Rising living costs are still a factor for the vast majority of consumers. However, we are seeing differences in the rate of recovery, with higher earners the most likely to say it is no longer an issue. Even then, numbers are small – 6% saying this. While there may be potential in retailers targeting these consumers to help recovery in sales, the vast majority of shoppers will continue to focus on price and value when shopping online for fashion in the immediate future.
Competition from new entrants continues to ramp up. Launched in 2016, Shein has achieved incredible scale in a very short amount of time, as has Temu. Shein is the fourth most popular place to buy fashion online, above specialists such as H&M, ASOS, Zara and New Look and, among young 16-24 women, is the most popular retailer. With the upcoming UK launch of its second-hand platform, Shein Exchange, it has the potential to shake up the peer-to-peer second-hand fashion market (currently dominated by Vinted) as much as it has the mainstream fashion market.
There are still numerous opportunities in the online fashion market, including a greater focus on second-hand, with thrifting now a big trend among younger fashion shoppers, increased use of AI to speed up and personalise search and make it more intuitive and the potential to further develop social commerce.
This report looks at the following areas:
- The size of the online fashion market, market segmentation by type of retailer and forecasts through to 2029
- How consumer behaviour relating to buying fashion online is changing as the cost-of-living crisis begins to ease
- Leading online retailers’ sales and market share
- Key launches and innovations within the online fashion market in the past year
- Levels of engagement in online fashion shopping (including buying new and second-hand)
- Which retailers are the most popular
- Online fashion shopping behaviours
- Attitudes towards shopping for fashion online
Increased competition from new entrants is forcing established players to respond with innovations in areas such as search, social commerce and second-hand.
Michael Oliver, Senior Retail Analyst
Market Definitions
For the purposes of this Report, Mintel has used the following definitions for online fashion:
• Clothing for men, women and children, including both underwear and outerwear.
• Footwear, including shoes, boots and any other type.
• Fashion accessories such as handbags, scarves and costume jewellery.
The market is defined as all purchases where transactions are made through the retailer’s website or app, social commerce platform, or through a marketplace, rather than by other ordering methods, even if the product is viewed online prior to purchase.
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Executive Summary
- Opportunities for the online fashion market
- Tap into growing demand for buying second-hand fashion
- Increase focus on social commerce
- Innovate with faster, more convenient search
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- Market size and forecast
- Cost of living crisis still a factor despite fall in inflation
- What consumers want and why
- Three quarters of all UK consumers have shopped for clothing online
- Graph 1: fashion items purchased online in the last 12 months, 2022 and 2024
- The second-hand fashion market is gaining momentum
- Graph 2: types of fashion items bought online in the last 12 months, 2024
- Equal numbers shop online with store-based retailers as with pure-players
- Graph 3: retailers used for shopping online for new fashion items, 2024
- Amazon is the most popular retailer overall for shopping online for new fashion items
- Mainstream retailers ramping up competition for the peer-to-peer marketplaces in the second-hand sector
- Graph 4: retailers used for shopping online for second-hand fashion items, 2024
- A wide range of brands is a key motivator for buying fashion online
- Graph 5: factors to encourage shopping at one online retailer over another, 2024
- Social commerce and AI are set to revolutionize the fashion industry
- Graph 6: consumer behaviours when shopping online for fashion, 2024
- Almost 80% shop around when buying fashion online
- Graph 7: consumer attitudes to shopping for fashion online, 2024
- Retailer activity
- Amazon retains top spot
- Graph 8: online fashion market shares, 2024
- Ad spend falls and retailers shift more of their budgets to digital
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Market Dynamics
- Market size
- Online fashion returns to growth
- Online fashion market returns to growth after blip
- Graph 9: the market for fashion online*, 2019-24(e)
- Online increases its share of fashion spending
- Graph 10: online fashion spending as a percentage of total fashion spending, 2019-24
- Market forecast
- Online fashion market predicted to grow to £41bn by 2029
- Different rates of recovery from the cost of living crisis will impact online fashion demand
- Technology improvements will drive online fashion demand
- Market segmentation
- Clothing and accessories is the dominant segment
- Graph 11: spending on online fashion, by broad product category, 2019-23
- Channels of distribution
- Multi-channel retailers take biggest share of online fashion sales
- Graph 12: estimated breakdown of online fashion sales by type of retailer, 2019-23
- Specialists’ online sales broadly match the market
- Graph 13: online retail sales of specialist clothing and footwear retailers, by type of retailer, 2019-23
- Macro-economic factors
- Only 3% of consumers say cost of living crisis is no longer a problem
- Graph 14: perception of the state of the cost of living crisis in the UK, 2024
- Fashion price inflation has fallen back from its 2022 peak…
- Graph 15: trends in annual consumer price inflation, by fashion segment, 2019-23
- …and has continued to fall during the first half of 2024
- Graph 16: trends in annual consumer price inflation, by fashion segment, by month, 2022-24
- 42% plan to buy new clothes in the next three months
- Graph 17: recent and planned spending activity relating to buying new clothes, 2024
- 83% of female 16-34s have engaged with Instagram
- Graph 18: usage of top social media platforms in the last three months, 2019-24
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What Consumers Want and Why
- Fashion items bought online
- Numbers buying fashion online is growing
- Number buying fashion online is growing
- Graph 19: purchasing of fashion online* in last 12 months, 2022 and 2024
- Younger men shop for fashion online as much as young women
- Graph 20: demographics of online fashion shoppers, 2024
- Number buying fashion online is growing
- Footwear and accessories buying is up most
- Graph 21: fashion items bought online, 2022 vs 2024
- New vs second-hand shopping for fashion online
- Over a quarter buy second-hand, with younger consumers the most engaged
- Second-hand shopping is most popular among young fashion shoppers
- Young women most likely to have embraced second-hand
- Graph 22: second-hand online fashion shoppers, by gender and age, 2024
- Appeal to sustainability sensibilities
- Demonstrate value beyond price
- Online can be a better way to curate a second-hand offer than in-store
- Graph 23: types of fashion items bought online, 2024
- Where they shop for fashion online
- Equal usage of pure-players and store-based retailers
- Pure-players and store-based retailers are now on a par
- Graph 24: retailers used for buying new fashion items from online, 2022 vs 2024
- Amazon is the most used retailer for buying new clothing online
- Graph 25: retailers with physical stores used for buying new fashion items from online, 2024
- Graph 26: retailers without physical stores used for buying new fashion items from online, 2024
- Amazon is a key destination for older men
- Shein is used by 47% of young women and 15% of young men
- Graph 27: most popular retailers for buying new fashion items online, male 16-24 year olds, 2024
- Graph 28: most popular retailers for buying new fashion items online, female 16-24 year olds, 2024
- Shein shoppers most likely to also shop with other value-oriented online brands
- Graph 29: most popular retailers for buying new fashion items online in the last 12 months, by those who have bought new fashion items online at Shein in the last 12 months, 2024
- Peer-to-peer platforms dominate the second-hand market
- Graph 30: retailers used to purchase second-hand fashion items online, 2024
- But there are clear opportunities for store-based retailers
- Most important factors when buying fashion online
- Choice of brands and options for delivery and returns are key factors driving demand in online fashion
- A wide range of brands is a key motivator for buying fashion online
- Graph 31: factors to encourage shopping at one online retailer over another, 2024
- Older people want more brands while younger shoppers want more product types
- Graph 32: motivations to choose one online fashion retailer over another, 2024
- Loyalty schemes hold appeal for Gen Zs and Millennials
- Graph 33: motivations to choose one online fashion retailer over another, 2024
- Tailor loyalty schemes to younger shoppers
- A choice of delivery and returns options are an expectation
- Delivery and returns – what are consumer needs ?
- Graph 34: motivations to choose one online fashion retailer over another, 2024
- Online fashion shopping behaviours
- High levels of scepticism about AI and technology
- Graph 35: consumer behaviours when shopping for fashion online, 2024
- But more positivity among younger consumers, particularly female Gen Zs
- Graph 36: consumer behaviours when shopping for fashion onine, 2024
- Sustainability – an income divide
- Graph 37: consumer behaviours when shopping for fashion onine, 2024
- Burgeoning interest in social commerce
- Burgeoning interest in social commerce…
- Graph 38: consumer behaviours when shopping for fashion online, 2024
- …opening new promotional opportunities for fashion retailers
- Blended shopping – opportunities for retailers to integrate digital into their stores
- Graph 39: consumer behaviours when shopping for fashion online, 2024
- The future is ‘phygital’
- Attitudes to online fashion shopping
- Younger men enjoy shopping online for fashion most
- Graph 40: attitudes to aspects of shopping online for fashion, 2024
- Graph 41: attitudes to aspects of shopping online for fashion, 2024
- Shoppers want product details and reassurance
- Graph 42: attitudes to aspects of shopping online for fashion, 2024
- Interest building in second-hand fashion online…
- …opening up opportunities for mainstream retailers in the pre-loved space
- Graph 43: attitudes to aspects of shopping online for fashion, 2024
- Diversity and inclusion – important to all
- Graph 44: attitudes to aspects of shopping online for fashion, 2024
- Savvy shopping behaviours persist
- Graph 45: attitudes to aspects of shopping online for fashion, 2024
- A split in attitudes towards the fashion industry’s environmental impact
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retailer activity
- Leading online retailers and market shares
- Amazon retains top spot
- Graph 46: online fashion market shares, 2024
- Up and coming Asian discount platforms are disrupting the market
- Third party brands continue to resonate
- Second-hand takes off in a big way
- Shein set to shake up the second-hand market
- John Lewis expands its pre-loved online offer
- TikTok Shop expands into ‘Pre-Owned Luxury’
- AI tools play a growing role
- Returns fees being adopted by more retailers…
- …but the right balance needs to be found
- Returns most likely to affect retailers with younger core fashion shoppers
- Graph 47: number of items returned in the last three months, by generation, 2024
- Social commerce gains momentum
- Live fashion shopping comes to the UK
- Online-only fashion retailers use stores to bridge the gap between digital and physical
- Advertising and marketing activity
- Ad spend has almost halved since 2021
- Graph 48: total above-the line, online display and direct mail advertising expenditure on online fashion*, 2020-23
- Otto brands lead the way
- Shein runs #SHEINtrendy campaign
- …and showcases products through makeovers
- ASOS Spring/Summer 2024 campaign Unreal Finds focuses on style discovery and fashion inspiration
- boohoo’s advertising is more product- and price-focused
- Very looks to underline ‘on-trend’ credentials
- Digital is the most popular advertising media
- Graph 49: percentage breakdown of total above-the line, online display and direct mail advertising expenditure on online fashion*, 2023
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Appendix
- Market forecast data and methodology
- Market size and forecast
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Nielsen Ad Intel coverage
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