$30 billion of fashion market to be digitally influenced by 2020: Facebook-BCG study
It has become mandatory for fashion retailers to frame the marketing strategies as per the changing environment. They need to cut-short the purchase journey for digitally influenced shoppers who are looking beyond e-commerce.BY Indian Retailer Bureau | Mar 30, 2017 | comments ( 0 ) |
The Indian fashion market size contributes $70 billion in 2016. Among the overall fashion market $7bn to $8bn is already digitally influenced. As per a joint report by Boston Consulting Group and Facebook, titled 'Fashion Forward 2020' it is estimated that by 2020 the digitized share will rose to $30 bn which will be equivalent to 60%-70% of the total branded apparel market.
In India, e-commerce is already a established channel for fashion retailing constituting 4%-5% share of the overall fashion market in 2016. This is comparable to sales from department stores put together. Online purchase for fashion category is estimated to grow four times to reach $12bn-$14bn by 2020. This growth is driven by a growing base of new age shoppers along with maturing shopper base who spends a larger share of their wallet on online fashion.
The number of online fashion shopper will double from 55mn-60mn to 130mn -135mn by 2020. The online shopper of 2020 will no longer be a young male from metros.
The profile of 2020 shopper
50% will be women.
More than 50% will be from tier2 or even smaller towns.
37% will be older than 35 years of age.
The will bring about a considerable change in the drivers for online purchase. Discounts are the largest driver of online shopping today, however the new online shoppers will look beyond discounts. For example, women segment will be driven by variety factor. The only challenge for e-commerce would be in its ability to recreate touch and feel element of the physical store.
As of now, India is on its way for digital revolution and fashion category is pioneering the change. As per the report, nearly half the fashion buyers will be digitally influence by 2020. Hence, it has become mandatory for fashion retailers to frame the marketing strategies as per the changing environment. They need to cut-short the purchase journey for digitally influenced shoppers who are looking beyond e-commerce.
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