Facebook will trigger mobile business to cater to US$ 110 billion and US$ 66 billion potential revenue for accessories & apparel brands, respectively
A new report by Facebook India and KPMG has stated that by 2022, seven out of ten fashion-accessory purchases and two out of three apparel purchases made by consumers, will be influenced by mobile business. The report added that half of this mobile-influenced shopping will be driven by Facebook.
Mobile business can create around US$ 14 billion for accessories and apparels’ business by 2022
The report namely “Eliminating friction in Fashion path to purchase” has revealed that the mobile-enabled purchase journey for apparel and fashion accessories is 14 per cent and 25 per cent shorter than their offline journeys, respectively. The friction experienced by customers can be decreased with the higher use of mobile in and evidently cater to the production of US$ 14 billion potential revenue for fashion brands by 2022.
The report added that the use of mobile can reduce media friction by 3 percentage points for apparel category and 4 percentage points for accessories thereby letting fashion brands reach around US$ 5 billion and US$ 9 billion market opportunity, respectively. Additionally, in the mobile-influenced purchases for both accessories and apparel businesses, Facebook will drive US$ 110 billion and US$ 66 billion sales opportunity for fashion brands, respectively.
Pulkit Trivedi, Director, Facebook India, said: “The 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.”
Fashion consumption is growing in not just Tier 1 markets, but Tier 2 as well
Commenting on the report, Sreedhar Prasad Partner and Head, E-Commerce and Internet, KPMG in India, stated: “The fashion consumption story of India is evolving and the 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 urbanisation 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.”
Ashish Karnad, Executive Director – Marketing Effectiveness, Nielsen India: “We wanted to measure the influence and impact of media touch-points on consumers’ path to purchase route – right from the time they have a need to buy an apparel or fashion accessory, to finally buying it. We designed the study to get a zoomed-in view on how buyers are now interacting with various media touch-points. Unsurprisingly, mobile is playing the role of a key influencer in the entire journey. While other touch points have their own roles to play in a buyer’s journey, Mobile helps in reducing friction at each stage. We hope this study will give a strategic view on the opportunities being missed by marketers due to media friction and bring in further optimisation.”
Nielson had conducted the survey on several industry corners across different cities and/or towns of India.
According to the survey, top friction areas where marketers need to customise their marketing strategy are gender, specific age-groups and socio-economic backgrounds.
