According to a new study, online spending will increase over the next years because to a persistent urge to buy clothing after brick-and-mortar retailers closed in the midst of the Covid pandemic. According to a survey created by Just Style’s parent firm, GlobalData, the global apparel market increased 18.7% to US$456.8 billion in 2020 as the pandemic drove merchants to close stores in an effort to stop the virus’s spread. The trend is expected to continue.
The worldwide apparel market is anticipated to increase by 59.2% between 2021 and 2025, reaching $821.4 billion in 2025, according to the report “Global Online Apparel Market & Forecasts to 2025.” The paper examines the major trends and pressing concerns that astute clothing companies and retailers should take advantage.
Global online apparel market drivers
Enduring hybrid employment
After the pandemic, a lot of companies adopted hybrid working arrangements, which, according to the report’s authors, allows the online channel to keep its attraction because customers can still take advantage of home delivery alternatives. Similarly, fewer time spent at work means that customers are less likely to frequent local city and town centre stores throughout the course of the week, according to GlobalData.
The pandemic taught consumers to value their time, and as a result, many are now looking for more convenient shopping options. Smart clothing companies have taken note of consumers’ desire to spend more time socialising and are increasing their online platform investments to increase productivity and enhance the shopping experience by incorporating fulfilment alternatives like Click &Collect and third-party pickup.
2. Influx of older consumers shopping online
Meanwhile, as bricks-and-mortar retail was forced to close, many consumers who had never shopped for apparel online before were forced to try it for the first time. The report explains these consumers are typically older and less digitally literate, so are more accustomed to shopping in-store. However, this demographic is now much more open to browsing and shopping online for some products, so brands must ensure they are making their online proposition accessible to all generations, particularly those whose consumer base is largely composed of older shoppers.
3. Widespread use of apps
The report also points to the use of apps for online shopping as becoming more prevalent globally, particularly as many apparel brands have strengthened their capabilities in response to an accelerated shift to online. Brands including Nike and Zara are integrating the use of apps with physical stores, streamlining the in-store experience for consumers, and encouraging sales through the app, explains GlobalData.
“On social media apps, the growing use of in-app shopping features and shoppable livestreams will make it easier for shoppers to purchase online, particularly as more time is now spent on social media in the wake of the pandemic,” the report states.