Fashion E-commerce Stores Worldwide with an Annual Revenue Above $1 Billion
Fashion e-commerce stores might not be a new trend but it is an ever-growing one. Stores are closing down and the online retail stores are increasingly becoming a primary source of revenue.
Given the ever-present competition and need to stand out with trendy products, compelling marketing and unique quality content, the top 10 fashion retailers around the world were analysed and compared according to their yearly revenue. Specifically, the 10 best performing fashion retailers with a revenue/GMV above $1 billion.
The following online fashion retail stores were categorized and researched according to the size of their latest found revenue, each being above $1 Billion. Several trends may account for these store successes, some of which were identified below.
This German-based e-commerce fashion retail store remains on the forefront of the global online fashion retail industry, with a recent annual revenue of $9.1 billion. Whilst Zalando’s primary platform is in Europe, it has become global. Furthermore, Zalando also has the highest site traffic with an average of 76.9 million visits a month across online fashion retailers.
Influencer Content – Zalando successfully provides customers with recent content, keeping up with trends, and creating personalized shopping experiences. One main factor in this being its use of user-generated content by means of authentic images created by social media images. Using partnerships and images from Collabary as well as from Bllush, Zalando connects social media with its online store, creating a more interactive shopping experience. These include elements such as ‘Complete the Look’ and ‘Get the Look’ options.
Sustainable Fashion – Zalando further keeps up with trends and consumer preferences by creating a sustainable infrastructure for customers. This includes supporting consumers sustainable choices, by creating a more direct online journey for customers to find sustainable fashion, as well as their own sustainable label.
Online to Offline – A recent innovation of Zalando has been connecting the online retail with offline under their Connected Retail project. This connected retail strategy includes influencers as well as local stores which are now also able to grow by means of e-commerce. This supports both local communities as well as increases the reach of Zalando as a whole.
With Macy’s annual revenue of $5.6 billion and an average monthly traffic of 102.55 million, it is no surprise that Macy’s has placed second on the present list of online fashion retailers. Macy’s is an American fashion retailer founded in 1958. Beginning with physical stores, in 2011/12 Macy’s began commercialising online as well. Currently there are approximately 775 physical Macy’s stores and worldwide shipping options.
Omni-channel Approach – One of the reasons for the company’s success may be accounted to its omni-channel approach to fashion retail, in which the physical shopping experience is connected to the online one. This includes their ‘click and collect’ project in which customers can check item’s availability in local stores, order items to stores, as well as home deliveries.
Customer Needs Approach – Another reason that has been attributed to Macy’s success has been increasing their focus on e-commerce whilst at the same time shutting down less successful stores to more strongly accommodate to customer needs.
NEXT is a British fashion retailer with around 700 stores across 35 countries, most of which are in the UK, as well as online stores with websites that reach over 70 countries. Their recent annual revenue being 5.4 billion in US dollars, putting them third on the list. Their websites offer a variety of clothing for men, women, as well as kids.
- Unique Shopping Experiences – NEXT offers a unique online shopping experience, with special gifts and flowers that can be personalised. This option, however, is mainly available for customers in the UK. It sells both its own label as well as other brands. To increase international user experience, more products that can be personalised should be offered globally. Part of this experience are also the shopping options offered by NEXT when it comes to payment and delivery, accommodating to different customers abilities.
- Outfit Suggestions – The content offered on products is also of success, with outfit suggestions such as ‘style with’ offering a more continuous customer journey.
- Country specific websites – Given that Next spans across different countries, it successfully adapts their website to their country of delivery, with information relevant to it.
Otto, a German retail company that operates in Europe, with an annual revenue of $3.56 billion, over 90% of which comes from e-commerce on their website. It offers a vast amount of unique and local products.
- Offline to Online Bridge – Otto effectively bridges offline with online commerce, offering both name-brands as well as products coming from local retailers. This personalised shopping, according to where one is located, allows for a greater variety of products as well as choices for consumers. Their e-commerce works in connection with local stores and suppliers, further supporting local communities.
- Trends – The online retailer successfully offers customers to keep up with trends and find products that directly supply their need. The content offered under the ‘Inspiration’ promotes greater customer engagement and a unique shopping experience.
Ever since it was founded in 2000 in the UK, ASOS has grown to become a global fashion and cosmetics online retailer. They offer over 85,000 products worldwide, many of which are their own products. Known for being up-to-date with current trends and having a user-friendly website, in combination with their high monthly website traffic, it comes as no surprise that ASOS’s annual revenue is $3.5 billion.
- International Availability – ASOS is internationally available and from almost any country, including free shipping worldwide. Everyone can access the ASOS products. These products include expensive name brands but also more affordable products.
- Social Media Marketing – The company also successfully markets by means of social media, drawing in customers to visit their website and ‘shop the look’ options. Their social media marketing is based on user-generated content.
- Shop The Look – In the same manner, their product descriptions include interactive videos. Their website too includes inspirations to help guide consumers and create smoother shopping experiences.
Nordstrom is a luxury department store that originated in the U.S. with stores in the US, Canada, and Puerto Rico, as well as an online retail store available in 200 countries. Their year’s revenue in 2019 was $3.5 billion. Nordstrom is known for selling luxury items, often offering discounts. In total they sell their own label as well as about 2000 other brands.
- Second-hand Clothing Extension – Nordstrom recently extended its retail clothes infirmary to also include second-hand items. This strategy enables the store to offer more products, at a better price, as well as gain more profits. As a result, such a strategy potentially lets the company become of interest for a wider consumer audience. Furthermore, second-hand items are increasingly gaining in popularity.
- Sustainable Movement – The company also recently announced to address the G7 fashion pact, joining it in order to offer people more sustainable fashion and show its support in combating climate change. Thereby, they offer customers with more products as well as a greater variety of them. People enjoy shopping in an environmentally conscious matter.
Farfetch is a london-based online luxury fashion retail store that was founded in 2007, selling products from more than 700 boutique brands. The product-offerings mainly target higher income consumers and those with higher spending intents. In 2019, Farfetch’s annual revenue was $2.14 billion.
- Localized Websites – One of the reasons behind Farfetch’s international success may be a result of its consumer-friendly website . The website is available in 15 local languages and as such appealing to many consumers from different locations.
- New and Coming Brands – by offering a platform for new brands and supporting growing business, it also benefits Farfetch itself to grow.
- Luxury Items – The luxuriousness of the items may on the one hand be a success factor of the company but may also limit its ability to have scored higher on revenue. A more affordable product variety may benefit in consumer appeal.
NewLook is a fashion retailer that originated in the UK. It offers products both online as well as in physical retail stores, with many of their products being their own label. Their recent annual revenue was $1.5 billion, which has been the lowest revenue the company has experienced in over 5 years.
- Charity Initiatives – In 2018, they began initiatives that will help them spread more positivity by means of helping charities. Creating a more positive perception of the company may increase its appeal amongst customers.
- More Interactive Website – A suggestion to create higher yearly revenues may be to invest more in the customer experience of the website. By including more user-generated content and creating a more user-friendly website, more success may come in the future.
Matalan, a British retailer for both fashion and homeware which operates both online and offline. Their stores are located in the UK but also around the middle east and more, whilst their online store only delivers within the UK. Their most recent revenue having been $1.4 billion.
- Greater Product Offering – Upon initiating a stronger focus on product offering as well as the customer journey online, and investing in the operation’s infrastructure for greater efficiency, Matalan has seen an 30% increase online.
- Offline and Online Overseas – Matalan offers its products both online and offline globally, including franchise stores overseas. They’re far reach enables them to build a customer base globally.
10. River Island
River Island is a london-based online and offline fashion retailer, including a strong owned fashion brand line. In 2018, River Island year’s revenue was $1.1 billion. The company has been in the retail business for over 60 years and their primary focus is selling affordable fashion.
- Shoppable UGC – River Island experienced a rise in revenue after adding greater shoppable user-generated content to their websites. By means of UGC and interactive content, the website is able to draw in customers and stay up-to-date with current trends.
- Global Omni-channel Approach – River Island is currently working on an more omni-channel approach in which their customers are able to combine their online shopping experience with their in-store one using their website and app. This way consumers can simultaneously shop online and in-store, creating a more complex customer journey.
This article must be considered with caution, the above gathered information carries some limitations. Firstly, the data used to measure revenue came from different sources, all of which measured this differently and some of which came from 2018 whereas most others from 2019. Furthermore, the revenue form some stores included just from fashion whilst other stores also included other items such as hardware. Secondly, assumptions drawn from initiatives are often to be regarded as objective and must not necessarily be taken at face value. Lastly, the monthly traffic data was gathered from the website ‘SimilarWeb.com’ and based on the average between the months of September 2019 and January 2020, some of which are based primarily on the most present countries.