Here are five reasons why London is a leader in fashtech and retailtech:
1. Long-term investment
Few cities in the world can match London for its deep pools of capital and active investors. Since 2021 - more than $18bn has been invested in its digital shopping sector[1]. There were also more than 1,800 venture capital (VC) and Private Equity (PE) companies in London as of 2025.[2]
2. World-class skills for fashtech in London
London is at the crossroads of tech, creative and fashion which offers a unique talent pool for companies. London is considered Europe's leading tech hub, with more than 589,000 employees working in the sector.[3]
The UK capital is also home to three of the world's top 10 fashion schools, including the London College of Fashion which is ranked fourth.[4]
3. Digital-hungry consumers
UK shoppers are drawn to the digital world of consumerism, with annual online sales in 2024 reaching a record £127bn[5]. In addition, the industry is predicted to grow annually by 5.16% until 2025.[6]
In 2024, online sales accounted for 27% of all retail sales in the UK[7], and the country as a whole has about 50 million ecommerce users[8], making it a market where ecommerce is deeply embedded in everyday life and consumer habits.
4. Entrepreneurial support
The UK capital offers many brilliant schemes to support retailtech and fashtech entrepreneurs. The Fashion District, a hub for fashion and innovation in east London, supports new workspaces, unlocks skills development programmes and links investors to designers, makers and entrepreneurs.[9]
Plus, the annual two-day London Retail Technology Show brings more than 400 tech suppliers and 15,000 senior retail professionals together to develop forward-looking retailtech innovations.
5. An ambitious future
London’s fashtech and retailtech scene is continuing to expand, spurred on by the rise of social media with 15.1 million "social buyers" in the UK in 2022, a number that is projected to grow rapidly.[10]
Innovation also drives this sector, with brands such as H&M turning its Regent Street store into an immersive experience.[11]Save Your Wardrobe and Depop use digital innovation to help consumers make more sustainable choices, with Save Your Wardrobe helping consumers craft a digital wardrobe.
Another London fashtech example is Charlotte Tilbury's Magic Mirror Makeup app, which allows users to see what the brand's products would look like on them using their phone.
The United Kingdom is home to one of the world's most unparalleled entrepreneur communities, and London in particular, represents one of the most diverse and talented candidate pools.Olivier Buffon
Head of International, Faire
Use the filters in the map to discover the city's ecosystem. See the full list featured on the map [PDF 311 KB].
How we can help
London & Partners offers free advice to potential and existing overseas investors, from startups to established companies.
We can help you:
- Stay informed and access the latest developments, initiatives and incentives.
- Connect with the wider ecosystem, including support networks and trade associations.
- Future-proof the setup of your London business.