Fashion is a dynamic industry at the core of fast moving consumer goods. While the term fashion is conventionally associated with the design and style of clothing, accessories, and footwear, the fashion industry extends further and includes the production, supply, distribution, and sales of such items, supported by a global network of manufacturers and workforce both in the manufacturing and retail side of the industry. However, it is useful and necessary to make a distinction between the luxury end of the industry and mass-produced, readily available products. Today, the fashion retail landscape is driven by brands and companies in the latter category.
The popularity and power of the fashion industry comes from the ever-increasing demand of consumers, which leads to more and more production and sales. Worldwide, the revenue of the apparel market reached a value of 1.53 trillion U.S. dollars in 2022. This impressive figure is projected to grow by more than 25 percent by 2027.
The global revenue of apparel and accessories fell slightly in 2022, compared to 2021. One reason for this is the rise in cost of living felt by consumers worldwide. However, Statista's Consumer Market Outlook projects that the market will recover and, by 2027, revenues will almost reach the two trillion U.S. dollar mark. A significant proportion of these revenues come from online sales. In 2022 almost a quarter of total e-commerce sales in the U.S. were from apparel, footwear, and accessories.
Despite largely appealing to upscale shoppers, the luxury segment holds an increasingly relevant place within the fashion industry. Dominated by accessories like jewelry, eyewear, bags, and other leather goods, the personal luxury goods market value is 337 billion euros. The most valuable luxury brand worldwide is Louis Vuitton, leaving behind a coterie of other well-known names like Chanel, Hermès, and Gucci. Part of the LVMH family, Louis Vuitton has a brand value of 44.5 million U.S. dollars.
One of the most influential changes to happen in the fashion industry in recent years is the growing awareness of sustainability, which has led many consumers to switch to pre-owned fashion items. The market for secondhand apparel is estimated to rise from a value of 96 billion in 2021 to 218 billion U.S. dollars by 2026.
While previously thrift stores were the conventional channels to buy secondhand clothing articles, today the most popular channel is online, via apps or websites.
Some of the biggest names in fashion retail are companies with European roots. The Spain-based Inditex Group and Swedish H&M are two of the most popular and successful brands based on annual revenues registered worldwide. In 2021, the Inditex Group recorded over 27.7 billion euros from its global operations.
The Inditex Group is the parent company to a number of fashion retailers including Zara, which drives the most sales and has the highest number of stores among the group's brands.
Fashion is best defined simply as the style or styles of clothing and accessories worn at any given time by groups of people. The fashion industry has a tremendous variety of products, small product life cycles, unpredictable and volatile demand, and inflexible, long supply procedures. Statista's content on fashion and accessories provides extensive information and statistical data on the global and regional state of fashion retail. Spanning apparel, footwear, as well as the luxury segment, data on fashion retail covers the key players of the industry, purchasing behavior of customers, and the latest trends pursued by brick-and-mortar and omnichannel fashion retailers.