Here are five reasons why London is a leader in fashion and retail tech:
1. Long-term investment
Few cities in the world can match London for its deep pools of capital and active investors. In 2022, London attracted $4.4bn of VC investment into its digital shopping sector[1]. There are also 1,272 VC funds in London as of 2023.
With a valuation of £40bn, London-based online payments company Checkout.com is one example of what companies in the sector can achieve in the city. [2]
2. World-class skills
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 two 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 the annual online sales in 2022 reaching a staggering £169bn per year. As well, ecommerce shares 4.8% of total retail sales[5] with the industry predicted to grow annually by 5.16% until 2025[6].
Londoners are mobile shoppers and early adopters; in December 2022, online sales accounted for 25.4% of all retail sales in the UK. Also, the UK has nearly 60 million ecommerce users making it the most lucrative ecommerce market in the UK.
4. Entrepreneurial support
The UK capital offers many brilliant schemes to support retailtech and fashtech entrepreneurs, such as Farfetch’s Dream Assembly Base Camp accelerator programme in partnership with Outlier Ventures, which offers startups opportunities for education, mentorship and networking[7].
The Fashion District, a hub of fashion and innovation in east London, supports new workspaces, unlocks skills development programmes and links investors to designers, makers and entrepreneurs[8].
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[9].
Innovation also drives this sector with brands such as H&M turning its recently reopened Regent Street store into an immersive experience[10]. 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 example is Charlotte Tilbury's Magic Mirror Makeup app, which allows users to see what the brands 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].
Success stories
Hear from the companies that have benefited from London's business ecosystem.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.