Fashion

Low-cost fashion to grow faster than the whole market in 2025-2030: Research


According to a new source, a McKinsey report says they will likely grow five times faster than the overall market between 2025 and 2030.

One reason for this success is the strong online presence of discount retailers, which puts their services well positioned to benefit from the online shopping boom of the pandemic. The report titled ‘Mastering discount fashion in the omnichannel world’, says.

It is based on analysis of global data on the discount market and a survey of 11,000 consumers in 10 European countries.

It is likely to grow five times faster than the overall market between 2025 and 2030, according to a new source report from McKinsey.

“Online sales make up 40% of the discount market, and they’re growing incredibly fast right now — about 13% annually, worldwide. [an] average,” said Katharina Schumacher, a digital expert and author of the study.

“This development creates an opportunity for fashion companies to let their brands reach new consumers who might not normally consider buying at full price,” she continued.

European shoppers are particularly interested in bargains. Many consumers in Europe have purchased online multiple times in the past year. In the discount segment, growth in online sales tripled — compound annual growth increased from 9% in 2020 to 19% in 2021.

Annual growth through 2025 is expected to be 13%. Additionally, discounts provide a sustainable way for fashion brands to sell their excess stock. “Discount enthusiasts are particularly interested in products in the premium, affordable luxury and premium categories, and shop on specialized platforms such as,” said a McKinsey press release. dress-for-less, BestSecret, brand4friends or Scarce.

They care about style and often start shopping without thinking of a particular brand. But they like to compare prices and spend 2.3 times more on shopping than other groups of fashion customers.

In Germany, 30% of discount customers spend more than €1,000 per year on fashion shopping and account for 70% of total fashion spending. “At the same time, these buyers are essentially willing to pay full price for high-end and luxury brands,” said Achim Berg, McKinsey expert on the fashion industry.

Discount shoppers who visit brick-and-mortar stores are often younger and buy more than other fashion consumers. They like to go to shopping malls, but tend to avoid the usual luxury stores in high-end shopping districts.

Fiber2 Fashion News Desk (DS)





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