The Asia Fashion Ecommerce Market is estimated to be valued at US$ 521 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Overview:
The Asia fashion ecommerce market consists of sale of fashion products including clothing, footwear, beauty and accessories products through e-commerce platforms. E-commerce platforms have made fashion and lifestyle products easily accessible to customers, especially in tier 2 and tier 3 cities in Asia. Rise of social media influenced trends and easy return policies have boosted the online fashion sales in the region.
Market Key Trends:
One of the key trends fuelling growth in the Asia fashion ecommerce market is 'See Now Buy Now'. Major fashion ecommerce retailers like Farfetch, Alibaba and Rakuten allow consumers to buy products straight from the runway without any production or delivery lead time. Popular fashion influencers on social media platforms showcase trending clothes and accessories, compelling fans to purchase them instantly through affiliated links. This real-time availability of fashion helps brands in acquiring more customers and driving repeat purchases in Asia. Live video streams by influencers during product launch events have further strengthened this 'See Now Buy Now' trend in the market.
Porter’s Analysis:
Threat of new entrants: The Asia Fashion E-commerce market faces moderate threat of new entrants due to large capital requirements and established presence of leading brands. However, potential for market share increases new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes but established loyalty towards certain brands.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of multiple players and dependence on retail channels for sales.
Threat of new substitutes: Threat of new substitutes is high due to diverse product categories and emergence of vertical online retailers.
Competitive rivalry: High due to presence of global giants and regional champions vying for market share.
SWOT Analysis:
Strengths: Wide choice, convenient shopping experience, personalized recommendations, competitive pricing and strong brand awareness are the key strengths.
Weaknesses: Cybersecurity threats, issues related to return policies and lack of touch-and-feel experience are weaknesses.
Opportunities: Increasing internet and smartphone penetration along with rising disposable incomes offer lucrative opportunities.
Threats: Economic slowdown and price wars amongst competitors pose threats to growth.
Asia Fashion Ecommerce Market Segmentation:
Segmentation in the Asia fashion ecommerce market is vital for businesses to target specific customer groups effectively. It enables them to tailor their product offerings, marketing strategies, and user experiences to meet the unique needs and preferences of different segments within this diverse and dynamic market. The Asia fashion ecommerce market can be segmented into several categories based on various factors.
- By Product Type
- Apparel
- Footwear
- Accessories
- Jewelry
- Bags
- Watches
- Others (cosmetics, perfumes, personal care)
- By End User
- Men
- Women
- Unisex
- Kids
- Others (Baby)
- By Price Range
- Premium
- Mid
- Low
- By Category
- Western Wear
- Ethnic Wear
- Sports Wear
- Inner Wear
- Loungewear
- Swimwear
- Others (sleepwear, maternity)
- By Distribution Channel
- Company owned
- Marketplace
- Multi-brand Retailers
- Others (flash sales)
Key Takeaways:
The Asia Fashion Ecommerce Market Size is estimated to be valued at US$ 521 billion in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023-2030.
Regional analysis shows that China holds the dominant share in Asia fashion e-commerce market and is expected to remain the largest regional market. India's fashion e-commerce market is projected to witness fastest growth between 2023-2030 period owing to growing internet infrastrucutre and rising income levels.
Key players operating in the Asia Fashion Ecommerce market are Alibaba, Amazon, Flipkart, Myntra, Rakuten, Zalora, Lazada, Shopee, JD.com, Club Factory, Shein, Namshi, Noon, Nykaa, Ajio, Tmall, Farfetch, Asos, Zozo, Ssense. Leading players are investing heavily in order to expand their market presence through new product offerings and strategic acquisition.
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