August 1 2018: Mobile platforms to continue dominating apparel and accessory purchases, suggests a Facebook-KPMG study on the Indian fashion industry
By 2022, two out of three apparel purchases and seven out of 10 fashion accessory purchases will be influenced by mobile, amounting to $ 66 billion opportunity for brandsnearly half of this driven by Facebook, says the study titled “Eliminating friction in Fashion path to purchase”.
The study is based on primary research and insights basis the survey conducted by Nielsen for various industry verticals, across different cities in India
According to the findings of the report, friction accounts for 19% of consumer dropouts, in apparel category, and more than two-third of this friction is caused by media. In accessories category, friction accounts for 22% of consumer dropouts, and around two-third of this friction is caused by media.
Says Pulkit Trivedi, Director, Facebook India: “Fashion spectrum in India has evolved so considerably, that the apparel and accessory market is projected to reach $ 102 billion and $155 billion individually, by the year 2022. Today, mobile has become central to the way brands market and sell their products and engage with customers end-to-end. With our Zero Friction Future report, we aim to help fashion brands adopt relevant marketing strategies and reduce friction in consumer journeys across multiple touch-points, leading to improved conversion rates and increased revenue opportunity.”
The study reveals that mobile enabled purchase journey is 14% and 25% shorter than offline journeys of apparel and fashion accessories respectively. The friction faced by consumers can be reduced with the higher use of mobile in the media mix, creating $14 billion worth of potential revenue for fashion brands by 2022. It also suggests that mobile can reduce media friction by 3 percentage points for apparel category and 4 percentage points for accessories, allowing the brands to tap into $5 & 9 billion market
Adds Sreedhar Prasad, Partner & Head –E-Commerce and Internet, KPMG in India: “The fashion consumption story of India is evolving and demand for quality fashion products is on the rise. This phenomenon is not limited to Tier 1 markets, but also Tier 2 and below towns, on account of growing per capita income, mass urbanization and increasing access to digital content. Rising affluence of the middle income group is creating demand for aspirational brands. In order to capture a larger share of mind, time and wallet of their target customers, fashion and e-commerce brands should continuously evaluate their marketing mix to ensure presence where the customer is. The report aims at exploring the customers’ path to purchase and associated friction throughout their journey.”