2023 trends for the fashion e-commerce
From metaverse to new payment methods, what should fashion e-commerce focus on to be successful?
It's hard to believe but fashion e-commerce is already in its 20s! The first online fashion store was launched in 1997 and the industry has been growing at an incredible rate ever since. Indeed, projections say it is going to grow at a compound annual growth rate of 7% over the next five years, bringing the industry's revenue to the $1 trillion mark.
However, this does not mean that fashion companies can reduce their efforts to remain competitive. On the contrary, they must be able to adapt to market changes and stay ahead of the curve. So, here are some of the hottest trends for fashion e-commerce in 2023.
9 trends for fashion e-commerce in 2023
Personalisation is key to fashion e-commerce in 2023. Customers expect fashion companies to provide them with tailored experiences, from product recommendations to offers, from customised content to digital fashion styling services. To achieve this, fashion e-commerce sites need to leverage data to create individualised customer profiles and use Artificial Intelligence technologies for the creation of dynamic customer journeys.
2) Social commerce
Social commerce is the use of social networks and other digital platforms to facilitate fashion e-commerce. Customers can now shop directly from influencers, they can follow fashion trends on Instagram, join dedicated fashion communities, etc. Social commerce is rapidly gaining momentum in fashion and companies need to leverage their presence on digital channels and integrate them into their websites or apps, allowing customers to shop, compare products from different sources and recommend items directly from social platforms. In fact, social media platforms are great channels for fashion companies to showcase their products, engage with users, increase brand awareness and build a community of followers and potential customers.
Fashion brands can capitalise on the power of social media by creating engaging campaigns and driving sales through influencers and UGC (user-generated content). UGC is a great source of content for fashion companies as it provides authentic and real-life videos, photos, and reviews about products. By adopting connected products brands can collect consumer content directly through their products.
3) Video and Livestream
Speaking of content, videos will play a massive role in 2023. Indeed, they allow fashion online stores to showcase their products interactively and engagingly, offer fashion advice, inspire potential customers, and improve paid campaigns using shoppable video ads. For companies, the challenge is to create original content able to attract customers at every stage of their journey.
Livestreams are also becoming more and more popular among fashion brands as they allow them to host interactive fashion shows and provide customers with an immersive shopping experience.
The resale market for fashion items has been gaining traction in recent years, as people become more conscious about fashion’s environmental impact. By 2023, fashion resale is expected to be a $51 billion market, and fashion companies should take advantage of this trend by creating strategies to promote their products through second-hand platforms and dedicated reselling programs.
Reselling bring many benefits, both to companies and customers. Companies can reduce their ecological footprint, waste, and related costs while generating new business opportunities. Customers have the chance to save money and buy fashion items at discounted prices.
5) Multichannel marketing
Customers expect to interact with brands in more than one way. To meet these expectations brands need to have a presence on different channels such as social media, online marketplaces and even physical stores.
6) The Metaverse and Augmented Reality
The Metaverse is still in its early age but is a new trend that fashion retailers should watch in 2023. By leveraging virtual reality and augmented reality technologies, fashion companies can create virtual fashion shows and events to drive engagement and sales, but also set up immersive shopping experiences where customers can discover virtual try-on and interact with 3D models of products. Additionally, by using AR fashion companies can reduce the number of returns.
Sustainability is no longer just a trend but an imperative for fashion brands and fashion e-commerce sites need to develop strategies that are focused on reducing waste, using sustainable materials, promoting circular fashion models (e.g. rental services), and investing in eco-friendly packaging solutions. By doing so, they can increase their sales and gain the trust of customers.
8) Payment methods
Payment is an important factor for fashion e-commerce sites as customers expect a fast, secure, and easy checkout process. The development of new payment methods such as mobile wallets, contactless payments, cryptocurrency payments, and other digital payments is providing fashion customers with more choices and a better shopping experience.
9) E-commerce and the role of brick-and-mortar stores
Despite the growth in online fashion retail, brick-and-mortar stores are still relevant, especially for the luxury fashion segment. By leveraging their physical stores, fashion companies can offer customers a chance to touch and feel the product, have a personalised consultation with fashion experts and benefit from tailored services such as personal shoppers or fashion advice. Furthermore, brick-and-mortar stores are an essential part of a brand’s omnichannel strategy and help increase brand awareness and loyalty.
However, physical stores are not exempt from the use of digital technologies. Today's consumers, especially Millennials and Gen Z, are hybrid consumers, willing to live a phygital customer experience. For this reason, fashion brands that have both e-commerce and physical stores need to invest in staff training and store layout, so that real and digital work together to give the consumer the best possible experience. For example, Certilogo, the fashion authentication and engagement platform, provides companies with a quick and easy way to bring all the benefits of online and digital experiences directly to their physical products, ensuring customers have the information, services and content that they appreciate online integrated into the physical store experience.