Seventy percent of fashion accessory purchases in 2022 will be influenced by mobile marketing in India, according to a report by research firms KPMG and Nielsen.
Higher use of mobile in the media mix can help create about $14 billion worth of potential revenue for fashion brands by 2022.
The fashion market is projected to grow at 15 per cent CAGR till 2022 and become a $102 billion market for apparel along with a $155 billion market for fashion accessories, said the report.
Social site Facebook is said to influence more than half of mobile-influenced purchases in the apparel and accessories (fashion) categories. Almost 65 per cent of apparel purchases by 2022 are likely to be influenced by mobiles.
Around 97 per cent of Facebook users in India consume the social media platform on mobile. In 2017, FB’s average influence was at 24 per cent in the apparel space. It is expected to go up to 34 percent in the next three years.
“Platforms like Facebook can also help brands capture consumers’ attention better,” according to Pulkit Trivedi, director, global sales organization at Facebook India quoted by Mint.
The next stage of growth will also be shaped by how brands engage with non-English speaking consumers.
India is expected to see a four-fold growth in the number of Indian language e-tailing users between 2016 (42 million) and 2021 (165 million). By 2021, the number of Hindi internet users is expected to be more than English users, the report added.
“There is a large pie of people above the age of 40 even in the top ten cities who are not shopping (on mobile) because they are not very comfortable in English, even if they have been educated in the language. That’s the starting point and the end is the population which doesn’t know English,” said Sreedhar Prasad, partner and head of consumer markets at KPMG in India.
Twenty-two per cent of consumers drop out due to friction, and around two-thirds of this friction is caused by media.
The report aimed to understand the reasons that lead to dropouts in the path to purchase of apparel and fashion accessories, referred to as ‘friction’, which may lead to potential loss of revenue for the brands.