News

Online fashion market is dominated by marketplaces and is set to grow to € 175 billion in 2025

The online fashion market is famous and online marketplaces like Amazon, Zalando, and eBay dominate the market. Zalando has the largest market share for online clothing. By 2025, the European online fashion retail market is expected to rise by 50%. This market’s online revenue will total 175 billion euros or 33% of the total for the retail branch. Markets that operate across borders are what primarily fuel this expansion.

In its 16 largest markets, the fashion market will grow its total turnover by 10%, to € 525 billion. According to a survey from Cross-Border Commerce Europe, the market’s online development will be driven by websites and apps like Vinted.

Demand pressures from inflation

The experts predict that the sharp price increase in 2022 will impact the demand for fashion items. Consumers pay higher prices due to the present rise in freight, energy, raw material, and labor expenses. “Considering the sharp rise in online returns, inflationary pressures seem to affect customer behavior online. It explains how clients find that, after making a purchase, they do not have as much money to spend as they believed when they check their bank account,” the report claims.

Online shopping will stay

On the other hand, the researchers expect that consumers who had to shop online during the pandemic will continue. “Much of the online shopping behavior that emerged during the pandemic is here to stay,” says Carine Moitier of Cross-Border Commerce Europe.

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