Fashion Retail Market Size, Share, Trends, Growth 2032

Fashion Retail Industry Prospective:

The global fashion retail market size was worth around USD 91.25 billion in 2023 and is predicted to grow to around USD 157.88 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.09% between 2024 and 2032.

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Fashion Retail Market: Overview

The fashion industry is one of the most fascinating industries in the world. Fashion retailing is the mediator between manufacturers and customers. Once the clothes are designed and fabricated, shaped and manufactured, they are purchasable. The fashion retail industry is the business of buying clothes from manufacturers and selling them to retailers or directly to customers. It deals with comprehensive procedures including selecting fabrics to make the cloth a masterpiece and finally presenting the elegant wear to retail customers.

The end goal is to achieve maximum capital gain and turn all the hard work into profitability. Fashion retailing is a one-stop industry where one can see immense growth over time. Fashion retailing operates at both the wholesale and retail levels.

Key Insights:

• As per the analysis shared by our research analyst, the global fashion retail market is estimated to grow annually at a CAGR of around 7.09% over the forecast period (2024-2032)
• In terms of revenue, the global fashion retail market size was valued at around USD 91.25 billion in 2023 and is projected to reach USD 157.88 billion by 2032.
• The market is projected to grow at a significant rate due to the emerging fashion trends
• Based on application segmentation, a variety stores were predicted to show maximum market share in the year 2023
• Based on type segmentation, fast fashion was the leading segment in 2023
• Based on region, North America was the leading revenue generator in 2023

Fashion Retail Market: Growth Drivers

Rapid increase in the working population, festivities, and parties resulted in the growth of the market

The global fashion retail market is projected to grow immensely as there is rapid growth in the working population which leads to an increase in making and purchasing of business attire. Many businesses these days have different dress codes for different occasions, calling for business casual wear regularly and business formal attire on the day of presentations and meetings. In addition to this, most people are inspired by social media platforms for their office attire which is an economic booster for the fashion industry. People these days prefer to shop from e-commerce platforms as it is easy and convenient for them to shop anytime and anywhere, this has led to constant evolution in the retail market. Festivals across the globe are celebrated with great enthusiasm. Festivals contribute a lot to clothing choices and purchasing habits, which in terms influence the fashion industry. Also, most of the time people follow ongoing fashion trends and try to avoid repeating their outfits.

A leading example of festival-influenced demand in the retail sector was observed during the 75th Independence Day of India which was held on 15th August 2023 where Confederation of All India Traders (CAIT) says, ‘Har Ghar Tiranga’ generated INR 500 crores of business and over 30 crores flags were sold and gave employment to more than 10 lakh people who made the tricolor in their homes or at other places, engaging local tailors in a big way. Another reason why the fashion retail industry is growing at such a pace is weddings. People don't often consider finances when it comes to weddings. Individuals tend to purchase clothing of their choice for weddings which allows retail businesses to generate hefty turnover.

Fashion Retail Market: Restraints

Increasing concerns over high rents, online easy return policy, and hefty manufacturing prices can restrict market growth.

The metropolitan cities in the United States such as New York City, Los Angeles, etc., or in India such as Mumbai, Bangalore, etc. the rents of commercial properties are high-priced and it is increasing with an approximation of 8% every year. In such situations, if a fashion retailer wants to accomplish a high-profit margin, they need to sell their clothes in a hefty amount. Otherwise in many cases due to heavy rents and slow sales, the stores have been shut down either at a loss or no profit-no loss situations thus affecting the companies operating in the global fashion retail market.

Even though e-commerce shopping is in great trend currently, many times people tend to buy clothes as a one-time use and return or maybe they order more than the required items and return the rest with an easy return policy which is accessible in certain countries. In the long run, small businesses will end up suffering monetary loss due to excessive liquidation of their assets. People are in a world of fast-moving trends and hence retailers must continue to invest in constant innovation to avoid loss of customers.

Fashion Retail Market: Opportunities

Personalized and customized clothes provide excellent growth opportunities

The global fashion retail market is expected to benefit from higher demand for personalized clothing products. Customized commodities, especially clothes, are preferred by people and are close to their hearts. Personalized clothing is particularly used as a gift for their loved ones. Many small-scale businesses have made their way into the fashion retail industry with their special effects and uniqueness in the attire they make.

Some of the personalized cloth items that are making their way are couples' or friends’ hoodies and t-shirts, hand-stitching smooth and firm woolen clothes, etc. This has led to immense opportunities for fashion consultants, fashion designers, fashion marketers, retail managers, and retail salespersons.

Fashion Retail Market: Challenges

Concerns over the rising prices of raw material to challenge market growth

The global fashion retail industry may incur losses because of the economic crises rising across the globe. A large segment of the population is suffering monetarily since the cost of living is increasing rapidly. Inflation is sky-high and with these situations, it is difficult for buyers to continue spending on non-essential items such as clothes in abundance.

In addition to this, there is a growing risk of design and Intellectual Property (IP) theft in which dupes of big brands are available in common markets which leads to the bigger brands suffering loss of brand value in addition to economic losses. People are moving towards cheaper options as fashion is inevitable and can change rapidly.

Fashion Retail Market: Segmentation

The global fashion retail market is segmented based on application, type, and region.

Based on application the global market is segmented as variety stores, department stores, discount stores, supermarkets, independent stores, online, and others. In 2022, the highest revenue was generated in the variety stores segment. These units are small shops selling a wide range of inexpensive items. Customers tend to benefit most from discount stores because they offer a retail format in which products are sold at prices lower than the actual retail price, they are also called factory outlets where one can experience 20% to 80% discounts on various brands.

Based on type, the global market is divided into fast fashion, mass-market fashion, ready-to-wear (RTW), haute couture, and others. The fast-fashion industry was the largest trend-setting in 2022. The perfect to meet consumer needs on a budget is fast fashion since it offers cost efficiency while offering the option to stay aligned with recent trends. In 2022, the global fast-fashion industry generated a revenue of over USD 100 billion. Haute couture is the most unique, aesthetic, and expensive type of fashion retail as compared to other forms. Haute couture is a French word that refers to 'high sewing' or 'high dressmaking'.

Fashion Retail Market: Report Scope

Fashion Retail Market: Regional Analysis

North America to continue its dominance during the forecast period

The global fashion retail market is projected to witness the highest growth in North America majorly in the United States. The prominent fashion retail companies in the United States are Zara, H&M, Walmart, Amazon Fashion, etc. The study and survey of McKinsey Global Fashion Index says that the regional fashion retail industry claimed almost equal profit in 2022 and 2021. This shows consistency in the economy of the region’s fashion sector. The luxury sector outperformed with a 36% rise in economic profit whereas the non-luxury sector almost doubled its revenue as compared to 2021. The primary reason for the higher regional growth rate is the increasing purchasing power of the local population. The growing trend of clothes thrifting has helped North America create new opportunities for further growth.

Asia-Pacific is an emerging market and is projected to become the fastest-growing industry during the projection period. The region has an extensive manufacturing industry with global brands using labor forces in countries such as India, China, Bangladesh, and Pakistan to produce clothing products. Moreover, the presence of a large consumer base in India and China may promote regional expansion during the projection period. from the reports and data of the previous year.

Fashion Retail Market: Competitive Analysis

The global fashion retail market is led by players like:

• Hermès
• Ralph Lauren
• Balenciaga
• Burberry
• Gucci
• Louis Vuitton
• Armani
• Fendi
• Versace
• Chanel
• Gap
• Saint Laurent
• Balmain
• Givenchy
• Valentino
• Calvin Klein
• Givenchy
• Michael Kors
• PUMA
• Tommy Hilfiger
• Zara
• H&M
• Uniqlo
• Nike
• Primark
• ASOS
• Zalando
• Old Navy
• Victoria’s Secret
• American Eagle Outfitters and Coach.

The global fashion retail market is segmented as follows:

By Application

• Variety Stores
• Department Stores
• Discount Stores
• Supermarkets
• Independents Stores
• Online
• Others

By Type

• Fast Fashion
• Mass-Market Fashion
• Ready-to-Wear (RTW)
• Haute Couture
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa