India’s digital footprint in fashion has doubled: BCG-Facebook study

India is in the midst of a digital transformation and fashion is at the forefront of this change. Of the 70 billion dollar (Rs Indian fashion market, about nine billion dollars is already digitally influenced. Internet penetration in India is expected to grow 2.5 times by 2020. These are the findings of a study by management consulting firm Boston Consulting Group (BCG) and Facebook titled ‘Fashion Forward 2020’.

The study shows digital footprint, which refers to fashion buyers with internet access, has more than doubled in the last three years. Mobile websites are seeing higher use in small towns. On an average, a consumer keeps three or four online shopping apps on their phone.

Among mature shoppers who buy multiple categories online, 70 to 75 per cent buy apparel, footwear and accessories online. Deals and discounts and promotional material such as e-mails are key purchase triggers for new shoppers. Smart phone penetration and declining costs of connectivity are fueling higher use. More than 70 per cent of urban India will be connected by 2020. E-commerce adoption is expected to grow from 30 to 40 per cent of the user base. Investments in logistics infrastructure and convenient payment channels will drive adoption. Fashion e-tail will see 75 million new users. Tier II, III, IV cities will comprise more than 50 per cent of the online fashion shopper base by 2020.