Sustainability Practices in New Online Fashion Business Report

1 REPORT PART 1- SUSTAINABILITY PRACTICE OF A NEW ONLINE FASHION BUSINESS

2 Table of Contents Introduction ................................................................................................................................ 3 Findings and analysis ................................................................................................................. 3 Service and Product Offerings ............................................................................................... 3 Competitive Analysis ............................................................................................................. 4 Market Overview ................................................................................................................... 4 Relevant Market Size ............................................................................................................. 5 Conclusion .................................................................................................................................. 6 References .................................................................................................................................. 7

3 Introduction The fashion sector is one of the most significant contributors to carbon footprint; however, contemporary brands plan to incorporate sustainability into business (Patwary et al., 2022). This report will provide a concise understanding of the core areas of service and product offerings by the new online fashion business. Findings and analysis Service and Product Offerings The new online fashion business will primarily provide clothing and accessories to USA-based customers. Services and products of online fashion brands can range from clothes, jewelry, purses, shoes, and other apparel-related aspects (Chi et al., 2019). Likewise, the new online fashion brand intends to sell everything related to apparel, including clothing, peaches, jewelry, shoes, and sustainably sourced accessories. In addition to the products, new-age e-commerce businesses offer several services, such as color evaluation based on augmented reality, trying clothes virtually, and others (Jung et al., 2021). Nevertheless, by offering pick-up services, the new online fashion business intends to focus on different services, such as cloth material originality cards with sustainable packaging, service punctuality, round-the-clock customer support, and cloth recycling. In the future, virtual assistance can be integrated to increase customer interest in directly shopping from the new brand's website.

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4 Competitive Analysis E-commerce business in the USA is one of the most competitive sectors, and the pandemic-led trend shift towards online shopping has changed the market dynamics significantly (Levitt, 2023). Various e-commerce platforms such as Amazon, eBay, and others offer a wide range of products. In sustainable clothing, brands such as Ash & Rose, Lovanie, Fite Fashion's Formal Wear, Whimsy and Row, and Amour Vert are prominently operating with proper recognition (Patwary et al., 2022). On a broader scale, the newly planned apparel brand's market penetration must compete with fast fashion global brands such as ZARA, H&M, Forever 21, GAP, UNIQLO, and others. This is because, despite the reduction of fast-fashion consumption, it consists of most of the online apparel mass market instead of sustainable brands. Market Overview As of the fiscal year 2022, the market size of online fashion brands was $15.2 billion, even after a sales decline of -1.4% (Statista, 2019). Additionally, apparel, accessories, and footwear sales revenue has gradually increased in previous years and is expected to be exponentially improved in the upcoming years. Considering the market growth attribute in the context, opportunities for the new online fashion brand seem significant.

5 Figure 1: Market overview of online (Source: Statista, 2019) In contemporary settings, long-term fashion sales strategy ranges from personalization, brand building instead of paid advertisement, social commerce, and sustainability (Levitt, 2023). Likewise, the new brand will mostly adhere to the sustainability parameter to strategically improve its positioning in the discussed market. Relevant Market Size The online fashion sector is expected to reach a growth momentum, and the underlying process is likely to accelerate at a CAGR of 12.98% (Morgan, 2019). Besides that, the incremental growth will be $151.76 billion. The market is also severely fragmented as multiple e-commerce businesses are there. Therefore, for the new online sustainable business,

6 Figure 2: Market overview in the fashion retail sector (Source: Morgan, 2019) The fashion retail sector has seen a significant shift towards sustainable commerce, as a recent survey showed that 42% of regular shoppers are inclined towards purchasing eco- friendly products. Besides that, 66% of the customers plan to buy durable materials for clothing instead of fast fashion, which was trending in pre-pandemic scenarios. Moreover, sustainable fashion is a growing sector worth over 6.35 billion (Levitt, 2023). Therefore, considering the increased sustainability sense, the relevant market size seems significant. Conclusion The key intent of this report was to generate ideas on the USA's sustainable online fashion retail market further to evaluate the brand's feasibility in the chosen market. Through exploring various dimensions of market research such as competitive analysis, market overview, and relevant market size, it has been found that the new online sustainable brand withholds significant potential that can be unleashed with proper business plan deployment.

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7 References Chi, T., Gerard, J., Dephillips, A., Liu, H., & Sun, J. (2019). Why do US consumers buy sustainable cotton-made collegiate apparel? A study of the key determinants. Sustainability , 11 (11), 3126. DOI: https://doi.org/10.3390/su11113126 Jung, H. J., Oh, K. W., & Kim, H. M. (2021). Country differences in determinants of behavioral intention towards sustainable apparel products. Sustainability , 13 (2), 558. DOI: https://doi.org/10.3390/su13020558 Levitt, J., (2023). E-commerce industry trends. Retrieved from: https://www.shopify.com/plus/commerce-trends/ecommerce#Trend1. Morgan, B. (2019). The Fashion Industry Is Ready for A Makeover: 4 Changes We'll See In The Future. Retrieved from: https://www.forbes.com/sites/blakemorgan/2020/12/03/the-fashion-industry-is-ready- for-a-makeover-4-changes-well-see-in-the-future/?sh=5e206834914a Patwary, S., Haque, M. A., Kharraz, J. A., Khanzada, N. K., Farid, M. U., & Kumar, N. M. (2022). Apparel Consumer Behavior and Circular Economy: Towards a Decision- Tree Framework for Mindful Clothing Consumption. Sustainability , 15 (1), 656. DOI: https://doi.org/10.3390/su15010656 Statista (2019). Apparel, footwear, and accessories retail e-commerce revenue in the United States from 2017 to 2027 . Retrieved from: https://www.statista.com/statistics/278890/us-apparel-and-accessories-retail-e- commerce-revenue/

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