Digital innovation, rising globalization, and changes in consumer spending habits have catapulted the Australian fashion industry into the midst of seismic shifts. The fashion industry achieved double-digit growth in online sales for the sixth consecutive year growing 27.2 percent in year-on-year sales.
Currently, fashion accounts for 35.6 percent of all online orders representing an estimated $7.6 billion in total sales for the industry. According to a report, women’s fashion is the driving force in the category recording a 43.8 percent growth for the year while men’s fashion also grew by 26 percent. Fashion consumers will have more buying power, as the number of potential customers is projected to grow. November was the biggest month of the year for fashion purchases, overtaking December sales numbers after recording a 30.2 percent year-on-year growth.
According to Australia Post, the trend has been driven by improved return options and the improvement of buy now, pay later (BNPL) services.
Fashion is changing the traditional retail landscape, with one in three items bought online now a fashion item. Well defined return options are giving fashion shoppers more confidence when shopping online. With 57 percent of BNPL purchases, fashion-related BNPL services are also helping fuel growth.
It’s payment services now make up 7.7 percent of total online spend on physical goods.