A Shein dress for €3, Birkenstocks on my feet and a Sézane jacket bought second-hand from Vinted: The purchasing behavior of e-shoppers has evolved and transformed the online fashion market.
New buying trends are emerging, ecological and economic awareness are shaping consumer habits and trends.
The fashion industry has definitely changed – today Foxintelligence shares its insights on the subject.
In program :
- The ultra-fast fashion market, which continues to be a major drag on the fashion industry despite ecological awareness (especially thanks/because of Shein)
- The second hand is no longer an option for dealers who want to gain market share (with a focus on the distribution of sales by generation and the frequency of purchase of used products)
- Focus on the Sézane case: the successful DNVB that rocked the online fashion industry and retail thanks to a highly efficient business model
Zara, Shein and H&M: Focus on the fast fashion market
We owe the term “ultra fast fashion” to Shein.
And with good reason: the brand offers more new products in 48 hours than H&M in several months.
An aggressive practice that encourages throwaway culture.
Shein is number 1 in fast fashion, while Zara and H&M are changing their strategy
In France, Shein captures 33.8% of ultra fast fashion market share by value in 2022. Zara 36.4% and H&M 29.8%.
In France, Shein’s market share has fallen in 2022 vs. 2021 – while those of the competitors have increased.
We see the opposite trend in Great Britain and Spain:
- On the UK side, Shein represents 40% of the market share (+11.3 points vs. 2021).
- On the Hispanic side, more than 50% of sales come from Shein’s ultra fast fashion market (+7.5 points vs. 2021).
The brand’s growth is accelerating in Spain and the UK – while the brand is losing momentum in France.
Zara decides to move to the upper price range
Rising prices, partnerships with big names in haute couture – Zara is moving upscale and trying to stray from its skin-tight fast-fashion brand image.
H&M relies on CSR
H&M tends to follow a slightly different trend: the focus is on second-hand clothes, recycling and clothing rentals – also reducing the carbon footprint and promoting the H&M Take Care program (clothing repair and maintenance services).
How does Ultra Fast Fashion rank in the fashion category?
In Spain, ultra-fast fashion is on the rise. 21% in 2019, 33% in 2022: The market penetration rate is steadily increasing.
But in the UK, France and Germany, the market is not doing so well.
In the UK, the numbers are stagnating, while in France and Germany, the penetration rate is declining in 2022.
Is second hand the future of the fashion industry?
At a time when everyone knows Vinted, can we still consider that this opportunity only affects the younger generations?
What are the real motivations of buyers to buy used goods? What positioning should brands adopt to meet these new needs? We take stock.
The underlying motivations of e-shoppers choosing used products
They are diverse, but that’s the way it is the need to save money which takes precedence.
The advantage for buyers is twofold: having fun at a low price and making money by selling clothes that are no longer needed.
Second-hand is the obvious answer to the loss of purchasing power.
The second motivation of buyers is militant – buying clothes that have already had a first life is a protest against fast fashion, overconsumption and overproduction.
Spend less by buying something better: for the used market, that’s no problem.
The second hand, a booming market
The penetration rate of the used market has been constantly changing over the last 5 years.
In France, it has tripled: 14% in 2017 versus 41% in 2022.
Second hand is no longer an option for retailers
Participation in the circular economy has become a purchasing criterion.
Used, used, refurbished: More and more consumers are considering products that have had their first life – before turning to a new one.
For retailers, this is a growth opportunity.
Kiabi has chosen to take back products by opening its second-hand platform. Customers can return clothes they no longer wear for vouchers.
Considering these new needs has become essential for retailers and marketplaces.
Sézane, the successful DNVB that shook up the retail world
Sézane is the leading French fashion brand on the internet. It experienced (and still experiences) exponential growth: in 10 years it has messed up the retail market and fashion codes.
Composite portrait of Sézane customers
They are Parisian: 42% of the brand’s online market share is achieved in the Paris region. They also buy from Zara and its followers from Vinted
Sézane gained 59% of new online customers and lost 51% between 2021 and 2022.
Lost customers spent 19% of their fashion budget at Vinted and the brands they buy the most are Zara (6.4%) and H&M (4.6%).
Your average spend on Sézane’s website in 2022 is €431
Generations B and Z spent the least in Sézane.
Gen X and Gen Y are the brand’s main target audience, with average spend rising to €499 and €481 respectively.
They strongly prefer the second hand
Second-hand goods accounted for 3% of Sézane purchases in 2018.
In 2022, the figure has risen to 9.5%, reflecting market reality for many traders.
The occasion has become a business opportunity for brands that integrate it as a strategic pillar of their growth.
From a generational point of view, as we have already seen, Generations B and Z are the ones who spend the least on the brand’s website… Even if they are the ones who spend the most on Sézane clothes every now and then!
Sézane owes its success to its established business model
A storytelling with small onions and a highly engaged community:
The brand was created on the principle of micro-collections and is intended for privileged subscribers to the brand’s newsletter.
The designer is the face of the brand and she is 100% master of her storytelling: Sézane is Morgane Sézalory, its creator. A founder who inspires and brings together a community of loyal shoppers.
Les Sézanettes, lovers of the brand, have a Facebook group with 66,000 members – and on Instagram, the hashtag #sézanette gathers 135,000 releases of Sézane looks posted by buyers
Sézane masters FOMO perfectly
The site has an “Essentials” category – timeless basics that can be bought all year round.
And in parallel, limited capsule collections to increase the desirability of the brand.
A reasonable price positioning, halfway between fast fashion and luxury
In the physical store, customers experience a real experience. Between herbal tea and squeaky parquet, the brand has created a new kind of store.
