Here is a quick summary of the report:

4 Big Opportunities

Buying More than Ever Before

Shoppers just can’t get enough clothes and shoes. Experts are predicting that the e-commerce segment of fashion and apparel will grow at a compound rate of 10.6% and reach a whopping USD 713 billion in sales by 2022. The Asia-Pacific region will be especially good for online retailers as it will most likely make up 38% of market demand in 2020.

Tech-powered Growth

Retailers will increasingly drive growth with machine learning, AI and e-commerce automation tools. This strategy will allow online brands to offer highly relevant and personalized customer experiences.

Innovative Experiences

“Fit” technology, virtual fitting rooms, and AI-powered virtual shopping assistants will become popular aspects of online websites. While in the offline world, voice-powered shopping, visual search and smart speakers will offer brands intimate touchpoints with customers throughout the store.


Shopping directly off the social media pages of influencers and celebrities will soon become the norm. This is a huge opportunity for online brands, particularly small to medium businesses who have limited budgets and resources.

Sustainability is Good

The landmark G7 Fashion Pact of August 2019 highlights fashion’s role in reducing climate change. Already, many brands like H&M and Levi’s have “take-back” programs, which are not only reducing their carbon footprint in an impactful way but also generating net-new customers and increasing retention.

3 Possible Threats

Fierce Competition

Declining barriers to entry and the death of brand loyalty are making the apparel industry ultra-competitive and very complicated to navigate. More than ever, brands must be agile and prioritize customer needs, like aligning with causes or collaborating with respected influencers or developing unique online/offline experiences.

Big Boys Keep Growing

Amazon and e-Bay will soon account for 50% of all e-commerce sales with nearly 55% of all product searches starting on Amazon alone. Online companies must therefore seriously consider using Amazon and e-Bay as highly discoverable entry points in an omnichannel e-commerce strategy.

Combating Returns

Fashion and apparel brands must also contend with another threat that hurts margins: online return rates, which are as high as 50% in some sectors. Even if more conservative estimates are accurate—30% of all online purchases are returned—forward-thinking leaders must aggressively work to reverse this trend.

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Alavi has a proven record of helping brands in a variety industries grow their revenue online. It has a very short time-to-value and is easy to setup and use.

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