The global US Fashion Ecommerce Market is estimated to be valued at US$ 248.07 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The US fashion ecommerce market involves the online sale of apparel, footwear, accessories and other related products by fashion retailers in the US. With growing internet and smartphone penetration, consumers are increasingly preferring to shop fashion products online owing to the convenience and wide variety offered on various fashion ecommerce platforms. Major fashion ecommerce platforms allow customers to browse through millions of styles, read reviews, compare prices and get the products delivered at their doorsteps. This has made online shopping more attractive than traditional brick-and-mortar stores.
Market key trends:
One of the key trends in the US fashion ecommerce market is the rising popularity of social media and influencer marketing. Fashion brands and retailers are actively using social media platforms such as Instagram, Facebook and Snapchat to promote new collections and trends. They engage with influencers who endorse and promote fashion products to their millions of followers. This has emerged as an effective way to target younger audiences. Furthermore, the COVID-19 pandemic accelerated growth of online shopping as people avoided visits to physical stores. Even as stores have reopened post lockdowns, many consumers have developed the habit of online shopping for its convenience. Major fashion retailers have also strengthened their direct-to-consumer presence and Omni channel capabilities to cater to the rising demand.
Porter’s Analysis:
- Threat of new entrants: The threat of new entrants is moderate as the US fashion ecommerce market is highly competitive dominated by global giants like Amazon, Walmart, and eBay. However, capital requirement for setting up large scale operations is high.
- Bargaining power of buyers: Bargaining power of buyers is high given the availability of wide range of options across different price points and brands for fashion products online. Buyers can easily compare and choose affordable options.
- Bargaining power of suppliers: Bargaining power of suppliers is moderate as there are large number of suppliers and brands for fashion products. However, popular brands may have stronger position in negotiations.
- Threat of new substitutes: Threat of new substitutes is high with the rising popularity of fast fashion and trends in fashion. Customer preference can quickly shift to new brands and trends.
- Competitive rivalry: The competitive rivalry in the market is high given the presence of global retailers and pure online fashion players.
Key Takeaways:
The Global US Fashion Ecommerce Market Demand is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing popularity of online shopping and rise of direct-to-consumer brands. The market size for 2023 is expected to reach US$ 108.10 Bn.
The western region dominates the US fashion ecommerce market owing to high spending power of consumers and strong penetration of internet and smartphones. States like California, Texas and New York account for over 50% market share. Southern and Mid-western regions are also catching up quickly.
Key players operating in the US fashion ecommerce market are Amazon, Walmart, Ebay, Macys, Gap, Nike, Target, Nordstrom, JCPenney, Kohls, Wayfair, Best Buy, Home Depot, Sephora, Ulta Beauty, Forever 21, H&M, Zara, Urban Outfitters, ASOS. Amazon leads the market with over 50% market share while other major players like Walmart, eBay are expanding their fashion offerings. Nike, Adidas are also enhancing their direct-to-consumer channels.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.