While many Indians may not agree with demonetisation, Facebook thinks it’s great for the ecommerce market in India.
A report launched by management consulting firm The Boston Consulting Group (BCG) and social networking company Facebook titled ‘Fashion Forward 2020’ has predicted that out of $70 billion Indian fashion market today, about $7-9 billion is already digitally influenced. This influence is expected to multiply nearly four times to reach $30 billion by 2020, a number that will constitute 60-70% of the total branded apparel market.
As to what prompted this research, Umang Bedi, Facebook’s managing director for India and South Asia, explained: “BCG and Facebook both found that one out of every three people that are shopping, online or externally, buy apparel and fashion so fashion is a good logical entry point. We see, for Facebook users in India (184 million people plus), 56% highlight fashion as an interest category, and if you break that down to the demographics it is the 18-34 year olds that are driving this category.
Fashion, apparel, shopping, lifestyle, footwear all dominate Facebook, and we heard the same thing from Boston Consulting Group. Even Instagram users are interested in fashion and one out of two users purchase the brand they follow on Instagram.”
Abheek Singhi senior partner and managing director at BCG, said: “The fashion market in India is currently estimated at $70 billion. Online contributes to about 5% of the total at around $4 billion.
The online fashion market is estimated to treble by 2020, to reach $12-$14 billion. This will translate to a significant 11%-12% share of the total fashion market. Also by 2020, nearly half the fashion buyers will be digitally influenced. Digital influence in fashion has grown more than five times since 2013. Some 40%-50% of brand spend is already digitally influenced,” he added.
According to the report, digital footprint, which refers to fashion…