In the European e-commerce landscape, Fashion and Beauty are the two sectors leading digital growth. More and more consumers are choosing to shop online for clothing, accessories and cosmetics, attracted by convenience, real-time product comparisons and increasingly personalized offers. If luxury once seemed tied exclusively to physical boutiques, today this segment too is finding digital channels to be a key way of reaching new generations of customers.
According to the latest “Top 500 Fashion, Beauty & Luxury Retail Europe” report, the combined market value of these three industries – both online and offline – has reached €734.5 billion in Europe. Online growth is particularly significant: in 2024 alone, e-commerce generated €224 billion, with €96 billion coming from cross-border trade. This clearly shows that internationalization is no longer optional for brands, but a strategic necessity.
A growing online penetration
Breaking down the figures reveals some remarkable insights. Fashion remains the largest segment, with a total value of about €511.5 billion and an online penetration rate of 25.7%. The beauty sector, worth around €137 billion, is expanding the fastest in digital, with 37.2% of its total sales generated online. Luxury, on the other hand, shows the highest online share of all: almost half of its sales are digital, accounting for 48.8% of a market worth approximately €86 billion.
These numbers clearly signal a paradigm shift: not only are consumers increasingly turning to online channels, but luxury itself – once perceived as a physical-only experience – is rapidly moving online, driven by sophisticated and omnichannel digital experiences.
The key digital players
Within this landscape, international marketplaces continue to dominate. Amazon, Temu, Shein, Zalando and AliExpress top the European charts, while in beauty, strong digital players like Notino, Oriflame, Rituals and The Ordinary stand out for their D2C strategies. In the luxury sector, names such as Swarovski, Farfetch, Moncler and Rolex shine, alongside platforms like Vestiaire Collective, which tap into the booming demand for resale and second-hand products.
The Top 500 cross-border companies in Europe within Fashion, Beauty and Luxury registered a 32% revenue increase in just one year, growing from €71 billion to €93.7 billion. The number of brands included in the analysis also rose by 7.5%, showing that more and more players are successfully entering the international digital market.
Trends shaping the future
Several key trends are fueling this growth. Sustainability has become non-negotiable: consumers demand transparency, traceable materials and eco-friendly packaging. Technology is equally central: artificial intelligence, virtual models and conversational commerce are transforming the shopping experience, making it more immersive and personalized.
The rise of resale and second-hand is also noteworthy. Once a niche, it is now a mainstream part of many fashion and luxury companies’ strategies. Meanwhile, the omnichannel approach has become the norm: consumers expect a seamless experience between physical and digital, with consistent branding at every touchpoint.
Opportunities for Italian brands
For Italian brands – and for those working alongside them, such as Brandon Group – these data highlight exciting opportunities. Investing in cross-border strategies means expanding markets, reaching new consumers and diversifying sales channels. Sustainability can become a distinctive advantage and competitive driver, while adopting advanced digital tools enhances customer engagement and boosts conversion rates.
Finding the right balance between marketplaces and direct-to-consumer channels, combined with the ability to embrace new resale-driven business models, will be the real strategic challenge in the coming years.
Conclusion
The message is clear: Fashion, Beauty and Luxury are the driving forces behind the digital transformation of European retail. For brands aiming to remain competitive, it is no longer enough to focus solely on local markets – what’s needed is an international, sustainable and technology-driven vision. And this is exactly where the support of specialized partners like Brandon Group can make the difference, turning challenges into concrete growth opportunities.
Source: “Top 500 Fashion, Beauty & Luxury Retail Europe” – Cross Border Commerce Europe
