Off-price fashion will grow faster than the entire market in 2025-2030: study

Off-price fashion segment বিক্রি Sales of high-end branded products at lower prices through online and offline outlets দ্রুত grew faster than the overall fashion market in 2020 and fell even during the epidemic, according to a new McKinsey report, which states that it is likely 2025 and 2030. This will increase five times faster than the overall market.

One of the reasons for this success is the strong online presence of off-price retailers who put their offers in a good position to benefit from the epidemic online shopping boom, the report titled ‘Mastering Off-Price Fashion in an Omni-Channel World’. , Said.

It draws on a global data analysis of the off-price market and a survey of 11,000 consumers in 10 European countries.

Off-price fashion segment বিক্রি Sales of high-end branded products at lower prices through online and offline outlets দ্রুত grew faster than the overall fashion market in 2020 and fell even during the epidemic, according to a new McKinsey report, which states that it is likely 2025 and 2030. This will increase five times faster than the overall market

“Online sales account for 40 percent of the off-price market and they are growing very fast at the moment – about 13 percent annually, [an] On average, ”said Katharina Schumacher, a digital expert and research author.

“These developments create opportunities for fashion companies to reach their customers with new customers who don’t usually consider shopping at full price,” he continued.

European buyers are particularly interested in bargaining. Many consumers in Europe made multiple online purchases last year. In the off-price segment, online sales growth has tripled – the compound annual growth rate has increased from 9 percent in 2020 to 19 percent in 2021.

Annual growth is projected to be 13 percent by 2025. Also, off-price offers fashion brands a sustainable way to sell their surplus stock. General off-price enthusiasts shop online especially for luxury, affordable luxury and premium products, and their purchases on special platforms such as Dress-for-Lace, BestSecret, Brands4Friends or Scars, McKinsey’s press release said.

They care about style and usually start shopping without thinking of a particular brand. But they enjoy price comparisons and spend 2.3 times more on their purchases than other groups of fashion customers.

In Germany, 30 percent of off-price consumers spend more than 1,000 euros a year on fashion purchases and account for 70 percent of total fashion spending. “At the same time, these buyers are basically willing to pay full price for premium and luxury brands,” said Achim Berg, a McKinsey expert in the fashion industry.

Valuable shoppers who visit brick-and-mortar stores often shop younger and more than other fashion consumers. They enjoy going to the outlet centers, but avoid the regular luxury shops in the high shopping districts.

Fibre2Fashion News Desk (DS)