Luxury fashion e-commerce worldwide - statistics & facts
Fashion is the leading luxury product category purchased online, with revenues estimated to exceed 20 billion U.S. dollars globally in 2024. Despite this impressive figure, the online sales growth for luxury apparel and handbags has declined, indicating a troubled market. As affluent consumers returned to brick-and-mortar stores post-COVID-19, the online market has found it difficult to sustain the pandemic-era boom.
The digital luxury industry has faced challenges in recent years. However, according to forecasts, the online luxury fashion market will slowly pick up pace again in the coming years, showing that the social media luxury trend is benefiting the entire product segment.
Second-hand sites challenge direct sales
Luxury items rarely used to get significant price reductions, but the rise of reseller platforms has changed that. Nowadays, consumers can easily find discounted designer items online through second-hand platforms, offering a more affordable entry into the luxury market. In the United States, sites like eBay, Poshmark, and ThredUp lead in second-hand luxury fashion sales, while The Handbag Clinic and Luxe Collective Fashion are dominating in the United Kingdom (UK). However, this segment struggles too, as evidenced by Farfetch's acquisition by South Korea’s Coupang in 2023 due to declining sales and rumored brink of bankruptcy.TikTok enters the online luxury fashion market
In April 2024, TikTok announced the expansion of its e-commerce feature, TikTok Shop, to include a new category called "Preowned Luxury". This allows users to browse and purchase verified pre-loved luxury fashion items directly on the app, aimed to monetize the growing trend of vintage clothing and accessories on their platform. Before this launch, second-hand retailers already thrived on the popular app, showcasing both short-form and live-stream product videos of luxury fashion items, creating engaging and informative brand profiles. It remains to be seen how luxury retailers can leverage social media as a sales platform. Nevertheless, social platforms provide access to Gen Z, who are increasingly interested in vintage items and possess significant purchasing power.The digital luxury industry has faced challenges in recent years. However, according to forecasts, the online luxury fashion market will slowly pick up pace again in the coming years, showing that the social media luxury trend is benefiting the entire product segment.
