Fashion Forecast: 3 E-Com Trends to Harness for Growth in 2025

While challenges such as economic uncertainty, shifting consumer behaviour, and rapid technological advancements will undoubtedly shape the year ahead, these changes present significant opportunities for forward-thinking businesses.

The State of Fashion: An Overview

As the report optimistically notes, “2025 is likely to be a time of reckoning for many brands. The upshot is that there is still opportunity to be found for those that move nimbly, and are quick to adapt to upheavals in a chaotic marketplace.”

For fashion brands willing to embrace innovation and act strategically, these trends offer a roadmap for success.

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From a performance marketing perspective, there are three key areas where investments and adjustments can yield significant returns:

• Leveraging AI to optimise customer experiences and conversions
• Targeting the growing 50+ demographic, a powerful consumer force
• Mitigating diminished consumer confidence with trust-building strategies

Here, we break down the critical insights for capitalising on these trends, and how PH Digital is empowering brands to thrive in this dynamic landscape.

AI: Enhancing the Customer Journey and Conversions

Artificial intelligence is transforming retail by creating seamless, personalised shopping experiences. According to the Business of Fashion report, “Shoppers who were once dazzled by the seemingly endless selection available at many online retailers now bemoan the difficulty of finding what they want.” 

AI-powered solutions, such as personalised product recommendations and predictive analytics, simplify discovery and improve conversions. Additionally, AI enables brands to anticipate trends and optimise customer engagement.

• What PH Digital is doing
  • Leveraging AI-powered campaigns to deliver hyper-personalised ad content, improving return on ad spend (ROAS).
  • Using in-platform AI tools for more efficient creative and campaign testing and sales results.
  • Using AI-powered insights within platforms like Klaviyo to understand the health of our clients’ customer databases, the segments we need to target and how to target them, to grow the bottom line.
• What you need to do
  • Invest in AI solutions for logistical considerations such as size guides and returns experiences to maximise margins and sales.
  • Invest in AI solutions to enhance product discovery and refine your customer experience.
  • Use AI-driven insights to unify customer data and deliver tailored, consistent messaging across all channels.

Silver Spenders: The 50+ Demographic

The report identifies the over-50 demographic as a growing consumer force, noting, “The ‘Silver Generation’ of over-50 customers is growing as a proportion of the overall population – and fashion spending.” 

This group controls 72% of US wealth and values quality, authenticity, and purpose. Retailers need to adjust creative strategies and media plans to connect with this audience meaningfully while avoiding outdated stereotypes.

• What PH Digital is doing
  • Developing inclusive campaigns that reflect the preferences and aspirations of the 50+ demographic.
  • Prioritising platforms such as Facebook and email marketing to effectively engage this audience.
• What you need to do
  • Update your marketing materials to resonate with the priorities of older consumers.
  • Ensure your product range highlights quality, durability, and intergenerational appeal.

Consumer Confidence: A Fragile Market

Consumer confidence remains a significant challenge, described in the report as “the top risk for 2025.” Economic uncertainty has made shoppers more value-conscious, requiring retailers to focus on trust and transparency. 

Strategies such as flexible payment options, loyalty programmes, and purpose-driven campaigns can help brands retain and attract cautious consumers.

• What PH Digital is doing
  • Crafting value-driven campaigns that emphasise affordability and loyalty incentives.
  • Positioning sustainability and brand purpose as key pillars of trust in an uncertain market.
• What you need to do
  • Introduce flexible payment options, such as instalment plans, to support budget-conscious customers.
  • Use storytelling to highlight your brand’s transparency, value proposition, and sustainability efforts.

By integrating these strategies, retailers can navigate the challenges of 2025 while capturing new opportunities. 

PH Digital is here to help you stay ahead with data-driven performance marketing tailored to this dynamic landscape.

Contact us today to discuss the best way forward for your brand.