The global fashion industry is estimated to be worth £1tn, excluding footwear and jewelry. Changes are taking place in the fashion industry at an incredible rate, with declining footfall figures on the high street, fast fashion and a growing concern over climate change all playing a part in fashion’s evolution.
Although research suggests that the fashion industry will continue to grow by six percent a year, according to Statista, the forecast is that e-commerce sales will grow by as much as 12.2 percent annually up to 2023.
The growth of e-commerce in the fashion industry – analytics
An advantage of the e-commerce fashion industry is that sales made online can be tracked, from managing inventory to the ability to get insight data on customer behavior and use the findings from this data to enhance the customer experience.
According to Forbes, there could be huge changes in the fashion industry using advanced technologies such as artificial intelligence, machine learning and advances in blockchain and cryptocurrencies that will enable manufacturers, wholesalers, and retailers to work together more closely.
Social media influence
The effectiveness of social media use on influencing consumer choice in the fashion industry is huge. Influencers with enormous numbers of online followers can deliver great content to their followers and link straight to an e-commerce platform where products ranging from Farah shirts to Zegna coats are just a click away.
Fashion retailers selling online are able to harness the effectiveness of social media and can use celebrities; their images and videos can attract millions of views and customers are likely to revisit the sites, influenced by the fact that the products are used by the rich and famous and admired by many.
For example, EJ Menswear is known for its use of social media and viral videos and has used celebrities including Nathan Carter, Brent Pope, Conor McGregor, and former Olympic and current professional boxer Michael Conlan and styled them in different designer brands. What could be more persuasive than seeing a well-known celebrity wearing the latest Farah shirts and knowing that you can be just a click away from ordering them?
The use of digital e-commerce technology enables fashion manufacturers to accurately monitor their ROI by tracking financial market analysis and using this to make informed decisions on marketing budgets.