Luxury and Fashion Our global industry experts explore the key trends shaping consumer preferences that drive fashion and luxury, using timely insights to stay one step ahead of the latest innovations and business strategies.

Fashion Circular E-Commerce from Germany’s Perspective

3/25/2025
Ana Tique Profile Picture
Ana Tique Bio
Share:

Global consumers have been trying to live sustainably in recent years, but modern life presents significant challenges. The fast fashion boom, driven by e-commerce, has been highly successful but at significant costs to the environment. This creates a paradox: consumers are increasingly concerned about the environment but continue purchasing fast fashion products that they know are highly polluting and wasteful. Fashion companies, in particular, are being pressured to make significant changes to reduce waste and develop more circular models. This article examines recent advancements in sustainable fashion in Germany and how other markets can draw lessons from them.

The growth of e-commerce and the fast fashion paradox

E-commerce in Germany received a boost in 2019 but still lagged behind global levels.

Although expected to rebound, e-commerce is reaching a tipping point and is projected to level off in terms of growth. Businesses will need to find ways to stand out.

Nevertheless, fashion remains a bright spot, showcasing innovation within e-commerce. In 2024, fashion e-commerce sales grew by 6.7% year-on-year, compared to approximately 2% in physical stores. In Germany, fashion spending per capita in e-commerce grew by 5.5% in 2023 despite still low consumer confidence – showing how fashion shoppers naturally choose to buy their clothes online.

Chart showing Offline and E-commerce Retail Year-on-Year Growth, Germany vs Rest of the World

Germany has long been a leader in sustainability

German consumers have near- or above-average aspirations to welcome a more sustainable lifestyle, often preferring to repair items over replacing them

Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024, n:40,236

But despite this awareness, consumers see themselves stuck between the convenience of cheap online shopping and its high price on the planet, frustrated with fast fashion brands and seeking options that align with their values.

There are more and more sustainable options in the market, but they also cost more. With inflation tightening budgets, 48% of global consumers wanted to save money in 2024 – leading to a trend towards buying fewer but higher-quality products.

Chart showing Selected Green Activities in Germany vs Rest of the World

Circular economy and industry adaptations

Overproduction and overconsumption have made fashion one of the largest polluters worldwide, prompting consumers to demand more sustainable company practices. Governments worldwide are increasingly pressuring fashion brands to change their operations, with regulations such as the EU Green Deal and Textile Strategy shaping the future.

Euromonitor’s Voice of the Industry: Sustainability Survey, fielded in February 2024, indicates a rising awareness among professionals about the importance of sustainable business practices, but many organisations still fall short of their targets despite previous pledges. Mapping carbon footprints and tracking emissions throughout the value chain are complex, and business priorities have shifted towards short-term geopolitical risks in the past year. However, increasing regulatory requirements and consumers’ shifting mindsets mean that sustainable practices will become essential in the medium term. Moreover, investments in energy-efficient measures can also yield cost savings.

Chart showing Key Sustainability Initiatives Planned in the Next Five Years (2024)

The circular economy takes different formats, including repairing, reselling, and rental. A notable example in Germany is Lánius, a Cologne-based family business committed to slow, fair fashion, offering a “Care-Repair-Resell-Rent” programme to help reduce waste. Similarly, French shoemaker VEJA has opened shoe repair centres in cities like Berlin, providing affordable cobbler services for all brands.

Germany’s second-hand market is rapidly digitalising.

Many German consumers reported purchasing fashion items online, with over 25% opting for second-hand products, primarily through online platforms

Source: Euromonitor Voice of the Consumer: Lifestyles Survey, fielded January to February 2024, n:40,236

Vestiaire Collective, the French luxury second-hand platform, has banned fast fashion products, emphasising its commitment to sustainability. Meanwhile, Zalando has expanded its offerings to include pre-loved fashion across various budgets, highlighting the convenience of online shopping for second-hand items.

Rental services are also gaining popularity. Brands like Adolfo Domínguez offer membership-based rentals, while German company Fobe provides luxury bag rentals with an option to purchase after their rental cycle. These services allow consumers to enjoy luxury fashion while aligning with their sustainability goals.

E-commerce as a tool for sustainability

E-commerce is not inherently unsustainable. While the most sustainable clothes are already in our wardrobes, online platforms can be a powerful tool to help consumers make greener choices. This potential of e-commerce to support sustainability can be harnessed by taking it as a business model, shifting from a linear to a circular approach that applies to all industries beyond fashion.

Brands play a crucial role in guiding consumers towards sustainability. Economic constraints have boosted demand for repair, resale and rental services, particularly in Germany. As regulations tighten, e-commerce will evolve, incorporating digital product passports and enhancing traceability. More than that, advancements in AI, augmented reality, and algorithms are making online shopping more interactive, user-friendly and resource-efficient. This underlines the influential role of brands in shaping the future of sustainable fashion.

Take a look at our Datagraphic, 2025 Apparel and Footwear Industry Overview, highlighting recent trends in apparel and footwear and Euromonitor's projections for the industry.

Latest Insights

Beyond Possessions: The New Landscape of Luxury

Fflur Roberts 15 September 2025

Trending Topics: Cross-Industry Shifts Into 2026

Euromonitor International 04 September 2025

Introducing Euromonitor's Trending Topics

Euromonitor International 04 September 2025

Shop Our Reports

The World Market for Fast-Moving Consumer Goods: Outlook and Opportunities

The global FMCG market is projected to grow by 4.6% in current value terms to reach USD6.6 trillion. Growth is largely price led and financial concerns are…

View Report

Top Five Trends in Luxury Goods

This report explores five transformative trends redefining the luxury goods landscape in 2025. It examines how brands are navigating demographic shifts and…

View Report

The World Market for Luxury Goods

The global luxury market continues to face a complex landscape shaped by macroeconomic instability, geopolitical tensions, and climate volatility. Despite these…

View Report
Related Content Apparel and Footwear Industry Overview Learn More