Fashion marketplaces: in or out?

fashion marketplaces

In the last year, fashion marketplaces have shown signs of quick adaptation due to supply chain bottlenecks.

When COVID hit, low consumer confidence and supply chain bottlenecks forced high discounts to be applied to products. To move away from this trend, players had to unlock supply chain bottlenecks not only with logistics partnerships and expansion, but also with a focus on predictive capabilities for product demand in different geographies.

The need for consumers to feel connected to their brands was also heightened, generating a demand for better communication from marketplaces and brands. Now players must continuously make better use of data to drive hyper personalization in scale, creating higher loyalty with customers.

And while consumers have higher standards for sustainability in their clothing, with examples of green-focused e-commerce platforms such as Allbirds partnering with Adidas, marketplaces focused on sustainable practices still represent less than 5% of total segment enterprise value. The move to green seems to come from internal changes in today’s large players.

Fashion Marketplaces

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