Fashion e-commerce sales in the Mena region grew by 19 per cent in the first quarter of 2023, according to data from Admitad, a German provider of marketing solutions.
The amount Mena consumers were willing to pay for fashion purchases increased by 15 per cent, the research notes.
According to Admitad, the number of global fashion orders made between January and February 2023 saw a 15 per cent YoY increase globally. Yet, Mena bucked this global trend, growing by 19 per cent.
An Admitad spokesperson said: “The fashion industry’s boom seasons generally occur in the spring and autumn months when many large sales take place. Still, these figures might set the tone for the coming year.”
Last year, the number of worldwide online fashion purchases rose by more than 30 per cent, with gross merchandise value jumping by 35 per cent year-on-year, and the Mena region was no exception.
Between 2021 and 2022, the market shifted into a rapid recovery phase which saw a gradual return to growth for online sales.
A main driver of this growth was the soaring e-commerce sales segment as a whole, with the lockdown playing a key role in the further popularising of online shopping. However, the financial doom and gloom of 2020 dimmed any positive sales trends that occurred during this time, Admitad noted.
Online fashion retail’s success hinges on convenience, online sizing and fitting tools, simple delivery and return methods and access to a large number of special offers and discounts. These perks, however, detract from online shopping’s main downside — the risk that the item might not suit the customer, Admitad says.
Admitad estimates that clothing, footwear and fashion accessories make up more than 20 per cent of all global e-commerce sales, and this market share is set for further growth.
This period also saw a drastic surge in online second-hand fashion sales.
According to experts, resale sales in the fashion segment increased by 24 per cent globally last year, and the growth is forecast to continue at a rate of around three times faster than regular sales.
The success of the second-hand shopping trend has been ascribed to environmental concerns and conscious consumption. The second-hand fashion market value is predicted to hit $228 billion in 2026.
Inflation made a significant impact on fashion’s e-commerce average order value.
According to Admitad, while average basket prices increased from $45 to $74 as the year progressed, in the Mena region the average order value held steady at $101 throughout this period.
Moreover, the UAE boasted the second-highest global AOV for 2022.
Throughout 2022, the fashion industry suffered economic turbulence, with rising costs for manufacturers around the world. Under these conditions, brands and marketplaces were compelled to apply even more caution with their marketing spending.
According to Admitad, in 2022, the number of Mena brands and marketplaces using their channel to attract sales increased by 33 per cent (as opposed to 23 per cent worldwide).
