Fashion is among the fastest growing e-commerce category, with online traffic to the sector increasing by seven percent and the number of clothing and accessories sites growing by 126 percent year-on-year, according to a recent report published by technology investment bank GP Bullhound.
As a result of the growth in e-commerce, fashion is now proving to be one of the most lucrative sectors for investors and entrepreneurs alike.
The report revealed that clothing and accessories are the most popular items for smartphone users, with 37 percent of smartphone shoppers having purchased clothing or accessories using their device.
There was initial scepticism due to the migration of fashion to the online channel, however the success of companies such as ASOS and Net-a-Porter have shown otherwise.
The recent ASOS’ partnership with Primark and other high-street fashion brands and agreements with other smaller merchants, also point to deeper integration between online and offline channels.
Sasha Afanasieva, spokesperson for GP Bullhound, comments, “The growth seen in the online fashion sector is impressive and we expect that it will continue to develop and expand.”
“Furthermore, we believe that omnichannel retail is set to become a major trend, with users viewing and shopping online and offline,” she adds.
“However, it seems unlikely that a single ‘Amazon’ for fashion can emerge globally. This is due to country-wise differences such as different shopping patterns, offline fashion market structure, audience specialisation and regulation, which make it too hard for companies to expand geographically.”
GP Bullhound, founded in 1999, is a pan-European technology investment banking group which provides world-class advice on mergers, acquisitions, private and public placements to entrepreneurs across the globe. It also provides research and asset management to a diverse range of corporate clients, institutional investors and high net worth individuals.
