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.
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.
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
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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