The UK fashion ecommerce market has witnessed strong growth over the past decade driven by increase in online shopping adoption among UK consumers. Factors such as convenience of online shopping, vast product selection offered online and doorstep delivery have made online shopping an integral part of life for many in the UK. The advent of fast fashion has also made latest fashion trends affordable and accessible to a wider audience. Various online fashion retailers offer on-trend clothing, footwear, accessories and beauty products from both established and emerging fashion brands at competitive price points. The availability of multiple payment options, superior customer experience and ease of returns have further supported the e-commerce boom in the UK fashion industry.
The Global UK fashion ecommerce market is estimated to be valued at US$ 35.94 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period from 2024 to 2031.
Key Takeaways
Key players: Key players operating in the UK fashion ecommerce market are ASOS, Boohoo Group, Nike, Adidas, Primark, Next, jd Sports Fashion, Missguided, Footasylum, PrettyLittleThing. These major players are investing in enhancing their digital capabilities, supply chain efficiencies and expanding product assortments to strengthen their market position.
Key opportunities: Growing prominence of online only fashion brands, improved delivery speeds and expansion of product categories beyond apparel such as shoes, accessories and beauty present significant opportunities for UK Fashion Ecommerce Market Size players. Rapid growth in mobile commerce and live shopping experiences also offer lucrative avenues for market participants.
Global expansion: Leading UK fashion ecommerce players are expanding their global footprint through regional website localisation, targeted marketing campaigns and global fulfilment centres. ASOS and Boohoo have emerged as formidable competitors to established fashion retailers worldwide due to their agile business model and ability to ride trends. Regional customisation of assortments will be a key determinant of success in international markets.
Market drivers: Increased internet and smartphone penetration coupled with rising disposable incomes of UK consumers have been a major driver of growth. The COVID pandemic accelerated the shift to online shopping amid lockdowns and concerns around virus transmission. Consumers embraced digital-first omni-channel experiences on a long term basis, benefitting fashion ecommerce. Convenience and variety offered by online platforms will continue supporting growth over the forecast period.
PEST Analysis
Political: The UK government regulates the fashion industry through various laws related to standards, worker rights, consumer protection. Any changes in trade policies and regulations would impact the growth of the fashion ecommerce market.
Economic: A growing economy and rising disposable incomes positively impacts consumer spending on fashion products online. Economic fluctuations could reduce spending power of consumers.
Social: Younger generations are more tech-savvy and prefer online shopping for fashion due to convenience. Changing lifestyles and preferences continually influence demand for various fashion styles.
Technological: Advancements in mobile technology, digital payment methods and supply chain infrastructure have enabled greater adoption of fashion ecommerce. Further developments in AR/VR and AI could enhance the online shopping experience.
Geographical Concentration of Market
In terms of value, the UK fashion ecommerce market is concentrated majorly in England especially in major cities and towns with a considerable population size like London, Birmingham, Manchester and others. The large consumer base and higher spending power in these regions attract major online fashion retailers to focus their marketing and delivery efforts locally to gain maximum share.
Fastest Growing Region
Scotland has emerged as the fastest growing region for the UK fashion ecommerce market. The increasing internet and smartphone penetration along with initiatives by retailers to offer localized inventory, content and payment options have boosted adoption of online fashion shopping among Scottish consumers. Additional courier partners have also expanded delivery coverage to more locations propelling market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
