Market Trends of Apparel Logistics Industry
This section covers the major market trends shaping the Apparel Logistics Market according to our research experts:
Growing Online Apparel Sales and Changing Consumer Behavior
In June 2021, the fast-fashion e-commerce site, shein.com, was the most visited in the fashion and apparel category worldwide, accounting for 3.29% of desktop traffic. The e-commerce portal of the Swedish clothing retailer HM ranked second, with 1.75% visits. In 2020 and 2021, online apparel retail sites experienced a sales increase due to their digital market presence. This effect has fuelled changes in the approach of the market players, which may be expected to continue in the coming years, with more emphasis on the growth of e-commerce, mobile shopping, and meeting ever-rising expectations of personalization among customers.
Based on the yearly percentage growth in terms of website traffic, shein.com emerged as the leading fast-fashion retailer website in the United States in Q4 2020. While consumers frequently visit websites to compare prices and products, global online platforms plan to expand their fashion brand partnerships and develop additional engagement methods to stay competitive in the digital shopping space. To handle the growing online orders, third-party logistics companies are absorbing millions of sq. ft of space and letting it out to consumer goods, e-commerce, manufacturing, and apparel companies.
Growing Apparel Market Boosting the Growth of Apparel Logistics
Revenue generated by the apparel market steadily increased through the study period. In 2020, the market revenue was approximately USD 1.46 trillion. Consumer technology brands have long targeted online shoppers in Australia, Japan, and South Korea. However, brands in the apparel and beauty sectors are also targeting other regions. Hence, brands may continue focusing on localization and catering to millennial customers who are the key buyers of these products.
The Y-o-Y growth rate for apparel and footwear experienced severe losses in 2020. Against the backdrop of the COVID-19 pandemic, growth declined by a total of over 10%. Sporting goods and mass/club retail grew in 2020. Global sports apparel and footwear brands like Nike and Adidas are ditching other regions and increasing their production in emerging Southeast Asian countries like Vietnam, offering a positive outlook for transportation companies and other third-party logistics service providers.
