While there may seem to be some indications that e-commerce growth is slowing amid the current inflation wave, however, equally strong signals suggest it may not be enough to stop U.S. retail e-commerce sales from surpassing a projected growth target of $1 trillion in 2022.
Even amid the economic downturn, one sector — fashion and apparel — could fuel the e-commerce industry’s growth.
A trend report by BigCommerce Holdings Inc. BIGC revealed that the fashion and apparel sector has been an e-commerce powerhouse this year, outpacing overall e-commerce sales in North America.
BigCommerce is not the only platform projecting growth for the industry. Statista also indicates that the e-commerce fashion industry’s compound annual growth rate (CAGR) is expected to reach 14.2% between 2017 and 2025, with the industry hitting a $672.71 billion valuation by 2023.
Sales of apparel, footwear and accessories catapulted in 2021, hitting $180.5 billion in the U.S. alone. The sector is expected to grow by 13% this year, with consumers set to spend $204.9 billion on fashion items online.
Eliminating A Challenge For Growth
Even though there seem to be great prospects for the industry, growth can be hampered if people still face frustrations in buying online — imagine receiving items, like garments, that don’t fit?
Receiving an ill-fitting garment can be frustrating and can leave the customer unsatisfied. Correct sizing is key to growth, building consumer confidence in the purchase and reducing costly returns. MySize Inc. MYSZ says its MySizeID product is the solution.
But the company, an omnichannel e-commerce platform and provider of an artificial intelligence (AI) measurement solution that drives revenue growth and reduces costs for its clients, also reports pioneering a different technology that could change the hybrid shopping experience.
MySize’s FirstLook Smart Mirror could be one of the first solutions for challenges with hybrid shopping — an emerging trend that combines online and in-store shopping.
The company says the product is an interactive, mirrorlike touch display that offers:
- Personalized fit and product recommendations
- 3D try-it-on interactive avatar experience
- Speed shopping and self-checkout
- Integration with any third-party point-of-sales (POS) system
High Valuations And Revenues
MySize believes its algorithm-based technology has broad applications — that could match if not beat product offerings from competitors.
Just as LivePerson Inc. LPSN hit a $4 billion valuation at 10 times revenue with a chat application that transformed e-commerce by increasing conversion rates and decreasing costs, sizing technology is gaining traction to do the same, the company says.
As comparable companies are acquired by major players such as Snap Inc. SNAP, Gap Inc. GPS, Walmart Inc. WMT and Zalando SE ZAL at attractive valuations, MySize notes it could also attract the same level of attention and be an acquisition target.
Luckily, a recent report of record revenues in the first half of the year could support the premise that MySize has the right product and business in a high-growth segment.
Retailers Taking Notice
MySize’s technology has been adopted by top brands in fashion such as Levi Strauss & Co. LEVI, Nautica, Gant and Dockers, and it doesn’t look like the company is resting on its laurels.
From all indications, MySize may only be getting started as more companies are adopting its technology, which could be ideally timed with growth in the fashion e-commerce boom.
MySize also has an agreement with luxury British fashion brand Temperley London to license MySizeID.
MiSize kicked off the year by acquiring Orgad, an omnichannel e-commerce platform.
MySize hopes the acquisition and incorporation of MySizeID into Orgad’s e-commerce solution will increase its profit by reducing costly returns.
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Featured photo by mysizeid.com
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