The European online fashion, beauty, and luxury market experienced significant growth in 2023, reaching a total turnover of €213 billion. This represents a substantial increase from the previous year, which saw a turnover of €122 billion.
Cross-Border Trade Fuels Growth
Cross-border transactions played a pivotal role in driving the market’s expansion. In 2023, the cross-border share of the European online fashion, beauty, and luxury market reached 38%, contributing €82 billion to the total turnover. This indicates a growing preference for international shopping among European consumers.
Marketplaces Dominate the Landscape
Marketplaces emerged as the dominant players in the European online fashion, beauty, and luxury sector. The top 500 retailers and marketplaces in these categories generated a combined GMV of €71 billion in 2023. Marketplaces accounted for the largest share, contributing €51 billion, while C2C marketplaces contributed €12 billion.
Future Outlook: Continued Growth and Expansion
The European online fashion, beauty, and luxury market is expected to continue growing in the coming years. By 2025, the market is projected to reach €224 billion, representing a 5% increase from 2023 levels. The cross-border share is also anticipated to rise to 39.6%, reaching €89 billion.
Key Factors Driving Growth
Several factors are contributing to the robust growth of the European online fashion, beauty, and luxury market:
- Increasing Consumer Adoption: More consumers are embracing online shopping for fashion, beauty, and luxury products.
- Rising E-commerce Penetration: The overall growth of e-commerce in Europe is driving demand for online fashion, beauty, and luxury goods.
- Global Marketplace Expansion: The entry of Chinese platforms like Shein and Temu, along with the growth of C2C marketplaces, is fueling cross-border trade and expanding the market’s reach.
The European online fashion, beauty, and luxury market is experiencing a period of significant growth, driven by both domestic and international factors. The increasing adoption of e-commerce, coupled with the expansion of cross-border trade, is creating new opportunities for businesses and consumers alike. DMSMatrix will continue to monitor the evolution of this market and provide updates on emerging trends and developments.