Fashion-based digital revolution will trigger fashion spending worth $30 billion by 2020

With business industries taking over digital mediums pioneers of fashion sector are seen more inclined towards digital channels as well owing to the massively active target audience. Experts suggest that over next few years, Indian fashion buyers online are most likely to grow from 60 million to 130-135 million.

It’s no secret that on Facebook alone, audience associated with apparel and garments goes gaga over brands. However, reasons behind could vary from peer influence to product discovery to exclusive offers. The fact is also supported by different researchers stating that up to 85 percent of millennials are interested in fashion and almost 1 in 2 users on Facebook and Instagram consider Fashion and shopping as an interest.

The fashion industry is predicted to flip the coin by 2020 with 70 percent people choosing online mediums to shop. This falls in favor of everyone belonging to the industry from apparel & garments manufacturers to retailers.

Key Findings

To further understand how to harness the benefits of this digital revolution consider the following key findings from the ‘Fashion Forward 2020’ report, provided by Facebook and the Boston Consulting Group. It collectively contains jaw-dropping facts and comprehensive information associated with digital influence over fashion-based businesses and consumers.

1. Indian Fashion buyers online are set to rise up to 87 percent

As of now, the smartphone has insanely penetrated the consumer market. Nearly 87% rural users and 73% urban users rely on mobile devices to access the internet. Keeping the unstoppable smartphone penetration driving the internet penetration the number of users is most likely to grow over the time.

2. A fashion-based digital revolution will trigger fashion spending worth $30 billion by 2020
Today, the worth of Indian fashion industry estimates around $70 million, out of which, $7-9 billion worth of market is already digitally influenced. The figure is expected to grow four times by 2020 and reach around $30 billion, consisting over 60 percent of the total branded apparel market.

3. E-commerce will estimate around $12-14 billion by 2020
Upon comparing department store sales with e-commerce researchers found out that the difference is negligible. E-commerce accounts for 4-5% of the total fashion industry, but in the near future the numbers are predicted to grow insanely. Online shopping is expected to rise with $12-14 billion of worth by the year 2020. The most prominent factor behind the uplift is the growing percentage of new shoppers, set to increase from 60 million to 135 million by 2010.

4. Digital accounts for 40% of urban internet users engaging with media but 10-15% only spend time with apparel brand ads

The report predicts that the fashion market consumers are more likely to engage with digital platforms as compared to traditional media. Seeing this exponential growth in numbers, it is viable for businesses or brands to shell greens on digital platforms.

5. Lastly, the changing Indian Online Consumer

In the next two years, the online consumer profile is expected to transform with getting more diverse and representative. The major reason behind is the intrusion of women, senior citizens and semi-urban and rural consumers. Shoppers belonging to Tier 2 cities and beyond are most likely to account for over half the base, and consumers aging over 35 will comprise 37% of the total online consumer base. Apparel & Garment Importers can finally be happy about the booming retail market.

What’s in it for E-Tailers?

Those taking care for the brand’s digital engagement must be well aware of the fact that enabling digital personalization on the individual level never fails to work. To harness the following key advantages of digital personalization companies can build on digital data firepower.

• To ensure upsell and cross-sell adhere to launching hyper-targeted campaigns grounded on the customer profile.

• It is viable to send context-cantered triggers according to consumer preferences, location, and other external information.

• Use data to identify customers drifting away and roll out targeted offers to attain maximum customer retention.

The Facebook Potential

As mentioned earlier, Facebook has the potential to drive insane revenue if used rightly. The platform has up to 184 million subscribers accessing each month. Speaking of digitalization using facebook, sky is the limit. There are unlimited options for engagement including impactful videos, photos and carousel ads, all based on personalized offers and experiences.