April 13, 2024
UK Fashion Ecommerce Market

UK Fashion Ecommerce Market Primed for Growth with Rise of Augmented Reality and Virtual Try-On Technologies

The UK fashion ecommerce market has experienced significant growth in recent years driven by the increasing penetration of smartphones and tablets along with widespread availability of high-speed internet. Online shopping provides consumers with the convenience and flexibility to browse various fashion collections and purchase apparel and accessories from the comfort of their homes at any time. Key factors such as busy lifestyles and time constraints have encouraged many consumers to shift their shopping activities online. Additionally, the ability to virtually “try on” outfits using augmented reality and virtual try-on technologies available on retailer websites and mobile apps is boosting customer confidence in online purchases.

The global UK fashion ecommerce market is estimated to be valued at US$ 35.94 billion in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the UK fashion ecommerce market are Eaton Corporation, Philips Lighting, Hubbell Incorporated, Zumtobel Group AG, Thorn Lighting, Acuity Brands Lighting, Inc., Wipro Enterprises Private Limited, General Electric Company, Osram Licht AG, Feilo Sylvania, Nordlux A/S, Chalmit Lighting, Crompton Greaves Consumer Electricals Limited, Dialight plc and Glamox AS.

The key opportunities in the market include growth of online retail stores, rising penetration of smartphones and internet users, increasing social media marketing by fashion brands and retailers, and the adoption of advanced technologies such as augmented reality and AI by retailers to enhance customer experience.

Technological advancements such as virtual and augmented reality technologies are allowing consumers to virtually try outfits and visualize how they will look in different clothing items before purchasing. This is raising engagement levels and boosting online sales for retailers. AR and VR are being increasingly adopted by leading fashion brands and retailers.

Market Drivers
A key driver for the growth of the UK Fashion Ecommerce Market Size is the rising popularity of online shopping among UK consumers. Factors such as the convenient payment options available, easy returns process, wide choice of collections, and exclusive discount deals and offers offered by online retailers are boosting sales. Additionally, the growing penetration of smartphones and availability of high-speed internet connectivity across urban and rural areas alike has made online shopping more accessible.

Current Challenges in UK Fashion Ecommerce Market

The UK fashion ecommerce market is facing various challenges currently like supply chain disruptions due to pandemic and Brexit which affected timely delivery of fashion products to customers. Customers now expect fast delivery options like same day delivery which puts pressure on retailers and transport companies. Rising costs of transportation and logistics is another major challenge for retailers. Inflation and weak consumer sentiment amid economic uncertainty is negatively impacting spending on non-essential items like fashion. Many small retailers are struggling with increasing marketing and customer acquisition costs in the competitive online market. Retaining existing customers and optimizing customer experience across all touchpoints is a challenge that needs to be addressed.

SWOT Analysis
Strength: Large domestic market and high fashion consciousness among consumers. Established logistics and payment infrastructure to support online shopping.
Weakness: Supply chain disruptions and rising costs eating into margins. Vulnerable to economic fluctuations affecting consumer spending.
Opportunity: Growth in demand for sustainable and premium fashion brands. Opportunity to tap international markets through global ecommerce sites.
Threats: Intense competition from global etailers and rising popularity of rental/resale models. Vulnerable to economic downturns and changes in consumer preferences.

Geographical Regions in terms of value
Around 60% of total value of UK fashion ecommerce market is concentrated in South East and London region currently due to high population density and fashion consciousness of consumers in these areas. Regions like West Midlands and Yorkshire also contribute significantly due to presence of large distribution centres and favourable demographics.

Fastest Growing Geographical Region
The North West region of UK encompassing cities like Manchester, Liverpool and Chester is expected to be the fastest growing region for fashion ecommerce market in coming years. Initiatives to develop logistics infrastructure and younger population inclined towards online shopping will support over 10% CAGR in fashion retail sales through ecommerce channels in this region during forecast period.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it