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The company is also investing in a Google-style AI model display that will show shoppers how different clothing items look on different sized virtual models to encourage purchases and help advertisers create more engaging experiences. Meta is exploring new genAI use cases like background and text generation for catalog ads.

It is notably underrepresented in the fashion-related categories. Instagram's social shoppers are fashion-focused. More than half of Instagram鈥檚 social shoppers have purchased clothing while using the Meta-owned platform. Instagram鈥檚 social shoppers also made significantly higher-than-average purchases in the beauty and accessories categories.

As costs rise, price-sensitive consumers may begin to look elsewhere鈥攑articularly in highly penetrated, low-margin categories like apparel, toys, tech accessories, and home decor. Slower growth in these segments could drag down overall ecommerce expansion.

The average gamer spends $18.60 per month on in-game purchases and $15.07 on gaming accessories. In 2024, only 9% of global gamers bought a physical game every month, down from 12% in 2019. Interest in subscription services is growing, and users on paid-for services from Nintendo, Sony, and Microsoft have increased 23% since Q4 2021.

Motor vehicle and parts dealer sales; furniture sales; electronics and appliance sales; building material and garden equipment sales; food and beverage sales; health and personal care sales; gasoline sales; clothing and clothing accessories sales; sporting goods, hobby, book, and physical music sales; general merchandise sales; miscellaneous sales; nonstore sales (i.e., pure-play ecommerce platform sales

The apparel, footwear, and accessories category is growing slower than ecommerce overall. In France, category growth of 3.6% in 2024 will lag the country鈥檚 overall ecommerce growth of 4.8%. By the end of the year, food and beverage will overtake apparel, footwear, and accessories as the country鈥檚 biggest online category.

Chinese fast-fashion retailer Shein has reentered India after a nearly five-year absence sparked by a border clash. In early 2025, Shein made a comeback through a strategic partnership with Reliance Retail. This collaboration led to the launch of the Shein India Fast Fashion app, available on both Google Play Store and Apple App Store.

During peak shopping events, such as high-demand concert ticket sales or limited-edition clothing drops, AI agents could risk being blocked by fraud-prevention systems.

Outdoor cookout essentials, including grills, accessories, and patio furniture, are similarly caught in the crossfire. For example, about 80% of Traeger鈥檚 grills were made in China in fiscal 2024, with the remainder produced in Vietnam.

Fashion: $13.22. Toys and games: $10.03. Baby and toddler: $7.45. Furniture鈥檚 CPA is more than four times higher than home and garden and more than 10-fold that of the lowest-cost categories. Why it matters: The high customer acquisition costs magnify headwinds for furniture, which has lower marketing efficiency due to longer sales cycles and the need for repeated outreach.

The app initially tested ads in the US with brands in the fashion, gaming, and beauty industries in Q3 2024, and is now expanding its ad efforts with a commercial team to support brands and partners. After its expansion in Europe and Japan, over 200 brands have run ads on BeReal, including Levi鈥檚, Nike, and Amazon. BeReal has also tested US ads from some of these brands over the previous six months.

The company partnered with multinational conglomerate Reliance Industries to operate in the Indian market under a new platform called Shein India Fast Fashion. The context: Shein鈥檚 reentry into India comes at the same time the company faces significant challenges in both the US鈥攊ts largest consumer market鈥攁nd the EU.

Michael Kors leaned too heavily into fashion pieces, alienating its core customer base. And its aggressive price hikes dampened demand, forcing the brand to fall back on discounts to move inventory. Versace removed too many of its bold statement pieces and cut back on lower-priced items in an attempt to lean into the quiet luxury trend.

By leveraging AI, Shein can rapidly detect emerging fashion trends across the internet and send orders to its tightly integrated network of suppliers for quick production. Often, these orders are produced in small batches to test the market's response before scaling.

Higher production costs (especially from China) in toys, apparel, and home goods could reduce third-party interest in branded IP鈥攁 problem for firms like Disney, which generates outsize margins from licensing, notes The Hollywood Reporter. The hardware wildcard. Tariffs may make smart TVs, streaming devices, and game consoles more expensive, affecting downstream media engagement.

The film鈥檚 marketing team orchestrated an unprecedented $135 million in brand sponsorships, spanning industries from food and fashion to gaming and entertainment. Heinz capitalized on Deadpool and Wolverine鈥檚 signature colors, creating a unique red-and-yellow campaign. Key brand partnerships also included Heineken, Adidas, Old Spice, and Xbox.

The average price of Ralph Lauren products is up 80% since 2018: The apparel company is focused on elevating its brand perception.

That鈥檚 precisely what Gucci needs after previous creative director Sabato De Sarno鈥檚 mandate to elevate the brand with more classic, higher-priced designs made it indistinguishable from other high-fashion labels and hurt sales.

Studies indicate that Gen Alpha and Gen Z users consider avatar fashion more important than physical clothing choices. Why this matters: 鈥淩oblox has the opportunity to set the stage and create the next media channel,鈥� says Latham, noting that brands are seeking new ways to connect with younger audiences as traditional digital advertising loses effectiveness.

While a number of premium beauty brands have started selling via TikTok Shop since it launched in the US in September 2023, luxury fashion labels have been hesitant to set up in-app storefronts and use the platform for more than marketing. Senior luxury buyers are a key audience for livestreaming.

Grocery also has a higher purchase frequency compared with other large categories鈥攕uch as apparel and electronics鈥攎aking it an essential category for establishing customer loyalty. More consumers will favor delivery over click and collect. With free delivery for a flat monthly fee, memberships like Walmart+ are making delivery more accessible and affordable for digital grocery customers.

Style & Fashion and Food & Drink declined鈥攕urprising due to the visual nature of these categories鈥攊ndicating possible poor ad placement and missed targeting opportunities. AI trends to watch: AI-powered contextual targeting and audience customization help brands boost CTR while avoiding harmful or irrelevant placements to increase engagement. Contextual targeting: Unilever and e.l.f.

The list of categories where consumers are pulling back include home decor (46%), furniture (43%), electronics (43%), apparel (37%), and footwear (35%), per a McKinsey survey. Services spending is also under serious pressure: Travel demand and restaurant spending are both tanking as slumping confidence saps consumers鈥� desire to splurge.

Spending also rose in categories like oral care, fitness trackers, cosmetics, and apparel. Our take: Rising drug costs may force consumers to cut back on discretionary spending for non-essential items like apparel, electronics, and home goods, creating headwinds for retailers already grappling with tariff-driven cost increases.

Gen Z spends significantly on beauty products online while favoring in-store shopping for apparel. For groceries, this tech-savvy generation relies heavily on search engines and social media to discover new products. Additionally, the trend toward low- and no-alcohol beverages is gaining momentum, as many Gen Zers embrace initiatives like Dry January.