Beyond omni-channel, brands face the shift towards agentic commerce

Faced with rising paid media acquisition costs and the widespread adoption of artificial intelligence by consumers, fashion brands are reassessing their technology infrastructure. According to a report published by Shopify examining the markets in Europe, the Middle East, and Africa, the convergence of unified commerce and optimisation for generative search engines is already redefining operating models in the clothing sector.

In a global market valued at €2.5 trillion – including €460 billion in Europe – the clothing sector must reinvent itself despite average margins of just 3%. This comes as paid acquisition costs continue to climb, exemplified by a 20% rise in Meta’s CPM (cost per 1,000 impressions) for the e-commerce segment.

At the same time, 63% of consumers in France, 59% in Spain, 66% in Germany, 67% in the United Kingdom, and 74% in Italy now report using artificial intelligence tools. In light of these developments, 41% of customers say they place greater trust in the results of generative AI than in paid advertising. This could change once brand promotion via AI, as with search engines, is monetised.

Consumer behaviour appears to confirm this digital shift, with 61% of clothing transactions now taking place on mobile devices. Moreover, 67% of European consumers still want a seamless experience between online stores and physical shops. In profitability terms, 99% of retailers believe unified commerce supports their financial results, with 73% describing the impact as notable or significant.

A transformation of the shopping journey

Yet the pivot from optimisation for traditional search engines to optimisation for generative search engines is transforming brand visibility. Shopify’s data show that AI-driven traffic to merchants has increased eightfold year on year, generating a thirteenfold rise in orders.

What is more, the average basket value from these referrals is 14% higher than from organic search, while the conversion rate is 56% higher across 23 product categories. Gartner also forecasts that 20% of digital commerce transactions will be channelled through AI platforms by 2030.

“It’s a real shift, from SEO (search engine optimisation, editor’s note) to GEO (generative search optimisation, editor’s note),” explains Molly Allen, head of e-commerce and performance at Astrid & Miyu, in this Shopify report. The British retailer reports that it has reduced its application costs by more than 30% and saved 52 working days a year by consolidating its digital storefronts. Meanwhile, Snocks is reported to have seen a 127% increase in sales after streamlining the purchase journey from social media platforms.

Several other players in the sector report gains in operational efficiency following an overhaul of their technical foundations. Eden Park, present in 35 countries with 500 shops, is said to have increased its conversion rate from 1.5% to 6% while growing its turnover by 20% year on year. Rains reports that it has doubled its turnover for three consecutive years and increased its e-commerce sales in the United States by 5.5 times over four years. Meanwhile, the Italian house E. Marinella is said to have achieved a 42% rise in online sales and a 30% increase internationally in the two months following the integration of AI into its platform.

The study also highlights significant conversion gains across segments. J.Lindeberg is said to have increased its turnover by 70% and its conversion rate by 7%, while PittaRosso reportedly boosted its conversion rate by 11% and its online net profit by 37%. Similarly, Armedangels reports that it has doubled its checkout conversion and increased mobile conversion by 18%, while rolling out digital product passports (known as DPPs) for its spring 2025 collection.

Linking different data sets 

“AI is attracting a great deal of attention at the moment, but it is part of a wider transformation of retail,” explains Alexandre Chaumien, head of revenue for EMEA at Shopify. “Unified commerce, international commerce, social commerce, and second-hand markets all represent opportunities for brands to accelerate their growth. To stay one step ahead, their priority must be to connect their product data, stock levels, orders, and customer information so they can adapt quickly.”

According to Shopify, unifying channels would therefore enable brands to better meet the expectations of older shoppers, with 60% of consumers aged 50 and over discovering brands in-store and accounting for 48% of growth in clothing spend.

At the same time, on TikTok, 51% of Gen Z consumers now say they discover new brands there. As TikTok Shop becomes a major player in social commerce among young European customers, the Chinese platform is prompting a growing shift in marketing strategies towards the creation of targeted video content.