Dark times for the European fashion market

The fashion segment is one of the many retail segments in the EU which has been under pressure for several years and last year was no exception to the trend. 2014 was a difficult year for the European fashion market, with countries such as Germany, the Netherlands, Italy, Spain and Austria all reporting 1 to 3 percent decline in turnover, according to a study from marketing research firm Gfk.

However there was one country which was listed as the only 'positive expectation' in the market - the UK. GfK states the UK fashion market saw an increase of 3 percent in turnover for 2014, a stark contrast to France, who witnessed the largest decrease in turnover, 8 percent. Spain on the other hand seems to have averted the worst of its crisis, with its turnover reporting losses of double digits in recent years.

European independent fashion retailers also reported 10 percent decrease in turnover in 2014 when compared to 2013, on average, which signals the ongoing struggle independent boutiques face across the EU. According to Gfk, it has become even more difficult for them to compete with fast-fashion retailers as well as value fashion retailers. It has also become more difficult for independent fashion retailer to respond to the rapidly growing online fashion market and omni-channel retailers as well.

However, the online fashion market is one of the few areas of the industry to report positive growth as well. Although the continual growth of the online fashion sector is still not enough to battle against the negative trend in physical stores, it is clear that online fashion sales throughout Europe are on the rise. On average, 13 percent of turnover within the fashion market comes from online sales, but the differences between European countries is large.

Currently Germany is in the lead with the most fashion sales placed online with 25 percent, but UK comes in second place with 19 percent and is followed by the Netherlands with 14 percent. Spain scored the worst in online fashion sales, with only 2 percent. The expectation of how much the online share of fashion sales will increase per country over time varies between 20 and 30 percent.

Gfk predicts that the ever changing consumer behaviour will continue to have a major impact on the fashion market over the years to come, as consumer continue to make clear choices in how, where and especially when they go shopping. In addition, consumers will be less and less dependent on more traditional stores and opening hours, something which more retailers and brands will have to take into account and be responsive too, warns Gfk.