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UK Fashion Ecommerce Market is Estimated To Witness High Growth Owing To Convenience

Anjali CMI
UK Fashion Ecommerce Market is Estimated To Witness High Growth Owing To Convenience

The UK Fashion Ecommerce Market is estimated to be valued at US$ 31.19 Bn in 2022 and is expected to exhibit a CAGR of 15.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The UK Fashion Ecommerce market represents retail sales of clothing, footwear, accessories and other fashion products through online channels. The UK Fashion Ecommerce industry has grown significantly over the past decade owing to convenience of ordering from home and receiving products directly. This has helped build a large customer base and increased product discovery.

Market key trends:

Convenience of online shopping has been a key driver of growth in the UK Fashion Ecommerce market. Customers can browse products from leading brands and retailers at any time without having to visit physical stores. They can also conveniently order multiple items from different brands in one go and get them delivered directly. This has boosted the popularity of online shopping especially among time-pressed consumers. The emergence of faster delivery options like same-day delivery by some retailers has further enhanced convenience. Moreover, the ability to easily compare prices, reviews and specs online before purchasing has elevated customer experience.

Porter’s Analysis

Threat of new entrants: Low capital requirement for online fashion retailers have led to high rates of new entrants in the market. However, established players have significant brand recognition and relationships with suppliers which create entry barriers.

Bargaining power of buyers: Buyers have high bargaining power due to large number of competitors and ease of switching. This puts pressure on prices.

Bargaining power of suppliers: A few dominant fabric suppliers and clothing manufacturers yield high bargaining power. However, availability of alternatives curbs exploitation.

Threat of new substitutes: Related industries like luxury goods are potential substitutes. However, switching costs are high due to customer loyalty to certain brands.

Competitive rivalry: Intense competition exists among incumbent players to increase market share. Price wars and frequent promotional campaigns have become common.

SWOT Analysis

Strengths: Wide range of products, efficient logistics and robust digital platforms help capture large customer base.

Weaknesses: Over-reliance on few categories and shortage of private labels. Returns management is challenging.

Opportunities: Growing e-commerce penetration in rural areas and increasing fashion consciousness offer scope for expansion.

Threats: Economic slowdowns can reduce discretionary spending. Stringent environmental regulations increase compliance costs.

Key Takeaways

The UK Fashion Ecommerce Market Demand is expected to witness high growth, exhibiting a CAGR of 15.5% over the forecast period, due to increasing fashion consciousness among consumers. The UK represents one of the largest fashion e-retail markets in Europe. The fashion e-commerce sales in the country stood at US$ 31.19 billion in 2023.

Regional analysis: London dominates the UK fashion e-commerce sector, accounting for over 30% sales. Northwestern regions register the fastest growth led by cities like Manchester and Leeds. International players like Zalando and Amazon Fashion have emerged as major players alongside domestic retailers.

Key players: 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, AllSaints. The market remains highly competitive with frequent product launches and promotional offers.

Read more @ https://www.insightprobing.com/uk-fashion-ecommerce-market-growth-strategies-opportunity-rising-trends-and-revenue-analysis/

Anjali CMI
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