Exploring the Digital Terrain: What Percentage of Clothing Business is Sold Online?
In our new cutthroat digital age, it’s quite difficult to guess what percentage of clothing business is sold online. Web-based tools, smartphones, and digitization have drastically transformed the way we shop for goods and services. Today, consumers across the globe are finding it increasingly easier to browse, select, and purchase their favourite clothing items from the comfort of their own homes. This shift has inevitably led to a steady and significant boost in online clothing sales.
But the crucial question that thrives among entrepreneurs, investors, and market watchers is, what percentage of clothing business is sold online? While a perfect figure might not be feasible due to the ever-evolving and fluctuating online market, we can provide an approximation based on various reports, trends, and forecasts.
The Global Apparel Retail Sector
According to Statista, a reliable provider of market and consumer data, global online apparel and footwear revenue amounted to a staggering $524.9 billion in 2020, depicting a substantial growth from $282.9 billion in 2016. Furthermore, it is projected to reach a whopping $1,002.1 billion by 2025. This crucial data gives us an insight into the concertinaing online clothing sales market.
E-commerce platforms have managed to make a significant impact in the vast world of retail fashion. These online platforms provide benefits that go beyond providing customers with the luxury of shopping from home. They offer consumers a wider range of products and ease in comparing prices. For retailers, e-commerce platforms provide an extended reach to customers far beyond their geographical location.
But What About Brick-and-Mortar Stores?
In spite of a massive increase in online clothing sales, it’s key to point out that physical stores still play a significant role in the retail clothing industry. Statista states that 76.7% of all apparel sales worldwide were conducted through offline channels in 2020. Some consumers still hold an innate preference to try before they buy, which serves as a driving factor to sustain offline sales.
However, one can’t ignore the fact that the scales are tipping. Digital sales of clothes have been increasing at a rate much faster than physical store sales. RetailDive noted that e-commerce sales accounted for 36% of all apparel sales in the U.S in 2020, compared to 34% in 2019.
Adapting In The Digital Age
As the share of online clothing sales continues to rise, it is paramount for existing businesses, startups, and entrepreneurs to prioritize e-commerce within their business strategies. For those ready and willing to adapt, the digital world offers a sheer number of e-commerce platforms like Shopify, Big Commerce, and WooCommerce, to name a few.
These platforms allow business owners to launch an online store without any technical expertise. Moreover, they enable owners to manage and optimize sales, create marketing campaigns, monitor web analytics, and customize their online storefront to provide a personalized and unique shopping experience.
Moreover, these platforms are not limited to large, established businesses. Even if you’re a small clothing startup, venturing into the online market via these platforms is a feasible and highly recommended strategy. The significantly lower cost of starting an e-commerce business, as compared to a brick-and-mortar store, allows small business owners to offset much of the risk associated with launching a new clothing line.
To Sum It Up
While it’s challenging to pin down an exact figure of what percentage of clothing business is sold online, we can safely assume that digital clothing sales are on an upward trajectory. The unprecedented events of 2020 acted as a catalyst, resulting in a more significant shift towards online shopping.
If you are standing on the precipice of starting a clothing business, it would be prudent to incorporate an e-commerce platform into your business model. The digital terrain of the current age provides you with the opportunity to reach a global audience and achieve phenomenal growth. Embrace the digital age and step into the world where the clothing retail industry flourishes.