UK online fashion sector's revenues drop to £36.2 bn in 2022: Report

20 Jul '23

2 min read

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Insights

UK online fashion revenue fell to £36.2 billion in 2022, from £39.2 billion in 2021, but higher than £33.1 billion in 2019.
Apparel dominated at 70 per cent of sales, generating £13 billion in 2022.
Smartphone shopping at 80 per cent outpaced other channels.
Social media sales doubled from 2 per cent to 4 per cent. Conscious fashion is on the rise.

The UK’s online fashion industry saw a decline in 2022, with revenues dropping to £36.2 billion from 2021's peak of £39.2 billion, according to the UK Fashion Sector Report 2023 by Internet Retailing. The recent figures are, however, higher than the pre-pandemic revenue of £33.1 billion recorded in 2019, indicating that the industry's shift towards online sales continues.

Apparel, led by women's clothing, dominated the sector with 70 per cent of sales, generating £13 billion in 2022.

Footwear, contributing 11 per cent to UK online fashion sales, generated £3.9 billion in 2022, marking the largest year-on-year fall from its £4.5 billion peak in 2021. The accessories segment, on the other hand, comprising 19 per cent of total sales, fared better, with revenues of £6.9 billion in 2022 surpassing those of 2020 and nearly matching the peak in 2021, as per the report.

The shift towards online fashion shopping has been notably influenced by the widespread use of smartphones. Over 80 per cent of consumers prefer mobile devices for online fashion shopping, significantly outpacing all other digital channels.

The report also highlights the driving factors behind online shopping trends. Home delivery, competitive pricing, and convenience topped the reasons why UK shoppers prefer buying fashion online. Further, 80 per cent of shoppers viewed easy returns as a crucial factor in deciding where to shop.

Social media also emerged as a significant platform for online fashion sales, with 42 per cent of consumers purchasing goods via these platforms. Facebook and Instagram were identified as the leading channels, resulting in a doubling of retailer revenues from social media sales, jumping from 2 per cent to 4 per cent within a year.

In terms of subscription services, 51 per cent of UK online fashion shoppers subscribe to an ecommerce service, primarily enticed by free (77 per cent) and speedy (69 per cent) delivery options.

A growing consciousness was observed among UK consumers towards ethical and sustainable fashion. About 86 per cent of respondents expressed a desire for their clothes to be ethically made, and 72 per cent advocated for sustainable production. Notably, as many as 53 per cent were willing to pay more to support these causes, reflecting a shift in consumer values in the fashion industry, the report added.

Fibre2Fashion News Desk (DP)

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