2022
9
UK Fashion Online Market Report 2022
2022-07-07T04:06:52+01:00
OX1103031
2195
152756
[{"name":"eCommerce","url":"https:\/\/store.mintel.com\/industries\/retail\/ecommerce"}]
Report
en_GB
“In 2022, while growth in the online fashion market has slowed, the channel continues to capture a significantly greater share (44%) of overall spending on clothing and footwear than pre-pandemic.

UK Fashion Online Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Fashion Online Market Report identifies recent changes in consumer shopping behaviours when buying fashion online, the leading online retailers and the impact of rising inflation on the online fashion market. This report covers the UK online fashion market size, market forecast, market segmentation and future fashion ecommerce trends.

 

Current Landscape of the eCommerce Fashion Industry

The pandemic saw unprecedented growth for the ecommerce fashion industry, particularly during lockdown periods, yet this now follows a period of consistent decline in 2022 as more demand returns to stores.

Meanwhile, the cost-of-living crisis will constrain demand for the online fashion market in the short term as most of the fashion market is discretionary and therefore exposed to consumers cutting back spending.

 

Online Fashion Market Share and Key Industry Trends

Mintel’s ecommerce fashion industry analysis identifies that the financially confident Generation Z members will still place fashion as a priority. While many of these consumers will continue to favour buying clothes and footwear from low-priced fast fashion retailers, there are growing fashion ecommerce trends surrounding awareness about the environmental and sustainability impact. The pushback from this generation is likely to turbo-charge the second-hand, rental and subscription online fashion markets.

  • Online fashion market size: Online fashion sales have declined by 6.1% in 2022 to £31.4bn.
  • Online fashion market share: 57% of adults who bought fashion from an online-only retailer did so using Amazon.
  • 55% of consumers have used a desktop/laptop to purchase fashion items online.
  • 55% of Brits agree that discounts/promotions influence which online retailer they purchase from.

Future Fashion eCommerce Trends

Mintel’s ecommerce fashion industry analysis outlines that the outlook is positive for the online fashion market in the long term with the fashion sector benefitting from a continued shift towards online, further technology advancements and a more integrated multi-channel market.

However, the rising rate of returns, exacerbated by heightened online shopping due to the pandemic, remains a threat to the ecommerce fashion industry, as it is very costly for businesses financially and environmentally.

To discover more about the UK Fashion Online Market Report 2022, read our UK Fashion: Inclusivity and Diversity Market Report 2022or take a look at our extensive Clothing, Footwear and Accessories Market Research.

 

Quickly Understand

  • Explores how will the cost of living squeeze impact the online fashion market.
  • Analyses the online fashion market growth COVID-19 and forecasts how well the ecommerce fashion industry will matures.
  • Outlines how and where people have bought fashion online in the last 12 months and the growth in smartphone purchasing.
  • Changes in shopping behaviours when buying fashion online in the last year and demand for enhanced deliveries.
  • Investigates what retailers can do to help consumers find the correct size/fit when buying clothes online.
  • Explores the online fashion market size and online fashion market share.

Covered in this Report

Brands: Shein, JD Williams, Boohoo, Farfetch, ASOS, eBay, Very, Amazon, Debenhams, Simple Be, Jacomo, MandM Direct, Missguided, Mennance, Zalando, Boden, Net-a-Porter, Sosander, Marks and Spencer, TX Maxx, New Look, Matalan, H&M, Next, Sainsbury’s, Sports Direct, John Lewis, PrettyLittleThing, Nasty Gal, Facebook, YouTube, Instagram, Twitter, TikTok, Pinterest, Twitch, Snapchat.
Products:
Men, women and children’s clothing, footwear, and fashion accessories.

Expert Analysis from a UK Fashion Retail Specialist

This report, written by Tamara Sender Ceron, a leading analyst in the Clothing and Footwear sector, delivers in-depth commentary and analysis to highlight current trends in the online fashion market and add expert context to the numbers.

In 2022, while growth in the online fashion market has slowed, the channel continues to capture a significantly greater share (44%) of overall spending on clothing and footwear than pre-pandemic. As consumers cut back on discretionary spending amid the worsening cost-of-living crisis, online fashion sales at value-focused retailers and pureplays will benefit from consumers trading down and hunting for bargains. But there are opportunities for fashion retailers to use their online platforms to drive growth in alternative revenue streams such as second-hand and rental/subscription markets, particularly as a desire to refresh wardrobes on a budget combines with eco-led behaviours. ”

Tamara Sender Ceron
Fashion Retail – Associate Director

 

 

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for online fashion
      • Figure 1: Category outlook, 2022-27
    • The market
    • Online fashion sales weaken as cost pressures increase
      • Figure 2: Best- and worst-case forecast for consumer spending on online fashion, 2017-27 (prepared in June 2022)
    • Online captures 44% of fashion spending
      • Figure 3: Online as a percentage of all spending on clothing, footwear and accessories, 2016-22
    • Inflation is the key concern for 2022 for consumers, brands and the economy
    • Companies and brands
    • Brands experiment with live shopping
    • Shein usage soars
      • Figure 4: Attitudes towards and usage of selected online-only brands, 2022
    • The consumer
    • Footwear and womenswear most purchased online
      • Figure 5: Fashion items bought online in the last 12 months, 2022
    • Older Millennials’ usage of smartphones for fashion soars
      • Figure 6: How consumers have bought fashion items online in the last 12 months, 2022
    • Young pureplay fashion market becomes more competitive
      • Figure 7: Retailers without physical stores from where consumers have bought fashion online in the last 12 months, 2022
    • Next grows online, but value retailers set to benefit
      • Figure 8: Retailers with physical stores from where consumers have bought fashion online in the last 12 months, 2022
    • Wide range of products is important
      • Figure 9: Most important factors when choosing one retailer over another when buying fashion, 2022
    • Gen Zs worry about unsustainable packaging
      • Figure 10: Agreement with shopping behaviours when shopping for fashion online, 2022
    • Women find customer reviews most useful
      • Figure 11: Most useful tools to help with finding the correct size/fit when shopping online for clothes, 2022
  3. Issues and Insights

    • Impact of cost-of-living squeeze on online fashion
    • What are the main opportunities for growth in online fashion?
    • Adapting to a new digital reality
    • Promoting social commerce
    • Enhancing delivery options
    • Tapping into user-generated content
    • Using fit solutions to reduce the growing issue of returns
  4. Market Size and Performance

    • Online fashion sales begin to fall in 2022
      • Figure 12: Online consumer spending on clothing, footwear and accessories, 2017-22
    • Online captures 44% of fashion spending
      • Figure 13: Online as a percentage of all spending on clothing, footwear and accessories, 2016-22
  5. Market Forecast

    • Five-year outlook for online fashion
      • Figure 14: Category outlook, 2022-27
    • Online fashion sales weaken as cost pressures increase
      • Figure 15: Best- and worst-case forecast for consumer spending on online fashion, 2017-27 (prepared in June 2022)
      • Figure 16: Consumer spending on online fashion, 2017-27
    • Pureplays see slowdown in sales
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2016-26
    • Learnings from the last income squeeze
      • Figure 18: Value sales of online clothing, footwear and accessories, 2006-12
    • Forecast methodology
  6. Market Drivers

    • Personal ownership of consumer technology products
      • Figure 19: Personal ownership of consumer technology products, 2021
    • Social media use
      • Figure 20: Social media use, 2022
    • Catering to an ageing population
      • Figure 21: Trends in the age structure of the UK population, by gender, 2021 and 2026
    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID-19 bounce-back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern for 2022 for consumers, brands and the economy
      • Figure 22: Overall CPIH and garment CPIH percentage change, 2021-22
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 23: Household financial wellbeing index, 2016-22
    • …and concerns over inflation are coming to the fore
      • Figure 24: Consumer concerns about household finances, 2021-22
  7. Market Shares

    • Amazon has the largest share, but pureplays see declining growth
      • Figure 25: Top ten online fashion retailers in the UK by estimated market share, 2021
      • Figure 26: Top online fashion retailers in the UK by estimated market share, 2020 and 2021
  8. Launch Activity and Innovation

    • Fashion brands develop sizing and fitting tools online
    • Meta acquires Presize, betting on virtual sizing technology
    • The Very Group to launch personalised size and fit tool across 300 fashion brands
      • Figure 27: The Very Group and Truefit too, 2022
    • Fashion brands add third-party offering
    • Mountain Warehouse opens online marketplace
    • Yoox debuts online high-end fashion marketplace
    • Arket adds third-party brand for the first time
    • Brands diversify offering outside fashion
    • Mango to sell Ritual Cosmetics online
    • Farfetch to launch its own beauty marketplace with over 100 brands
    • More fashion brands enter rental market
    • M&S teams up with Dotte to launch childrenswear resale service
    • Little Mistress partners with Hirestreet for rental service
      • Figure 28: Little Mistress, 2022
    • Boohoo to launch resale platform for each of its 13 brands
    • French Connection launches rental service from its own website
    • Sustainable launches take on several formats
    • JD Williams launches sustainable brand Anise
    • YOOX launches RETHINK WITH <3
    • Hugo Boss enters resale market with own platform Hugo Boss Pre-Loved
    • Brands experiment with live shopping
    • M&S to inspire customers via live stream shopping on its website
    • Klarna launches Virtual Shopping via its Store App
      • Figure 29: Klarna’s live shopping feature, 2022
    • Threads launches ecommerce and live shopping
    • Savage X Fenty launches live shopping
    • Omnichannel shopping post-COVID accelerates role of technology in stores
    • Nike’s Rise concept store
      • Figure 30: Nike’s inside track feature at its rise concept store in Seoul, 2021
    • Amazon’s first physical fashion store
      • Figure 31: Amazon Style fitting room technology, 2022
    • Website launches
    • Primark to relaunch website by the end of March
    • M&S launches Goodmove on third-party sports website
    • Bottega Veneta launches app with AR filter
  9. Advertising and Marketing Activity

    • Ad spending soars in 2021
      • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on fashion by pureplays, 2018-22
    • Shein the top ad spender in 2021
    • Shein and Klarna launch pop-up
      • Figure 33: Klarna and Shein pop-up, 2022
    • Shein launches purposeful collection ‘evoluSHEIN’
      • Figure 34: Total above-the-line, online display and direct mail advertising expenditure on fashion by pureplays, by top advertisers, 2018-22
    • Digital channel dominated ad spending
      • Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure on fashion by pureplays, by media type, 2021
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 36: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 37: Key metrics for selected brands, 2022
    • Brand attitudes: Very is highly trusted
      • Figure 38: Attitudes, by brand, 2022
    • Brand personality: Shein perceived as fun, but unethical
      • Figure 39: Brand personality – macro image, 2022
    • Thread seen as aspirational and Farfetch as expensive
      • Figure 40: Brand personality – micro image, 2022
    • Brand analysis
    • Shein’s usage soars
    • Amazon and eBay expand fashion offer
    • Very seen as stylish
    • Farfetch and Thread expand their offering
  11. Fashion Items Bought Online

    • Footwear and womenswear most purchased online
      • Figure 41: Fashion items bought online in the last 12 months, 2022
    • Three in 10 men have not purchased fashion online
      • Figure 42: Fashion items bought online in the last 12 months, by gender, 2022
    • Gen Zs and Younger Millennials buy most range of items
      • Figure 43: Repertoire of fashion items bought online in the last 12 months, by age group, 2022
  12. How They Shop

    • Big rise in smartphone purchasing
      • Figure 44: How consumers have bought fashion items online in the last 12 months, 2022
    • Older Millennials usage of smartphones for fashion soars
      • Figure 45: Consumers who have bought fashion items online via a smartphone in the last 12 months, by age group, 2020 and 2022
    • Growth of marketplace app usage
      • Figure 46: How consumers have bought fashion items online, 2022
  13. Where They Shop

    • Multichannel retailers remain most popular
      • Figure 47: Types of retailers used to purchase clothing online in the last 12 months, 2022
    • Young pureplay fashion market becomes more competitive
      • Figure 48: Retailers without physical stores from where consumers have bought fashion online in the last 12 months, 2022
    • Next grows online, but value retailers set to benefit
      • Figure 49: Retailers with physical stores from where consumers have bought fashion online in the last 12 months, 2022
      • Figure 50: Repertoire of retailers with physical stores and online-only retailers from where consumers have bought fashion online in the last 12 months, 2022
  14. Most Important Factors When Buying Fashion Online

    • Wide range of products is important
      • Figure 51: Most important factors when choosing one retailer over another when buying fashion, 2022
    • Enhancing delivery options
      • Figure 52: Most important factors when choosing one retailer over another when buying fashion, 2022
    • Baby Boomers most brand loyal
  15. Shopping Behaviours

    • Close to six in 10 return items purchased online
      • Figure 53: Agreement with shopping behaviours when shopping for fashion online, 2022
    • Gen Zs worry about unsustainable packaging
      • Figure 54: Agreement with statement ‘I am concerned about the environmental impact of packaging used when shopping for fashion online’, by generation, 2022
    • Young Gen Zs buy and share fashion on social media
      • Figure 55: Agreement with statements about online fashion shopping behaviours, by generation, 2022
    • Ensuring online shopping is enjoyable
  16. Finding the Correct Size/Fit When Buying Online

    • Women find customer reviews most useful
      • Figure 56: Most useful tools to help with finding the correct size/fit when shopping online for clothes, 2022
    • Developing accurate online fit tools
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  18. Appendix – Forecast Methodology

    • Market forecast
      • Figure 57: Best- and worst-case forecast for consumer spending on online fashion, 2022-27
    • Market drivers and assumptions
    • Forecast methodology

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This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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