《RetailX:2023年欧洲时尚行业报告(英文版)(53页).pdf》由会员分享,可在线阅读,更多相关《RetailX:2023年欧洲时尚行业报告(英文版)(53页).pdf(53页珍藏版)》请在三个皮匠报告上搜索。
1、 499April 2023RXSFSEU23RPEurope FashionRetailXIn partnership with:20233|RetailX|April 2023RXSFSEU23RP 2023 In this report,we unpack how the sector has changed in the past year and where it may be heading as it embraces sustainability,social commerce,the metaverse,AI and ChatGPT.Heres what we foundKE
2、Y FINDINGS Europes online fashion market is growing more slowly than in Asia and the US,dragged down by the cost-of-living impact of the Russian-Ukraine conflict.Rising inflation is seeing a reset in supply chains and energy buying among manufacturers,brands and retailers.Post-pandemic,online fashio
3、n sales in Europe have fallen across apparel,footwear and accessories.However,sales of athleisurewear and luxury fashion have taken up much of the slack lost to a decline in work and formalwear.Western and Central Europe dominate fashion ecommerce,with 42%of consumers shopping online,thanks to advan
4、ced internet and mobile use and better logistics.However,a rising Why this mattersSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|WHY THIS MATTERS&KEY FINDINGSContentsEuropean fashion market overview 04European fashion market by segment 10European fashion market by region 14The
5、 European fashion consumer 18Attitudes to sustainability 22The Largest 50 European fashion retailers and brands 28Partner perspective 34PROFILE:Asos 35PROFILE:Dr Martens 36PROFILE:Inditex Group 37PROFILE:JD Sports 38PROFILE:Next 39PROFILE:Pandora 40PROFILE:Shein 41PROFILE:TK Maxx 42PROFILE:Vinted 43
6、PROFILE:Zalando 44CASE STUDY:boohoo in the metaverse 45CASE STUDY:H&M embraces pre-loved 46CASE STUDY:Levis turns to AI 47The road ahead 48Figures 52Credits 53Knowledge partners 54number of young,mobile-first shoppers could tip this in favour of the South and East of the region.This mobile shift is
7、happening across the European fashion sector,indicating a move among all age groups to a more hybrid approach.Shopping apps such as Shein,Zalando and Vinted continue to drive the pureplay space,with social commerce playing a growing role.Fashion continues,however,to have a very high rate of cart aba
8、ndonment.There is a marked shift towards buying sustainable fashion,with 77%of Italian shoppers planning to buy less for environmental reasons.23%of Belgian and UK shoppers see delivery as the biggest environmental factor in their ecommerce choices.47%of Europes consumers are sceptical of fashion br
9、ands and retailers environmental claims.They are right to be suspicious an EU study in 2022 found that 53%of sustainability claims were“vague and misleading”.42%of Gen Z and millennial shoppers in Europe are likely to shop second-hand fashion,with Germany,France and the UK leading the pack.Indeed,re
10、-sale fashion could outstrip declining fast fashion sales by 2029.Retailer buy-back schemes are also starting to grow in Europe.Despite stellar performances from Zalando and Zara,the emergence of Chinas Shein and Lithuanias second-hand marketplace Vinted in the top five of the Largest 50 European on
11、line fashion retailers shows just how changed the fashion market is and what challenges the established order faces.The European fashion sector has undergone rapid change and continues to do so.Technology changes faster than the cut of the latest trousers,so the industry is in a race to keep pace wi
12、th consumers who are tech-savvy and on the hunt for a bargain.4|RetailX|April 2023RXSFSEU23RP 2023 EUROPE IN DECLINE Europe has long been a booming market for fashion apparel,footwear and accessories.The continent is home to some of the biggest and best known brands in all fashion segments and has a
13、lways been a lucrative market,from the cheapest fast fashion to the pinnacle of luxury goods.However,while the sector has continued to grow during the past five years,the pace of that growth has slowed,a continuing trend(Figures 1 and 2).In 2022,European fashion revenues fell behind that of North Am
14、erica for the first time,driven by extremely rapid growth in online fashion sales in the US during and post-pandemic.Across the period,US fashion saw an impressive+21.8%rate of growth in 2022,dwarfing that of Europe(+6.9%)and Asia(+4.0%).Both the Asian and European markets continued to slow in early
15、 2023.Perhaps more markedly,European consumers are no less valuable individually to fashion brands and retailers than those in the US and far more lucrative than Asian shoppers.This pattern has been seen across many sectors in 2022/23,with US shoppers increasing their per capita spend in items,while
16、 those in Europe spend less.Market overviewAsia,meanwhile,sees a growing number of shoppers buying more goods,yet the value of those goods is inherently lower due to cost of living and average earnings being skewed down relative to other markets.Meanwhile,the USA(36%)and Europe(32%)lead the market i
17、n fashion ecommerce uptake,while Asia(23%)lags behind.MACRO-ECONOMIC EFFECTS The decline in European fashion spending is almost entirely down to geopolitical instability impacting global macroeconomic trends that have had a disproportionate effect on European shoppers.The Russian invasion of Ukraine
18、 has had a palpable impact on fashion shopping across the whole of Europe,with notable declines in growth from 2020 and 2532689889502072002020212022EuropeAsiaNorth AmericaRetailX 2023RXSFSEU23RP-1-v16Source:Statista Digital Market InsightsFigure 1.In 2022,Europe reve
19、nue falls behind that of North AmericaFashion ecommerce revenue in top global regions(bn),7325232202020212022RetailX 2023RXSFSEU23RP-2-v13Source:Statista Digital Market InsightsFigure 2.North America displays the fastest growth in 2022 while Europe and
20、 Asia kept slowing downFashion ecommerce percentage revenue change in top global regions,2018-2022EuropeAsiaNorth AmericaSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET OVERVIEWThe European fashion market has been hit hard by geopolitical events and faces more pressure f
21、rom Asia and the US5|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET OVERVIEWRetailX 2023RXSFSEU23RP-Europe fashion sector report 2023-11-v17Source:Statista Digital Market InsightsFigure 3.Fashion growth in Europe slows down mainly as a
22、n effect of the war in the Eastern regionFashion ecommerce percentage revenue in European regions,%20%12%10%7%-14%3%2%13%15%29%5%10%8%21%22%38%39%17%18%13%200212022EuropeCentral&Western EuropeEastern EuropeNorthern EuropeSouthern EuropeUnited Kingdom Sweden Romania Spain Bulgar
23、ia France Greece Italy Germany-1.1%-1.2%-1,4%-1.5%-2.0%-2.0%-2.0%-2.0%-2.0%Slovakia RetailX 2023RXSFSEU23RP-41-v1Source:OECDFigure 4.War in Europe has especially impacted GDP forecasts of leading European countries like Germany,Italy,and FranceChange in forecast gross domestic product(GDP)growth in
24、selected countries of Europe due to the war in Ukraine,2022Chart displays difference between December 2021 and June 2022 GDP forecasts-3.0%through 2021 in all regions.However,the markets of Eastern Europe have been the hardest hit,with growth reversing from a slowed rate of 12%in 2021 to-14%in 2022.
25、Nearby Central Europe has also seen growth slow more dramatically than other regions,while Western Europe has also been affected(Figure 3).The Eastern European fashion market was,pre-conflict,dominated by Russia.While the Russian apparel market had started to shrink in late 2021 and early 2022 as fe
26、ars of invasion of the Ukraine grew,the raft of fashion brands that then pulled out of Russia as the tanks started to roll into the Donbas saw the Russian fashion market all but collapse.Data indicates that just one month before the war started,Russias apparel sales by volume had dropped to$31.76bn,
27、a loss of$14.64bn in one year.Estimates are that the Russia-Ukraine conflict will wipe$18.8bn off the Russian apparel market in 2022,with spending remaining below the pre-conflict forecast until 20251.While it is easy to see that war in the immediate vicinity of those countries that make up Eastern
28、Europe naturally has an impact on shopper behaviour,the impact on Western Europe is perhaps more troubling.Reliance on gas supplies,along with raw materials,has had a notable effect on the wider economies of Western Europe effects that have impacted all retail sectors,not just fashion.The war has pr
29、ompted a dramatic drop in GDP forecasts across all leading European economies,with Germany,France,Italy and the UK all predicting sharp drops in economic activity as a result(Figure 4).6|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET O
30、VERVIEW5.8%5.4%4.0%3.9%3.7%3.7%3.6%3.5%3.4%3.3%3.1%2.7%European Union France Netherlands United Kingdom Greece Hungary Slovenia Poland Austria Spain Ireland Portugal RetailX 2023RXSFSEU23RP-42-v1Source:European CommissionFigure 6.GDP growth for the EU is expected to reach 2.7%in 2022Gross domestic p
31、roduct growth rate forecasts in selected European countries,2022-0.67-0.10-0.06-0.19World Non-OECD Other OECD OECD Europe 20242023RetailX 2023RXSFSEU23RP-40-v1Source:OECDFigure 5.OECD European member countries would be the most affected by a Russian gas embargoChange in forecast gross domestic produ
32、ct(GDP)growth worldwide in case of an embargo on Russian gas in Europe from 2023 to 2024,by region-1.30-0.19-0.27-0.4519%9%4%1%0%Boohoo Group Uniqlo(2020)H&M(Q4 2021)Inditex(2020)LPP RetailX 2023RXSFSEU23RP-29-v43Figure 7.Key fashion players like LPP and Inditex affected by the war in EuropeShare of
33、 the Russian market in the revenue of selected fashion companies,May 2022 Share of the groups global EBIT(earnings before interest and tax).Source:Kommersant;TheStreet;BBC;The Guardian;CNBC;Various sources(DM Martins Research);New York Times;City A.M.;Al Arabiya;Anadolu Agency;Cowen Group;GlobalData
34、;Business Insider;Fitch Ratings;Forbes;Financial Times;StatistaThis is driven almost entirely by the effects on developed nations of a reliance on Russian oil and gas supplies used to generate energy for manufacture and distribution(Figure 5).Moreover,the sudden rise in energy costs in turn raised c
35、onsumers domestic energy bills,leading to rising household inflation and a squeeze on discretionary spending.In turn,this has seen many consumers postpone fashion and other non-essential purchases.This downturn across consumer spending is keenly illustrated by forecast drops in GDP across all major
36、EU countries,with the EU average predicting just 1%in GDP growth in 2022(Figure 6).Pulling out of the Russian market has had an impact on some of Europes leading fashion retailers,with Inditex,which operates a number of leading fashion brands 7|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPOR
37、T|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET OVERVIEWFigure 8.Germany shows higher demand for online fashion,but Swedish and Polish e-shoppers portray higher preference for only buying fashion onlineWhich of the following best describes your purchase behaviour in each category?Fashion ap
38、parel and accessories,selected European countries countries,20225955532332263744375547428240Portugal Spain Greece Romania Italy Netherlands France Norway UK Germany Poland Sweden I buy mostly in physical storesI buy equally online and in physical storesI b
39、uy mostly onlineRetailX 2023RXSFSEU23RP-Europe fashion sector report 2023-13-v25Source:RetailX European Consumer SurveySurvey contains 400-750 responses from 16+years old residents of each of the presented countries;Jun 2022.Results have been strati ed by age and genderincluding Zara,and Swedish fas
40、hion powerhouse H&M,both seeing significant revenue hits from the abatement of sales in the country(Figure 7).Polands LLP,which operates a number of fashion brands popular in Eastern and Central Europe Reserved,House and Crop to name three has been hardest hit by the boycott,with revenues cut by alm
41、ost a fifth in 2022.INFLATION This impact on inflation can be clearly seen in apparel prices(Figure 8).While there have been individual quarters where apparel inflation has,in turn,surged and sunk,the overall trend between May 2020 and May 2022 have been upwards,with a significant surge in the later
42、 stages of that timeframe.Rising fuel prices push up the costs of raw materials,manufacturing processes and transport.All players in this value chain have been forced to up their prices to maintain margins a cost passed on to the fashion brands and wholesalers.These costs are then passed on directly
43、 to consumers,where brands sell D2C,or to retailers who sell to consumers.In the former instance,the brand selling D2C has some control over its own costs particularly if it sells via ecommerce and can manage its own margin and discounting accordingly.Retailers selling to consumers face a starker ch
44、oice of either swallowing those extra costs and hoping to accrue more sales,or passing them onto the consumer.Most have opted for the latter,seeing prices rise and demand fall.8|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET OVERVIEW20
45、2203224250253438434649262002020212022ChinaUnited StatesUnited KingdomGermanyFranceRetailX 2023RXSFSEU23RP-4-v22Source:Statista Digital Market InsightsFigure 10.China represents almost one-third of fashion ecommerce revenue worldwideFashion ecomm
46、erce revenue in selected countries(bn),2017-2022Many retailers in fashion are looking at the ways to compensate for this,seeking new suppliers in regions less impacted by rising fuel prices,as well as looking to renegotiate much longer-term contracts with suppliers,both parties betting on lower cost
47、s further down the line to offset higher costs today.Either way,these inflationary pressures are likely to reshape the fashion industry,pushing retailers to re-evaluate not only their supply chain contracts but also the size of their outlets,the amount of warehousing and even the location of their w
48、arehouses and distribution hubs.SUPPLY CHAIN These supply chain issues are starkly demonstrated by data from the fashion industry itself,which has outlined how rising costs of raw materials and shipping costs are among their chief concerns(Figure 9).Retailers and brands in fashion are still attenuat
49、ed to the wider risks of both further international conflict and unexpected and open-ended business shut-downs,as seen during the pandemic.Together,these factors are all contributing to a lack of confidence among fashion brands and retailers that is slowing investment and expansion,putting further d
50、ownward pressure on the sector.These worries also trouble consumers,with many restraining their spending in case of a repeat of the uncertainty of national and global lockdowns through the resurgence of Covid-19,or the arrival of another pandemic pathogen,as well as fearing an escalation and spread
51、of Russias war against Ukraine.RetailX 2023RXSFSEU23RP-3-v12Source:EurostatFigure 9.Inflation rate for clothing and footwear was 4.2%in EU near the end of 2022Harmonised index of consumer prices(HICP)inflation rate for clothing and footwear in the European Union(in%),Jan 1997-Nov 2022Jan 97Aug 97Mar
52、 98Oct 98May 99Dec 99Jul 00Feb 01Sep 01Apr 02Nov 02Jun 03Jan 04Aug 04Mar 05Oct 05May 06Dec 06Jul 07Feb 08Sep 08Apr 09Nov 09Jun 10Jan 11Aug 11Mar 12Oct 12May 13Dec 13Jul 14Feb 15Sep 15Apr 16Nov 16Jun 17Jan 18Aug 18Mar 19Oct 19May 20Dec 20Jul 21Feb 22Sep 22-20 2 4 6 9|RetailX|April 2023RXSFSEU23RP 202
53、3 OVERSEAS SALES Since the fashion sector in Europe is gripped by uncertainty stemming from the conflict,many international brands are looking further afield to fill the gap left in their European sales.China continues to be an economic powerhouse,driving sales across all retail sectors,not least fa
54、shion.Data shows that China now represents almost one third of fashion ecommerce revenue worldwide,outstripping even the US market,which has seen a surge in growth(Figure 10).Moreover,the Chinese fashion ecommerce market is growing at a similar pace to that of the US.This growth in the Chinese fashi
55、on market is a boon to European fashion brands and retailers,since Chinese consumers continue to identify European fashion brands as stylish,chic and unique.They are also seen as well made and,to some degree,exotic.Many of the larger European fashion brands have been servicing this growth market for
56、 some time,with Spains Zara,for example,having more than 500 stores in China,while Swedens H&M has opened around 400 since 2007.However,the Chinese market for European fashion could yet close off some of these opportunities,since Chinese consumers are increasingly turning to homegrown fashion brands
57、,driven both by lower prices and a growing interest in the principle of Guochao,or national trend.This refers to the increased consumer favouritism towards Chinese brands,designs and culture,which has swept across the Chinese consumer base for all goods.While Guochao may start to impact the cache an
58、d sales of European fashion brands in China,it may also be the start of a wave of Chinese fashion brands flooding the European market.A growing wave of young Chinese fashion designers is starting to emerge at the luxury end of the market and these are keen to not only make their voices heard in Chin
59、a but also to be taken seriously in the West.Names such as Anta,Li Ning and Peacebird are all attracting attention outside the Chinese market,shifting views on what a Made in China label means when it comes to fashion.1 REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|MARKET OVERVIEW10|RetailX
60、|April 2023RXSFSEU23RP 2023 Since the pandemic,online fashion revenues have declined across all three key segments apparel,accessories and footwear driven down both by a realigning of sales post-lockdown,as well as growing economic concerns across the continent prompted by a dramatic rise in the cos
61、t of living in most markets(Figure 11).However,while we focus in these three segments of the fashion sector,the sector itself is still more divisible,featuring a split between luxury,affordable and fast fashion,as well as increasingly featuring sales in athleisurewear,a hybrid of sportswear and casu
62、al fashion.This additional segmentation has seen a degree of cannibalisation within the fashion sector of its own market.While sales of workwear and formal clothes dropped during the pandemic,being replaced by sales of more homeworking-friendly athleisurewear,the post-pandemic return to work has not
63、 seen a full recovery of the workwear and formal sectors.Instead,growth here has been slower,while athleisurewear has also slowed.Together,both have driven a rise in overall fashion sales,although what is actually being purchased is less defined that pre-pandemic data shows.Fashion segments APPAREL
64、Apparel is the largest single segment of the European fashion market,accounting for 62%of online fashion sales across the region,as well as taking the lions share of revenues:118.9bn of the total 192.8bn spent across the sector in 2022(Figure 12).When assessed regionally within Europe,Central and We
65、stern Europe drives sales and revenue growth for the apparel sector,while Eastern Europe which had been predominantly flat has seen a downturn in sales(Figure 13).This,as seen in the previous section,is the result of economic uncertainty created by the Russian invasion of Ukraine in 2022.Apparel sal
66、es have seen the largest shift through the pandemic and post-pandemic period,with sales of workwear and formal wear dropping dramatically in 2020 and never recovering to their pre-pandemic levels.What is in fashion has changed.The pandemic love affair with athleisurewear has slowed,but continued,wit
67、h many more people still opting for it for home working,as well as a drive for more healthy lifestyles prompting a growth in the use of sportswear as everyday apparel.Similarly,there has been a growing backlash against cheap,fast fashion on ethical and environmental grounds,which has seen sales at t
68、his lower-price-point end of the market slow.In contrast and despite worsening economic conditions there has been growth at the luxury end of the market,with affordable luxury and luxury brands seeing an uptick in fashion sales.24%10%6%8%4%3%14%14%16%27%26%16%3%200212022AccessoriesApparel
69、FootwearRetailX 2023RXSFSEU23RP-19-v32Source:Statista Digital Market InsightsFigure 11.All fashion ecommerce sectors are slowing growth in EuropeFashion ecommerce revenue percentage change by sector in Europe,2018-2022SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|FASHION SEGM
70、ENTSAs formal wear continues to shift to more casual items,European fashion has seen a realignment of spending11|RetailX|April 2023RXSFSEU23RP 2023 This is being driven primarily by younger consumers,who are looking to luxury and affordable luxury as a source of not only high quality and unique item
71、s that stand apart from the more widespread High Street look,but also as a means of buying something less ephemeral which has both sustainability and resale value to the buyer.There is a growing sense with many shoppers that,showing off and protecting the environment aside,buying luxury is a well-de
72、served treat.This comes from the growing consumer desire for experiences and novelty in all that they do1.FOOTWEAR Footwear,too,has seen a degree of realignment as to how consumers spend.Accounting for the smallest part of the fashion market,online footwear sales in Europe are still dominated by cas
73、ual footwear,with the fashion sneaker market accounting for some 17%of the total 25bn in footwear sales seen in Europe in 20222,but growing at a rate of around 1%each year and accounting for the single-biggest segment of footwear aside from all footwear made of leather which will also include some s
74、neakers.This shift towards more casual and athleisurewear orientated footwear is expected to continue across the region well into 2027,with its share steadily growing.However,this shift towards casual and sport-orientated fashion footwear has been at the expense of dwindling sales of other categorie
75、s of shoes.Overall growth for online footwear sales remains flat across 2017 to 2022(Figure 14)and is likely to remain so.Footwear is one of the less popular segments for online purchase,as look,feel,size and fit are all hard to glean from a website,making many shoppers reluctant to commit online SU
76、STAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|FASHION SEGMENTS4544344585390322349426424459820212022RetailX 2023RXSFSEU23RP-21-v38Source:Statista Digital Market InsightsFigure 13.Apparel ecommerce down in Eastern Europe vs l
77、ast yearApparel ecommerce revenue per user in European regions(in),2017-2022NoteCentral&Western EuropeEastern EuropeNorthern EuropeSouthern Europe68.970.880.9100.0109.7118.723.924.728.636.241.343.917.117.620.125.429.430.220020202120220 50 100 150 200 FootwearAccessoriesApparelRetailX 2023
78、RXSFSEU23RP-18-v29Source:Statista Digital Market InsightsFigure 12.Apparel represents over 60%fashion ecommerce revenue in Europe by 2022Fashion ecommerce revenue by sector in Europe(bn),2017-2022Note12|RetailX|April 2023RXSFSEU23RP 2023 unless they have tried instore.Increasing pressure for retaile
79、rs to avoid shoppers purchasing multiple sizes and sending back those that dont fit has also seen online sales of footwear stall.This can be seen across the sub-regions that make up the European market,with all seeing a slight downshift in online sales since 2020.Only Southern Europe has maintained
80、some growth,driven by a lag in adoption of ecommerce in the region(Figure 15).ACCESSORIES Fashion accessories broadly defined as belts,handbags,scarves and some jewellery make up a sizeable chunk of the global fashion sector,but it too has seen only modest or flat growth across the region.Only in So
81、uthern Europe,once again,has there been any growth,driven as with footwear by slower uptake of ecommerce(Figure 16).The accessories market is perhaps the fashion segment most impacted by a reigning-in of discretionary spending.While some items of clothing are seen more as a necessity,and footwear to
82、 some degree also essential,many accessories are more often viewed as non-essential and more of a treat a finishing touch or embellishment to an outfit,rather than the outfit itself.This is likely driving the slow growth in this segment,with cash-strapped shoppers cutting back here more than they ar
83、e in apparel and footwear spending.Jewellery and other accessories associated with formal wear and workwear have been impacted by the continued trend for a degree of homeworking and the use of athleisurewear in everyday life.Some of the spend that would have been associated with buying goods traditi
84、onally defined as accessories is SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|FASHION SEGMENTS62322233034975762002020212022RetailX 2023RXSFSEU23RP-23-v42Source:Statista Digital Market InsightsFigure 15.In footwear ecomme
85、rce,Southern Europe preserves similar shopper value to last year while the other European regions show a decline led by Eastern countriesFootwear ecommerce revenue per user in European regions(in),2017-2022NoteCentral&Western EuropeEastern EuropeNorthern EuropeSouthern Europe313.2293.9307.2347.3354.
86、0360.6156.3143.5146.8165.5168.7161.687.480.582.894.398.493.52002020212022RetailX 2023RXSFSEU23RP-20-v36Source:Statista Digital Market InsightsFigure 14.European shoppers spent fewer euros on footwear and accessories in 2022Revenue per user in Europe by sector(in),2017-2022AccessoriesAppar
87、elFootwear13|RetailX|April 2023RXSFSEU23RP 2023 being diverted into the athleisurewear sector of water bottles,laptop bags and ephemera associated with more casual pursuits such as yoga,dog walking and other home-based activities.The affordable luxury and luxury end of the market offers a different
88、view.Here a move to leather goods particularly bags and handbags is seen as a key growth area,with many well-known brands making a foray into bags,while others look to revamping their bag and leather good portfolio as a key driver of growth.References1 https:/ REPORT|INTRODUCTIONEUROPEAN FASHION SEC
89、TOR REPORT 2023|FASHION SEGMENTS52262223422723688849202020212022RetailX 2023RXSFSEU23RP-22-v41Source:Statista Digital Market InsightsFigure 16.Only Southern Europe preserves similar shopper value to last year in the accessories ecommerce segment
90、Accessories ecommerce revenue per user in European regions(in EUR),2017-2022Central&Western EuropeEastern EuropeNorthern EuropeSouthern EuropeTHE RISE OF ATHLEISUREWEARThe rise of athleisurewear during the pandemic has been one of the marked changes in fashion in recent years.A combination of sports
91、wear and leisurewear,athleisurewear was already a key trend pre-pandemic but the blurring of the work-home life balance saw its sales increase across 2020 and 2021,cementing its position as a key fashion segment and it shows no real signs of slowing even as more people return to work.There are a num
92、ber of key drivers for this.Firstly,the blurring of the work-home life continues to make it an acceptable form of dress for informal work from home activities.This has seen it move from being just the preserve of the sportswear brands to being something targeted by all fashion brands and retailers.o
93、ff in 2020 and continuing to rise,a growing use by the same of social media and social media influencers and a shift to marketing their wares more digitally.Even the return of live sports events has prompted increased sales of both sportswear and athleisurewear.The current leaders in the athleisurew
94、ear market are Nike and Adidas,with the former dominating the space.Relatively new entrant Under Armour has grown a strong presence in the market,as has Lululemon,both of which occupy significant niches in the pantheon of sports brand fashion sales.A crop of ethical athleisurewear brands have also s
95、tarted to crop up,with names such as Organic Basics,Tripulse,Adrenna and Sundried starting to attract growing consumer interest in their low-carbon and organic ranges of clothing.Secondly,consumers continue to put a healthy lifestyle ahead of other pursuits,setting exercise up as part of their daily
96、 life and something that is worked into their routine.It is now acceptable to arrive for a Zoom meeting in sportswear fresh from a workout or a bike ride.The sportswear industry has been quick to combine this and the increasingly fashion-forwardness of its clothes to create garments that satisfy bot
97、h needs.The rise of digital fitness apps and services over the pandemic has also driven more consumers to embrace sportswear in their everyday life as they set digital workouts at home as part of their workday.Other factors have also shifted the fashion emphasis towards athleisurewear,with increasin
98、g direct-to-consumer online sales from sports brands taking 14|RetailX|April 2023RXSFSEU23RP 2023 Thanks to more widespread and established internet usage,the fashion ecommerce market in Europe is dominated by the Central and Western region,which tracks considerably above the Easter,Northern and Sou
99、thern regions of the continent(Figure 17).While the European average for ecommerce use stands at around 32.2%of the population,Southern Europe(20.4%)and Eastern(17%)fall far behind.By contrast,Western and Central Europe sees around 42%of consumers regularly shopping online1.Southern Europe has long
100、lagged Western and Northern Europe in terms of industrialisation and technological adoption,with Southern countries such as Italy and Spain seeing lower grade logistical services than their neighbours to the North.While a shift into a more online-orientated market did accelerate through the pandemic
101、,many older shoppers in the region remain resistant to online shopping.However,as younger,mobile-first shoppers come of age in the region,this is likely to change rapidly.As these shoppers demand a better integration of online shopping and logistics,so a new breed of retailers will fill that gap and
102、 hasten change.Regional performance83.684.995.8115.4127.2136.410.011.112.910.511.211.66.16.613.66.66.814.78.07.818.025.129.733.72002020212022Central&Western EuropeEastern EuropeNorthern EuropeSouthern EuropeRetailX 2023RXSFSEU23RP-10-v18Source:Statista Digital Market InsightsFigure 17.Cen
103、tral&Western region is noticeably ahead in fashion ecommerce in EuropeFashion ecommerce revenue in European regions(bn),2017-20220.720.670.690.770.140.130.140.170.180.140.600.570.600.760.710.690.760.700.260.240.260.320.340.352002020212022RetailX 2023RXSFSEU23RP-12-v21Source:Statista Digit
104、al Market InsightsFigure 18.Central&Western European region displays the highest customer valueRevenue per user by European regions(1,000),2017-2022NoteCentral&Western EuropeEastern EuropeNorthern EuropeSouthern EuropeSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|REGIONAL PER
105、FORMANCEWhile online versus offline shopping differs across the regions of Europe,it is increasingly a hybrid affair15|RetailX|April 2023RXSFSEU23RP 2023 For this reason,while Southern Europe looks a laggard on paper,it has the potential to be the next big online shopping market ripe for retailers t
106、o explore and expand into.Eastern Europe,meanwhile,has been held back by low internet uptake among the bulk of its population,a larger split between rural and urban dwellers and,because of slow economic growth,a lack of the technological advancements seen in the West.The region is dominated by Russi
107、a,which has become isolated from Western brands,both in terms of technology and retailers and brands,since its invasion of Ukraine in 2022.All these factors have seen the market of the East in Europe develop slowly.However,as with the South of Europe,the growing mobile-first leanings of the youth po
108、pulation are resulting in changes and,Russia aside,there is also likely to be a surge in growth of ecommerce and hence ecommerce fashion sales in this region.This all seeks to offset sluggish growth in the dominant regions of the North and West of Europe,where ecommerce has reached saturation point.
109、ONLINE HABITS AND HYBRID RETAIL This lead in fashion shopping seen in Central,Western and Northern European markets translates directly to the level of online fashion shopping that takes place in these markets(Figure 19).Central and Western Europe see a 42%to 58%split between online and offline fash
110、ion shopping,while Southern and Eastern markets are still dominated by physical fashion retail.As previously discussed,this is the result of lower internet uptake running alongside cultural issues,since shopping is still very much a social SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR RE
111、PORT 2023|REGIONAL PERFORMANCE58%82%67%80%42%18%33%20%Central&Western EuropeEastern EuropeNorthern EuropeSouthern Europe0 50 100 OnlineOlineRetailX 2023RXSFSEU23RP-16-v24Source:Statista Digital Market InsightsFigure 19.Central&Western and Northern Europe display highest percentage split for shopping
112、 onlineFashion ecommerce online revenue percentage share in European regions,2022727068656362595956565243Germany Netherlands Romania Norway UK Italy Portugal Poland Greece Sweden France Spain RetailX 2023RXSFSEU23RP-9-v27Source:RetailX European Consumer SurveyFigure 20.Spain and France led fashion p
113、urchased online in 2022What have you shopped for online in the past 12 months?-Fashion apparel and accessories in selected European countries,2022Survey contains 400-750 responses from 16+years old residents of each of the presented countries;June 2022.Results have been stratffied by age and gender1
114、6|RetailX|April 2023RXSFSEU23RP 2023 and physical activity in all sectors.As younger shoppers come of age,however,this is expected to change and its already showing some market anomalies.Despite a saturated ecommerce market,it is France and Spain that lead the way in online fashion purchasing(Figure
115、 20)while the UK often cited as one of the leading ecommerce markets in the world falls way behind even Italy,Greece and Portugal when it comes to online fashion shopping.The UK has always had a strong fashion market and while there is a healthy use of online to buy fashion,it still has some way to
116、go compared to many other markets across Europe.The reason behind this lies in the UKs strong high street fashion market which,pandemic aside,has remained relatively strong,with many younger shoppers seeing it as a social experience,compared to solitary online shopping.However,shopping in the digita
117、l age is not a binary choice between online and offline.In reality,what has changed over the past two years is the mix between how shoppers use online and offline shopping.In Sweden and Germany,for instance,the majority of shoppers do most of their fashion shopping online,yet but they also do some s
118、hopping instore,while also buying on both(Figure 21).Conversely,in Spain and Romania,shoppers are almost evenly split three ways between the online majority,the instore majority and on and offline equality.This paints a more accurate picture of todays online shopping habits in most sectors,not just
119、fashion.Retail has become a multi-channel,hybrid experience,with consumers browsing online,trying on instore then either buying while there,or buying via mobile or online later on.While this more fluid approach to shopping was already emerging in 2019,the pandemic lockdowns which forced shoppers pur
120、ely online has hastened it.As fashion stores have re-opened,so they have had to face a bigger split between physical and virtual retail.References1 REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|REGIONAL PERFORMANCE5955532332263744375547428240Spain
121、 Romania Netherlands Norway Germany Sweden I buy equally online and in physical storesI buy mostly in physical stores RetailX 2023RXSFSEU23RP-13-v28Source:RetailX European Consumer SurveyFigure 21.Germany shows higher demand for online fashion,but Swedish and Polish e-shoppers portray higher prefere
122、nce for only buying fashion onlineWhich of the following best describes your purchase behaviour in each category?Fashion apparel and accessories in selected European countries(in%),2022Survey contains 400-750 responses from 16+years old residents of each of the presented countries;June 2022.Results
123、have been stratffied by age and genderI buy mostly online17|RetailX|April 2023RXSFSEU23RP 2023 Online fashion sales across Europe are still very much led by female shoppers.57%of women say that they buy fashion online on impulse,compared to 38%of men(Figure 22)an almost complete reversal of online p
124、urchasing behaviour of consumer electronics.Gender stereotypes aside,of those consumers across Europe who are shopping for fashion online,male or female,a growing proportion of them are using mobile devices to do so(Figure 23).This is most prevalent in the developed markets of Central and Western Eu
125、rope,where the mobile-desktop split is almost half and half(49%to 51%).The difference is more pronounced across all other regions although not by much and is remarkable consistent at roughly 60:40 across all other parts of the continent.This is indicative of two things.Firstly,while some regions sho
126、w a predominance towards physical retail(Figure 19),mobile is playing an increasing role among those who are shopping online.Secondly,it indicates that fashion retail is rapidly embracing online and mobile tropes,driven by youth shoppers.The fashion market is predominantly aimed at the young and the
127、y are voting with their thumbs,Consumer habits38%4%18%49%23%38%29%27%24%Clothes or shoes Toys,games,or booksPersonal care products Electronics Home,furniture,or garden MenWomenRetailX 2023RXSFSEU23RP-8-v17Source:DynataFigure 22.Almost six in ten women claim they bought fashion online on impulse11,00
128、2 respondents,16 years and older;February 2022 Most common online impulse purchases worldwide,by gender,202257%51%58%59%58%49%42%41%42%Central&Western EuropeEastern EuropeNorthern EuropeSouthern Europe0 50 100 MobileDesktopRetailX 2023RXSFSEU23RP-17-v28Source:Statista Digital Market InsightsFigure 2
129、3.Over 40%of fashion ecommerce shoppers in Europe use their mobile phone to shop onlineFashion ecommerce online purchase device preference in European regions,2022SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|CONSUMER HABITSConsumers are increasingly mobile and social when it
130、 comes to fashion shopping,although there is a growing problem with abandonment18|RetailX|April 2023RXSFSEU23RP 2023 turning to technology in order to shop how and when they want.There is a third upshot of this:it reinforces the idea that fashion retail is now very much a hybrid business.While the d
131、ata shows how mobile is being used to complete a purchase,what is hidden within the figures is that this is a result of mobile playing a much deeper role across the whole fashion shopping journey in all regions.While somewhere in the fortieth percentile of purchases are made on mobile everywhere,it
132、is reasonable to assume that this represents just part of mobiles role in overall shopping process.The fact that the level of mobile as a proportion of overall online fashion retail is so high everywhere,suggests that mobile plays an increasingly pivotal role in the whole fashion shopping model.Once
133、 again,this is a result of the fashion market being one that is dominated by younger shoppers,most of whom are mobile-first in most facets of their life.Their fashion shopping habits reflect this and showcase just how servicing these Generation X,Y and Z not to mention the next swathe is Generation
134、Alpha is now a key consideration in fashion retail in all sectors,not just fashion,and is a change that is accelerating.APPS LEAD THE WAY This move towards mobile among consumers has seen a surge in the use of mobile apps for shopping.While websites pull in a lot of traffic,specialised mobile shoppi
135、ng apps are beginning to dominate in the fashion sector.Apps offer some unique advantages to fashion retailers.Fashion shoppers tend to have a core stable of brands to which they are loyal,often liking things from one brand over another due to style or fit that works for that individual.As a result,
136、they are more likely to download apps in fashion retail and repeatedly use them than is seen in the wider app market.Apps also offer retailers a more personalised way of communicating with customers because they can gather more data on the signed-in app user than those that guest on a website.This c
137、reates a better dialogue between brand and consumer which can,in itself,further drive this loyalty.Thirdly,along with this more personalised reach,apps allow retailers to more readily communicate changes and updates than through a traditional web experience,which relies on the user visiting a websit
138、e,rather than being prompted to look.Together,these factors have seen app use in fashion take a more pivotal role than in other sectors.However,it isnt necessarily the big name fashion brands that are making this happen.The largest number of app downloads among fashion apps in Europe is seen by Chin
139、ese fast fashion app Shein(Figure 24).In the first half of 2022,this was downloaded 21mn times in Europe,dwarfing more local and often more recognisable brands such as Zalando(8mn downloads)and H&M(6mn).In December 2022,Shein overtook Zara as the worlds most searched for fashion term.In the UK alone
140、,Shein sells around 30,000 items a day 10mn each year and its popularity is growing across Europe.The attraction is low prices and rapid turnover of stock.Shein is the fastest of fast fashion sites,so users have an incentive to return frequently to look at the endless stream of new items.SOCIAL COMM
141、ERCE This increasing use of mobile is also driving fashion brands and retailers to look at social commerce.Typical fashion shoppers,young and tech-savvy,are the predominant users of social media this cohort of consumers spending around 15%of their waking lives in social media apps1.Where once these
142、sites were used to recommend and show-off new purchases and styles,the social platforms themselves are increasingly becoming sales portals for the brands and retailers that reside on them.Data suggests that social commerce sales are expected to triple between now and 20252,while more than a third of
143、 Facebook users already made SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|CONSUMER HABITS2113886H&M Zalando Trendyol Vinted Shein RetailX 2023RXSFSEU23RP-30-v40Source:Sensor Tower;eMarketerFigure 24.Online fast fashion retailer Shein displays the highest fashion app download
144、s in EuropeMost downloaded fashion apps in Europe(in millions),1st half 202219|RetailX|April 2023RXSFSEU23RP 2023 fashion purchases through the platform in 20223.Increasingly,Instagram and,as 2023 plays out,TikTok,are becoming the leading social sites for fashion marketing,influence and sales.The da
145、ys of celebrity endorsements may be coming to an end but it is being replaced by real people offering real world look and feel posts that truly help other shoppers understand what they are buying.This is proving sales gold to many brands and retailers so long as their product is good.Get it wrong an
146、d these same civilian influencers will crucify the brand very publicly.Social sites provide the ideal platform for livestreaming events.Brands and retailers can broadcast live with entertaining and informative content on products and launches,which are gaining huge traction with consumers.It is esti
147、mated that brands livestreaming on Facebook see conversion rates up by 30%and lower return rates4.Livestreaming is a new way to engage online and social users and its success is also paving the way for the metaverse,where fashion brands are among the early adopters creating virtual goods and holding
148、 virtual events in a move to bolster their online engagement beyond advertising.CART ABANDONMENT Despite the reach afforded by apps and social media and the relative loyalty among shoppers that this creates,fashion exhibits one of the highest cart abandonment rates in all of retail(Figure 25).Regula
149、r and luxury fashion cart abandonment rates track well above the 77%average for overall retail cart abandonment,seeing 88%for luxury and 82%for regular fashion ecommerce.The most common reasons consumers abandoned their carts are the cost of delivery and the price of the product.According to data,am
150、ong those who abandoned a clothing and accessory purchase online,38%said they did so because the cost of delivery was too high and 36%said they did so because they found the product cheaper elsewhere5.Luxury suffers particularly from this problem as many shoppers are wish listing while online and on
151、 mobile and often baulk at the final payment part of the process since luxury items are such a high price point.In more affordable fashion,this wish listing is also a factor,with many shoppers abandoning simply because of a change of heart at the payment page,seeing the items they are poised to buy
152、as a treat and not a necessity.This problem is exacerbated by shoppers not being sure of size or fit of clothing or footwear and,with many retailers ending free returns in a bid to stall serial returners,shoppers are exercising greater caution when looking to buy.In the more hybrid retail era,howeve
153、r,some of these customers may yet head to a store at a more convenient time to try on and buy.Although there is no data to support this,it is increasingly part of a more complex shopping journey.CONSUMER TRIBES:WHO THEY ARE AND HOW THEY SHOPAcross Europe,UK consumers are the biggest spenders on fash
154、ion out of the top five markets,a position that they are forecast to continue to occupy through to 2025.They spend more on all three core segments of fashion apparel,footwear SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|CONSUMER HABITS88%84%82%77%Overall cart abandonment rat
155、e Regular fashion abandonment rate Overall fashion abandonment rate Luxury fashion abandoment rate RetailX 2023RXSFSEU23RP-44-v1Source:Figure 25.Fashion displays higher cart abandonment than other sectorsGlobal online fashion shopping cart abandonment rate,by sector,202120|RetailX|April 2023RXSFSEU2
156、3RP 2023 and accessories than the other markets,with UK shoppers buying proportionately more apparel than their European counterparts6.The average order value for fashion is also quite high,running at$97.97 per capita globally,against$79.70 for general consumer spending.It is dwarfed by luxury,altho
157、ugh this sells items at a higher price point and lower volume6.However,fashion consumers arent all of a kind and the market is segmented into a range of groups,each categorised by a their age,location and spending power.These tropes operate across all main segments of the fashion industry and shape
158、how a brand or retailer targets each.At one end of the market lies haute couture,which is very much cemented in the realms of luxury fashion retail and is driven by shoppers who are small in number but willing to spend very highly on almost bespoke,unique fashion offerings.At the other end is the ma
159、ss market,where products are increasingly basic and undifferentiated,and the key drivers for buying are utility,practicality and price.In the middle is where the fashion market is interesting.Here,there is a range of offerings from ready-to-wear(pret at porter),which attracts monied but not overly a
160、ffluent shoppers with expensive,well-made pieces that are firmly in the affordable luxury bracket.Around this,there are also Diffusion brands and Bridge brands that seek to tread the fine line between being fashion leaders,yet affordable and with sufficient mass market appeal to grow sales.These seg
161、ments of fashion are also increasingly influenced by younger shoppers.As seen in the luxury sector,there has been a marked shift in younger people choosing to purchase luxury items as both a style statement and a means of being more sustainable7.Gen Y and Gen Z luxury consumers grew from 36 to 44%an
162、d 8 to 13%of the market,between 2019 and 2020,respectively.References1 https:/ https:/ https:/ FASHION SECTOR REPORT 2023|CONSUMER HABITS21|RetailX|April 2023RXSFSEU23RP 2023 CONSUMER ATTITUDES TO SUSTAINABILITYOne of the biggest shifts in consumer shopping habits to emerge post-pandemic has been th
163、e increase in concerns over the environmental impact of what they buy.This has particularly affected the fashion industry,which has seen strong growth for more than a decade driven by fast fashion.Yet fast fashion,by its very nature,is not ecologically efficient and its pile em high,sell em cheap ap
164、proach produces a vast amount of waste.For example,of the 100bn garments produced each year,92mn tonnes end up in landfills.That is the equivalent of a rubbish truck full of clothes dumped in landfill every second.If the trend continues,the number of fast fashion waste is expected to soar up to 134m
165、n tonnes a year by the end of the decade.In addition,if nothing is changed,emissions produced from garment manufacture worldwide will double by 20301.Consumers have become achingly aware of this problem and are starting to shift their buying habits as a result.Sustainability in fashionApril 2022;10,
166、004 respondents;18 to 55;among active/casual lifestyle brand purchasersSource:Source:Stifel;Morning ConsultFigure 26:In Europe,Italian shoppers led the intention of buying less for the sake of sustainability Share of lifestyle brand purchasers intending to purchase fewer products for the sake of sus
167、tainability than they did a year ago in selected countries,2022RetailX 202380%77%76%74%70%67%ChinaItalyUnited KingdomFranceGermanyUnited StatesSurvey contains 10,004 respondents;18 to 55 years oldSource:Stifel;Morning ConsultFigure 27:France has the highest share of e-shoppers intending to buy fewer
168、 products in order to live more sustainably Share of lifestyle brand purchasers intending to purchase fewer products for the sake of sustainability in selected countries,2022RetailX 202373%69%68%66%62%58%ChinaItalyUnited KingdomFranceGermanyUnited StatesEUROPEAN FASHION SECTOR REPORT 2023|SUSTAINABI
169、LITYConsumers want affordable fashion but they want it to be green giving rise to a whole new way of selling fashion22|RetailX|April 2023RXSFSEU23RP 2023 Globally,this shift in behaviour is seeing shoppers look at buying fewer items,buying more sustainably produced items and looking at reselling and
170、 buying pre-loved fashion goods.China leads the world in terms of shoppers saying that they will buy less in order to protect the environment,with nearly 80%doing so.In Europe,Italy offers up 77%of consumers who say that they are planning to buy fewer things.The US sees the lowest number of shoppers
171、 rethinking their purchase habits(Figure 26).When looking specifically at ecommerce,French shoppers are the ones reining in their spending on goods,with 73%saying they will buy less online.Again,the UK is a close second(69%).China(62%)and the US(58%)come bottom(Figure 27).DELIVERYOne of the key sust
172、ainability considerations among these European online fashion shoppers is the environmental impact of delivery.The propensity to ship to the customers door using diesel-powered vans and lorries has become a vivid reminder of the environmental impact of ecommerce that shoppers are keen to address.Alm
173、ost a third(27%)of both UK and Belgian consumers see delivery as one of the key environmental issues,making choices around what they buy based on the delivery options and their green-ness(Figure 28).Interestingly,the Scandinavian nations of Norway and Denmark come out bottom of the list,being the le
174、ast-likely to pick delivery options based on environmental SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|EUROPEAN REGIONSSurvey contains 13,510 respondents;18+years oldSource:Klarna;NepaFigure 28:British and Belgians e-shoppers consider more than others the environmental impa
175、ct of delivery options when buying on the web Online shoppers mindful of the environmental impact of delivery 2022,by countryRetailX 20232727252624242Norway DenmarkNetherlands Austria United States Germany France Australia Sweden Ireland Belgium United Kingdom reasons.While this may seem
176、counter-intuitive given the Nordics were pioneers in championing environmental issues,it is that very early adoption of sustainability in all things that sees them give it less consideration.Put simply,they dont have to consider it because,with local brands in the region at least,it is already hardw
177、ired into their operations.For sellers targeting these markets from outside,there are also such stringent environmental regulations to adhere to when selling across Scandinavia that again,shoppers dont have to think about the environmental-friendliness of what they buy2.Outside of the Nordic region,
178、many brands are looking toward delivery companies that offer electric or hybrid delivery vehicles,often as an extra option that consumers pay for,but increasingly as the norm.With retailers increasingly aware of shoppers desire for sustainable products and services,many are forcing this shift on the
179、ir local logistics industry.23|RetailX|April 2023RXSFSEU23RP 2023 GREEN WASHINGBrands and retailers have a long way to go to convince consumers that they are moving in the right direction on sustainability in fashion.Green washing is a form of advertising or marketing spin where green PR and marketi
180、ng are deceptively used to persuade the public that an organisations products,aims and policies are environmentally friendly when they arent.While its use may not be growing per se,perception among consumers that it might be definitely is.Indeed,nearly half(47%)of European fashion shoppers are scept
181、ical of retailers and brands environmental claims(Figure 29).European fashion shoppers are also much more likely to check companies claims about the environment and sustainability than their counterparts in China and the US(Figure 30).They are right to be so wary.A study by the EU in 2020 found that
182、 53%of sustainability claims made by brands or businesses in 2020 were“vague,misleading or provided unfounded information about products environmental characteristics”.In the UK in 2022,the UK Competitions and Marketing Authority(CMA)launched a review of the sustainability claims of major UK fashion
183、 brands Asos,boohoo and George at Asda.While it is yet to report,the CMA is consulting with the government on the possibility of sanctioning companies under consumer law for any green washing claims.SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|EUROPEAN REGIONSThe survey took
184、 place across five countries:France,Germany,Spain,UK,and U.S.Source:The Changing Markets Foundation;YouGovFigure 29:Nearly half of consumers dont trust brandssustainable or green claims Share of consumers worldwide who trust the sustainability claims that brands make about their clothing,2021RetailX
185、 202347%38%15%DisagreeAgreeDo not knowSource:Stifel;Morning ConsultFigure 30:Shoppers in leading European countries more keen to check brands sustainability claims somewhat often Frequency of information search on lifestyle brandssustainability practices when deciding to buy a product in selected co
186、untries,2022RetailX 2023ChinaUnited States Germany ItalyFrance United Kingdom Never or almost neverNo that oftenSomewhat oftenSomewhat often373881613111024|RetailX|April 2023RXSFSEU23RP 2023 RECYCLING AND REUSEThe shift in attitude towards more ethical sourcing of fa
187、shion along with a growing awareness within youth culture of the dangers of fast fashion has driven the growth in interest in second-hand clothing.For example,nearly half(42%)of Gen Z and millennials say that they are likely to shop second-hand(Figure 31).Across Europe,this is strongest in France,Ge
188、rmany and the UK,where more than half of shoppers are not only open to buying second-hand fashion,they are also actively doing so.These countries are up there with the US,where the second-hand and vintage market is thriving(Figure 32).This shift in sales of pre-loved fashion has been one of the surp
189、rise growth areas for fashion across the pandemic and beyond.The resale by consumers of second-hand items is increasing,as is the growing awareness among brands and labels that they can and must leverage their dead and dying stock for environmental reasons as much as economic ones.This has,in turn,c
190、reated something of a new business within the sector,linking all the other growth drivers of sustainability,mobile,social and marketplaces.The global market for second-hand apparel was already worth$28bn in 2019.After a dip at the start of the pandemic though falling by a smaller amount than mainstr
191、eam fashion the sector has recovered and thrived,hitting$36bn in 2021 and set to grow rapidly to be worth$77bn by 20253.While traditionally this sector has been dominated by charity stores and donated clothes,resale has started to take over,with more consumers appreciating the value in their wardrob
192、es,especially with the luxury and unusual items that are creating a new vintage market.Number of respondents 3,500 aged 18+years oldSource:GlobalData;ThredupFigure 31:Nearly 50 percent of millennial and Gen Z respondents were likely to shop second hand Share of consumers willing to buy second hand a
193、pparel worldwide as of 2021,by ageRetailX 202342%42%32%16%Gen Z(18-24)Gen X(38-55)Boomers(56-65+)Millennials(25-37)Number of respondents 5,958 aged 18+years oldSource:The Business of FashionFigure 32:French consumers are the most familiar with second hand clothing Share of consumers open to purchasi
194、ng second hand fashion in selected countries in 2021RetailX 202366%22%56%53%52%32%34%32%12%12%13%16%United States Germany France United Kingdom Have ever purchased second-handOpen to purchasing second-handNot open to purchasing second-handSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REP
195、ORT 2023|EUROPEAN REGIONS25|RetailX|April 2023RXSFSEU23RP 2023 This growth in resale of fashion items has spawned a new genre of selling and a number of new marketplaces that specialise in selling this way.Several luxury brands,including Burberry,Stella McCartney and Gucci,are now partnering with Th
196、e RealReal marketplace,which specialises in selling pre-worn garments.Celebrities are also endorsing the move to second-hand with,among others,Kate Middleton,Meghan Markle,Amal Clooney,Cardi B and Kim Kardashian all shopping at vintage dealers for clothes that they then prominently displayed at publ
197、ic engagements.Charity Oxfam,meanwhile,challenged celebrities to buy nothing new for 30 days in 2019 in order to encourage the circular economy.The marketplace model has also proved to be ideally suited to selling these pre-loved items.eBay which was founded as an auction site for second-hand goods
198、has seen a resurgence in this mode of selling,taking 69%of the second-hand apparel market.However,the sector is increasingly dominated by a long tail of other players,such as TheRealReal,Poshmark,ThredUp and Depop,all specialising in everything from pre-loved luxury to vintage sports brands,both in
199、deadstock and second-hand.Across the mainstream fashion market,resale is even predicted to potentially outstrip fast fashion itself by 2029,driven by a raft of shoppers across the younger end of the market looking for better value and lower environmental impact.80%of Gen Z shoppers say that they hav
200、e no qualms and see no stigma to buying used Source:Forrester Research;ShopifyFigure 33:Leading brands seek to make it easier for consumers to recycle Leading sustainability initiatives e-commerce brands are investing in for 2022RetailX 202346%39%36%35%23%Allowing customers to easily recycle product
201、sImproving manufacturing efficiencyDistancing from partners who wont meet sharedsustainability goalsMeasuring or tracking emissionsOffsetting emissionsThe Fashion Transparency Index reviews and ranks 250 of the biggest global fashion and apparel brands and retailers according to how much information
202、 they disclose about suppliers,supply chain policies and practices,and social and environmental impact.Source:Fashion RevolutionFigure 34:Italian OVS among the top 3 companies ranked highest in transparency Most transparent fashion companies worldwide in 2022,by transparency index scoreRetailX 20237
203、8%78%78%66%66%66%65%63%62%59%59%58%OVSKmart AustraliaTarget AustraliaH&MThe North FaceTimberlandVansUnited Colors of BenettonGildanC&AGucciPumaSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|EUROPEAN REGIONS26|RetailX|April 2023RXSFSEU23RP 2023 fashion,while 90%of them say that
204、 they are even more likely to shop second-hand when money gets tight.RETAILERS APPROACH TO SUSTAINABILITYWhile much of the growth in second-hand apparel is driven by consumers selling their own wares,retailers are starting to combine this idea with their own stock clearance strategies to create a wh
205、olly new segment of the market around the second-life of goods.Retailers and brands have ramped up their own approach to recycling to tap into this boom in pre-loved.Allowing customers to recycle tops the list of sustainability priorities in RetailX data,with 46%of companies stating it(Figure 33).Th
206、is outstrips all other sustainability plays by some margin.The second-life market sees fashion retailers combine the consumer interest in second-hand with the need to make money themselves.It works by brands looking to buy back items in order to refurbish or improve them before then reselling them.P
207、ioneered in the personal computer and mobile phone market,where expensive devices are bought back before being revamped,this is now spreading across fashion.German fast fashion retailer Zalando has added a pre-owned category to its site,which went live in late 2021.Customers can sell mens,womens and
208、 childrens items back to Zalando,which will list them after a quality check.The category will have the same user experience as other categories,as well as the same returns policy.eBays sponsorship of UK reality TV show Love Island where the marketplace kitted out contestants night after night in pre
209、-loved luxury brands has also seen pre-loved sales rocket on the site,with sales up 1400%year-on-year3.Even charity chain The Salvation Army has got in on the act,using established ecommerce fashion brand websites to help consumers donate used fashion4.Zara and H&M,along with a number of independent
210、 fashion brands such as PO.P and Dancing Leopard,are themselves creating pre-loved resale schemes that take in their own and other fashion brands items from consumers before reselling them to.References1 https:/earth.org/statistics-about-fast-fashion-waste/2 https:/ https:/ https:/ REPORT|INTRODUCTI
211、ONEUROPEAN FASHION SECTOR REPORT 2023|EUROPEAN REGIONS27|RetailX|April 2023RXSFSEU23RP 2023 Despite being dominated by some very large international brands,most of the key players in the European fashion market based within Europe.With a few exceptions Nike,TK Maxx,Urban Outfitters and Primark,all o
212、f which are HQ-ed in the US the market is serviced by European brands(Figure 35).Arguably,fashion started life in Europe,with the Renaissance ushering in a host of finely crafted clothes and jewellery for the aristocracy and the emerging rich merchant class.This cultural heritage of craftsmanship an
213、d invention has continued through to today.With five million people directly employed in the fashion value chain and more than one million employed in high-end industries,fashion provides an important contribution to the EU economy1.The fashion and high-end industries are one of the most vibrant and
214、 creative sectors in Europe and have an impact on the everyday lives of millions of people worldwide,acting as ambassadors for European values,culture,creativity,innovation and craftsmanship.Largest 50 brands and retailersSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|LARGEST
215、50While the largest retailers and brands in European fashion are mainly European companies,that hides the truly international nature of the sectorDespite the economic downturn,many European companies in the sector have managed to defend their position in the global market.This is mainly due to a mov
216、e towards innovative,high added-value products and services,niche markets and new business models.The high-end sector has grown faster than the rest of the European economy during recent times.High-end fashion luxury and affordable luxury alone employ around one million people,export 60%of their goo
217、ds outside Europe and account for 10%of all EU exports.The countries with the largest number of fashion distribution and retail companies are Italy,France,Poland and Germany.Yet surprisingly,even within the Top 50,many fashion companies are micro-enterprises,with fewer than ten employees.The highest
218、 concentration of fashion manufacturing activities can be found in Italy,other southern EU countries typically Spain,Greece,Portugal as well as newer EU countries in the East Poland,Romania,Bulgaria,Hungary,which all have growing numbers of fashion brands and retailers.Although the EUs traditional e
219、xport markets remain Switzerland,the USA and Japan,emerging economies particularly China have become important outlets for fashion and high-end products.An increase in exports has partially compensated for declining consumption in Europe.The European fashion sector,however,does face significant chan
220、ges to the established order.As shopper habits have changed and changed again,so the brands that make an appearance in the Largest 50 have also changed.Chinas Shein,for example,is already a top five player in the RetailX Largest 50 European fashion sites.Likewise,the emergence of second-hand marketp
221、lace Vinted within the top three by traffic also shows how consumer habits are rapidly reshaping the European fashion business landscape.This shift towards rapid turnover fast fashion from China and a move towards buying second-hand are indicative not only of how new entrants are making an impact,bu
222、t also how the European fashion sector itself is changing.Some are going more towards competing with Shein,opting to accelerate their fast fashion.Others are embracing resale and repair schemes to rival the appeal of Vinted.Many others are looking to try and become faster,cheaper and more environmen
223、tally-friendly.Overall,this years Largest 50 European fashion sites reflects just how challenging this changing market has become,not just in terms of the worsening economic backdrop,but also in the almost impossible to meet demands of cash-strapped,eco-conscious consumers.28|RetailX|April 2023RXSFS
224、EU23RP 2023 Company/Brand Web Traffic Main Domain HQ Country SegmentsAsos 224,181,820 United Kingdom Fashion apparel and accessoriesH&M 218,702,555 Sweden Fashion apparel and accessoriesVinted 181563,686 vinted.fr Lithuania Fashion apparel and accessoriesZara 169,355,120 Spain Fashion apparel and ac
225、cessoriesShein 130,937,902 China Fashion apparel and accessoriesNike 128167,619 United States of America Fashion apparel and accessoriesZalando 124,127,073 zalando.de Germany Fashion apparel and accessoriesEl Corte Ingls 99,482,588 elcorteingles.es Spain Fashion apparel and accessoriesNext 80,011,76
226、1 next.co.uk United Kingdom Fashion apparel and accessories La Redoute 68,770,050 laredoute.fr France Fashion apparel and accessoriesMango 65,221,265 Spain Fashion apparel and accessoriesReserved 59,609,567 Poland Fashion apparel and accessoriesEobuwie.pl 53,556,858 .pl Poland Fashion apparel and ac
227、cessoriesC&A 48,516,615 c-and- Belgium Fashion apparel and accessoriesShowroomprive 45,738,704 France Fashion apparel and accessoriesBershka 44,878,778 Spain Fashion apparel and accessoriesPull&Bear 43,771,546 Spain Fashion apparel and accessoriesUniqlo 41,758,195 Japan Fashion apparel and accessori
228、esFarfetch 39,159,799 United Kingdom Fashion apparel and accessoriesBonprix 33,227,986 bonprix.de Germany Fashion apparel and accessoriesStradivarius 32,502,753 Spain Fashion apparel and accessoriesYoox 30,763,346 Italy Fashion apparel and accessoriesBestSecret 28,860,759 Germany Fashion apparel and
229、 accessoriesTK Maxx 28,854,716 United States of America Fashion apparel and accessoriesFigure 35:Largest 50 fashion brands globally SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|LARGEST 5029|RetailX|April 2023RXSFSEU23RP 2023 Company/Brand Web Traffic Main Domain HQ Country S
230、egmentsboohoo 27,324,900 United Kingdom Fashion apparel and accessoriesDeichmann 25,342,931 Germany Fashion apparel and accessoriesMassimo Dutti 24,480,905 Spain Fashion apparel and accessoriesLimango 24,067,692 limango.de Germany Fashion apparel and accessoriesB 23,672,433 Sweden Fashion apparel an
231、d accessoriesJD Sports 21,937,949 jdsports.co.uk United Kingdom Fashion apparel and accessoriesBreuninger 21,725,784 Germany Fashion apparel and accessoriesUrban Outfitters 21,057,133 United States of America Fashion apparel and accessories&Other Stories 18,989,686 Sweden Fashion apparel and accesso
232、riesVestiaire Collective 18,866,299 France Fashion apparel and accessoriesTommy Hilfiger 18,727,549 Netherlands Fashion apparel and accessoriesNew Look 18,486,032 United Kingdom Fashion apparel and accessoriesPandora(Jewellery)18,367,379 Denmark Fashion apparel and accessoriesMango Outlet 18,348,246
233、 Spain Fashion apparel and accessoriesAboutYou 18,255,405 aboutyou.de Germany Fashion apparel and accessoriesMohito 18,035,959 Poland Fashion apparel and accessoriesCOS 17,749,384 Sweden Fashion apparel and accessoriesBlancheporte 17,667,080 blancheporte.fr France Fashion apparel and accessoriesDeBi
234、jenkorf 17,229,045 debijenkorf.nl Netherlands Fashion apparel and accessoriesAdidas 17,116,329 adidas.co.uk Germany Fashion apparel and accessoriesPrimark 16,681,892 United States of America Fashion apparel and accessoriesMatalan 16,379,668 matalan.co.uk United Kingdom Fashion apparel and accessorie
235、sDebenhams 15,611,034 United Kingdom Fashion apparel and accessoriesPrettyLittleThing 15,605,875 United Kingdom Fashion apparel and accessoriesKiabi 15,403,251 France Fashion apparel and accessoriesLadenZeile 14,937,790 ladenzeile.de Germany Fashion apparel and accessoriesSUSTAINABILITY REPORT|INTRO
236、DUCTIONEUROPEAN FASHION SECTOR REPORT 2023|LARGEST 5030|RetailX|April 2023RXSFSEU23RP 2023 PERFORMANCE SNAPSHOT The European fashion sector generated revenues of around 178.42bn in 2022,down on 2020(182.51bn)and 2021(211.21bn),largely due to cost-of-living issues triggered by the Russian invasion of
237、 Ukraine in February 2022.However,the sector is predicted to see significant growth across 2023,topping out at a forecast 230.32bn by the end of the year2.Interestingly,the main seller by volume and revenue is actually Amazon.However,RetailX data has discounted both Amazon and eBay from the ranking
238、of Top50 players because these sites sell the goods of the other fashion players within the list.While Amazon does also offer its own label range,separating this data from overall Amazon sales data proves complicated.With Amazon discounted,the leading sellers of fashion in Europe are Asos,H&M,Vinted
239、 and Zara(Figure 35).While these players dominate the market in terms of traffic,they are seeing increasingly competition from Zalando,Nike and Chinas Shein.Zara is seeing erosion of share as rising costs across the company have pushed up prices(Figure 36),while Zalando is adding customers at an eve
240、r-accelerating pace(Figure 37).But it is the rise of Vinted and Shein that illustrate two interesting trends within the market:the move towards pre-loved fashion and rise of China not only as an export market for European fashion,but also as a hotbed of merchants selling into the region.EU regionSou
241、rce:LectraFigure 36:Spanish retail clothing chain Zara shows double digit increase of its prices in 2022Average year-on-year growth of prices at selected fashion retailers in the European Union in 2022RetailX 20231155ZaraUnigloMangoSource:ZalandoFigure 37:German online retailer Zalandos active shopp
242、ers have never been higher than in 2022 Number of active Zalando customers(in millions),Q1 2014 to Q3 2022RetailX 202314 14 1415 1516171818 19 3242525262728303444648 494950Q1 14Q2 14Q3 14Q4 14Q1 15Q2 15Q3 15Q4 15Q1 16Q2 16Q3 16Q4 16Q1 17Q2 17Q3 17Q4 17Q1 18Q2 18Q3 18Q4 18Q1 19Q
243、2 19Q3 19Q4 19Q1 20Q2 20Q3 20Q4 20Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Chinas Shein is the only China HQ-ed company in the Top 50 list and it acts very much as an outlier for sellers from the country looking to target Europe.Many of the fashion sellers on Amazon are also Chinese,hiding just how preval
244、ent Chinese-made garments are in the region.Data suggests that Chinese sellers make up some 63%of all merchants on Amazon,so it is reasonable to assume that they are also making up the bulk of fashion sales on the marketplace3.With manufacturing often taking place in China,this growing shift towards
245、 Chinese-supplied fashion flooding into Europe is set to become more significant across the next few years.SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|LARGEST 5031|RetailX|April 2023RXSFSEU23RP 2023 Vinted,meanwhile,is one of several dedicated fashion marketplaces that make
246、 the list.The move to a marketplace model to sell fashion goods has been driven by consumers embracing the convenience and often much more competitive pricing seen on sites that sell competing goods.The success of Amazon in fashion has driven many others including Shein to adopt a marketplace sellin
247、g model.Looking at the traffic figures,this is working well for brands and retailers and we expect to see more entering if not the Top50 then the Top100 in the years ahead.A TRULY INTERNATIONAL SUPPLY CHAIN While the main sellers in the European fashion sector may well be largely Europe-based,the wh
248、ole industry from supply to delivery is very much international.The industries that form the fashion value chain form a complex and interlinked web from design and manufacturing of fashion goods to their distribution and sale worldwide.Increasingly,many of the suppliers of goods and raw materials wi
249、thin this supply chain lie outside Europe.The complexity of this web of supply can be seen in Figures 38 to 42.German retailer C&A,for example sources products and materials from a staggering 36 countries,the majority coming from Brazil but with China playing a growing role(Figure 38).UK retailers N
250、ew Look has a similarly large number of suppliers,although it predominantly sources from China,Turkey and Bangladesh(Figure 39).Notably,it also sources materials and products from within the January 2022Source:C&AFigure 38:German clothing retailer C&A sources its products from suppliers in up to 36
251、countries,particularly Brazil Number of supplier factories of C&A in its main supplying countries,2022RetailX 20236808100Sri LankaCambodiaChinaTurkeyMexicoIndiaVietnamPortugalItalyPakistanBangladeshBrazilApril 2022Source:New LookFigure 39:British retailer New Look supplies main
252、ly from China,Turkey,and BangladeshNumber of supplier factories of New Look in its main supplying countries,2022RetailX 20236788822175United Kingdom Sri LankaMyanmarRomaniaItalyMoldovaChinaTurkeyBangladeshIndiaMoroccoPakistanSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT
253、 2023|LARGEST 5032|RetailX|April 2023RXSFSEU23RP 2023 UK,where it augments production of garments,final assembly and packaging.Similarly,Primark one of the only Irish brands in the list sources most of its product from China and India,although the UK also plays a role,as does Italy(Figure 40).Marks&
254、Spencer is also a recipient of Chinese product,and utilises supply from Turkey(Figure 41).Assessing these key fashion retailers and brands shows that the lions share of product comes from China,again cementing that nations increasingly pivotal role in European fashion supply and sales.A breakdown of
255、 how leading European fashion powerhouse H&M sources and manufactures its stock shows just how international the European fashion business is.Its manufacture and supply is pretty much evenly split within each market through which it sources goods(Figure 42).This points to how fashion businesses look
256、 to find places where they can source both materials and manufacture in one place.While the dominance of overseas manufacture does point to sustainability issues caused by the transportation of finished goods,it also suggests that H&M at least looks to keep supply and manufacture more closely locate
257、d.References 1 https:/single-market-economy.ec.europa.eu/sectors/fashion/fashion-and-high-end-industries/fashion-and-high-end-industries-eu_en 2 3 2021Source:PrimarkFigure 40:Ireland based retailer Primark has the most suppliers in China and India Number of supplier factories of Primark in its main
258、supplying countries,2021RetailX 202377382106450United Kingdom RomaniaItalySri LankaCambodiaMyanmarChinaIndiaBangladeshTurkeyVietnamPakistanJanuary 2022Source:Marks&SpencerFigure 41:Mark&Spencer supplying is mainly from China and India Number of clothing and home supplier factories of Mark
259、s&Spencer in its main supplying countries,2022RetailX 202375758710524555United Kingdom ChinaTurkeySri LankaIndonesiaPakistanCambodiaSUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|LARGEST 5033|RetailX|April 2023RXSFSEU23RP 2023 recommendations and augmented reality(A
260、R)experiences all designed to provide a more immersive and seamless shopping experience.There has also been a significant shift in fashion consumer demographics.Millennial and Gen Z shoppers are becoming the dominant consumer groups in the sector and both have different expectations and preferences
261、compared to previous generations.These younger consumers prioritise experiences over ownership,value authenticity and are more likely to engage with brands that align with their values.Finally,the European fashion industry is facing a range of regulatory and geopolitical challenges that are impactin
262、g its operations.Brexit,followed by the Russian invasion of Ukraine,have combined to create uncertainty in the supply chain and trade relations,while the EUs new Circular Economy Action Plan is pushing for a more sustainable and circular approach to fashion production and consumption.At Tealium,we b
263、elieve that data is the key to understanding these trends and challenges and that it also enables brands to make informed decisions.By analysing consumer behaviour,preferences and purchasing patterns,we can provide insights into what drives consumer loyalty and engagement,as well as how brands can b
264、etter position themselves in the market.Sustainability demands can be met by better understanding consumer preferences to gain better insights into what their customers want and need.This knowledge can help fashion businesses develop and market more sustainable products that meet the needs of their
265、customers.Keeping pace with changing trendsHeidi Bullock,CMO,TealiumOver the past few years,the European fashion industry has undergone a significant transformation,driven by changing consumer preferences,technological advancements and sustainability concerns.In 2023,the industry faces a raft of new
266、 challenges and opportunities that will shape its future trajectory.One of the most significant trends has been the growing demand for sustainable and ethical fashion.Consumers are increasingly conscious of the environmental and social impact of their fashion choices and they expect brands to demons
267、trate a similar commitment to sustainability.As a result,many brands have begun to adopt eco-friendly practices,such as using organic cotton,recycled materials and reducing waste in the production process.Another trend that has emerged has been the rise of ecommerce and digitalisation.The pandemic a
268、ccelerated a shift towards online shopping and many brands have had to adapt their strategies to meet a range of changing consumer behaviours.As a result,there has been a surge in digital innovation,such as virtual try-on technology,personalised SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SEC
269、TOR REPORT 2023|PARTNER PERSPECTIVETealium provides the industry-standard platform for businesses aiming to unleash innovation with a real-time,universal data foundation.More than 1,000 companies trust Tealium to orchestrate their customer data.These include Dominos,Gap,IBM,Molekule,Epson America,Ca
270、mbia Health,Orange,TUI,Rakuten,Sportsbet and Network Expert insightSimilarly,customer data can help fashion businesses reduce waste by enabling them to produce the right amount of products and avoid overproduction.It can also lead to better design of products,so that they last longer and have a more
271、 sustained role to play in the resale economy.Younger shoppers often expect a personalised shopping experience.By leveraging customer data,fashion businesses can personalise their marketing efforts,product recommendations and overall shopping experience to cater to the individual preferences of youn
272、ger shoppers.Using data to predict what shoppers want to buy helps create more sustainable,targeted and manageable supply chains,so that businesses can not only service their customers fully but also meet new and changing regulations.Data underpins all business operations these days and in the fast-
273、moving world of fashion in particular,it is always on trend.34|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|COMPANY PROFILE:ASOSSelling over 850 brands,including own-label items,Asos has morphed into a fashion quasi-marketplace that sells a
274、nd ships to more than 190 countries.However,it is starting to face growing competition.Where it made gains in lockdown,many other fashion retailers are starting to catch up,having had almost two years to reinvigorate their online services.This can be seen in its shrinking web traffic across the anal
275、ysis period(Figure 44).In response,Asos purchased the Topshop,Topman and Miss Selfridge brands from the collapsed Arcadia group in 2021,as well as buying the Topshop flagship store on Londons Oxford Street in order to create a Asos is the pioneer of online fast fashion retail.Founded in 2000 in Bris
276、tol,its remit was to target young,web-savvy adults with affordable fast fashion online.As a result,when the pandemic struck,it was already well-placed to service the switch to online shopping that rapidly occurred and its revenues show just how that worked out(Figure 43).The company has tracked upwa
277、rds at a rapid pace since 2019,growing by 22%in 2020 and a further 18%in 2021.physical retail presence.Sales of Topshop brands on the Asos platform grew by more than 200%year-on-year,with the fastest growth in the UK,Germany and the US.Yet the increasing competition,along with business inefficiencie
278、s baked in by the companys growth,have seen the company post a 31.9mn pre-tax loss in the year to 31 August 2022 despite sales of almost 4bn.To address this,the company has turned to revamping its marketplace technology stack and has teamed up with end-of-line luxury fashion marketplace Secret Sales
279、 in a bid to right-size its portfolio.Asos at a glanceCompany:AsosHQ:London,EnglandFounded:2000Employees:3,351Revenues 2021:4.4bnWeb visits 2021:247.1mnFashion segments:Apparel,footwear,accessories,eyewear,cosmetics and groomingBrands:850 brands from all over the world,including but not limited to:A
280、bercrombie&Fitch,adidas,All Saints,Asics,Asos,Barbour,Ben Sherman,Calvin Klein,Caterpillar,Clarks,Converse,Diesel,Dr Martens,Este Lauder,Fred Perry,French Connection,GANT,Gillette,Helly Hanson,Hollister,Jack Wolfskin,Kangol,Kickers,Lyle&Scott,Moschino,New Balance,Office,Paul Smith,Quicksilver,Ray-Ba
281、n,River Island,Schuh,Spitfire,Timberland,The North Face,Topman,Vans26.3%12.5%22.2%18.2%200210.020.040.0RetailX 2023RXSFSEU23RP-14-v2Source:RetailX,drawing on datafrom CompanyDBFigure 43.Annual revenue growth of Asos(%),2018-2021-3.3%-9.3%2018-16.7%2019-13.9%2020-18.8%20212022-10-20 0 Reta
282、ilX 2023RXSFSEU23RP-41-v2Source:RetailX,drawing on datafrom SimilarWebFigure 44.Annual growth of European web traffic to Asos(%),2018-2022Note:Web traffc starts being recorded on the 1st of August of each year and runs until the start of the next recording period35|RetailX|April 2023RXSFSEU23RP 2023
283、 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|COMPANY PROFILE:DR MARTENSThe company has worked hard in the past five years to shift towards a direct-to-consumer(D2C)online retail model and,as of 2022,was reporting that 49%of sales that year were indeed D2C.As a result,the co
284、mpany has seen revenues climb 18%in 2022,up from 15%growth in 2021(Figure 45).Direct ecommerce sales were 11%up on the previous year and 92%ahead of its 2020 financial year,when only 29%of direct sales were online.Own store sales recovered in markets where Covid-19 restrictions had been lifted,risin
285、g by 86%on last year,and accounting for 20%of sales seven percentage points(pp)ahead of last time.It opened 24 new stores during the year and plans to open more in the coming year,especially in the US.Dr Martens is a curious brand that has mass appeal based on non-conformity:metaphorically and liter
286、ally a comfortable way to be different.The company started in some ways in 1901 in Wollaston,England as the Griggs shoe company.But it was the 1947 invention of the patented Air Wear sole by Dr Klaus Maertens and Dr Herbert Funk in post-war Munich that really saw the company we know today come into
287、existence.Griggs licensed the Air Wear tech and,on 1 April 1960,the eight-holed Doc Marten boot named the 1460 after its birthday was launched.Although the 1460 started life as a 2 work boot,the company hasnt looked back.Pivotal to many youth movements from bikers and mods to rockers,skinheads,punks
288、 and pretty much all alternative types since the boots and shoes have bounced their way into becoming both global fashion staples and enduring icons.The fast growth in direct sales came alongside 5%growth in wholesale,while profitability increased as more sales were direct.Gross margin grew by 2.8pp
289、 to 63.7%.The fastest growth was in the Americas(+29%)and EMEA(+19%),although sales in its smallest region APAC region(-10%)were affected by continuing Covid-19 restrictions.Bottom line,pre-tax profits of 214.3mn were 207%ahead of last time.Dr Martens aims to reduce the amount of waste it sends to l
290、andfill to zero by 2028,by which time 100%of the products it sells will have a sustainable end-of-life option.In April 2022,it started its first trial of more sustainable repair and resale services and says early results are encouraging.Dr Martens at a glanceCompany:Dr MartensHQ:Wollaston,EnglandFou
291、nded:1947Employees:621Revenues 2021:900mnWeb visits 2021:9.5mnFashion segments:Apparel,footwear,accessoriesBrands:Dr Martens(aka Doc Martens,DMs)RetailX 2023RXSFSEU23RP-22-v3Source:RetailX,drawing on data from Dr Martens plc.Annual Report 2022Figure 45.Annual revenue growth of Dr.Martens(%),2018-202
292、120.0%30.5%48.0%15.0%2002120.040.060.0RetailX 2023RXSFSEU23RP-53-v1Source:RetailX,drawing on datafrom SimilarWebFigure 46.Annual growth of European web traffic to Dr.Martens(%),2018-2022Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of th
293、e next recording period32.6%-3.3%-4.6%3.2%201820192020-11.8%202120220 20 40 36|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|COMPANY PROFILE:INDITEXAfter suffering declining sales during the pandemic due to its business being skewed to store
294、-based retail,a shift in emphasis to a more hybrid approach along with all its stores re-opening has seen the groups fortunes soar(Figure 47).In 2022,sales rose 17.5%compared to 2021 across all markets and its online sales rose to more than 7.8bn following record growth in 2021 and 2022.Sales in Eur
295、ope were particularly strong,with the group seeing a 47.5%uplift in trading in the region,excluding the Groups home market of Spain,where sales rose 14.4%.Growth in the Americas matched that of Asia and RoW,at around 20%.This comes despite a downturn in the wider European market prompted by the econ
296、omic headwinds from the Russian invasion of Ukraine.This is particularly The Inditex Group is a giant of the global fashion market,turning over in excess of 27bn and operating across more than 6,000 stores and websites in 93 countries.The group one of the top five largest fashion retailers in the wo
297、rld comes from humble beginnings,when founder Amancio Ortega opened Confecciones GOA,a small dressmaking workshop,in A Corua in Spain in 1963.By 1975,Ortega opened his first Zara store to sell his own clothing.In 1985,as the companys manufacturing and retail enterprises grew,holding company Industri
298、a de Diseo Textil Inditex was set up to manage them all.Numerous brands have since been added or created,including Pull&Bear,Bershka and Stradivarius.The group now rivals Christian Dior and Nike as a leader in fashion retail.encouraging news,since the group ceased operations in 514 stores and online
299、 platforms in the Russian Federation on 5 March 2022.A further 82 stores and online operations in Ukraine remain closed since 24 February 2022.On the sustainability front,the company has hit its target of seeing 100%of the electricity used in its central services,logistics platforms and stores comin
300、g from renewable energy.The Zara Pre-Owned platform currently available in the UK only also performed well and is set to be expanded to new markets,starting with France and Germany.This platform will help customers extend the life cycle of Zara garments through donation,repair or resale.Inditex Grou
301、p at a glanceCompany:Inditex GroupHQ:Arteixo,SpainFounded:1985Employees:162,450Revenues 2021:27.7bnWeb visits 2021:Zara 189.8mn,Pull&Bear 43.7mn,Bershka 44.8mn,Stradivarius 32.4mnFashion segments:Apparel,footwear,accessories and homewaresBrands:Zara,Pull&Bear,Bershka,Stradivarius,Massimo Dutti,Oysho
302、,Uterque,Zara HomeRetailX 2023RXSFSEU23RP-58-v2Source:RetailX,drawing on datafrom SimilarWebFigure 48.Annual growth of European web traffic to Inditex,by brand(%),2018-2022Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period 2
303、00212022-20.00.020.0InditexZaraPull&BearBershkaStradivariusRetailX 2023RXSFSEU23RP-57-v6Source:RetailX,drawing on data from Inditex financial report 2021Figure 47.Annual revenue growth of Inditex group,by brand(%),2018-2021Note:Web traffc starts being recorded on the 1st of August of each
304、 year and runs until the start of the next recording period2002120.00.020.040.060.0InditexZaraPull&BearBershkaStradivarius37|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|COMPANY PROFILE:JD SPORTSThe model of expansion by acquisit
305、ion has seen the company grow across first Europe and then further afield.In 2009,it bought Chausport,a French sports retailer,the groups first international presence.That led to it opening its first European JD in Lille,France,in 2010.In 2011,the group acquired Sprinter,a Spanish sports retailer sp
306、ecialising in footwear,apparel and equipment,before it expanded into the outdoor market,with Blacks and Millets joining the group in 2012 for 20m out of administration.As a result,the company has seen strong revenue growth across the past five years,tracking upwards pre-,during and post-pandemic,alt
307、hough growth rate is slowing(Figure 49)to lodge earnings in 2021 of more than 8bn from worldwide sales.JD Sports bridges the gap between pure sportswear and fashion sportswear and has carved out a successful niche selling a range of well-known brands including Nike,adidas and Calvin Klein,alongside
308、its own brands,such as Pink Soda and Supply&Demand.Founded by John Wardle(the J)and David Makin(the D),JD Sports grew from a single store in Greater Manchester to operate across the UK through organic expansion and judicious acquisition of sports retailers and brands.These include First Sports,which
309、 it took over from Blacks Leisure Group in 2001,and Allsports,which it bought out of administration in 2005.These two acquisitions alone added 279 stores across the UK to the group.Web traffic stalled in 2020 and into 2021 and continued to fall back in 2022 as shoppers returned to buying high end an
310、d high street sports fashion in the retailers 900 stores.More recently,the retailer has been bullish about weathering the cost-of-living crisis,seeing itself very much at the right place at the right time.Its target audience,which it believes to be 16 to 24 year-olds,has an“increased buying power”,a
311、ccording to the company,due to its younger demographic and“lower unemployment figures”.This target demographic has proven resilient and more sheltered against the impacts of the cost-of-living crisis and rising inflation rates.The youth market also places much higher priority on fashion and sports b
312、rands and so is more likely to keep spending.JD Sports at a glanceCompany:JD SportsHQ:Bury,EnglandFounded:1981Employees:44,488 in UK plus an additional 16,555 in Footlocker in the USRevenues 2021:8bnWeb visits 2021:39mnFashion segments:Apparel,footwear,athleisure and sportswearBrands:JD,Size?,Footpa
313、trol,Finish Line,Shop Palace,DTLR Villa,Livestock,Sprinter,Sport Zone,Perry,Chausport,Sizeer,JD Gyms,Tessuti,Scotts,MainlineRetailX 2023RXSFSEU23RP-19-v3Source:RetailX,drawing on data from JD SportsFashion plc Annual Report and Accounts 2022Figure 49.Annual revenue growth of JD Sports(%),
314、.5%38.3%29.3%5.6%200210.020.040.060.0RetailX 2023RXSFSEU23RP-48-v1Source:RetailX,drawing on datafrom SimilarWebFigure 50.Annual growth of European web traffic to JD Sports(%),2018-2022Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the
315、next recording period26.2%0.7%-5.2%-1.0%20021-21.9%20220 2040-2038|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHION SECTOR REPORT 2023|COMPANY PROFILE:NEXTcompared to store sales of 1.4bn.This has seen a sharp upturn in revenue growth(Figure 51)along w
316、ith a surge in web traffic(Figure 52).Full year online sales for 2022 came in 2%below 2021 but still generated some 3bn in revenue 40%ahead of their pre-pandemic levels.This is testament to the success of its switch to a more online-focussed approach.Part of this shift saw the retailer take the unus
317、ual step of opening up its online platform to other brands,even those that compete with Next directly.The company has invested heavily in its Total omnichannel platform and hopes to see it generate a rapid ROI by making it more open.While many retailers in fashion and elsewhere are creating marketpl
318、aces,Next is unusual in that it is not just selling complimentary items but competitive ones Next had a very strong year in 2018,growing 19.6%year-on-year.However,come 2019,competition from pureplay online fashion retailers particularly Asos and boohoo in the UK and Zalando in Europe saw sales reven
319、ues start to decline pre-pandemic.The retailer has since shifted its position to,first,be more online focussed,then secondly to create a modern omnichannel business that reaped the rewards in 2021 and into 2022.Online sales now account for more than half of the groups revenues,topping 3.2bn in 2021/
320、22,too.The theory,says Next,is that the increased traction it gives with customers will lead to sales rising of its own products.It certainly seems to be working.This third-party business,called Label,has seen faster growth than the main Next brand.Online sales at its Next UK brand were 23%ahead of
321、2019 in 2021,while online sales at Label UK were 20%up on last year,and 106%up on 2019.The company now faces the challenge of keeping its stores relevant and profitable in the face of this online deluge,but innovating new features in its stores cannot take away from the appeal of its online proposit
322、ion,especially such a wide range of brands making it convenient to purchase from.Next at a glanceCompany:NextHQ:Enderby,UKFounded:1982Employees:43,000Revenues 2021:5.8bnWeb visits 2021:82.7mnFashion segments:Apparel,footwear,accessories,cosmetics,grooming and homewaresBrands:Next sells its own brand
323、 wares but has opened up as a marketplace,selling more than 1,000 others,including but not limited to:BHS,Burberry,Birkenstock,Calvin Klein,Champion,DKNY,Dunlop,Emporio Armani,Estee Lauder,F&F,French Connection,GANT,Hugo Boss,Jack&Jones,Kickers,Lacoste,Mango,Only&Sons,Pretty Green,Quicksilver,Under
324、Armour,WedgwoodRetailX 2023RXSFSEU23RP-40-v1Source:RetailX,drawing on datafrom SimilarWebFigure 52.Annual growth of European web traffic to Next(%),2018-2022Note:Web traffic starts being recorded on the 1st of August of each year and runs until the start of the next recording period-8.1%-0.9%7.1%-12
325、.1%2018-8.9%20022-10 0 10 RetailX 2023RXSFSEU23RP-13-v1Source:RetailX,drawing on datafrom Yahoo FinanceFigure 51.Annual revenue growth of Next(%),2018-20218.2%17.1%20182019-14.6%20202021-10.00.010.020.039|RetailX|April 2023RXSFSEU23RP 2023 SUSTAINABILITY REPORT|INTRODUCTIONEUROPEAN FASHIO
326、N SECTOR REPORT 2023|COMPANY PROFILE:PANDORAWhat marks the company out as a business is its extremely cost-efficient design and production model.It has low production costs and an efficient supply chain centred around a production facility in Gemopolis in Thailand which employs 13,200 of the company
327、s 26,000 employees.Using this,Pandora has been able to sell in more than 100 countries on six continents through approximately 6,700 points of sale,including approximately 2,400 concept stores.With 90%of its sales taking place in Europe and the US,the company is now looking to target China.The compa
328、ny consistently generates some 3bn in revenues each year(Figure 53)and has,since the onset of the pandemic,grown its online presence considerably(Figure 54).The worlds third-largest jewellery company behind Cartier and Tiffany&Co,Denmarks Pandora is differentiated by consumers for creating affordabl
329、e mid-market jewellery,exemplified by its charm bracelet with addable charms first marketed in 2000 and protected by a patent.Since its formation in 1982,Pandoras collection has grown to include an assortment of rings,necklaces,earrings and,for a time,watches.By 2011,a Pandora item was sold somewher
330、e in the world every second,making it one of the biggest players in the Fashion accessory market not just in Europe,but globally.As of 2022,21%of the brands revenues came from its online presence,just shy of the 28%garnered from third-party and wholesale distribution.The companys 6,500 stores worldw
331、ide brought in the remaining 51%of sales.Launching into ecommerce in 2011,the brand has more recently instigated a company-wide programme its so-called Phoenix Strategy built around the four pillars of brand,design,personalisation and core markets that will offer global customers an omnichannel expe
332、rience in which they can seamlessly move between online and instore as they browse and buy.In May 2021,Pandora announced the company would phase out mined diamonds in favour of gems manufactured in a laboratory.Its new diamond jewellery will first be sold in the UK before being sold globally in 2022
333、.Pandora at a glanceCompany:PandoraHQ:Copenhagen,DenmarkFounded:1982Employees:26,000Revenues 2021:30bnWeb visits 2021:18.2mnSegments:Jewellery and accessoriesBrands:PandoraRetailX 2023RXSFSEU23RP-21-v2Source:RetailX,drawing on datafrom CompanyDB and Yahoo FinanceFigure 53.Annual revenue growth of Pandora(%),2018-20210.0%-3.9%23.2%20182019-13.2%20202021-10.00.010.020.030.0RetailX 2023RXSFSEU23RP-52