With the growing prevalence of obesity and the body positivity movement, the plus size clothing market has seen rapid growth in the US. The increasing purchasing power of plus size customers and shift towards online shopping present huge investment opportunities, especially in the e-commerce sector. However, succeeding in this market requires understanding unique needs of plus size customers and overcoming existing biases. This article will analyze the current retail landscape, evolving consumer behaviors, and strategies for startups and investors looking to tap into this multi-billion dollar industry.
Prevailing social stigma encourages plus size customers to shop online
For decades, plus size customers in the US faced social stigma and inadequate product options from mainstream brands. Brick-and-mortar shopping often proved disappointing due to limited in-store selection and unflattering fitting rooms. However, e-commerce provides privacy and convenience for trying new styles and brands. Online retailers can readily offer extended sizes and utilize models of diverse body types. Virtual shopping carts and wish lists allow creating looks without judgment. While in-store plus size departments remain sparse, online plus size fashion is projected to grow at a 6% CAGR between 2022-2027.
Targeting specialty needs yields customer loyalty
Beyond carrying hard-to-find sizes, understanding plus size body types is critical. Plus size customers seek proper bra support, thigh coverage, and waist shaping. They need versatile pieces for work, special occasions, and casual wear. Catering to diverse preferences, like modest full coverage or sexy cleavage, ensures breadth of selection. Providing style advice for different plus size figures through blogs or videos fosters engagement. Accurately representing silhouettes on curvy fit models reduces returns. Partnering with plus size influencers gives authentic endorsements. Customers loyal to brands fulfilling their clothing needs will repetitively purchase and promote them.
Mainstream retailers are expanding plus offerings amid growing demand
The outsized purchasing power of plus size shoppers is motivating major retailers to expand their selections. In the US, over 60% of women wear size 14 or above. Annual spending on plus apparel reached $27 billion in 2021. Mainstream brands launching extended sizes include Anthropologie, J.Crew, Abercrombie & Fitch, and Victoria’s Secret. However, half of plus size customers remain unsatisfied with fit and style. Startups catering to unmet needs have found success, such as Dia&Co’s personalized styling service (acquired for $100 million) and Good American’s curvy denim and activewear (projected $200 million revenue in 2022). With specialty brands capturing increased mind- and market-share, major retailers must authentically embrace body diversity or risk losing sales.
Busting industry myths about the plus size market presents billion dollar opportunity
Despite proven consumer demand, widespread misconceptions about the plus size market persist. High production costs and low margins are cited to justify limited offerings. Yet plus size customers exhibit higher spend and brand loyalty when their needs are served. Plus size clothing consumes more material per garment but also fetches higher prices. E-commerce algorithms analyzing shopping behaviors counter outdated size ratio estimates. Nearly 70% of US women are plus size, over half are size 18+. Companies marketing exclusively to “average” sized women exclude most customers. However, brands embracing size diversity and inclusivity stand to gain significant share in the fast growing plus size fashion industry. With projected sales topping $84 billion globally by 2028, this $20 billion US market remains ripe for disruption.
Investment and innovation needed to transform plus fashion retail
Fully tapping into the online plus size market requires upfront investment and supply chain innovation. Creating diverse size ranges and properly testing patterns and fabrics have high fixed costs. Direct-to-consumer brands and e-commerce marketplaces are streamlining production of specialty sizes with automation and big data analytics. Mobile apps utilizing AR allow virtual fit and styling. Social media platforms drive peer recommendations and influencer marketing. Offering on-demand customization, subscription rental services, or resale exchanges creates recurring revenues from an engaged customer base. Providing style consulting and building online communities foster brand loyalty beyond discounts. For investors and entrepreneurs, embracing inclusive fashion ideals while deploying technology and analytics to unlock this market’s potential promises outsized financial returns.
The multi-billion dollar US plus size clothing market is shifting online, presenting tremendous opportunities for digital retail investment and innovation. Catering to diverse needs and preferences will earn customer loyalty.