by The UK fashion ecommerce market has witnessed rapid growth in recent years driven by rising internet and smartphone penetration along with the growing preference of shoppers towards online platforms over brick and mortar stores. The fashion products available online ranges from clothing, footwear, apparels and accessories catering to both male and female consumers. Shopping online offers various advantages such as convenience of shopping from home at own flexibility of time along with better options and discounts. The growing focus of retailers towards digital innovations in supply chain and delivery has also augmented the growth of this market.
The Global UK fashion ecommerce market is estimated to be valued at US$ 85.51 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the UK fashion ecommerce market are H&M, Zalando, Amazon Fashion, Primark, Topshop, River Island, Missguided, PrettyLittleThing, ASOS, Boohoo, Next, Very, Marks & Spencer, John Lewis, New Look, JD Sports, Farfetch, Gymshark, Reiss, and AllSaints. These players dominate the market owing to their strong presence online along with wide range of fashion collection at competitive prices.
The UK Fashion Ecommerce Market Demand offers various opportunities such as personalized styling and shopping service, livestream selling of products and expansion of fashion rental and resale businesses. The growing focus of retailers towards sustainability is also generating opportunities for rental and resale of used fashion items online.
Globally, the UK remains one of the lucrative markets for fashion ecommerce owing to rising disposable income, strong retail infrastructure and growing young population. Various UK retailers are expanding their operations in international markets like US, European and Asian countries to capture the growing demand for British fashion brands from across global locations.
Market Drivers
The key driver for the growth of UK fashion ecommerce market is the increasing trend of online shopping. Over the years, there is significant rise in number of people shopping online from smartphones and tablets. This has augmented the sales of fashion items via various online platforms. Another major driver is the availability of wide range of products at lower prices and discounts over online channels. The ability to compare prices online has encouraged more fashion shoppers towards ecommerce in the UK. Furthermore, the ongoing covid-19 pandemic has accelerated online shopping behavior in the country pushing the growth of this particular market.
PEST Analysis
Political: Brexit has created uncertainty in trading relationships and consumer spending. Restrictions imposed in response to COVID-19 further impacted consumer behavior and retail operations.
Economic: High inflation and rising cost of living have reduced consumer purchasing power. However online shopping remains a cheaper alternative to high street retail. Recession fears could impact discretionary spending.
Social: Younger consumers are the primary adopters of ecommerce and own multiple online brand accounts across different channels. Online platforms help project personal styles and identities.
Technological: Advancements in mobile technologies, AR/VR and AI are enhancing online shopping experiences. Big data analytics help customize offerings per consumer preferences and behaviors. Growth of social commerce platforms tapped social influencer marketing.
The UK fashion ecommerce market is concentrated majorly in English cities and towns with populations above 250,000. London followed by Manchester, Birmingham and other large urban centers account for over 60% of the total online fashion sales in value terms. High density of internet connectivity and familiarity with digital platforms in tier 1 cities drives their concentration of the market.
Besides established markets, Scotland in particular has emerged as one of the fastest growing regions for UK fashion ecommerce. Growing appetite for homegrown fashion brands along with improvements in logistics infrastructure is aiding double digit growth rates in Scottish ecommerce. Younger demographic structure and rising incomes fuel online spending, especially in cities like Edinburgh and Glasgow.
