As India is growing for a digital revolution, so is the future of fashion. With a multitude of fashion designers jumping houses at a giddy pace, all that remains for us is to take pleasure in the freshness of fashion.
A report titled “Fashion Forward 2020” was released by The Boston Consulting Group (BCG) along with Facebook that aims at the rising influence of the digital in the Fashion industry.
Out of 70Bn dollars in Indian Fashion market today, 7-9bn dollars is already digitally changed. This influence is expected to multiply nearly 4 times to reach 30bn dollars by 2020, a tremendous number which will form 60-70 percent of the total branded apparel market.
All this digital transformation is occurring on the mobile with as many as 85 percents online apparel shoppers preferring mobile over any other device. The report shows that fashion is the first category that most people buy online with nearly 30 percent of new shoppers likely to start buying online with apparel and footwear.
The sales of Fashion E-commerce today are equivalent to sales from department stores put together where 4-5 percent of total fashion market is sizeable. Online purchase for fashion category will multiply to reach 12-14bn dollars by 2020 accounting for a significant 11-12 percent share of Indian Fashion market.
“The spurt of new Fashion shoppers will bring with it a fundamental shift in the profile of online fashion shoppers. ‘The 2020 shopper’ will no longer be the typical young, metro-residing male of today - By 2020, nearly half the shopper base will be women, more than 50 percent will come from lower tiers (Tier 2 or even lower) and 37 percent will be older than 35 years of age”. Rohit Ramesh, Partner, and Managing Director, The Boston Consulting Group, India said, that while discounts are the largest pullers of online shopping, the new online shopper will look further than discounts. This goes on about how the varying taste of the consumers will revolutionize online purchase behavior.
This report emphasizes the importance of the digital market in the fashion industry, and is not limited to urban metros but spreads across geographic and demographic segments. “By 2020, 33 percent of all urban fashion consumers will buy online which means for a mobile-first country like India we will witness a high number of purchases taking place on the mobile”, said Umang Bedi, Managing Director, Facebook India, and South Asia.
Not just in the purchase stage, digital market has become a significant channel in the entire journey of the consumers. The online shoppers are using various portals to research, discover and purchase apparel.
Consumers are always on the move to find the latest trends, designs and about brands. A quarter of all transactions by online apparel shoppers are conducted entirely online. With the increase in the consumers’ confidence in online shopping, this is likely to rise.