European Fashion E-commerce Growth: Online Fashion Worth 213 Billion Euros

Fashion e-commerce growth: Expansion pays off

Cross-border e-commerce generates a significant share, up to 38% of the total market (amounting to 82 billion euros). International sales continue to grow in importance, highlighting the potential for e-commerce businesses to expand beyond their domestic markets. Experts predict cross-border sales will account for 39.6% of the market by 2025, potentially reaching 89 billion euros. This presents a strategic opportunity for e-commerce players focusing on international growth.

Analysts project the market will grow by another 5% by 2025, reaching 224 billion euros. The rise of Chinese fast fashion platforms such as Shein and Temu, as well as growing consumer-to-consumer (C2C) platforms like Vinted, drives this steady growth.

Marketplaces dominate sales channels

Marketplaces were the main sales channel in 2023. They accounted for up to 72% of the gross merchandise value in the sector, which is 51 billion euros. C2C marketplaces contributed 12 billion euros, accounting for 17% of the total. They are expected to grow to 15 billion euros by 2025.

This shift towards marketplace dominance emphasises the importance of multi-channel strategies for e-commerce brands looking to succeed in a competitive environment.

The total European fashion, beauty and luxury market is valued at a staggering 719 billion euros. Of this, fashion (including luxury) accounts for 541 billion euros, while beauty (including luxury) accounts for 178 billion euros. The luxury market alone is worth 84 billion euros, highlighting its significance within the broader fashion industry.

Why is this the case?

Although many expected a decline in online sales after the pandemic ended, the situation in the fashion, beauty and luxury segments proved to be different for several reasons:

1. Change in consumer shopping behaviour

During the pandemic, many people learned to shop online and developed a habit of using e-shops. It’s a convenient solution that also offers better overview and wider selection. This trend has persisted even after the pandemic, as people appreciated the ability to easily compare prices, products and brands from virtually anywhere.

2. Growing importance of luxury and self-expression

After challenging periods of the pandemic, many people focused more on self-expression, which increased interest in luxury and fashion products. Purchases of fashion, beauty and luxury brands became a form of reward and investment in personal appearance, driving demand in these segments.

3. Growth of online marketplaces and new platforms

With the boom of new platforms such as Shein, Temu and C2C marketplaces (e.g. Vinted), consumers gained access to cheaper options and various styles, which supported online shopping even after the pandemic. These platforms quickly adapted to consumer needs and offered them innovative ways of shopping, whether it’s fast fashion or sustainable alternatives.

4. Technological advancements and improved logistics

Significant improvements in technology and logistics solutions, such as faster deliveries, better integration of payment systems and higher quality customer service, have made online shopping an even more attractive option. These improvements allowed brands to retain customers even after returning to brick-and-mortar stores.

5. European fashion market thinks globally

While many businesses struggled to survive during the pandemic, those adapting to cross-border trade discovered access to a larger global audience. Cross-border shopping emerged as an important growth factor as consumers actively sought products unavailable in their own countries.

These factors enabled the fashion, beauty and luxury segments to not only survive the pandemic but also experience further growth, strengthening their position in the e-commerce sector.

The European fashion market, including the beauty and luxury segment, achieved a record 213 billion euros in 2023. This represents significant growth, defying current financial uncertainty and post-COVID scepticism that predicted artificially inflated sales during lockdown would decline.

Cross-border e-commerce platforms and marketplaces continue to fuel further sales. Let’s examine the drivers behind these unexpected numbers and identify the brands leading the rankings.