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The Fashion Shopper has gone mobile: New report by BCG & Facebook
India is undergoing a digital revolution and the consumer base has gone mobile. From digital monetary transactions to various services like travel bookings, ordering food, etc. are only a click away from our smartphones. Digitisation has exposed the Indian audience to a whole new experience of online shopping, with 85% of these consumers preferring to use mobile. Consumer spending is now influenced by Digital at every stage – be it getting recommendations from friends, discovering new products, availing offers or the final purchase. Most of all, the Indian fashion industry has thrived in the digital era and needs to reimagine how it will embrace this mobile-first ecosystem to drive the next wave of growth.
‘Fashion Forward 2020’ an industry report by BCG (Boston Consulting Group) in partnership Facebook which aims to understand how to harness the mobile revolution for fashion businesses. The report by BCG takes a complete look at both the ‘here and now’ of the Fashion consumer and the ‘What’s next’ in the context of digital and mobile.
As per BCG, by as early as 2020, online fashion shopper’s base in India will double to 135 million and 70% of online consumers will buy online. Nearly 1 in 3 first-time online shoppers buy apparel and fashion, making it a gateway category into the world of online shopping. In addition to that, these consumers use their smartphones to make their purchase.
Let’s take a look at the top five findings and critical takeaways for the fashion business from the ‘Fashion Forward 2020’ report:
Digital is 40% of urban internet user’s time spent with media but accounts for only 10-15% of apparel brands’ ad spends
Given the magnitude of digital influence on fashion spends and higher engagement levels on digital media than traditional media, a shift in media spends towards digital platforms can prove highly beneficial for fashion brands.
Digital will influence $30 billion of fashion spending in 2020
The Indian fashion industry is worth $70 billion, and around $7-9 billion is already digitally influenced. By 2020 the digital influence is expected to grow around approximately four times to reach about $30 billion. This will be equivalent to 60-70% share of the branded apparel market in India.
Mobile drives online access – 85% of online shoppers shop on mobile
73% urban and 87% of rural India relies on a mobile for internet access. This trend is likely to continue as smartphone penetration continues to drive internet penetration. With the introduction of apps, 85% of online shoppers prefer their smartphones to make purchases.
E-commerce will grow 4 times to reach $12-14 billion by 2020
The fashion e-commerce sales in India is already a sizeable 4-5% and comparable to store sales put together. Fashion sales through e-commerce portals are expected to grow to 11-12% accounting for $12-14 billion by 2020.
Stark differences across customer segments – Online fashion market will increasingly pivot towards variety and convenience
Men living in metro cities are driven by discounts while women and lower tiers are driven by variety. On the other hand, older customers prefer the convince provided by online shopping.
The ‘Fashion Forward 2020’ report by Facebook in collaboration with BCG provides some crucial insights on the importance of digital influence for the Indian fashion industry.
This is a partnered post.