour and Vans
lockdown saw a correction in 2022, the retailer is over more than $3.5bn in 2022.
keen to develop its digital sales.
Along with leveraging tie ups such as this, Foot
While Foot Locker currently sees a lower proportion Locker is looking at how to increase membership of
Foot Locker of its sales coming from online compared to its its loyalty scheme, since members typically spend
rivals, it does have a very high digital engagement 80% more than non-members, according to the
Originally part of Woolworths, Foot Locker has with its customers. 95% of Foot Locker customers retailer. Along with its forays into exploiting its social
become a staple of malls and high streets in 29 engage with the brand online in some way, be that media presence and leveraging its relationship with
countries worldwide and saw significant growth viewing a social media post or reserving an in- GOAT, Foot Locker hopes such innovations will
across 2020 through to 2022. Despite sales falling demand product. Foot Locker plans to leverage this deliver a boost to sales.
11% in the opening quarter of 2023, the US-based to create a leaner, omnichannel business.
footwear retailer is still seen as one to watch in the
industry due to its continuing ability to morph its Part of this process saw the company invest $100mn
strategy in line with the ever-changing market. in GOAT, an online resale marketplace for sneakers,

Gap at a glance
Company: Gap
HQ: San Francisco, California, US
Founded: 1969
Employees: 95,000
Markets operational in: Online in 92 countries,
stores in United States, Canada, Mexico, the United
Kingdom, France, India, Italy, the Czech Republic,
Ireland, Japan, Philippines, China and Taiwan.
Gap franchise stores are open in Bahrain, Greece, 19 years until 2002. He’s the guy largely responsible Interestingly, during 2022 and 2023, as shopper
Indonesia, Korea, Kuwait, Oman, Qatar, Malaysia, for creating its iconic branding. habits have again morphed, Gap has started to
Russia, Saudi Arabia, Philippines, Singapore, Turkey experiment with a more hybrid approach to retail
Brands: Gap, Banana Republic, Old Navy, Athleta, Since his removal, the company has waned as in the UK, where it is placing pop-up shops in the
Hill City, Intermix fashions changed but it did not. Despite a brief stores of its UK joint-venture partner, Next.
tie up with Kanye West and some fleeting favour
from Instagram influencers, the closure of stores In China, Chinese retailer Baozan has purchased
worldwide in 2020 and 2021 due to the pandemic both Gap’s stores and brand and continues to
Gap only added to Gap’s woes and, in 2022, Gap closed operate Gap as a retailer in China and Taiwan.
225 US stores, shed hundreds of jobs and went
Ubiquitous as an ‘anti-fashion fashion staple’, the Gap entirely online in the UK and Ireland. As of early 2023, Gap had been without a CEO for
hoodie defined the 1990s and early 2000s before 18 months, a fact which may well explain how the
falling out of favour with shoppers worldwide in the Part of this multi-million dollar online-only company has floundered somewhat of late. As the
2010s. Founded in 1969 – as often promoted on refocusing has seen the company start to reverse retailer shifts its selling strategy to one that is more
its signature hoodies and arcing three letter logo – its ailing fortunes. Web traffic has continued to grow online and franchise focused, a new CEO with digital
Gap grew out of selling cheap jeans before being reasonably successfully, while a renewed focus on credentials could well be what the company needs
transformed into a global retail juggernaut by staples such as denim and casual wear continues if it is to build on the tentative growth that it’s finally
CEO Millard Drexler, who served the company for to benefit the company. starting to see.

M&S at a glance
Company: M&S
HQ: London, UK
Founded: 1884
Employees: 72,300
Revenues 2022: $13.7bn (£10.8bn)
Markets operational in: Online in more than 100
countries globally with stores in 18 countries
Brands: More than 100 including, but not limited
to, Apothecary, Bumble & Bumble, Crocs, DKNY,
Elizabeth Arden, French Connection, Jaeger,
Laura Ashley, Monsoon, Per Una, Superdry, which was slowly losing favour with consumers. stores worldwide, including more than 60 in its
Ted Baker and Wrangler A shift to service the fashion needs of everyone from home market in the UK.
‘kids to grandparents’ also left it open to competition
on all fronts. Secondly, part of this ‘never the same again’
programme of reform has seen the retailer open
M&S The pandemic, which shut stores, hit its fashion
business hard, yet its department store format,
up more than 46 new dedicated online webstores
around the world, bringing the total number of
Marks and Spencer (M&S), once the byword for which also includes food sales, meant that while countries it sells in to more than a hundred. New
mid-market, middle-aged high street fashion, has had clothes-only retailers were deemed unessential and markets for its pureplay offering now include
a turbulent decade. The retailer was already seeing shut down, M&S stores stayed open. This saw sales Argentina, Brazil, China, South Korea and many new
significant revenue declines before the pandemic, drop only 0.1% across 2020. markets in Africa.
with zero revenue growth in 2017 followed by large
drops of 11.5% and 7.9% respectively across 2018 The retailer also used the lockdown to retool This move has been inspired by M&S seeing a 75%
and 2019. its business and has since become something surge in international ecommerce sales in 2022.
of a leader in how modern omnichannel, multi- The move will also allow the retailer to explore the
The reasons for this are multiple. Firstly, M&S was department retail can work. For starters, it has potential of increasing its presence in some of these
predominantly focused on physical fashion retail, doubled the proportion of clothing and homewares markets without the significant upfront investment
based around the tired department store format sales that take place online, while closing many of new bricks-and-mortar stores.

Shein at a glance
Company: Shein
HQ: Singapore, with a UK HQ in Dublin, Ireland
Founded: 2008
Employees: 10,000
Revenues 2022: $30bn
Markets operational in: 150+ countries
Segments: Apparel, footwear, accessories,
cosmetics, petwear
Brands: Sheglam, MOTF, Luvlette, Dazy, Emery
Rose, Cuccoo, Glowmode, Petsin
has seen user numbers grow rapidly worldwide, Shein’s explosive growth has also spawned a
sustaining the business even throughout through number of imitators, such as Pinduoduo’s Temu,
the pandemic and the cost-of-living crisis. which is also targeting Gen Z shoppers, Additionally,
Shein many of the other leading fashion sellers, such as
Early growth came from within China, along with Asos and Zalando, have bolstered their offerings in
Shein has become the largest online fashion seller in strong sales in India and Saudi Arabia. More recently, response to Shein’s dominance.
the world, dwarfing all other players both in terms the company has generated rapid growth from
of user numbers and inventory. Its revenues have expansion into Brazil, Mexico, the US and Europe. Rising air freight and production costs have recently
doubled in a year and now the retailer is poised to While Shein has been selling into Europe since the eroded the company’s profits, bringing the company
also take the title of largest by turnover. mid-2010s, it is only recently that sales took off. down from the lofty reaches of being a $1bn profit
company to hitting around $700mn in 2022.
The company started life in China as an online By 2022, it had generated $30bn in revenues, up
wedding dress portal in 2008, branching out into 91% on the $15.7bn turned over in 2021. In the In the fickle world of fashion, it will be interesting
general womenswear by 2010, then into all fashion same year, the retailer registered an estimated to see where Shein heads next, yet current figures
by 2015. 74.7mn active shoppers – 13.7mn from within the suggest that it could well surpass the $1bn profit
US – with traffic growing 85% between 2021 and mark by the end of 2023.
By rapidly turning over its inventory – putting out 2022. Shein was downloaded 200mn times in 2022,
up to 2,000 new items daily – the app-only retailer making it the most downloaded shopping app ever.

YOOX at a glance
Company: YOOX Group
HQ: Milan, Italy
Founded: 2015
Employees: 4,700
Revenues 2022: $960.4mn
Markets operational in: 170+ countries, with offices
and operations in the US, Europe, the Middle East,
Japan, China and Hong Kong
childrenswear
Brands: 15,000 brands including but not limited to & Gabbana, Diesel, Gucci, Armani and Cavalli, as well However, as ecommerce started to become more
Armani, Gucci, Dolce & Gabbana, Diesel, Channel, as from manufacturers and authorised dealers. By popular, the company started to grow significantly.
Stella McCartney and Dior selling such items online and at discounted outlet
prices, YOOX enabled luxury brands to off-load Today, Net-a-Porter is owned by YOOX Group
last year’s merchandise without undermining their and while revenues across the whole group have
brands or cannibalising sales at their existing stores. dropped since their peak of $1.4bn in 2015 to just
YOOX under $1bn in 2022, it continues to thrive, selling
Vintage designer clothing by leading luxury fashion luxury and designer end-of-line goods online
YOOX Net-a-Porter Group was formed from the brands is also collected and collated before being worldwide to an audience of shoppers increasingly
merger of YOOX Group and Net-a-Porter. Both of sold at special events. motivated by buying more sustainably.
these were pioneers of online fashion retail, each
coming to market in the early days of ecommerce Net-a-Porter was also founded in 2000, this time In the case of YOOX, it taps into those shoppers who
and each with a unique business proposition. by Natalie Massenet – an American-born former eschew fast fashion, looking instead to make more
fashion journalist with Women’s Wear Daily and Tatler. of a long-term investment in higher-price, timeless
YOOX was set up by Federico Marchetti in Milan She developed the concept of a magazine in website and high-quality items. In time, these often end up
in 2000 with the idea of buying up overstocked, format, where users could ‘click’ to buy. Investors on second-hand designer wear sites, creating the
or unsold, items from previous seasons directly and designers were initially reluctant to get involved ultimate in circular high-end fashion retail.
from renowned fashion houses, including Dolce since her startup had no physical retail presence.

Zalando at a glance
Company: Zalando
HQ: Berlin, Germany
Founded: 2008
Employees: 17,000
Revenues 2022: $11.3bn (€10.3bn)
Markets operational in: Germany, Austria,
Switzerland, France, Belgium, the Netherlands, Italy,
Spain, Poland, Sweden, Denmark, Finland, Norway,
Estonia, Slovenia, Ireland, Luxembourg, the Czech
Republic, Slovakia, Croatia, the UK, Lithuania, Latvia, rise across the first half of 2023. In its first quarter, reactions from users interacting with the Lounge
Hungary and Romania the online fashion retailer reported a 2.3% rise in via its app. The company also saw an increase to
Segments: Apparel, footwear, accessories, group revenue year-on-year to $2.48bn (€2.25bn). the number of active customers, increasing by 4.8%
cosmetics, childrenswear, tech accessories, It also posted a 2.8% increase in gross merchandise year-on-year to a total of 51.2mn.
toys, homewares volume to $3.5bn (€3.2bn).
Brands: More than 7,000, including but not limited The retailer has expanded its 3D avatar and virtual
to: Nike, Mango, Pull&Bear, Tommy Hilfiger, Adidas,
The turnaround comes on the back of the retailer fitting room offerings embedded in its app to
Bershka, Barbour, Calvin Klein, Clarks, Converse,
cutting costs – and jobs – in 2022 in order to allow shoppers to take two pictures of themselves
Dickies, Diesel, DKNY, EA7, Emporio Armani, Fit Flop,
streamline operations, as well as investing in new from which the app can more accurately predict
Filla, Fossil, GShock, Hugo Boss, Jack & Jones, Jimmy
technology and new marketing strategies. According their body measurements. This not only delights
Choo, K-Swiss, Levi’s, MAC, NA-KD, O’Neal, Paco
Rabanne, Quicksilver, Reebok and Scholl to Zalando, the rise in profits has been due to an customers and leads to more sales but also cuts the
increased demand for its online shopping club, company’s returns and their associated costs thanks
Lounge, alongside partners selling more. Lounge to better sizing and more accurate fittings.
by Zalando contributed to a 33% rise in revenues
Zalando at Offprice, which offers customers limited-time While this service is currently only available to
discounts on premium brands. customers in Germany, Austria and Switzerland, it
After a challenging 2022 in which European fashion has already made a bottom line impact and is set to
marketplace Zalando saw its sales slow in the face This enhanced on-site customer experience and new be rolled out across the sellers other regions in the
of the cost-of-living crisis, it has since seen sales brand identity introduced in January drew positive coming months.

Zara at a glance
Company: Zara
HQ: Arteixo, Spain
Founded: 1975
Employees: 163,000 across Zara owner Inditex
Revenues 2022: $25.3bn (€23bn)
Markets operational in: 202 countries online,
physical stores in 58 countries
cosmetics, childrenswear and homewares
Brands: Zara, Zara Home
rest of the industry. Such processes have allowed However, Zara’s rapid turnover in stock has seen the
Zara to be very self-contained across the whole business face a degree of environmentalist backlash
Zara process, from material manufacture and supply
through to completion and distribution.
and has had to find a way to offer more sustainable
and environmentally friendly garments. As part of
The largest company in the Inditex Group’s retail this, in November 2022, it rolled out a trial of a pre-
portfolio, Zara was originally a boutique called Zorba, Consequently, Zara is extremely agile, with those owned platform across its website and app in UK.
after the movie Zorba the Greek. However, when styles that aren’t selling well pulled and replaced
founder Amancio Ortega found a bar two blocks with new designs weekly or fortnightly. This not only Other than posting now-unwanted Zara purchases
away sharing the name of his favourite film, he opted keeps the retailer selling what customers want but online for sale, shoppers can book repairs and
for the now familiar Zara instead. also gives customers a reason to visit often. donate unwanted items online or via a store.
If successful, this will be rolled out across Zara’s
Today, the retailer is the epitome of quality fast This approach also placed Zara in a prime position other territories.
fashion, reputedly able to develop, create and get to create and exploit ecommerce from its inception
new designs to stores within a week – much faster and the company now has one of the largest Additionally, the retailer has worked with
than the three to six month industry average. This webstores by traffic in the world, sitting just behind Greenpeace to eliminate toxic chemicals from
is a direct result of the company’s long involvement Zalando, Shein and H&M. Notably, Zara also never the production of its fabrics and, since 2020,
with just-in-time (JIT) production techniques, which it advertises – a strategy that goes against the rest of has eradicated all these from its entire
has used since 1990 – again, very much ahead of the the fashion industry but which still seems to work. production process.

GLOBAL FASHION REPORT 2023 | COMPANY SNAPSHOTS RXSFS23RP © 2023 retailx.net
Pureplay fashion retailer boohoo was founded Little known outside of its home market of Started in 1981 with a £100 loan to buy the
in 2006 and made a slow ascent towards Poland, Eobuwie is one of that country’s material needed to make white shirts for her
the summit of online fashion retail, perhaps largest stores that specialises in the online friends, Karen Millen has grown to become
because it launched too soon for the market. sale of footwear and accessories. And this is in an iconic fashion brand with over 400 stores
By 2019, however, it had come to dominate Poland – a country that has a remarkably well- in 65 countries at the height of its popularity.
fast fashion sales and purchased a number of developed ecommerce market.
other, by-then failing retailers. However, Karen Millen sold the company –
Eobuwie is the twelfth-most trafficked site along with the right to use her name on other
Sales rocketed during the early days of the in RetailX’s global Largest 100 and offers a ventures – to Iceland’s Mosaic Fashions in
pandemic, with stuck-at-home shoppers glimpse of what hybrid retail should truly look 2004. Mosaic went under in 2009, with Karen
using the site in record numbers to treat like. While it sells online, the retailer is famed Millen briefly picked up by Aurora Fashions in
themselves to its range of athleisurewear. in its home market for operating a series of 2009, and then spun out to Aurora’s owners,
Despite an exposé revealing the company’s stores that, unlike traditional shoe shops, don’t Kaupthing Bank. In 2018, Karen Millen bought
use of sweatshops in Leicester, UK, boohoo feature walls of footwear. Instead, they opt sister company Coast out of administration,
continues to rise, acquiring first Debenhams, for comfy ‘home style’ sofas and tablets that but itself went into administration in 2019. It
then Dorothy Perkins, Burton and Wallis from surface the retailer’s entire range. Shoppers has since been owned by boohoo Group as an
the fire sale of the Arcadia Group. come in, browse online and buy – either online-only store, with all stores closed.
coming back later to collect or opting for
In 2022, the group turned over £1.9bn home delivery. In 2022, the company still generated revenues
($2.4bn) and made a profit of almost £10mn of £67mn ($85mn), up an impressive 70% on
($12.7mn). While now established in the UK, More interestingly, shoppers can also flag 2021, with exceptional growth generated in
boohoo has sought to grow internationally, items they are interested in via the company’s the US. Much of this surge is attributed to the
serving some 18mn customers across most website before visiting, then come in, try them access the company now has to the back-end
of Europe, the US and beyond. on and buy. and distribution reach of boohoo Group.
In 2023, the tables have been somewhat The strategy seems to be working, with In May 2023, boohoo brought Millen herself
turned on the acquisitive boohoo Group, with Eobuwie turning over some $180mn in 2022 back to design a special collection – called
Frasers Group buying an increasing stake and being ranked the third-largest online The Founder – which not only reignited her
in the fashion retailer to capitalise on what retailer in Poland. passion for fashion design but also increased
Frasers describes as boohoo’s “laser focus on international sales further.
young female consumers.”

Formerly a sports apparel retailer from One of Russia’s leading fashion retailers Myntra, India’s largest online fashion
Alabama, USA, Hibbett Sports dropped the operating across CIS, Kazakhstan and Belarus, and lifestyle store, started life as a B2B
sports moniker from its name in 2021 to lamoda had, by 2021, become a powerhouse corporate gifting site that went from offering
better reflect how it has moved to being a in online fashion retail in the region. It was personalised T-shirts and mugs to becoming
more fashion-led ‘athletics-inspired’ retailer. also Russia’s largest online retailer, offering a full-on fashion and lifestyle seller which has
more than 10mn products and claiming cornered the market in India.
Confined to the US, the company operates 20mn unique monthly visitors.
1,096 retail stores, which include 900 Hibbett What makes the company notable, however,
Sports stores, 179 City Gear stores and 17 It was purchased by Singaporean Global is that in 2015 – following its acquisition by
Sports Additions athletic shoe stores in 35 Fashion Group (GFG) in 2012 and had, prior Flipkart for $250mn – Myntra shut down its
states across the South East, South West and to the Russian invasion of Ukraine, been website and set about serving its customer
lower Mid West regions of the country. pushing to expand its fashion marketplace base purely through its mobile app. Myntra
model across other parts of Europe. justified this decision by stating that 95% of
The retailer turned over an impressive traffic on its website came via mobile devices
$1.7bn in 2022, with its ecommerce offering With non-Russian companies abandoning and that 70% of its purchases were made on
– launched in 2017 – seeing growth of 1.8% Russian businesses following the start of the smartphones anyway.
across the fourth quarter of that period, war, GFG made a quick sale of the company to
against a drop of 1.6% in instore sales. Iakov Panchenko, the owner of the Stockmann The move received mixed reception and
Revenues year-on-year were up 42%. chain of Russian department stores, for resulted in a 10% decline in sales. In February
€95mn ($104mn) in December 2022. 2016, acknowledging the failure of their ‘app-
The retailer has stated that this stellar growth only’ model, Myntra announced that it would
can be attributed to significant investments The retailer has maintained many of its revive its website.
in customer acquisition and retention, Russian staff and has introduced its own
new store growth, improving existing store express delivery network supporting next-day To claw back some lost ground, in 2019, the
productivity, enhancing omnichannel delivery to 25 cities throughout Russia and retailer created Myntra Fashion Superstar,
features and functionality, optimised delivery Kazakhstan. Lamoda offers free shipping and its own digital-only fashion reality show. This
capabilities and by modernising its back-office a try-on service, as well as a 365-day period for move, along with a surge in online shopping
infrastructure. These steps, claims the retailer, returns, free of charge. Lamoda was launched during the pandemic, helped to revive the
have allowed it to build on the online growth in 2011 by founders Dominik Picker, Florian fortunes of the company, which turned over
it experienced during the pandemic. Jansen, Burkhard Binder and Niels Tonsen. $420mn in 2022, up 31% on the previous year.

Founded in 2012 by Simone Ellis, London- In 2009, CEO and co-founder of thredUp, Not to be confused with Ralph Lauren’s
based Simmi focuses on fashion footwear for James Reinhart, set out to modernise the Polo brand, the US Polo Association is the
women aged 16 to 35. Shipping worldwide US second-hand clothes trading market by governing body of the equestrian sport of
from the UK, Simmi’s ecommerce offering is creating a smarter way to buy and sell them. polo in the US and, off the back of that, is now
targeted mainly at the UK, France, US, Brazil the official retailer of a wide range of polo
and Australia. He has certainly succeeded. thredUP is now equipment and associated fashions.
the largest resale platform for women’s and
Turning over between $5mn and $10mn kids apparel in North America, turning over With a multi-billion-dollar, global footprint
annually, the company is determinedly $251.8mn in the year ending March 2022, and worldwide distribution through some
independent, still owned and operated by its which represents 35% year-on-year growth. 1,100 US Polo Assn retail stores, department
founder. This is unusual in the fashion world, Annual gross margins hit 70.7% and gross stores, sporting goods channels, independent
where most brands trade on their name but profit grew 39% in the same period as a retailers and its own ecommerce, US Polo
are typically owned and operated by a larger record number of 1.7mn active buyers. Association sells in 190 countries.
international organisation.
The timing of thredUP’s arrival was fortuitous, The company set its own record in 2022,
Traffic to the site showed steady growth coinciding with the growing consumer turning over more than $2.3bn in global retail
across the pandemic and beyond, increasing concern over fast fashion and its impact on sales, with growth coming organically in its
by 19% between June and July 2023 alone and the environment. This raised awareness of the core markets of the US and Europe, but also
logging almost half a million unique visitors second-hand clothing market’s role in fashion with exponential growth in new territories
over that time period. has boosted profits. However, second-hand such as Latin America and Asia. India alone
has long been a silent multi-billion dollar has become a $1bn market for the brand,
industry worldwide. Reinhart’s power move becoming the country’s top selling casual
was to digitise it and, in doing so, tapping into menswear brand in 2022.
this growing $36bn dollar resale market.
The US Polo Assn has also devoted a
The rising popularity of the second- lot of time and investment to creating a
hand fashion site was cemented in the global ecommerce strategy, tripling its
Summer of 2023, when Barbie costume digital business over the last five years and
designer Jacqueline Durran teamed up to generating record growth in ecommerce
help shoppers recreate the movie’s look through the creation of some 50 brand sites
sustainably using thredUP’s inventory. in 20 languages.

Founded as a mid- to high-end high street Not many fashion retailers can claim that Born out of YesAsia, a website set up in the
fashion retailer in the UK in 1976, Warehouse they started life as a video rental store, nor early 2000s to sell CDs, DVDs and other
was one of many UK retailers that fell into that they were also the founder of a national entertainment products, YesStyle was created
receivership during 2022, being unable to skateboarding competition, yet Canada’s to tap into the market YesAsia had created
adapt to the ever-changing way shoppers West49 has bragging rights with both. online across Korea, Japan, China, Taiwan and
shopped before and during the pandemic. Hong Kong as online fashion started to gain
Initially founded as Jumbo Entertainment ground across Asia.
As a result, in 2020, the retailer’s brand, assets in 1987 to rent videotapes – and rising to
and stock, along with those of the Oasis chain, become Canada’s third-largest video renter Growing rapidly, YesStyle saw 800,000 visits
were acquired by online retailer boohoo, but the only one to give away free popcorn and sales of $512,000 in its first six months.
reuniting Warehouse with former sibling – the company diversified in 1995 to open a It sells apparel, jewellery, accessories, bags,
Coast, acquired by boohoo as part of chain of skateboard and snowboard stores. beauty and other fashion products, targeting
a separate takeover of the Karen Millen This led to the sponsoring and hosting of an men and women aged 18 to 35. Just a year
Group in 2019. annual international skate event, the West49 after its establishment, it added a children
Canadian Open, which in turn led to selling and babies section to its product offerings. In
Prior to its sale, Warehouse was generating more skateboarding fashion and the rest, to 2009, the first YesStyle Store was opened in
a turnover of $26.8mn. Its contribution to coin a phrase, is history. Stonestown Galleria in San Francisco.
boohoo turnover is currently unavailable,
although the brand is part of boohoo’s Purchased by Australian brand and retailer Today, the retailer turns over $413.3mn, with
strategy to extend its reach beyond its Gen Z Billabong in 2010, West49 is currently owned the bulk of its sales coming from the US and
fast fashion market. and operated by YM Inc and has morphed Australia. Until the rise of Shein, YesStyle was
from being synonymous with skate and one of the most prominent Asian fashion
As part of this revamp at boohoo, Warehouse streetwear to being the go-to site for extreme retailers in the US.
has become the fourth boohoo-owned sports enthusiasts.
brand to launch a collection on fashion rental The company is now busily expanding its
website Hirestreet, joining Oasis, Misspap and Its dominant position in this niche market saw ecommerce reach, with customer services
boohoo’s KK Collection. Oasis is currently one the company turn over $139.6mn in 2022. The offered in 65 countries all over the world. Its
of Hirestreet’s best performing brands and it is company continues to build on its community latest target market for growth has seen it
hoped that its former stable mate Warehouse and heritage through hosting and sponsoring expand its shipping operations in India in a
will follow suit. extreme sports events worldwide. move aimed at tapping into that huge growth
market for fashion.

GLOBAL FASHION REPORT 2023 | THE ROAD AHEAD RXSFS23RP © 2023 retailx.net
The road ahead While the global economy looks to be slowly

improving, the OECD’s latest economic outlook[1]
All this is likely to have an overall positive impact on
fashion manufacture, distribution and, above all,
suggests the recovery is so far quite weak. Its data sales in the coming year, with costs falling, margins
Global online fashion has weathered predicts that global GDP growth will actually drop rising and a greater degree of confidence returning
some turbulence, but what factors will from 3.3% in 2022 to 2.7% in 2023, followed by a to the consumer market.
shape it in the next 12 to 24 months? pick-up to 2.9% in 2024.
DIGITAL TRANSFORMATION ACROSS
THE GLOBAL ECONOMY Falling energy prices are starting to ease pressure on SUPPLY AND SALES
The global economy plays a surprisingly large role consumers’ budgets and their spending confidence While ecommerce accounted for around one-third
in the fashion business. From a manufacturing and is returning, albeit from low levels. The re-opening of global fashion sales in 2022, the growing use
supply perspective, the industry is truly international, of China post-Covid has provided a boost to global of mobile among a coming-of-age population of
with raw materials grown and made in one country, activity, yet worries still remain over how the Chinese shoppers makes the digital transformation of fashion
garments manufactured in others and finished economy will fare. retail one of the sector’s top priorities in the future.
products sold in many more – often with great
distances between each part of the process. Headline inflation worldwide is projected to decline The application of technology to production, supply
from 9.4% in 2022 to 6.6% in 2023 and 4.3% in 2024. and distribution leads the way globally in the sector,
The sector is impacted further by the ways that the This, due to tighter monetary policy taking effect, with many manufacturers and retailers already
global economy and geopolitics affect consumers. lower energy and food prices and reduced supply having turned to digital in order to streamline and
Much of fashion is a discretionary purchase and is bottlenecks, will further help consumer sentiment cost-cut their manufacturing and supply. This will
thus subject to the vagaries not just of disposable and should drive higher spending, especially on continue, driven by the simultaneous application of
income, but the confidence consumers feel about non-essentials such as fashion. digital transformation across the customer-facing
spending their money. side of their businesses.
However, GDP growth in the US and across Europe
The pandemic initially impacted global fashion, is set to be low, picking up to 1.6% in 2023, before Here, better understanding of customer behaviour
bringing sales to a virtual halt. However, embracing slowing to 1.0% in 2024 in the US while moving the can fine-tune supply and demand. The development
ecommerce – and with nothing else for locked-down other way in Europe, from 0.9% in 2023 to 1.5% in of better customer experiences across the myriad
shoppers to do – it surged. Post-pandemic, this 2024. China is expected to see strong increases in digital channels through which consumers interact
growth has continued, yet it has become tempered GDP growth of 5.4% in 2023 and 5.1% in 2024. with fashion brands and retailers will also be used to
by rising energy costs, high inflation, the cost-of- better drive engagement and deliver higher volumes
living crisis, war and growing uncertainties among The upturn remains fragile, says the OECD, with and greater ARPU.
shoppers about what might happen next. risks “tilted to the downside”. Uncertainty over
the trajectory of Russia’s war against Ukraine and The continued embrace of direct to consumer (D2C)
So what do the next 12 to 24 months have in store its global impact is the key variable. Some of the selling – particularly taking in ‘new’ channels such as
from an economic point of view? And how is online favourable conditions that helped to reduce energy TikTok, Instagram and, perhaps even Elon Musk’s
fashion likely to be impacted? demand this year, such as the mild winter across X, should it become a super-app – offers brands in
Europe, may not be repeated in winter 2023/24. particular a more direct route to customers, allowing

them to offer a more personalised way to delight able to convert them in either channel. Data from full-length body shot of themselves to ‘try on’ items
their customers and prospects. the US in 2022 shows that 56% of adults prefer to virtually from certain ranges sold by Zalando.
shop online and instore with any given retailer, while
However, fashion is already a highly competitive 88% say that it is important that retailers offer both Adidas and Nike have both experimented with virtual
business and the baseline for what constitutes and 24% are less likely to purchase from a brand or shoe sizing, with Adidas offering some models as
great customer experience is already set very high. retailer that doesn’t have a store front[2]. virtual images that can be overlaid on users’ feet.
Working out how to deliver more without breaking
the bank may be fashion’s greatest challenge yet. As with digital transformation elsewhere within retail However, virtual services don’t necessarily have
businesses, delivering a hybrid strategy presents a to just involve try-on technology. Some high-end
HYBRID RETAIL number of technical and structural challenges, yet fashion sellers, such as Fendi, have used the virtual
Part of the digital transformation of retail and the once again in the highly competitive fashion market, world to offer stylist appointments online that can
delivery of exemplary customer service lies in how few will be able to afford not to. tap into fashion experts who can advise on styles
physical and digital retail will work together. While and show actual items online.
the concepts of multichannel and omnichannel retail THE VIRTUAL WORLD
have been with us for many years, the melding of Far from delivering a Matrix-like dystopian world, Whatever virtual offering is used, the upshot is a
online and physical retail in a complementary way virtual and augmented reality have become useful more immersive experience for online shoppers,
for the consumer is where the sector is headed. tools for retailers looking to make the online sales which in turn helps retailers – online or hybrid –
process as rich as that of the real world. create deeper links and loyalty with their customers.
This hybrid retail model – where physical, digital and As the online fashion market becomes more
virtual channels are fused – is particularly pertinent Augmented reality (AR), which overlays digital competitive, this will become a priority.
in fashion. The shift to online-only during the content onto a real-world image, usually via a
pandemic, followed by the swing back to physical, smartphone camera, is already finding myriad Taking the virtual world beyond augmented reality
has seen shoppers shop in new ways. Online/offline uses across retail. In online fashion, AR has slowly (AR), fully immersive virtual reality (VR) can add an
is no longer an either/or choice, rather the two have crept into fashion apps by offering a range of try-on even deeper digital dimension to both physical and
become blended, with online and mobile playing key services, from 360-degree views of clothing to those online retail, creating virtual stores and product
roles in the overall shopping journey. For fashion, that allow the user to see the clothes on themselves. displays and allowing shoppers to try and use virtual
this is a useful shift because it adds the ability to try versions of goods without having to stock them
on styles that have been seen online – particularly These have become a vital part of online fashion all. It can lead to a more personalised shopping
for more expensive items. Consumers are also market and the only technology that offers pureplay experience and, if nothing else, currently delivers
increasingly drawn to being able to buy fashion retailers away to compete with those that can deliver a novelty for retailers who experiment with it.
online and return to a store for an exchange or the hybrid retail experience that sits across both the
money back. virtual and the physical. The downside is that delivering VR requires specialist
equipment, such as a VR headset, and from the
For retailers, this is a boon since a well-crafted For example, Zalando offers a virtual dressing retailer point of view, quite a hefty tech stack.
hybrid strategy allows them to capture more impulse application called Try On, which operates via However, with the likes of Facebook and Apple
shoppers, both instore and online, as well as being Snapchat and allows users who have taken a launching VR headsets, the game is (almost) on.

THE METAVERSE or items as non-fungible tokens (NFTs) on the being rare and tradeable, they offer a significant
An aside to virtual reality (VR) – yet garnering more blockchain. These can then be bought and either secondary market opportunity. They can also be
headlines – has been the metaverse. Like VR, this is ‘worn’ or traded, thus creating a whole new second- highly personalised.
a virtual, computer generated ‘world’ where the user hand market in virtual luxury goods, although that’s
can immerse themselves and do all the things they another story entirely. However, much of their current value is driven by
can do in the real world and more in a virtual space novelty. Once they are ubiquitous, they will cease to
and, often, as a virtual version of themselves. Luxury brands have been quick to jump on this be such as cash cow. The next stage in metaverse
virtual world, with brands including Gucci, Louis development will involve using the virtual world to
Where this impacts retail is yet to be truly fathomed Vuitton, Prada, Tommy Hilfiger, Burberry, Balenciaga buy real world goods, with the virtual world acting
but currently, many retailers have looked to sell and Dolce & Gabbana all doing something in the as a more realistic and interactive ecommerce
virtual clothes for these virtual versions of users, space in 2021. platform. Here, brands will be able to create rich and
from virtual stores, through virtual fashion events. immersive experiences that lead directly to sales of
In the mainstream fashion market, Nike, Adidas, goods, factoring in virtual try ons and more.
The term ‘metaverse’ first appeared in a dystopian Forever21, Zara and Boohoo are all playing in the
cyberpunk novel called Snow Crash, written by metaverse. Nike created Nikeland on Metaverse While this is still a year or more away, these early
Neal Stephenson in 1992. It described a 3D, virtual platform Roblox and, as of, late 2022, had seen more forays into virtual goods on the metaverse suggest
reality space accessed through VR googles. Today, than 21mn visitors and had generated $185mn from that it will be an area that luxury brands are likely to
the metaverse pretty much matches this, acting sales of NFT collections. Boohoo, on the other hand, look at with interest.
as a VR-driven way to access the web. Rather than has created its own metaverse – The Boohooverse.
being state run, however, it has appeared through To enter Boohooverse, shoppers had to get their CHATGPT, AI AND PERSONALISATION
the medium of games, with Roblox in particular hands on 3D NFT cards, handed out for free, which Personalisation technology has already played
becoming the platform of choice for both users doubled as access cards to exclusive events, offers a significant role in enabling fashion retailers
and retailers. and NFT drops. 5% of the holders also received free to tailor their recommendations and marketing
premier delivery on all boohoo orders for a year. strategies to individual customers’ needs and
So, what does it offer the fashion industry? There preferences. By using AI algorithms to analyse
are two ways in which brands can tap into the The fashion retailer, known for partnering with customer data, fashion retailers offer personalised
metaverse: selling virtual goods and marketing and celebrities such as Megan Fox, Kourtney Kardashian recommendations that are more likely to lead to
selling real goods. and Zendaya, also launched a metaverse campaign purchases. For example, Zara has implemented
together with Paris Hilton earlier this year as the a ‘Recommend for you’ feature on its website,
The former has so far been the limit of brand socialite hosted Fashion Week on Roblox. which suggests products based on the customer’s
involvement in the metaverse, with mainstream and browsing and purchase history. This has led to
luxury fashion brands looking to sell virtual designer Already, the metaverse is forecast to be worth some increased sales and customer loyalty.
outfits and goods to use on characters in VR games. $55bn by 2030, not least because virtual goods have
very low creation costs and no inventory overheads In addition to improving customer experience and
The model works pretty much as it would in real to speak of: they are very nearly pure profit. There sales, AI and personalisation technology have also
life: the brand releases a limited number of outfits can be no oversupply, no supply chain hold ups and, enabled fashion retailers to optimise their inventory

management and supply chain operations. By using sales and customer satisfaction. For example, H&M
AI algorithms to predict customer demand, retailers launched an AI-powered chatbot that can answer
can better manage their inventory, reducing waste customer questions, provide outfit suggestions, and
and improving efficiency while enhancing their even place orders for customers. As a result, H&M
increasingly important sustainability claims. saw an increase in sales and customer satisfaction.
For example, Adidas has implemented an ChatGPT could also potentially be used to create
AI-powered system that can predict product demand more tailored and personalised marketing copy
and adjust its production runs accordingly. This has for websites, email marketing and social media. In
enabled Adidas to reduce waste and improve its theory, given enough input data about who it was
sustainability efforts. trying to reach, it could send out unique marketing
messages to each individual customer.
However, we may only be at the start of the
emergence of true personalisation. Currently, levels It is early days with ChatGPT and its rivals such as
of personalisation revolve around ‘best fit’ with Microsoft’s Bard but such in the interest in generative
data being used to assign customers en masse AI that it is sure to start playing a significant role in at
to particular tropes and habits. While it may look the very least automating some creation tasks in the
‘personal’ it is very much not. As AI advances and the coming months. Where it goes after that is anyone’s
quantity of data on each customer expands, so the guess: this is powerful tech and its developmental
personalisation engines will be able to create much pathway is hard to predict.
more granular views of shoppers and create ever
more and truly personal marketing.
Which brings us to the AI du jour – ChatGPT. This is

a ‘generative AI’ that learns and creates text content
based on questions or requests asked of it. For many
school kids it’s currently a great way to get an essay
written, so long as they know what to ask it to do. For
retailers, ChatGPT has a number of roles to play.
ChatGPT has allowed fashion retailers to

communicate with customers in real-time, answering
questions and providing guidance on products [1] www.oecd.org/newsroom/global-economic-outlook-improving-albeit-to-
and services. This has already improved customer a-low-growth-recovery.htm#
engagement and experience for a few retailers [2] www.momentive.ai/en/blog/consumer-purchase-habits-hybrid-
currently experimenting with it, as well as increased shopping/

GLOBAL FASHION REPORT 2023 | FIGURES RXSFS23RP © 2023 retailx.net
Figures
Fashion ecommerce revenue ($bn), 2018-2022 3 Annual revenue for the Accessories market ($bn), Worldwide, 2018-22 15
Annual percent change in fashion ecommerce revenue Average spending of the Accessories e-shopper (USD), Worldwide, 2018-22 15
by category (%), 2018-2022 3 Age split of fashion e-shoppers (%), 2022 17
Average spend of the fashion e-shopper by category ($), 2018-2022 4 Income split for fashion e-shoppers (%), 2022 17
Inflation rate, by region, 2020-2023 5 Frequency of online purchase, fashion e-shoppers (%), 2022 18
Shopping channel share by revenue for fashion Monthly online spend, fashion e-shoppers (%), 2022 18
multichannel shoppers (%), 2018-2022 6 Other goods purchased online by fashion e-shoppers (%), 2022 19
Device usage share by revenue for fashion online shopping (%), 2018-22 6 Reasons for shopping online, fashion e-shoppers (%), 2022 19
Fashion ecommerce revenue by region ($bn), 2018-2022 7 Channels for product discovery, fashion vs general e-shoppers (%), 2022 20
Annual change in fashion ecommerce revenue by region (%), 2018-2022 7 Social commerce revenue worldwide ($bn), 2022-2030 20
Fashion ecommerce market saturation by region (%), 2018-2022 8 Likelihood of influencer recommendations leading to purchase, fashion
Fashion ecommerce market saturation by country (%), 2022 8 e-shoppers, by country (%), 2022 21
Fashion ecommerce revenue by country ($bn), 2022 8 Item types purchased using social media, China, 2023 21
Number of fashion ecommerce users by region (mn), 2018-2022 9 Frequency of advertisements leading to purchase, fashion
Average spend of the fashion e-shopper by region ($), 2018-2022 9 e-shoppers, by country (%), 2022 22
Shopping channel share by revenue for fashion multichannel Frequency of advertisements leading to purchase, cosmetics
shoppers by region (%), 2022 10 e-shoppers (%), 2022 22
Device usage share by revenue for fashion online shopping Revenue share of sustainable apparel worldwide, 2013-2026 23
by region (%), 2022 10 Value of circular fashion business models worldwide by category ($bn), 2030 23
Share of fashion ecommerce revenue by category, 2022 12 Fashion companies’ barriers to improving consumers’ views on
Annual revenue for the Apparel market ($bn), Worldwide, 2018-22 13 their sustainability, 2022 24
Average spending of the Apparel e-shopper ($), Worldwide, 2018-22 13 Purchase channel by sector, United Kingdom, 2023 26
Annual revenue for the Footwear market ($bn), Worldwide, 2018-22 14 Purchase channel by sector, United States, 2023 26
Average spending of the Footwear e-shopper (USD), Worldwide, 2018-22 14 Monthly fashion online shopping expense, United Kingdom, 2023 27

GLOBAL FASHION REPORT 2023 | FIGURES RXSFS23RP © 2023 retailx.net
Monthly fashion online shopping expense, United States, 2023 27 Attitudes towards personal information sharing with fashion retailers,
Importance of latest fashion trend adoption as driver of purchase, United States, 2023 34
United Kingdom, 2023 28 Fashion retailer communication content relevance, United Kingdom, 2023 35
Importance of latest fashion trend adoption as driver of purchase, Fashion retailer communication content relevance, United States, 2023 35
United States, 2023 28 Regularity of fashion retailer newsletter reception, United Kingdom, 2023 35
Attitudes to fashion shopping, United Kingdom, 2023 28 Regularity of fashion retailer newsletter reception, United States, 2023 35
Attitudes to fashion shopping, United States, 2023 28 Requirements for trusting fashion brands’ sustainability claims,
Importance of factors as drivers of fashion purchase, United Kingdom, 2023 29 United Kingdom, 2023 36
Importance of factors as drivers of fashion purchase, United States, 2023 29 Requirements for trusting fashion brands’ sustainability claims,
Importance of factors for online store choice, United Kingdom, 2023 30 United States, 2023 36
Importance of factors for online store choice, United States, 2023 30 Annual growth of web traffic to Asos (%), 2019-2022 41
Importance of try on clothing availability for fashion retailer choice, Annual growth of web traffic to Charlotte Russe (%), 2019-2022 42
United Kingdom, 2023 31 Annual growth of web traffic to Comverse (%), 2019-2022 43
Importance of try on clothing availability for fashion retailer choice, Annual growth of web traffic to Foot Locker (%), 2019-2022 44
United States, 2023 31 Annual growth of web traffic to GAP (%), 2019-2022 45
Importance of online purchase delivery time, United Kingdom, 2023 32 Annual growth of web traffic to Marks & Spencer (%), 2019-2022 46
Importance of online purchase delivery time, United States, 2023 32 Annual growth of web traffic to Shein (%), 2019-2022 47
Share of online orders for which delivery time is important, Annual growth of web traffic to Yoox (%), 2019-2022 48
United Kingdom, 2023 33 Annual growth of web traffic to Zalando (%), 2019-2022 49
Share of online orders for which delivery time is important, Annual growth of web traffic to Zara (%), 2019-2022 50
United States, 2023 33
Attitudes towards personal information sharing with fashion retailers,
United Kingdom, 2023 34

GLOBAL FASHION REPORT 2023 | END MATTER RXSFS23RP © 2023 retailx.net
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£499 September 2023 www.retailx.net

Introduction global fashion ecommerce – $217bn, or around

2 | RetailX | September 2023

Market context Fashion ecommerce revenue ($bn), 2018-2022

3 | RetailX | September 2023

4 | RetailX | September 2023

The complexity of fashion supply chains is

5 | RetailX | September 2023

6 | RetailX | September 2023

14/08/2023, 18:58 RXSFS23-10-v1.html

The most turbulence has been seen across Africa,

This economic hit has impacted the earnings and

7 | RetailX | September 2023

The highest ecommerce usage is seen in Europe,

8 | RetailX | September 2023

GLOBAL USERS AND SPENDING 10/08/2023, 20:20 RXSFS23-15-v2.html

This rise has been driven by the rapid emergence

While the number of ecommerce users has risen

This vast market in Asia, however, is of much lower

9 | RetailX | September 2023

14/08/2023, 19:12 RXSFS23-13-v1.html

Ecommerce in these countries has seen 24%

10 | RetailX | September 2023

11 | RetailX | September 2023

Market segments Share of fashion ecommerce revenue by category,

12 | RetailX | September 2023

This dwindling spend on apparel is a direct result

13 | RetailX | September 2023

This is reflected in the overall annual spending per

14 | RetailX | September 2023

15 | RetailX | September 2023

RESHAPING FASHION: SPORTSWEAR, is worked into their routine. It is now acceptable

Athleisurewear – A combination of sportswear

16 | RetailX | September 2023

17 | RetailX | September 2023

16/08/2023, 20:39 RXSFS23-22-v1.html

18 | RetailX | September 2023

The wider choice afforded by online, along with 24%

19 | RetailX | September 2023

How do global online fashion consumers Pinterest 13%

In recent years, Google search has slipped from

20 | RetailX | September 2023

10/08/2023, 21:45 RXSFS23-27-v1.html

21 | RetailX | September 2023

10/08/2023, 21:48 RXSFS23-18-v2.html

Source: RetailX Consumer Observatory RetailX 2023

22 | RetailX | September 2023

Fashion consumers: Revenue share of sustainable apparel worldwide, 2013-2026

The rise of fast fashion across the world during

Data shows that the proportion of global fashion

23 | RetailX | September 2023

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FASHION’S GLOBAL ENVIRONMENTAL IMPACT accounting for 3% of global CO2 emissions.

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Fashion consumers: a transatlantic focus

UK online shoppers at a glance US online shoppers at a glance

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UK and US Monthly fashion online shopping expense, United Kingdom, 2023

consumers Less than $13 11%