Today, up to $7Billion-$9Billion of the Fashion Market digitally influenced, which is expected to multiply by nearly 4 times as per the report from Facebook.
4. The fashion market in India is estimated to be $70 bn in
2016, of which approximately 26% is driven by branded
apparel. Today, driven by a largely mobile audience, ~$7-9
bn of spending is digitally influenced. By 2020, this figure
is projected to rise to ~60-70% of the branded market, or
~$30 bn as digital influence takes off and starts to play a
pivotal role in the consumer journey.
E-commerce is already a significant channel for
fashion with a 4-5% share of the overall fashion
market in 2016, exceeding sales from department
stores. In the next few years, online purchase for
the fashion category is estimated to grow ~4x to
reach $12-14 bn by 2020. This growth will be driven
by a spurt of new shoppers as well as a maturing
shopper base that spends a larger share of their
fashion wallet online.
The number of online fashion shoppers will double from 55-
60 mn today to 130-135 mn by 2020 ; with a significant shift
in the user profile. The online shopper of 2020 will no longer
be a young male from the metros –
• ~50% of the shoppers of 2020 will be women
• ~50% from Tier-2 or smaller towns such as Salem,
Aligarh,Ulhasnagar and Durgapur
• ~37% will be older than 35 yrs of age
This will bring about a considerable change in both
the category mix and the purchase behavior of fashion
shoppers. Today’s fashion consumer is value-driven,
however, a large number by 2020 will be primarily driven
by convenience and variety. The single largest challenge
for driving e-commerce will be mirroring the touch-and-
feel element of physical channels. For more evolved
shoppers, delivery, service quality and assurance of fit will be
important.
Executive
Summary
4
5. As the role of digital increases across the pathway, a
complex mesh of interactions across online and in-store
channels is coming into play. Even within online purchases,
consumers are using a number of channels to discover,
research and purchase apparel – including search, multiple
social media platforms, shopping websites, blogs, lifestyle
magazines, etc. Roughly a quarter of transactions today
are digitally influenced, and ~25% of all transactions by
online apparel shoppers are conducted entirely online. In
the future, this number is expected to rise as consumer
confidence in online apparel shopping increases. The extent
of online-offline interplay is significant – with a third of all
transactions using multi-channel pathways to purchase (i.e.
both online and offline).
While the same consumer may follow different purchase
pathways based on the buying occasion and need, there
are some clear demographic differences observed. For
instance, young, metro males are expectedly over indexed
on online pathways, women shoppers from lower tiers tap
into the abundance of rich content and ease of research
online to track the latest trends and styles before buying
offline. This results in a higher share of online pathways
in categories such as men’s casuals, whereas fit-driven
categories such as men’s formals and women’s wear are
often researched online before being purchased online.
We conducted a series of in-depth ethnographic interviews
to develop this report. What we discovered is that
consumers typically interact with multiple channels within
a single transaction before purchase. For example, social
media and shopping sites are key influencers on online
fashion consumers well before they begin active research.
Consumers are also becoming much more active post-
purchase, acting as advocates by sharing experiences
online and offline. Case-in-point, we interviewed a young 26
year old lecturer in Udaipur, a novice online shopper, who,
over the course of just one year, has become an advocate
for online shopping and enthusiastically recommends her
favorite shopping site among her social circle.
In summary, the fashion consumer of today is spending
more and more time on digital media, engaging with
brands directly as well as following influencers/ trend-
setters. This will lead to a shift in media spending by offline
apparel players as they try and capture this sizeable digital
influence. Currently only ~10-15% of ad spends are allocated
across the numerous digital media channels.
Going forward, digital will become central not just to the
way brands market and sell, but also how they design
products and forecast inventory needs. Towards the end
of the report, we have listed some of the more futuristic
applications for digital, as well as examples of brands that
are already ahead of the curve and are piloting several
breakthrough initiatives.
We hope this will serve as both an inspiration and a call to
action for fashion brands, on the critical role that digital will
play in driving growth and innovation for the sector.
5
6. Section One Search
SIZING
THE DIGITAL
DEMAND
Digital in Fashion is
already big and growing…
but digital spends
are not
commensurate
6
7. Digital in Fashion is
sizeable; will further
explode in future
India is in the midst of a digital
revolution and Fashion is at the frontier
of this change.
Digital footprint, that refers to fashion
buyers with internet access, has more
than doubled in the last 3 years. It will
continue to grow rapidly as internet
penetration is expected to grow 2.5
times by 2020.
Digital influence refers to fashion
buyers who use internet in their
purchase process irrespective of
whether they actually buy online or
not. These consumers may be going
online for discovering latest trends,
doing research, price comparisons or
posting reviews & recommendations
post-purchase. By 2020, nearly half
the fashion buyers will be digitally
influenced. As against this, one third of
fashion buyers are likely to buy online
by 2020.
Fashion retailers are already adapting
their marketing strategies to cut across
the purchase journeys of these digitally
influenced consumers, looking beyond
just ecommerce.
1. Urban Digital Footprint: % urban fashion category buyers with internet access 2. Urban Digital influence: % urban fashion
category buyers using internet
during any stage of purchase process 3. Urban Digital Buyers: % urban fashion category buyers buying Fashion online
Note: Fashion includes Apparel, footwear & accessories (handbags)
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016), BCG analysis
7
% of Urban fashion buyers
Digital
buyers
Digital
influence
Digital
footprint
45%
20%
16%
2016
1%
20%
4%
2013
87%
49%
2020(E)
33%
8. Very high
engagement on
digital media,
especially with
Fashion
Indian internet users spend more
than an hour online everyday with
significant time spent on social media.
Both urban & rural internet users
spend ~40-45% of their time on digital
media.
Our survey of urban internet users
indicates that more than 75% go online
for social networking / chatting. 32%
ranked social networking to be the #1
activity online.
Engagement levels on digital media
are higher than on traditional media,
and more so for Fashion.
This presents an opportunity for fashion
retailers to sharply target digital
audiences using strategic media
buying.
8
Average time spent by 18+ year olds across India (urban) internet users with media daily
Source: FB Audience insights, BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016)
Awaiting FB data
Urban Indian internet user is spending more time online
(Avg time spent daily)
20142016
Traditional Media
Minutes
92 Minutes
122
Digital Media
Minutes
72 Minutes
132
of people access
mobile while
shopping
in store
90%
of people access
mobile while they
watch TV
57%
Engagement levels higher on Digital than other media
9. ~25-30 bn USD of
fashion spend to be
influenced digitally
Digital influence in Fashion has grown
more than 5x since 2013. 40-50% of
branded spends are already digitally
influenced.
By 2020, nearly ~60-70% of branded
apparel market is estimated to be
digitally influenced, equivalent to
~2-2.5x times the consumer spend on
e-commerce.
This changing dynamic of fashion will
have implications for online and offline
fashion players alike.
Fashion players need to integrate
digital into their overall customer
engagement process. A variety of
digital channels like social media,
search, video, blogs, third party sites
etc. will be important. These different
channels need to be leveraged
effectively to connect with the
consumer.
Note: Digitally influenced spend = Online purchase + research online & purchase offline; Digital purchase = online buying
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016), BCG CCI Digital Deep dive study
2016 (N=501), BCG analysis
9
% of total fashion market
% of branded fashion market
~3-4% ~10-12% 20-25%
<10% ~40-50% ~60-70%
By 2020, 2/3rd of
branded market will
be 'digitally influenced'
Digitally influenced
Market Size ($ Bn)
1-1.5
7-9
25-30
20162013 2020E
10. Fashion is the first
category that most
people buy online
Fashion is an early online purchase
category. Among new online shoppers,
~30% would start with Apparel &
Footwear than any other category.
Addressing the needs & concerns of
these new shoppers is key to drive
repeat purchase and retain consumer
loyalty as the user matures.
Among mature shoppers who buy
multiple categories online, ~70-75%
buy apparel, footwear & accessories
online.
Deals and discounts via promotional
material such as emails are purchase
triggers for new shoppers. However, low
familiarity with website/app and return
policies are big concerns for first time
shoppers, who thus prefer spending low
amounts online.
Hence, ensuring flexible payment
options and smooth handling of
returns/complaints necessary to gain
trust of a new shopper.
10
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016)
% first time online shoppers buying this category
Others
21%
Entertainment
3%
Mobile
services
10%
Railway &
bus travel
18%
Mobile
phones
20%
Apparel &
footwear
28%
11. Fashion E-com is
already large and
will reach $12-14 bn
by 2020
In 2016, the fashion market1
in India
was valued at USD 70 Bn. Online
currently contributes ~5% of total sales
at USD 4 Bn. Online fashion market is
estimated to treble by 2020, to reach
USD 12-14 Bn, which will translate to a
significant 11-12% share of total fashion
market.
Today, the total number of Apparel
buyers in India is estimated to be ~670
Mn, of which 55-60 Mn are already
buying online. 130-135 Mn Fashion
shoppers are expected to be online
by 2020, accounting for ~20% of total
shopper base.
11
1. Includes Apparel, footwear and Apparel accessories
2. 2016 Fashion Ecom market
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016), BCG analysis
2016
Fashion e-commerce has overtaken department stores…
(Market Size, $ Billion)
E-Commerce
3-42
Department stores
~3.15
2013
3-4
2020E
4.5-5% 11-12%E-comm as % total
fashion market <1%
70%
12-14
0.3-0.5
…estimated to treble to ~$ 12-14 Bn by 2020
(Market Size, $ Billion)
Fashion as % of Etail 15-20% 25-30% 25-30%
Fashion e-com
Shopper Base (Mn) 2-5 55-60 130-135
12. Doubling of shopper
base to drive
50-60% of growth
12
Growth in fashion e-commerce will be
led by 3 primary demand-side factors.
Firstly, the internet user base in India
is expected to grow 2-2.5x over the
next 4 years. Growing smart phone
penetration and declining costs of
connectivity are fueling higher usage.
More than 70% of urban India will be
connected by 2020.
Secondly, e-commerce adoption
is expected to grow from 30% to
~40% of the user base (among urban
internet users). Investments in logistics
infrastructure and convenient payment
channels to drive adoption. Fashion
e-tail will see 75 mn new users resulting
in a $5-6 Bn growth spurt.
Thirdly, as the existing shoppers
mature, their share of wallet will
increase: 53% of users intend to
increase their spend on fashion
purchases online. This will drive an
additional USD 3-4 Bn of market
growth.
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016), BCG CCI Digital Deep dive study
2016 (N=501), Consumption Survey (N=10000 HHs), BCG analysis
Spending by
new users
Current
market +
Inflation
Additional
spending by
current users
75 Mn new users
(more lower tiers,
women, older cohorts)
@25% share of wallet
56 Mn existing users
mature further
Share of wallet
25% ~40%
2016 Market +
Inflationary
Growth of 14%
~3-4 Bn ~4-5 Bn
2020
Market
size
12-14
USD Bn
5-6
USD Bn
3-4
USD Bn
4-5
USD Bn
13. 13
Source: BCG CCI Digital deep dive study 2016 (N=501), BCG CCI Digital Influence study 2016 (N=18000 every year between
2013-2016)
Mobile is the primary device for
internet access for 73% of urban
users & 87% of rural users– this
trend is expected to continue as
smartphone penetration drives internet
penetration.
Mobile drives fashion sales for leading
e-tailers: App is the most preferred
way of purchasing (~80%) while m-site
is very low (~20%). M-sites are seeing
higher usage in small towns where
bandwidth is a constraint.
However, a ‘mobile only’ strategy
cannot win–consumers continue to
use other devices (e.g. computers at
work) to browse / compare products.
A leading fashion e-tailer reported
a 10% dip in sales within a month of
going ‘app-only’ and had to roll back
its decision.
Given the limited real estate on the
phone (typically 3-5 e-comm apps),
pro-actively driving app engagement
and repeat use is critical.
‘Mobile first’ for
internet access and
shopping
% respondents
Mobile Wide Screen Devices
Preferred device
for internet
access – Urban
73% 27%
Preferred device
for internet
access – Rural
13%87%
85% 15%
Preferred
device for online
apparel shoppers
14. 14
However, digital
media spends have
lagged
Despite the magnitude of digital
influence, media spends on digital
have lagged compared to TV and print.
Today, for an average urban Indian,
time spent on digital media accounts
for 0.7 hours / day (25% share). There
has been more than 2x increase in time
spent on digital since 2014. Amongst
urban internet users, digital accounts
for as much as 43% share of time spent
on various media.
Yet, digital media spends of offline
brands and department stores are only
10-15% of total whereas those of ecom
players seem commensurate.
However, many Branded apparel
players have started dialing up on
digital in recent years and must
continue to do so.
Source: Magna global, expert interviews, BCG analysis
Awaiting FB data
Share of Ad spend in 2016, %
E-commerce
players
Brands/
Departmental stores
Digital
Media
Traditional
Media
70-75% 85-90%
10-15%
25-30%
17. By 2020, the number of consumer
purchasing fashion online will more
than double.
They will no longer be the typical
young, metro-resident, male users
of today. A much larger number of
women and older age groups will start
buying online – creating a much more
balanced and representative shopper
profile. There will be 2.5x women
shoppers and ~3x older shoppers
compared to today.
As network and delivery infrastructure
in India’s lower tiers improves, these
cities will comprise more than 50% of
the online fashion shopper base. In
under a year, sales contribution outside
the metros rose from 45% (2014)
to 55% (2015) for one of India’s top
ecommerce companies.
This shift in the online shopper profile
will require e-tailers to re-think their
offer across several dimensions –
including assortment, pricing &
discounts, delivery options and return
policies.
Fundamental shift
in profile of online
fashion shoppers
17
Metro: Top 8 cities, population > 40 lk; Tier 1: Next 38 cities, population 10-40 lk;
Tier 2: Next 45 cities, population 5-10 lk; Tier 3: Next ~450 cities, population 1-5 lk;
Source: BCG CCI Digital Influence study 2016 (N=18000 every year between 2013-2016), BCG analysis
Add a page on trends
and behavior Next
2016 2020
% share of urban online shoppers
52%61%
48%39%
Online
shoppers to
have larger
share of
WOMEN...
Men
Women
Men
Women
60% 48%
40% 52%
...greater
contribution
from
LOWER TIERS
Metro & Tier 1
Tier 2 & 3
Metro & Tier 1
Tier 2 & 3
73% 63%
27% 37%
...and higher
representation
of OLDER
COHORTS
18-35 yrs
35+ yrs
18-35 yrs
35+ yrs
18. 18
With change in shopper profile,
category share of Women’s wear (both
ethnic and Western) as well as Kids
wear is expected to increase while
Men’s wear is likely to decline by 2020.
70-80% of Women’s Wear and Kid’s
Wear are bought by Women. Hence,
with rising women in online shopper
mix, Women’s Ethnics & Western and
Kids segments are likely to go up in
share by 10 percentage points or more.
~60% of Kid’s wear is bought by older
cohorts (35+ years of age). Hence,
higher representation of older age
groups in 2020 shopper mix will also
result in a likely increase in Kid’s wear
share online.
Changing
demographics
will change online
category mix
Source: BCG CCI Digital deep dive study 2016 (N=501), BCG CCI Digital Influence study 2016 (N=18000 every year between
2013-2016), BCG analysis
Women’s Western Wear 14-16%
16-18%
Kid’s Wear 8-10%
9-11%
Men’s Formal Wear 21-23%
18-20%
Men’s Casual Wear 27-29%
21-23%
Women’s Ethnic Wear 26-28%
30-32%
2016 2020E
Category mix (%)
20. Source: BCG CCI Digital deep dive study 2016 (N=501)
Women driven by
trends & variety;
Care more about
“fit”
The online fashion shopper today is
highly value oriented – A third of male
shoppers report price as a driving
factor. However, as the online shopper
profile evolves, these drivers will shift.
Many women are already more variety-
led & are more concerned about fit.
“Forever21 is my favorite brand on this
site.. there are many more designs and
colour options available online that I
have not seen in the stores.”
- Female shoper
“The first time buying a brand online
is always an issue.. so I hesitate, since
there is a chance of it not fitting well.
Once you get familiar with the size & fit
of a brand, online shopping is easy.”
- Female shoper
20
MEN WOMEN
Latest trends/styles
Replace old clothes/need new clothes
47%39%
21% 12%
Best price/discounts
Variety
33% 28%
11% 17%
Purchase Triggers
Drivers of online purchase
Barriers of online purchase
Fit issues & long delivery lead times
17% 26%
43% 37%
Lack of touch & feel
21. Source: BCG CCI Digital deep dive study 2016 (N=501)
Lower tiers shop
for ‘gifting’ and are
convenience-led
21
Small town shoppers make more
planned purchases - Gifting and
special occasions (function, travel,
weather, pregnancy) and needing new
clothes are key triggers for purchase.
They are less triggered by latest trends
compared to Metro/T1s.
Metro/T1s are more discount-seeking.
Whereas, for lower tiers, price is less of
a driver. They are more convenience -
driven.
80% of small town shoppers find
lack of touch & feel and better
offline prices to be the key barriers to
online purchase. Whereas, Metro / T1
consumers care more about not being
able to get the apparel “immediately”
and “fit”.
“I can buy anytime from anywhere and
I usually find more options online”
- Lower tier shopper
7%
Convenience
Best price/discounts
Long delivery lead times
METRO/T1s LOWER TIERS
27%51%
3% 18%
33%
29%
38% 43%
13%
Lack of touch & feel
Gifting
23%
Latest trends/styles
11%
Purchase Triggers
Drivers of online purchase
Barriers of online purchase
22. 22
Older cohorts are
availability driven;
Care more about
delivery time
~30% of older shoppers claim to
purchase apparel for special occasions
and gifting purposes. Younger ages
are more trend-seeking than older
shoppers.
The young online fashion shopper
today is highly price oriented. 32%
driven by best prices online. However,
older age groups (35+ years) are more
availability-led.
While the top barriers for both young
& old remain lack of touch and
feel (~40%), older ages are more
concerned about needing their apparel
“immediately”.
“It’s easier to sit at home and browse
during my free time. I only go to the
market with my family on holidays.. and
that too there are large crowds.”
- Older shopper, 40 years
Source: BCG CCI Digital deep dive study 2016 (N=501)
YOUNG OLD
38%44%
Latest trends/styles
Availability
Best price/discounts
Long delivery lead times
20% 28%
32% 24%
13% 18%
39% 42%
10% 15%
Special occasions and gifting
Lack of touch & feel
Purchase Triggers
Drivers of online purchase
Barriers of online purchase
25. Multiple paths
to purchase
emerging…
Roughly a quarter of
apparel transactions by
online apparel shoppers
are purely digital
Source: BCG CCI Digital deep dive study 2016 (N=501)
25
As the role of digital increases across
the pathway, a complex mesh of
interactions across online and in-store
channels is coming into play. These
transactions can be grouped into 4
archetypes as shown in the exhibit.
Today, more than 50% of all
transactions by online apparel
shoppers are digitally influenced –
i.e. they have some form of online
participation either in the pre-purchase
stages, or during the purchase itself.
Shopping sites are an influential
channel for conducting online research
– since they allow easy search, sorting
and comparison. Social media, search
and display ads influence the discovery
of new brands and styles – which is a
critical aspect of the customers’ pre-
purchase journey.
Pathway
Share of transactions by
online apparel shoppers
Pure Offline 44%
Pure Online 24%
Research Online,
Purchase Offline
25%
Research Offline,
Purchase Online
7%
26. Shift in shopper
base to drive shift
in paths to purchase
Extent of online research
for offline purchases
expected to increase
The complex consumer pathways
illustrated on the previous page
exhibit some interesting demographic
differences.
The value-seeking behavior in men and
shoppers from lower tiers drives offline
transactions online, where the best
prices are to be found and availability
of sizes and colors is assured.
In contrast, women are more likely
than men to research online and shop
offline. This is driven by rich media and
information on latest trends available
online, coupled with the need to buy
offline after verifying the touch-and-
feel of apparel and footwear items.
Going forward as more consumers
become comfortable with online
platforms – we expect channels that
are led by frequent shoppers to grow
faster Shopper profile categories:
Frequent Online Shoppers – Those with >3 online apparel transactions in last 6 months
Occasional Online Shoppers - Those with 1-3 online apparel transactions in last 6 months
City Tier categories – Metro & Tier 1; Lower tiers: Tier-2 and Tier 3 cities
Age Categories:16-35 yrs of age; 35+ yrs of age
Source: BCG CCI Digital deep dive study 2016 (N=501)
26
44%
25%
7%
24%
% transactions
by online
apparel
shoppers
Likely Trend
Shopper Profile
Occasional2
Online
Shoppers
Frequent1
Online
Shoppers
City Tier
Tier-2 and
lower tiers
Metro &
Tier 1
Gender
FemaleMale
Pure
Offline
Research Online;
Purchase Offline
Research Offline,
Purchase Online
Pure
Online
30% 49%
39% 20%
4% 9%
27% 22%
45% 42%
21% 30%
9% 6%
25% 22%
44% 41%
22% 33%
8% 5%
25% 20%
Higher than average
27. Men’s casuals
show highest pure
pathways; high
extent of online
research in women’s
wear
The purchase pathways show wide
variations across categories.
Men’s casuals - a low-involvement
category with fewer fit concerns
- shows a high incidence of pure
pathways, with 35% of all transactions
culminating online.
High-ticket, high-involvement
segments like men’s formals require
significant offline research for
assurance on material and fit.
Women’s wear shows a high incidence
of online research - driven by online
trend discovery – and offline purchases
– to find the right fit.
For companies, the extent of digital
influence on all categories indicates
a significant opportunity to influence
buyers online. However, to drive
adoption of e-commerce in these
categories, companies need to invest in
finding solutions for fit and touch-and-
feel issuesSource: BCG CCI Digital deep dive study 2016 (N=501)
27
Men's
Casuals
Men's
Formals
Kid's
Wear
Women's
Wear
44%
25%
7%
24%
Higher than average Low-ticket
categories such
as men's casuals
show significantly
higher pure
pathways
Extent of offline
purchases is high
in fit-driven
categories like
men's formals &
women's wear
Digital discovery
of trends and
styles drives
online research in
women's wear
Pure
Offline
Research Online;
Purchase Offline
Research Offline,
Purchase Online
Pure
Online
30% 28% 40%18%
27% 20% 23%
12%
8% 7% 6% 4%
46% 42% 44%42%
28. Differentiated
pathways offer
differentiated
opportunities to
delight
As shown in the accompanying exhibit,
the opportunities to delight customers
are differentiated by pathways – for
eg: online research, offline purchase
pathways are often motivated by
trend discovery - companies can
delight customers on such journeys by
providing curated services in buying
the latest looks.
Similarly, customers researching offline
and purchasing online are often
seeking reassurance on fit or are value-
driven, seeking discounts. Companies
can delight such customers by sending
timely, targeted promotions and
offering data-driven solutions for fit.
The following pages detail sample
journeys for each of the digitally
influenced pathways, highlighting the
key decisions and opportunities to
delight across the purchase journey.
28
Consumer Path to Purchase
Research Purchase
Post-
Purchase
Sample
JourneysDiscovery
Opportunities
to delightPathway
OfflineOnline
Sneha
33 year,
Udaipur
Curated services in
shopping entire
'look's
Customization of
online apparel
• …
Research Online;
Purchase Offline
Kavya
22 yrs,
Delhi
Rich, value-driven,
magazine-style
online content
Personalized
recommendations
of products and
brands
…
Pure
Online
Rahul
34 year,
Mumbai
Online fit solutions
Digital platform to
increase in-store
inventory
….
Research Offline,
Purchase Online
30. Pure Online
Pathways
Digital Age: >4yrs
Spends 30+ hours weekly online
for non-work purposes incl social
networking, booking, shopping, etc
Started shopping online ~4years ago –
‘exploring’ Amazon app after hearing
from social circle
Shopper Profile:
Frequent online shopper with ~3
purchases online in the last month.
Overall apparel spends ~INR 20K
annually, of which 70%+ online
Kavya
22 years
Delhi
Source: BCG Qualitative In-depth Interviews with online
apparel shoppers 2016
30
Millenial Female Seeks Latest
Designs and Variety at Best Prices
Online
Follows link to
Myntra where she
sees the products
Searches online to see
if available elsewhere
RESEARCH
Discovers new brand –
Dressberry on Facebook
DISCOVERY
Interactionacrosschannels
Browses social
media &
shopping sites
daily to discover
latest trends
Create greater
engagement using rich,
personalized, value-
driven content
Opportunities
Personalized recommendations
of products and brands
31. 31
Sees same product
pop up in her
newsfeed a few times
Checks out and
finishes purchase
Tries out product and
sends photos to friends
Friends decide to
try Dressberry
Checks with friends
and gets reviews
Adds to cart but doesn't
complete purchase
POST-PURCHASEPURCHASE
Harness social aspect of
shopping through influencer
marketing and user generated
content
32. 32
Rahul needs a new
jacket for winter
Searches 'jackets' on
Amazon, filters by his
favorite brands
Finds a design he
likes - decides to
check fit offline
Wife - a seasoned
online shopper -
reassures him about
money-back & return"
Searches online to
find other same
brand stores nearby
Finds another
showroom nearby; tries
on the jacket - it's a fit!
Checks brand store
nearby - store does
not have the jacket in
Rahul's favorite black!
He decides to check
online for discounts online
15% discount on the
jacket on Amazon - he
is excited but wary of
spending >4k online
RESEARCHDISCOVERY
Personalized fit ratings and size recommendations
Digital platform to extend in-store inventory
Location-based targeted messages and offers
Opportunities
Proactive, seasonal,
data-driven targeted
marketing offers
Interactionacrosschannels
33. Research Offline,
Purchase Online
Digital Age: >10yrs
Spends 30+ hours weekly online incl.
social networking, browsing, online
bookings, etc
Started shopping online ~4years ago –
seeking discounts on his favorite brands
Shopper Profile:
Occasional ~3-4 fashion transactions
online in the last 6 months
Overall apparel spends ~INR 12-15K
annually, of which ~40%+ online
Rahul
34 years
Mumbai
Affluent tier-2 consumer
purchases online due to greater
availability of sizes and designs
Source: BCG Qualitative In-depth Interviews with online
apparel shoppers 2016
33
Prompted by the app,
he rates the seller
Orders jacket online,
paying COD
POST-PURCHASEPURCHASE
Reviews from trusted
influencers to
increase confidence
in online shopping
experience
Offers from app incentivizing
post-purchase advocacy
34. Digital Age: >4yrs
Spends 30+ hours weekly online 30+
hours social networking, booking, news,
search etc
Started shopping online ~3years ago
after recommendations from social
circle, seeking discounts
Shopper Profile:
Occasional ~3-4 fashion transactions
online in the last 6 months
Overall apparel spends ~INR 15K
annually, of which ~60% online
Sneha
33 years
Udaipur
Digitally-savvy online shopper
seeks latest trends online; but
purchases offline for touch-and-
feel & fit’
Research Online,
Purchase Offline
Source: BCG Qualitative In-depth Interviews with online
apparel shoppers 2016
34
Likes Sonam Kapoor's
look - searches for
'anarkali with jacket'
online
Finds similar designs; but is
uncomfortable spending 5K
online without checking material
RESEARCHDISCOVERY
Follows Bollywood
actors, designers and
fashion bloggers on
Instagram
Seeking style inspiration, looks
up articles with Bollywood
celebrity looks for Diwali
Interactionacrosschannels
Curated services in
shopping for entire
looks by trusted
apparel brands
Opportunities
Physical 'experience zones'
for reassurance on
material touch and feel
35. 35
Wears outfit to party
& receives several
compliments – she
feels like a trendsetter!
Selects material from
multiple options to suit
her budget; pays
advance on spot
Visits store;shows
shopkeeper design
on phone
Discusses experience with friend;
she recommends a local store
Visits several sites, but is unable
to find matching potli bag -
frustrated, decides to abandon
transaction & check offline
He offers to
get a anarkali
made to order
Returns a week later to
check fit - asks for minor
adjustment & for potli to
made from leftover material
POST-PURCHASEPURCHASE
Online, customized,
made-to-order
services allowing
customers to 'build'
and buy a look online
38. The Boston Consulting Group (BCG) is a global
management consulting firm and the world’s
leading advisor on business strategy. We partner
with clients from the private, public, and not-
for-profit sectors in all regions to identify their
highest-value opportunities, address their
most critical challenges, and transform their
enterprises. Our customized approach combines
deep insight into the dynamics of companies
and markets with close collaboration at all levels
of the client organization. This ensures that
our clients achieve sustainable competitive
advantage, build more capable organizations,
and secure lasting results. Founded in 1963,
BCG is a private company with 85 offices in 48
countries. For more information, please
visit bcg.com.
The Boston Consulting Group (BCG) is a global
management consulting firm and the world’s
leading advisor on business strategy. We
partner with clients from the private, public, and
not–for–profit sectors in all regions to identify
their highest–value opportunities, address their
most critical challenges, and transform their
enterprises. Our customized approach combines
deep insight into the dynamics of companies
and markets with close collaboration at all levels
of the client organization. This ensures that
our clients achieve sustainable competitive
advantage, build more capable organizations,
and secure lasting results. Founded in 1963, BCG
is a private company with to 82 offices in 46
countries. For more information, please
visit bcg.com.
About BCG About Facebook
39. For Further Reading
The Boston Consulting Group publishes reports, articles and books on related topics that
may be of interest to senior executives. Recent examples include publications listed here.
Decoding the Digital Opportunity in Retail
A report by The Boston Consulting Group in association with Retailers Association of India,
February 2017
Casual Apparel Outperforms High-End Fashion
2016 BCG Consumer Value Creators series, December 2016
Five Lessons on Digital Transformation from B2C Leaders
An article by The Boston Consulting Group, December 2016
The Rising Connected Consumer in Rural India
A focus by The Boston Consulting Group, August 2016
Fashion and Luxury: A New Era of Opportunity
2015 BCG Consumer Value Creators series, December 2015
Brands Need Friends: Advocacy Fuels Growth in India
An article by The Boston Consulting Group, September 2014
40. Note to the Reader
ABOUT THE AUTHORS
Abheek Singhi is a Senior Partner and Director in the Mumbai office of The Boston Consulting
Group and leads the Consumer Goods Practice in Asia Pacific. Nimisha Jain is a Partner
and Director in the New Delhi office of The Boston Consulting Group and leads the Centre
for Customer Insight for Emerging Economies with expertise in digital. Rohit Ramesh is a
Partner and Director in the Mumbai office of The Boston Consulting Group and leads growth
strategy in Asia Pacific. Kanika Sanghi is a Principal in the Mumbai office of The Boston
Consulting Group and leads the Centre for Customer Insight in India. Samar Bajaj is a Project
Leader in the New Delhi office of The Boston Consulting Group.
ACKNOWLEDGMENTS
This study was undertaken by the Boston Consulting Group (BCG) with support from
Facebook. We would like to thank Pulkit Trivedi, Rishad Ganapathy Chindamada, Balendu
Shrivastava and Sunita G.R.from the Facebook team for their support and guidance while
developing this report. We would also like to acknowledge the contribution of Amrita
Dutta, Nivedita Balaji, Rukmini Bhattacharya, Divya Sharma and Indira Ghagare for
their assistance in writing this report. We are thankful to Jamshed Daruwalla, Sridharan
Palanivelu and Kamal Ghanghas for their contribution to the editing, design and production
of this report.
FOR FURTHER CONTACT
If you would like to discuss the themes and content of this report, please contact:
Pulkit Trivedi
Director, Global Sales Organization
Facebook India, New Delhi Area
tpulkit@fb.com
Rohit Ramesh
Partner and Director
BCG Mumbai
+91 22 6749 7172
ramesh.rohit@bcg.com
Rishad Ganapathy Chindamada
Industry Manager
Facebook India, Noida Area
rgc@fb.com
Kanika Sanghi
Principal
BCG Mumbai
+91 22 6749 7134
sanghi.kanika@bcg.com
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