Since the last years and until now, technology has made fast progress for many industries, in particularly, garment industry which aims to follow consumer desires and demands. One of these demands is to fit clothes before purchasing them on-line. Therefore, many research works have been focused on how to develop an intelligent apparel industry to ensure the online shopping experience. Image-based virtual try-on is among the most potential approach of virtual fitting that tries on target clothes into customer's image, therefore, it has received considerable research efforts in the recent years. However, there are several challenges involved in development of virtual try-on that make it difficult to achieve naturally looking virtual outfit such as shape, pose, occlusion, illumination cloth texture, logo and text etc. The aim of this study is to provide a comprehensive and structured overview of extensive research on the advancement of virtual try-on. This review first introduces virtual try-on and its challenges followed by its demand in fashion industry. We summarize state-of-the-art image based virtual try-on for both fashion detection and fashion synthesis as well as their respective advantages, drawbacks, and guidelines for selection of specific try-on model followed by its recent development and successful application. Finally, we conclude the paper with promising directions for future research.