Introduction

As part of our E-Commerce Outlook series, we examine the size and trajectory of the US online apparel and footwear sector. We explore market drivers, the competitive landscape, key themes we are watching in 2022 and beyond, as well as innovators in the space.

E-Commerce Performance and Outlook

We anticipate that many consumers will retain online shopping habits in 2022 and beyond—having shifted to the digital channel amid the pandemic. We expect US online apparel and footwear sales to grow 8%, year over year, in 2022, reaching $154.8 billion and capturing 33.3% of the total US apparel and footwear market (excluding military clothing and clothing materials). We anticipate that this will be followed by mid-to-high-single-digit growth in 2023 and beyond. We estimate that online sales of apparel and footwear grew by 20%, year over year, to $143.3 billion in 2021. This was in the context of nearly 30% growth in the overall US apparel and footwear market, translating into a 2.4-percentage-point loss in share of sales for the online channel (see Figure 2) and reflecting e-commerce ceding some share back to stores.

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Figure 1. US Online Apparel and Footwear Sales (Left Axis; USD Bil.) and YoY Change (Right Axis; %) [caption id="attachment_143890" align="aligncenter" width="700"] Source: Euromonitor International Limited 2022 © All rights reserved/Bureau of Economic Analysis/Coresight Research[/caption]   Coresight Research estimates that the online channel accounted for 31.0% of total apparel and footwear sales in 2021 versus 33.4% in 2020. On the assumption that shoppers continue to shop online in 2022 and beyond, we expect the penetration rate of apparel and footwear e-commerce to grow in each of those years.

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Figure 2. US Apparel and Footwear Market: E-Commerce Penetration (Online Sales as a % of Total Sales) [caption id="attachment_143891" align="aligncenter" width="700"] Source: Euromonitor International Limited 2022 © All rights reserved/Bureau of Economic Analysis/Coresight Research[/caption]  

Market Factors

Consumers’ Retention of Online Shopping Habits We are seeing an overall trend of more consumers buying clothing, footwear or fashion accessories online than in stores, according to our US Consumer Tracker series of weekly surveys, indicating an opportunity for apparel and footwear brands and retailers to expand their digital businesses. Our survey findings also indicate that many US consumers are likely to retain the habit of purchasing more online, even after the crisis: Consistently more than one-quarter of consumers say that they expect to buy more online and less in stores once the crisis ends. Although stores in many areas of the US have reopened, consumers are only switching part of their retail spending back to the brick-and-mortar channel. We therefore expect to see continued growth in e-commerce sales of apparel and footwear over the short to medium term. Greater Capacity on the Digital Supply Side Apparel and footwear brands’ and retailers’ increasingly mature service offerings for e-commerce provide a convenient alternative to in-store shopping and may bolster consumers’ shift to buying more online, as well as better serving existing demand. To meet consumer demand for convenience in the shopping journey and account for coronavirus-related safety precautions, apparel and footwear brands and retailers have increased their investments in omnichannel capabilities—such as enhancing fulfillment capacity and improving delivery efficiency—which has supported their e-commerce sales growth. BOPIS (buy online, pick up in-store) and curbside pickup are continuing to gain momentum, with apparel and footwear brands and retailers extending these omnichannel services to more stores. We expect BOPIS and curbside-pickup options to remain popular among consumers post crisis due to their convenience. Inflation We see inflation as an important driver of the US apparel and footwear e-commerce market. The US inflation rate in the apparel and footwear sector rose 5.7%, year over year, in December 2021—the highest increase since 1991, according to the US Bureau of Labor Statistics.

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Figure 3. US Apparel and Footwear: Consumer Price Index for All Urban Consumers (YoY % Change, Seasonally Adjusted) [caption id="attachment_143892" align="aligncenter" width="700"] Source: US Bureau of Labor Statistics[/caption]  

Competitive Landscape

The US apparel and footwear e-commerce industry is concentrated, with the top 10 companies accounting for 77.3% of online sales in 2021, according to Euromonitor International. However, that concentration is driven primarily by Amazon’s estimated 47.6% share per Euromonitor. Amazon is followed by retailers with single-digit channel shares—including Macy’s (with 5.0%) and Gap (with 4.6%). Coresight Research pinned its own estimate for Amazon’s sales of clothing, footwear and accessories at close to $39 billion in 2020, which implies a share closer to one-third of our apparel and footwear e-commerce market size in that year, versus the near-one-half estimated by Euromonitor. Amazon does not report sales (gross merchandise volume) by category, so all data for its apparel and footwear sales are estimated.

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Figure 4. US Apparel and Footwear E-Commerce Retail Share (%) [caption id="attachment_143893" align="aligncenter" width="700"] Amazon includes first-party and third-party sales
Source: Euromonitor International Limited 2022 © All rights reserved/Coresight Research[/caption]  

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Figure 5. Top 10 Apparel and Footwear Retailers’ and Brands’ E-Commerce Metrics

Company	Digital Penetration (Whole Company)
	2018	2019	2020
Amazon	100%	100%	100%
Strategy	Amazon is the top retailer by number of shoppers for apparel and footwear, Coresight Research surveys routinely show, having overtaken Walmart by this metric in 2019. We perceive Amazon’s fashion offering as focused around three components—an off-price-style treasure hunt for branded products; a profusion of little-known, low-price brands; and its collection of private labels (although we think these are sometimes difficult to distinguish from the lesser-known brands on its site). Coresight Research’s surveys find the top drivers for buying fashion on Amazon are fast, free delivery; an easy-to-browse website; good availability; and a wide choice of brands. Amazon will this year open its first permanent physical fashion store, called Amazon Style, in Los Angeles. Look out for our forthcoming fifth annual Amazon Apparel Survey report.
Macy’s	23%	25%	44%
Strategy	Macy’s is improving its e-commerce infrastructure. In the first quarter of 2021, Macy’s launched a dedicated fashion site within Macy’s.com, targeted at women and men under 40. The site features the latest apparel trends, offering younger customers inspiration from featured brands and trending categories in apparel and footwear. The company is seeing a positive online response from these younger customers and plans to expand its under-40 merchandising strategy to other categories. Furthermore, Macy’s launched flexible payment service Klarna in May 2021 to appeal to younger customers seeking alternative finance options.
Gap	22.4%	25.0%	45.5%
Strategy	Gap continues to deepen its omnichannel services, including curbside pickup, BOPIS, order-in-store, find-in-store and ship-from-store, as well as enhanced mobile-enabled experiences. In August 2021, Gap, Inc. acquired Drapr, an e-commerce startup and online application based on technology that enables customers to quickly create 3D avatars and virtually try on clothing. The company expects that Drapr fuel e-commerce growth with 3D fit technology.
Walmart	4.7%	7.1%	11.6%
Strategy	Walmart is growing its apparel business through private-label launches both online and offline. Walmart introduced Free Assembly Kids in October 2021, following the launch of Free Assembly in October 2020. In February 2019, Walmart launched a denim line with actress Sofia Vergara. As of January 2022, Walmart has added more than 1,000 apparel brands to its online assortment through marketplace sellers, as well as launching many exclusive brands. It has also partnered with children’s clothing subscription provider Kidbox and online consignment and thrift store platform ThredUP to expand its footprint in apparel subscription and rental business models. Walmart has also focused on adding capabilities to its apparel business to grow sales. From the apparel technology perspective, Walmart acquired virtual fitting-room technology company Zeekit in May 2021.
NIKE	~30%	30%	35%
Strategy	The company continues to scale robotics and automation in its logistics operations, accelerating digital throughput and cutting order cycle times by up to 50%. The company is adopting the “product drop via livestreaming” model. The company is scaling omnichannel services across store fleets, including BOPIS and digital order returns in-store.
Nordstrom	30%	33%	55%
Strategy	Nordstrom is improving its omnichannel capabilities such as adding pickup locations at Nordstrom Local service hubs, in Nordstrom Rack stores and in Nordstrom stores. The company is also integrating the online business with the physical store business, including integration of inventories between HauteLook.com, Nordstrom.com, Nordstromrack.com and Rack stores. Nordstrom now offers virtual styling services.
Kohl’s	~20%	24%	40%
Strategy	Kohl’s apparel strategy details a path to driving category growth in three main areas: active and casual, beauty and women’s. The company is focusing on expanding its brand portfolio both online and offline. Kohl’s is also improving its omnichannel capabilities such as expanding its BOPIS services and working with Amazon to offer easier returns offline.
Target	7.1%	8.8%	18%
Strategy	Target has leaned into brand collaborations to drive traffic both online and offline as well as to boost its reputation in apparel. For example, in April 2021, Target introduced a designer dress collection in collaboration with Vogue fashion fund winner Christopher John Rogers, which was sold out quickly, according to the company.
Shein	100%	100%	100%
Strategy	As a pure online apparel brand, Shein has collaborated with hundreds of factories in Guangzhou, China, for the manufacturing of its clothing. The company relies heavily on tight relationships with core suppliers, developed through years of a stable supply of orders and timely payments. Shein’s low-price strategy has helped it to drive online sales and thus manufacture in bulk, which reduces costs. Shein primarily targets its customers by utilizing celebrities and key opinion leaders across social media platforms such as Facebook, Instagram, Pinterest and TikTok. See our separate report for a closer look at Shein.
American Eagle Outfitters	28%	29%	45%
Strategy	American Eagle Outfitters has been investing in building omnichannel capabilities to gain operational efficiencies. Its US and Canadian distribution centers are all fully omnichannel and service both stores and digital businesses. In June 2020, the company launched a highly digitized loyalty program, which offers special discounts and tier benefits online. In 2021, the company continued to engage with customers through social media, such as launching its first digital clothing line on Bitmoji, an accessory app for social media platforms that people use to create small cartoon versions of themselves.

Some data are estimated. NIKE’s e-commerce data are for North America. NIKE’s fiscal years typically ended the last weekday of May in the next calendar year. Source: Company reports/ Euromonitor International Limited 2022 © All rights reserved/Coresight Research

 

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Figure 6. Further Apparel and Footwear Retailers’ and Brands’ E-Commerce Metrics

Company	Digital Penetration (Whole Company)
	2018	2019	2020
Old Navy (Gap, Inc.)	22.4%	25.0%	45.5%
Strategy	Old Navy continues to expand its product assortments both online and offline. The brand had more than doubled its extended-size customer file since launch, as of November 2021.
Lululemon	23.4%	25.3%	44.0%
Strategy	Lululemon not only provides great product assortments both online and offline, but also offers great services online. The company acquired connected fitness company Mirror in early 2020 and has integrated the products into its platform to allow customers to access professional workouts at home.
Dick’s Sporting Goods	~14%	~16%	~30%
Strategy	The company has improved its online shopping experience and continues to lead with mobile, which, in 2020, represented more than 50% of its online sales. Dick’s Sporting Goods continues to use data science to drive more personalized, one-to-one marketing. The company continues to implement curbside pickup and returns. In 2020, approximately 70% of its online sales were fulfilled directly by stores, which serve as localized points of distribution. The company continues to improve the functionality and performance of its e-commerce site, including building a faster and more convenient checkout process, increasing the visibility and accuracy of delivery dates, improving page responsiveness, enhancing integration with the loyalty program and localizing the website experience.
adidas	8.9%	11.1%	20%
Strategy	Adidas is pivoting to a more directly consumer-facing operating model. This new business model will be built around membership. The brand is leveraging online commercial and brand moments to access consumer touchpoints and offer exclusive products.
Carter’s	N/A	N/A	33.1%
Strategy	The company has accelerated the execution of new capabilities to support the same-day pickup of e-commerce orders in stores, curbside pickup and the direct shipment of online orders from stores. The company has worked closely with leading online retailers of young children’s apparel, including Amazon, Target, Walmart, Kohl’s and Macy’s.
Levi’s	~10%	13%	22%
Strategy	The company has continued to accelerate its omnichannel capabilities to ensure that consumers can get product wherever and whenever they choose. The company is investing in leading technology and expanding fulfilment capabilities. In July 2021, Levi’s largest distribution center in Henderson, Nevada became the company’s first owned and operated facility to fulfil orders for e-commerce, retail and wholesale channels. Over time, the company expects to increasingly leverage its own DCs to fulfil e-commerce orders, which will drive more agility and inventory positioning, reduce lead times and accelerate expansion of e-commerce margins. The company has implemented pivotal improvements to its BOPIS program, such as launching a ship-from-store function.
Under Armour	N/A	N/A	19.3%
Strategy	The company upgraded customer resource management (CRM) functionalities to drive more resonant and personalized online interactions with customers. The company continues to expand its omnichannel services such as BOPIS.
Skechers	N/A	N/A	20%
Strategy	The company is investing in its e-commerce infrastructure and expand omnichannel capabilities such as BOPIS.
Columbia Sportswear Company	11%	11%	19%
Strategy	The company has accelerated its digital and analytics capabilities to leverage consumer data and enhance the consumer experience. The company has been investing in supply chain capabilities to expand distribution capacity and improve inventory management.
Stitch Fix	100%
Strategy	Stitch Fix has introduced new merchandise offerings across multiple price points and broadened brand partnerships in existing product categories. The retailer continues to invest in its data science capabilities to better predict clients’ preferences and deliver a personalized customer experience.
Hanesbrands	N/A	16%	21%
Strategy	The company is leveraging data analytics to get to know consumers better and build long-term loyalty. It is improving performance marketing so consumers can find the right products online. Hanesbrands is also developing a frictionless shopping experience to help consumers easily buy and receive products, whether on the company’s own sites or on retail partner sites.
VF Corporation	8.3%	11.5%	22.5%
Strategy	VF Corporation continues to connect with consumers through engaging, purpose-led digital marketing, including campaigns such as The North Face–Girl Scouts partnership, The North Face Summer Base Camp, and Walls Are Meant for Climbing (in partnership with gyms across the US). The company has worked closely with leading online retailers, including ASOS and Zalando.
ASOS	100%	100%	100%
Strategy	ASOS is working on the second phase of its flexible fulfillment program, “Partner Fulfilment,” allowing DTC fulfillment and augmenting ASOS’s own supply chain with its suppliers’ capabilities—which will enable greater stock availability and product assortment, as well as the ability to directly fulfill customer orders. ASOS is investing in data infrastructure to deliver a more engaging experience for each customer using data science. It has launched new features that offer personalized search for customers, provide peer-to-peer review and deliver live feedback for the procurement and merchandising teams.
PVH Corp.	>10%	12.5%	25%
Strategy	PVH Corp. continues to leverage digital innovations, such as livestreaming. For example, in November 2021, the company’s subsidiary brand Calvin Klein partnered with Amazon Fashion, Amazon Live and Amazon Music to deliver a shoppable-livestream holiday special with platinum-selling hit rapper Saweetie. The event drove the highest-traffic day on the brand store on Amazon Fashion outside of Prime Day, according to the company.
Boohoo Group	100%	100%	100%
Strategy	Boohoo is increasing its brand awareness through social media sites and via email. The company is working with a growing number of influencers to promote brand loyalty and engage customer interest.
Academy Sports and Outdoors	4.9%	5.1%	10.3%
Strategy	Academy Sports and Outdoors launched its BOPIS program in 2019 and has seen significant e-commerce sales growth. BOPIS orders accounted for 51% of all its e-commerce sales during 2020, according to the company. Academy Sports and Outdoors also offers return-to-store capabilities for online orders, curbside fulfilment, the ability to place online orders in stores and the ability to ship orders placed online from retail locations. In 2021, the company enhanced its e-commerce site's capabilities, both from a back-end functionality and a consumer-facing perspective.

Some data are estimated. Adidas’s e-commerce data are for North America. Columbia Sportswear Company’s and VF Corporation’s disclosure of e-commerce sales includes DTC (direct-to-consumer) e-commerce only (excluding e-commerce sales generated through third-party retailers/marketplaces) Source: Company reports/ Euromonitor International Limited 2022 © All rights reserved/Coresight Research

 

Themes We Are Watching

Returns Retail returns rates increased to 16.6% in 2021, up from 10.6% in 2020, according to the National Retail Federation and Appriss Retail, driven largely by online shopping. Consumers who shop clothing and footwear online are more inclined to return products compared to other categories, because it is hard to visualize how apparel products will look or fit. We expect the returns dilemma to continue with the growth of e-commerce in the next few years. We recommend that apparel brands and retailers adopt new approaches to reduce returns rates, such as by implementing virtual try-on technology to help consumers choose sizes and styles.

• Walmart bought virtual fitting-room company Zeekit in May 2021.
• Brands and retailers including Amazon, ASOS, Levi’s and NIKE have also adopted virtual fitting technology.

Another important aspect is to improve the efficiency of processing returns.

• Walmart is investing in automation and new warehouse systems that help cut the time it takes for returned products to become sale inventory.
• American Eagle Outfitters has set up more warehouses to receive, clean and repackage returns. It also employs technology to gauge product demand to determine in advance which warehouse should process each return and which items are worth fast-tracking back onto shelves. The company reported that it gives priority to leggings, which have been harder to import due to manufacturing delays in Vietnam.

Higher Last-Mile Delivery Costs Last-mile delivery costs are still on the rise as the pandemic drags on in the US. Carriers such as DHL, FedEx and UPS all announced that they will increase shipping fees in 2022.

• For DHL, Direct Signature will change from $5.55 per shipment to $5.90 per shipment.
• FedEx has added several new charges. For example, shippers will trigger the residential surcharge sooner—when they hit 25,000 packages rather than 2021’s threshold of 30,000 packages. Ground Economy shippers will be subject to a new $1.00 per package surcharge for any package that is classified as “delivered or returned.”
• UPS is increasing shipping rates by 5.9% on average for ground and air services.

The increase in delivery costs has been mainly driven by a shortage of labor, rising labor costs and the surge in e-commerce orders, which has created a supply-demand imbalance and left US shipping carriers’ capacity constrained. With competitors such as American Eagle, Amazon and Target offering speedy shipping (including same-day and one-day delivery), we believe that small and mid-sized apparel and footwear brands and retailers are at risk of not keeping up with ever-more demanding consumer demand for fast and free shipping, and the higher costs of delivery will be a significant headwind. The most common strategy that brands and retailers are adopting to tackle this challenge is to add regional distribution centers.

• NIKE has accelerated investments to evolve its distribution network and scale a digital-first supply chain, leveraging analytics, automation and technology, the company reported on its earning call on December 20, 2021. NIKE has opened two new regional service centers on both coasts in the US, which are able to deliver more units to consumers with shorter delivery times and costs.
• American Eagle Outfitters is investing in its distribution hubs to increase overall fulfillment capacity. The retailer describes these distribution hubs as a “decentralized fulfillment network” as they are located closer to customers and stores and so can deliver products to customers more quickly. Overall, these capabilities will enable the company to provide better customer service while reducing the inventory volume in its network; optimize shipment flows to manage delivery cost pressures; and maximize its operational flexibility.

Livestreaming We believe that it is important for apparel and footwear brands and retailers to enrich the customer experience at each stage of the online shopping journey. We are seeing retailers and brands adopting strategies such as using livestreaming to create engaging experiences. Livestreaming provides a new, digital channel for brands and retailers to connect with consumers and influence purchasing decisions. Shoppable videos can enrich the shopping experience by facilitating direct communication between brands or retailers and their communities, enabling them to respond to consumer queries in real time, provide exclusive discounts and offer detailed product information.

• Brands and retailers such as Amazon, Guess?, Macy’s, NIKE, PVH Corp. and Vera Bradley have already turned to livestreaming e-commerce, hosting events to engage with consumers.

Apparel and footwear brands and retailers can work with technology partners such as livestream shopping platforms Smartzer and CommentSold, and live one-to-one selling platform Ghost Retail, to set up livestreaming infrastructure and improve digital commerce. Building Immersive Digital Experiences Immersive digital experiences have been driven typically by augmented reality (AR) technology in the past few years, which allows brands and retailers to run interactive online stores or launch virtual try-on facilities.

• During the 2020 holiday season, Ralph Lauren launched virtual flagship stores (including Beverly Hills, Paris and New York), enabling customers worldwide to digitally view and purchase the stores’ assortments.
• Brands and retailers such as Adidas, Amazon and NIKE have incorporated AR developments such as virtual try-on technologies into their selling processes.

In 2022 and beyond, we expect brands and retailers to build more immersive digital experiences by partnering with metaverse creation platforms. The metaverse will typically allow consumers to view digital apparel collections, create personalized 3D avatars and socialize with other users. We believe that selling digital products is a huge opportunity for apparel and footwear brands and retailers, and companies should establish their presence in the metaverse ealy to capitalize on user traffic and interest before the rates of land and tokens increase. (Read more in our Playbook on the metaverse.) We believe that innovating in virtual worlds will be essential to engaging consumers, especially younger generations who are more digitally adept.

• In August 2021, Ralph Lauren partnered with Zepeto, a metaverse platform, to create a virtual world that allows consumers to view apparel products digitally and create 3D avatars.
• In December 2021, Ralph Lauren partnered with Roblox, another metaverse creation platform, to debut a holiday-themed experience allowing consumers to explore products and socialize with others.
• Also in December 2021, Forever 21 entered the metaverse with a Roblox store.
• NIKE released Nikeland on Roblox in November 2021.

Coresight Research has identified livestreaming and the expanding metaverse as key trends to watch in the broader retail industry and a component trend of Coresight Research’s RESET framework for change. That framework provides retailers with a model for adapting to a new world marked by consumer-centricity, in 2022 and beyond.

E-Commerce Innovators

We expect solutions developed by retail innovators to play a significant role in driving growth in the online apparel and footwear industry. We discuss three key innovators in this section. Drapr Founded in 2019 and headquartered in San Francisco, Drapr is an online application based on technology that helps customers quickly create 3D avatars of their own sizes that can virtually try on clothes. The company was acquired by Gap on August 26, 2021, for an undisclosed amount. Drapr has worked with apparel retailers and brands such as &Collar, Mizzen + Main and Untuckit. Many retailers and brands have begun to devote more resources to help customers find sizes. Sizing is inconsistent across styles, making it difficult for consumers to choose the right size. Uncertainty around sizing inconsistencies may be exacerbated by online shopping, a sales channel with limited options to understand fit. We believe that technologies that can help customers virtually try on clothes and find sizes and styles will gain a competitive advantage in the market. [caption id="attachment_143895" align="aligncenter" width="700"] An example of Drapr’s 3D avatar solution
Source: Drapr[/caption]   Firework Founded in 2017 and headquartered in Silicon Valley, Firework is an interactive short-video platform for retailers and brands to engage with website visitors. As of January 13, 2022, Firework has raised a total of $119.3 million in funding over eight rounds. The startup aims to transform brand or retailer websites with compelling short-video content that typically include links to product descriptions and a “BuyNow” option to make customers’ shopping journey easier. Brand representatives can connect with customers virtually in real time and simulcast the live stream to multiple websites at the same time. Apparel brands and retailers such as Astouri, CoFi Leathers and Linda's Stuff have worked with Firework on livestreaming their apparel, footwear or accessories products. Livestreaming is just beginning to take hold in the US and is a powerful way for brands and retailers to engage with consumers. [caption id="attachment_143896" align="aligncenter" width="700"] An example of Firework’s livestreaming sessions
Source: Firework[/caption]   Impact Analytics Founded in 2015 and headquartered in Linthicum Heights, Maryland, Impact Analytics is an analytics solutions provider. As of January 13, 2022, Impact Analytics has raised a total of $11.8 million in funding over two rounds. The company leverages artificial intelligence to help retailers and brands optimize product assortments, simplify or automate product allocation processes, generate sales forecasts, optimize pricing and manage inventory. It can accurately predict demand and help retailers and brands maintain optimal inventory levels even for high-priced and long-tail SKUs (stock-keeping units). Besides, the startup offers actionable recommendations on marketing and personalized promotions, helping retailers and brands understand channel return on investment and optimize marketing budget. The startup has worked with leading apparel retailers and brands such as Coach, Dick’s Sporting Goods, Puma, Vera Bradley and Swarovski. It helped its clients achieve a maximum 15% reduction in churn rates, 30% improvement in margins and 20% reduction in lost sales due to accurate SKU-level forecasting, according to the company. [caption id="attachment_143897" align="aligncenter" width="700"] An example of Impact Analytics’ dashboard for product pricing optimization solution
Source: Impact Analytics[/caption]  

What We Think

Implications for Brands/Retailers

• We estimate mid- to high-single-digit growth of the total US apparel and footwear e-commerce market in 2022 and beyond. We believe the market presents opportunities for brands to capture since it is fragmented from a brand perspective. Brands and retailers can increase their market share by presenting innovative online selling processes, offering interesting virtual experiences and improving their supply chain capabilities.
• Offering interesting online experiences is important in building efficient e-commerce ecosystems. We see opportunities to drive e-commerce growth through livestreaming and metaverse experiences.
• Higher delivery costs and returns rates will be headwinds for apparel and footwear brands and retailers. We suggest brands and retailers create solutions that lower the costs of last-mile shipping and improve the efficiency of reducing and processing returns.

Implications for Technology Vendors

• Technology vendors play an important role in e-commerce, given the need for apparel brands and retailers to optimize their product assortment, selling process, analytics ability and supply chain efficiency to align with consumer preferences and thus boost sales. Consumer preferences include fast delivery and returns, personalized content and virtual services. Technology companies can offer technologies that enable functions in these areas, such as efficient shipping, artificial intelligence-enabled inventory management, content optimization, livestreaming, customized marketing and metaverse experiences.

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Source for all Euromonitor data: Euromonitor International Limited 2022 © All rights reserved