What: E-commerce in the fashion industry is experiencing a slowdown, with a decline in value despite an increase in sales volume.

Why it is important: This shift highlights the changing dynamics of consumer spending in the fashion sector, emphasizing the need for e-commerce platforms to adapt to new consumer behaviours and market conditions.

The e-commerce sector, once a robust growth channel for fashion retail, is now facing challenges as fashion spending slows down. In the first half of the year, e-commerce sales volumes increased by 3.7%, but the overall value dropped by 1.5% due to a 5.1% decrease in the price paid per item. This trend was highlighted at the Paris Retail Week trade fair, where Kantar presented its findings. The data shows a refocusing on loyal customers, with 62.1% of consumers purchasing online, a drop offset by increased spending and purchase frequency.

Major players like Amazon, Vinted, and Zalando are seeing declines in spending amounts, while sites like Veepee and ShowroomPrivé are gaining traction due to their promotional models. The study also reveals that ultra-fast fashion brands like Shein and Temu are capturing significant market shares, with Temu entering the Top 10 online sellers.

The report highlights the importance of understanding consumer behaviour across different age groups, with online fashion spending being highest among 25-34 year-olds. Additionally, it highlights the significance of omnichannel strategies, as many consumers research products online before purchasing in-store to avoid delivery costs and assess product quality.

E-commerce faces challenges amid fashion spending slowdown