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The Importance of eCommerce in the Fashion and Apparel Industry

E-commerce defined:


It is a way for companies as well as individuals to sell their products in the market locally, nationally, or internationally using electronic mediums via PC, tablets, smartphones, etc.


Types of E-Commerce:


While there are many types of E-Commerce, two forms are the most common; 1. B2B and 2. B2C

1.       B2B refers to business to business: Example: The suppliers of Amazon has a B2B relationship with the company.


2.       B2C refers to business to the consumer: Example: E-bay selling to consumer markets is a B2C relationship.


Ø  E-commerce: a gateway of opportunities


A whale of opportunities come up with e-commerce. The industry has the potential to overcome the barriers imposed by the bricks and mortar industry.

By applying the correct mechanism to reach consumers and business communities, E-Commerce portals and websites make life easier for tech-oriented buyers in the US.

During Covid-19, the online delivery business of E-commerce thrives in majors sectors like food, fashion, and apparel. E-commerce will surely, the next big revolution during the pandemic.


1.      Anytime & Anywhere Connectivity:


Internet connectivity with faster speed makes consumers' tasks easy. They can order online their favorite fashion apparel and clothing essentials by the best brands in their village, town, or country in the US.


2.      Global Outreach:


Using E-Commerce, companies have the will to reach global markets. A consumer living in China can now order Amazon products using its online portal.


3.      Convenience


If you are in your office, home, or going for a casual outing with family and friends, and you want to order your fashionable T-Shirts and Polos, you can! Just a few clicks on your smartphone will get the product delivered at your doorsteps, same day or within 2 days as per company policy.


4.      E-commerce in the 21st Century:


For consumers who like to order online because of hectic work schedules, E-Commerce suits well to them. They can order food, buy fashion apparel, order electronic gadgets, and many more than that through using online platforms and portals.


Ø Fashion Industry:


5.      Clothing and Apparel:


From the facts alone, it is very much on the cards that every consumer in Europe will likely spend $921 in a single year. While compound annual growth rates in the US and China was 8.8% and 14.1 % between 2017-2022, respectively.

6.      Footwear:


If we consider the global market growth projections of E-Commerce in the footwear industry, it will likely become $365.5 billion in 2022 to $530.3 billion in 2027.

Asia is the biggest market of footwear in E-commerce having a 54% share of the global footwear market while Europe and North America lag with 14.8%.

7.      Accessories and Bags: 

Accessories and bags have double-digit growth in 2018 of 15.6% while it is expected to gradually come to single digit in 2022 that is 8.7%.


8. Connection of E-commerce with Fashion and Apparel Industry:


From the above facts and figures of the fashion industry in E-Commerce, we are most likely to infer that the E-Commerce boom will likely create enormous opportunities in the fashion and apparel industry.

Almost all major lines of stores in the US are going the digital way. Nika, Puma, Adidas, Lacoste and many sporting brands have a company-owned e-store and authorized resellers like Tops and bottoms to increase their presence and dominance in the digital world.


Ø Benefits of E-Commerce in Fashion:


9.      Personalization:


Fashion apparel companies can now track user behavior and create personal messages and product recommendations for regular customers. A personalized Netflix on-site experience by major apparel brands can help them to increase revenue and generate sales for a longer period.

10. Low Cost, Easier Access:


To do business in a digital world has its benefits like the cost of physical hardware for stores is saved while also having the luxury of anywhere connectivity. Consumers also do benefit by having the accessibility of the company's whereabouts anywhere and any place around.


Ø Drawbacks:


11. Lack of Emotional Appeal


The prominent backdrop of the digital world for consumers and companies around the world is that we cannot see or touch anything!

Consider a scenario in which a person is ordering online trousers and shirts. Although he can choose from various colors and designs of apparel from the E-store fashion outlet but can't feel or touch the fabric he is going to buy!

Similarly, the sales representative on the other side does not truly connect with the buyer because of a lack of face-to-face conversation although he can chat with him on the phone line.

In this scenario, customers' true feelings and emotions cannot be read by the representatives of the companies offering their product line. Email and chat remain the only possibility to connect with customers offering national and international products in the digital world.


12. Security Concerns:


Transactions in the digital world of E-commerce is not without the problem of scamming or anything of the sort. Consumers should be aware of fake websites operating by the name of famous retailers of clothing (apparel and fashion houses).

Fashion apparel brands should also be aware of the fraudulent transactions happening in the digital markets. Secure portals and valid information will likely solve the growing scams in the E-Commerce business.



Ø Future of E-Commerce:


The above table tells us the scenario of the future of e-commerce in retail apparel and accessories by sales volume and percentage in the US market.

     Covid-19 Factor:


The future of E-commerce is looking bright as Covid-19 is taking its toll again in many countries around the world. The US is the major market where E-Commerce in The fashion and Apparel industry climbs as there is no other option for fashion enthusiasts other than online shopping!

The habitual nature of humankind with regards to E-Commerce or you may say online shopping (in easy terms) will likely continue after Covid-19.

One may sincerely hope that pandemic will vanish from mother "Earth" by God's will whereas E-Commerce will not!

Sophia Moller


The writer is a student of Management Sciences having an interest in Brand Management, Strategic Marketing, and Managerial Policy besides current affairs and international economics. Currently works as Creative Content Writer at Apace Solutions.

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