Technavio, a leading market research firm, recently published a report on the US online fashion retail market, highlighting its growth, size, and trends. According to the findings, the US online fashion retail market is estimated to grow by USD 151.76 billion from 2021 to 2026, with a compound annual growth rate (CAGR) of 12.98%. This growth is primarily driven by the rise in online spending on fashion products such as apparel, footwear, and accessories.
The market has been segmented based on product categories, including apparel, footwear, and bags and accessories, and end-users, such as women, men, and kids. The apparel segment is expected to account for a significant share of the market’s growth during the forecast period. Brands in the US are increasingly using technologies like machine learning to analyze shopping data of potential buyers and personalize each shopping session, contributing to the growth of this segment.
The report also highlights some of the key trends shaping the online fashion retail industry in 2023, including metaverse, social shopping, fit technology, omnichannel retail, supply chain innovation, second-hand fashion, diversity and inclusivity, and personalization and customization. These trends reflect a more innovative and inclusive approach to fashion.
In terms of market size, the global e-commerce fashion industry reached an overall market value of 668 billion U.S. dollars in 2021 and is expected to reach a value of 1.2 trillion U.S. dollars by 2025. The US e-commerce fashion market alone accounted for over 20 billion U.S. dollars in 2021, with a combined CAGR of over 13% between 2017 and 2027.
Despite the promising growth, the online fashion retail market faces challenges such as security and privacy concerns. Many online retail fashion brands use consumer data, like location data, to send notifications about price updates, new offers, and discounts. E-commerce and m-commerce involve monetary transactions via payment gateways, which can lead to the theft of financial data.
Overall, the US online fashion retail market is poised for significant growth in the coming years, driven by increased online spending, technological advancements, and innovative industry trends. However, addressing security and privacy concerns will be crucial for sustaining this growth and maintaining consumer trust.