Online fashion retail provides an assortment of clothing, footwear, accessories, and other fashion items directly to consumers through online shopping portals and mobile applications. Growing preference for online shopping among millennials and Gen Z consumers owing to benefits such as convenience, massive product variety, competitive pricing, and round-the-clock availability has been driving the demand for online fashion retail in the U.S.

The U.S. fashion ecommerce market is estimated to be valued at US$ 108.1 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Rising popularity of mobile commerce or m-commerce presents a key growth opportunity for the U.S. fashion ecommerce market. With increasing usage of smartphones and advanced mobile applications, fashion consumers in the U.S. are increasingly turning to their mobile devices for online shopping. Mobile devices offer an interactive and personalized shopping experience along with features like in-app payments, product reviews, social media integration, location-based recommendations etc. This has boosted mobile shopping significantly. It is estimated that over 50% of total online fashion sales in the U.S. will be through mobile platforms by 2030. Leading online retailers are focusing on enhancing their mobile sites and apps to capitalize on this opportunity. Development of innovative mobile technologies, like augmented reality for virtual try-ons, will further propel mobile commerce in the fashion industry.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. While the initial investments required to set up an ecommerce platform are relatively low, establishing brand recognition and gaining customer trust in an already competitive fashion ecommerce industry pose significant challenges for new entrants.

Bargaining power of buyers: The bargaining power of buyers is high. Buyers have a large number of fashion ecommerce platforms to choose from. Additionally, price transparency online allows buyers to easily compare options and switch to alternatives offering better prices or deals.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. While some popular fashion brands hold stronger bargaining power, most suppliers still depend on major fashion ecommerce platforms for access to a large customer base.

Threat of new substitutes: The threat of new substitutes is high. Alternatives like rental/lease fashion services, thrift/pre-owned clothing marketplaces as well as in-person shopping at retail outlets pose a significant threat.

Competitive rivalry: Competitive rivalry is intense given the presence of major global players competing for market share.

SWOT Analysis
Strength: The U.S. has a large fashion-conscious consumer base and high smartphone and internet penetration enabling strong online uptake. Ecommerce allows reaching a wide customer demographic across the country.
Weakness: Fashion trends change rapidly requiring constant new inventory and product development which increases costs. Customers expect free shipping and returns which squeeze margins.
Opportunity: Growing preference for renting/leasing and thrift fashion presents new business models. Personalized recommendations and social features can boost customer loyalty and average order value.
Threats: Economic uncertainties and high inflation may impact discretionary spending. Younger customers increasingly embrace sustainability raising demand for pre-owned fashion.

Key Takeaways

The U.S. Fashion Ecommerce Market Size is expected to witness continued strong growth over the forecast period driven by the increasing popularity of online shopping, expanding product categories and customization options. The market size is projected to reach US$ 108.1 Bn by 2024 growing at a CAGR of 6.2% between 2023-2030.

Regionally, the Western U.S. dominates currently accounting for over 40% market share led by states like California and Washington. However, the Southern region is poised to register the fastest growth due to rising disposable incomes, improving internet connectivity and proclivity of fashion-conscious demography towards new trends. States like Texas and Florida will be high potential markets.

Key players operating in the U.S. fashion ecommerce market include Amazon, Walmart, Nordstrom, Macys, Target and AngioDynamics. Companies are investing in same-day delivery, augmented reality features, social selling and exclusive design collaborations to enhance customer experience and strengthen loyalty in the highly competitive landscape.

For More Insights, Read: https://www.trendingwebwire.com/u-s-fashion-ecommerce-market-demand-growth-and-regional-outlook-by-2030/

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