Online buying and selling are morphing into a time of constant wants and needs of consumers. As this happens, fashion businesses have to seek ways that offer satisfaction to the ever-progressive needs of buyers. Learning about the trends predicted to dominate the world of online shopping will allow retailers to adopt the necessary strategies to maintain flawless customer engagement and satisfaction.
Since the COVID-19 pandemic, much shopping has migrated online. In a report by McKinsey from 2020, the total global revenue of fashion sales through eCommerce jumped from 16% to 29%. The same year, Shopify recorded that over 150 million people shopped online for the first time. An online shopping trend has allowed retailers to further re-strategize their shopping models to gauge the interest of digitally-savvy customers. As cited in the âThe State of Fashion 2022â report from McKinsey & BoF, âconsumer engagement is a new opportunity cited by executives for 2022, reflecting the view that customer experiences with brands across online and offline channels are becoming even more important for brand differentiation in a highly competitive marketplace.â To that end, we have made a list of the 12 fashion eCommerce trends you need to know to drive maximum consumer engagement this 2022.
Andrew Lipsman, the principal analyst at eMarketer, reported that the growth of eCommerce would reach $845 billion by 2022, with mobile commerce driving almost 50% of those sales. However, many eCommerce stores are still ill-designed to convert this growing amount of mobile shoppers. More than half of consumers feel it is more difficult to purchase through mobile, while 16% feel mobile channels lack content, features and functionality. Ensuring that your eCommerce store is mobile-friendly will make a great first impression, improve your customerâs shopping experience, and drive higher conversion rates.
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The fashion industry agreed long ago to give the same price to clothing, regardless of their sizes. However, shoppers still have problems finding a size above XL in some brands. For retailers, their reasons are higher cost of materials, additional labor for fitting, and patterns to produce large sizes. While this may seem like a welcomed logic to most people, it may cause a counter-productive result. It gives an idea to plus-size shoppers that they continually have to pay more whenever they shop. This noticeable disparity in pricing and sizing can cause the hollowed effect of them not having to shop from these retailers, leading to a massive loss of a large proportion of potential customers. Inclusivity in sizing means that garments should be reasonably priced, un-appropriated, and promote body positivity.
Recent studies continue to show that the next generation shoppers are more likely to purchase from brands whose values are premised on inclusivity. The sheer addition of brands creating visuals that tell and elevate the stories of people who have both been marginalized and underrepresented not only improves customer engagement and interaction but also shows shoppers that their values very much align and that theyâre at the core of the brandâs foundation.
Modern-day shoppers want clothing that fits them, and they want to purchase from designers with values similar to their own. An Accenture survey shows that â70%, 68% and 66% of millennial shoppers will choose brands that demonstrate inclusion and diversity in their promotions and offers, their product range and their in-store experience, respectively.â A similar report from Deloitte highlights that 57% of consumers are more loyal to brands that commit to addressing social inequities in their actions. For brands and retailers looking to market inclusively, certain markers such as featuring and normalizing advertising contents which include all people, no matter their race, ethnicity, gender identity, age, religion, abilities or sexual orientation.
The conversation of inclusion and diversity has clarified its importance, showing brand owners, designers, retail store owners and the fashion industry as a whole that they can do better in inclusivity, especially towards sizing and marketing. Shoppers are finally becoming transparent with their shopping wants and have taken this conversation past physical stores into the world of eCommerce shopping. So, whether itâs diversity in sizing or genderless fashion, the eCommerce market is starting to provide a more realistic sense and value to its consumers.
Liveclicker records that 90% of retail businesses who use this approach of customizing products see up to $20 return on every $1 they invest. Customers often want to be a part of the creation process. Many shoppers love the idea of owning items that are only exclusive to them. For some, it is to be a part of something remarkable, while for others, it is to strengthen their experience and relationship with these stores. They achieve this by making products that speak to who they are and offer the needed sense of exclusivity and belonging. Retailers and fashion brands like Dresshirt, Nike By You, and The Mighty Company use this business model to stir conversion rates.
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Customers are eager to have the best-personalized experience when shopping online. Since the pandemic, the usage of this technology has boosted, according to analytics from Meticulous Research stating that A.I. in retail is set to be worth $19 billion by 2027. AI-powered solutions like virtual assistants, chatbots, virtual try-on and generated size recommendations can help retailers. The technology extracts accurate customer insight and provides improved shopping experiences to consumers who visit online stores. For instance, reputable workwear brand Dickies turned to YourFitâs size recommendation tool to boost customer confidence in fit and sizing. The brand has enjoyed 211% more unique visitors and 94% more conversions than comparison seasonal products since implementing YourFit. Offering the convenient, mobile-friendly solution that todayâs shoppers desire, 90% say they like this size recommendation tool. For 76%, it has simplified the customer journey, while 87% say greater personalization has improved their shopping experience. Read more on this case study here.
According to Statista, the Augmented Reality and Virtual Reality markets are expected to rise to 296.9 billion by 2024. DressX and The Fabricant are great examples of fashion tech companies pioneering a digital transformation with A.R. solutions. For instance, Ralph Laurenâs collaboration with a global social networking and avatar simulation app, ZEPETO, turned into an exciting shopping experience for customers. Users immerse themselves in a fully articulated virtual world and engage with a personalized 3D avatar, socializing with other users across locations. âRalph Lauren has always embraced new environments, and weâre excited to push the boundaries in this emerging arena. Making our product available to purchase and wear digitally and allowing consumers to experience the brand in immersive new ways is the next frontier,â comments Alice Delahunt, Chief Digital Officer of Ralph Lauren. Implementing the functions of A.R. and V.R. solutions into eCommerce businesses levitates a quality shopping experience, improves in-store navigation, and overcomes pre-purchase indecision for clients.
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From Alexa to Siri, from Google Voice Search to Cortana, voice searches are becoming more and more widespread in the fashion eCommerce market. Although they first became popular in 2012, they have sieved through time and dominate platforms, including e-commerce and retailing. Statista predicts that the total worldwide transaction value of e-commerce purchases made through voice assistants and search is expected to rise from 4.6 billion U.S. dollars in 2021 to 19.4 billion U.S. dollars in 2023, which is more than 400 percent growth in just two years. This year, consumers can go ahead to pass voice commands on these artificial intelligence tools, seeking answers like the best eCommerce stores to shop from, their size guides, rates, currency exchange, etcetera. Leading brands like ASOS, Nike, Estée Lauder and Uniqlo are already implementing voice-based interfaces for their clients.
Burberry, Tommy Hilfiger, Sephora and H&M are a few of the fashion powerhouses currently harnessing the power of chatbots. Facebook Messenger â now Meta Messenger â has also gone ahead to jump on this e-commerce trend. According to a report on Juniper Research, eCommerce transactions via chatbots will reach $112 billion by 2023, and about 90% of customer interactions will be automated using chatbots by 2022. Chatbots on eCommerce sites are essential and offer consumers a higher and more unique level of shopping experience. They aid better shopping experiences and are available to help online shoppers navigate through any challenge.
It is no wonder that fashion eCommerce is where shoppers are « judging a book by its cover.» Visual representation, thus, is of utmost importance. If the pictures of the products are not appealing, consumers would most likely not want to purchase. This is visual commerce and live shopping â the creation of compelling imagery to advertise a product and direct shoppersâ attention towards that product with the primary purpose of making sales. Coresight Research has forecast that the U.S. live streaming market would reach $11 billion this year and grow to about $25 billion by 2023. Retailers understand this concept of live shopping and visual commerce and have continued to leverage its potency to drive sales. Printemps and Samaritaine, for example, are two department stores in Paris using live shopping streaming to interest customers and boost sales.
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In the latest âThe State of Fashion 2022â report by BoF and McKinsey & Company, the U.S. alone predicts that annual sales through social commerce are expected to surge from approximately $37 billion in 2021 to $56 billion in 2023. By 2027, worldwide social commerce sales will reach over $600 billion. Across the globe, social media has created a huge benchmark in the shopping scene. From TikTok to Instagram to Snapchat, more and more platforms are offering the shopping option, spurring the interests of consumers and causing them to shop momentarily. In the past years, these platforms have also created their shopping channels â think Shopifyâs latest introduction of in-app shopping on TikTok. Besides these platforms creating their shopping channels, independent and co-existing brands, stores and retailers are also harnessing the power of social shopping to create accounts that can aid their better positioning towards targeted customers.
ââSustainable and eco-friendly products are no longer the niche market they once were. According to new research by the WWF, searches for sustainable goods have risen by a staggering 71% over the past five years. Itâs clear that modern consumer attitudes are changing â by 2030, Gen Z will make up the largest consumer segment worldwide, and 41% of them said they would pay more for sustainable fashion, 58% feel that a brandâs purpose, values and mission matter, and 73% of all consumer groups would change behavior to reduce the impact on the planet. Fashion brands are already capitalizing on this interest by sourcing eco-friendly materials. For instance, Pangaia, the London-based sustainable apparel brand, has recently introduced two new 100% bio-based alternatives to its material line-up: âPlntFiberâ and âFrutFiber.â These fibers consist of plant blends and agricultural waste. Moreover, new garments made of these fabrics will feature QR-code âdigital passportsâ so customers can see how sustainable their garments are.
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In New York, there is an ongoing conversation on The Fashion Sustainability And Social Accountability Act, intended to hold big fashion brands accountable for their roles towards climate change. The Fashion Act will require global apparel and footwear companies doing business in New York with more than $100 million in revenue to map a minimum of 50% of their supply chain, disclose where in that chain they have the most significant social and environmental impact, as well as reveal their material production volumes. If the Fashion Act becomes law, companies would have 12 months to comply before facing fines for violations.
Simply put, this is a method through which retailers can create a better customer experience through all the selling channels they use, combining online and offline touchpoints altogether. This allows retailers to understand the customerâs journey and personalize their shopping experience. In a Statista report, almost one in two e-commerce decision-makers in Europe and North America considered the omni-channel strategy necessary, with another 20% deciding that it was pretty essential to have one in 2021. Fashion retailers employing this model are Nordstrom, Neiman Marcus, Oasis Fashion and Canada Goose.
Topshop, a UK-based retail store, for example, executed the omni-channel strategy by combining billboards with digital marketing campaigns. The retail store purchased billboard ad spaces that were a short distance away from their brick and mortar shops in London, Manchester and Liverpool. The billboards showed off runway trends from London Fashion Week, such as pleats, leather and color-blocking, before featuring a few pictures of Topshopâs relevant inventory. Finally, the Topshop marketing team decided to ask potential buyers to tweet on their official account with hashtags such as #pleats or #leather while providing a curated shopping list as a reply. As a result, the company experienced a 25% boost in sales across all categories illustrated on the billboard.
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Another brand, Nordstrom, has long been a leader in omni-channel retailing â from Pinterest integration directly into their in-store displays in 2013, to style advice on YouTube to showing the number of buyers browsing the same product page and installation of curbside pickup counters at the front of the stores amid lockdown. âWe can combine loyalty program information with knowing where a product is located and a single view of the customer. So you can know if the store a customer is right near has any products that are in their shopping cart online, or if they have earned a note they can spend and that theyâre right near a store right now,â says Aaron Smith Nordstromâs director of mobile customer applications about their digital loyalty program, a part of their omni-channel customer strategy.
According to FisGlobal, âdigital wallets will account for 51.7% of e-commerce payment volumes by 2024 with slight declines in credit cards (to 20.8%) and debit cards (to 12%). By 2024, digital wallets, credit and debit cards will account for 84.5% of eCommerce spend.â Consumers care about what options of payment are made available to them. Do online retailers and shops give them just the possibility of card payment, or can they go further into allowing direct transfers from their accounts or provide a contactless payment option? Bitcoins, Escrow and eChecks through ACH (Automated Clearing House) processing are a few rising popularity payment methods retailers can employ to stay ahead of the competition. In 2020, when finances were particularly tight, more and more customers preferred the buy-now-pay-later (BNPL) option. Brands like Macyâs, GAP and Neiman Marcus have started offering BNPL to credit card-averse customers. Leading fashion retailers are liaising with fintech companies like Klarna, Affirm and Uplift offer easy payment methods for customers. Klarna, for example, offers direct payments and pay after delivery options, letting consumers pay when and how they prefer to. This improves the quality of customer experience and further promotes more future iterations.
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The fashion retail industry would continue to thrive at an exceptionally fast rate. At the end of it all, a major reason for this continuous change is customer satisfaction and personalized consumer experience. Therefore, there is a paramount need for retailers to learn about the relevant information and workings of trends listed above. If customers perceive that retail stores, whether physical or online, are built with them in mind, it allows them to shop with trust and come back time and again.