Zalando Leads the Fashion App Market as Traditional Brands Struggle

Recent findings from the Simon-Kucher Fashion App Study reveal that while fashion apps gain traction in Germany, established retailers like P&C and Galeria are falling behind in user engagement. With 84% of Germans using at least one fashion app, the market is dominated by platforms such as Zalando, H&M, and Otto.

According to the study, 41% of respondents identified Zalando as their preferred app, followed closely by H&M at 39% and Otto at 37%. Notably, manufacturer-specific apps like those from Adidas and Nike each garnered 32% user engagement, highlighting the potential for brands to connect directly with consumers.

In contrast, apps from traditional fashion houses are struggling to make an impact. The app from P&C is utilized by only 15% of users, while Galeria's app has an even lower engagement at 11%. Experts suggest that these brands risk being left behind in the digital landscape unless they adapt quickly.

Interestingly, the budget-friendly app Shein has emerged as a favorite among higher-income consumers, with its popularity strongest among the top three income brackets. The findings indicate that 31% of users in the highest income category (6,001 to 7,000 Euros) utilize the app, which challenges the typical market demographic.

Another competitor, Temu, shows a diverse user base, appealing to both low-income individuals and those in higher income brackets. This trend underscores the shifting dynamics in the fashion app market where traditional assumptions about consumer spending habits are being challenged.

The study highlights that popular app features include personalized rewards (37%), detailed product information (32%), and price comparison tools (31%). However, more advanced features like virtual fitting rooms and AI recommendations are underutilized, suggesting a gap in user engagement with cutting-edge technology.

Moreover, the study revealed that over a third of users have deleted fashion apps due to issues such as checkout complications (23%) and poor app organization (29%). This indicates a pressing need for brands to enhance user experience and streamline their digital offerings.

According to industry experts, the increasing prevalence of fashion apps signifies a permanent change in shopping behavior. With more than half of German consumers using three or more fashion apps, companies that lack a dedicated app may find it increasingly difficult to compete.

As the digital retail landscape evolves, brands must prioritize not only the development of engaging apps but also the improvement of existing platforms to retain their customer base. The Simon-Kucher Fashion App Study serves as a critical reminder of the importance of adapting to consumer preferences in an increasingly digital marketplace.