Editor’s Note
This analysis highlights the dynamic forces shaping ecommerce fashion, from its robust growth trajectory to the persistent macroeconomic challenges retailers must navigate. Understanding these trends is crucial for any business operating in this space.
The ecommerce fashion industry is changing drastically. Here are the trends, strategies, and data you need to know in 2025.
The fashion and apparel industry continues to demonstrate its dominant position in ecommerce. The sector has achieved a remarkable $781 billion market value—a number projected to more than double within six years.
Still, fashion retailers face many macroeconomic headwinds. There are mixed signals on whether inflation is set to continue, but scarred consumers are still buying with caution. According to Ipsos’s 2024 global consumer research, 32% of consumers across 29 countries still cite inflation as their primary worry. While major retailers initially responded with price increases, they’ve faced strong resistance from inflation-weary consumers prioritizing essential spending. The National Retail Federation reports that retailers’ gross margins are actually lower now than during most of the pre-pandemic period, demonstrating that price increases were driven by rising input costs rather than profit-taking.
Shifts in the demanded customer experience are also proving challenging, especially among younger consumers. Recent data from McKinsey shows over 75% of consumers are trading down their purchases for better value and pricing. When you zoom in to Gen Z and millennials, that number rises to 86%. This demographic increasingly craves sustainable retail—though reviews are mixed on whether they’re willing to pay for it. And they also want tech-enabled shopping, blending digital and physical retail environments.
Fashion brands must now navigate these complex market conditions while adapting to evolving consumer preferences. There are a lot of needles to thread, but getting it right streamlines both the consumer and the back-end experiences to drive growth, keep fashion brands nimble, and unlock innovation.
Here’s a quick look at the trends we’ll be diving into:
Social commerce and shoppable content
Unified shopping experiences
A personalized customer journey
AI, AI, AI
The continuation of the metaverse
The rise of resale
Digital payments as a growth-driver
Sustainability—with caveats
Community through IRL experiences
Diversification of business models
Social media plays an integral role in many online fashion brands’ ecommerce marketing strategies. That’s hardly surprising—our daily lives are no longer complete without our smartphones. The typical social media user now spends about 143 minutes daily on social media, which equals nearly 2½ hours. In an average lifespan of 73 years, that’s nearly 6 years of their life.
Some 62% of consumers watch videos to learn about a product or brand before they buy. Platforms like TikTok and Instagram drive sales for large fashion brands, allowing shoppers to visualize the product on a real person—and there are bonus points if it’s through a social media influencer they already trust.
But social media is no longer a place for shoppers to just learn about new fashion trends; it’s also a place for shoppers to buy as they learn, through in-app, integrated shopping experiences. This shortens the line between influencer product promotion and an actual purchase, right inside the apps where customers are already engaged, such as Instagram, TikTok Shop, Meta, buyable pins on Pinterest, and more.
In fact, social commerce sales are expected to reach one in five sales by 2025, with 70% of Instagram users looking to the social media platform for their next purchase. Newer to the social selling sphere, TikTok Shop’s integrated shopping journeys show particular potential, providing access to the platform’s more than 33 million users. Current projections for shopping on the platform from Capital One indicate that 43% of users will use it to make purchases by 2027.
The shopping experience is more multichannel than ever—especially in the fashion space. Consumers want to discover a new look from an influencer on social media, research reviews online, try items on in-store, and return them with a third-party logistics provider (3PL). While many brick-and-mortar stores closed during the pandemic, more and more digital-first brands are opening new physical stores. The fitness brand Gymshark keeps opening new stores in popular regions, while the CEO of the women’s fashion brand Evereve has said they’re aiming for 200 physical retail stores by 2030.
With more pressure on retailers than ever to grow, and just as many headwinds to navigate, it’s important to show up on every channel your customer does—including the traditional ones.
