The fashion sector in India is undergoing a dramatic shift, with runway trends and ever-growing influence of social media stars. A new report by EY and Collective Artists Network's Big Bang Social gives an insight into influencer marketing boom, with a projected 25 per cent growth in the sector this year alone. This growth is largely driven by the fashion, lifestyle, and beauty industries, making it a goldmine for brands looking to tap into a hyper-connected consumer base.
The report, ‘State of Influencer Marketing in India’ is based on a survey of over 2,000 participants, including brands, creators, and industry professionals. It reveals a country on the cusp of a social media shopping revolution. With a staggering 740 million active smartphones expected in India by 2030, and half of mobile usage dedicated to social media, influencer marketing has become an essential weapon in the marketer's arsenal.
Fashion and lifestyle lead the charge
The report highlights the dominance of fashion, lifestyle, and beauty brands in propelling the influencer marketing growth. These segments understand the power of influencers to showcase products in a relatable and aspirational way. Consumers, particularly younger demographics, trust the recommendations of influencers they follow, making them valuable brand ambassadors.
Brands embrace influencer power
Over 70 per cent brands are already actively investing in influencer marketing, and this number is only set to rise. The report highlights a significant shift in strategy, with three-quarters of brand strategies incorporating influencer marketing and 75 per cent of brands planning to maintain or increase their budgets in 2024. Interestingly, brands are prioritizing engagement over direct sales, focusing on influencers who resonate with their target audience and generate genuine connections. This is leading to a rise in the popularity of micro and nano influencers, who boast higher engagement rates despite their smaller followings.
The report advises a strategic approach, leveraging established mega/macro influencers for brand awareness and loyalty, while using micro/nano influencers to drive deeper audience engagement. This targeted approach allows brands to cater to specific demographics and interests, creating a more impactful marketing message.
What’s more the influencer marketing landscape is not just about established names. The rise of short video platforms like Chingari and MX TakaTak is introducing new avenues for brands to connect with consumers, particularly in non-metros. These platforms, dominated by a younger, male demographic, are broadening the creator base and introducing fresh content formats.
Key takeaways from report
Increased investment: Over 70 per cent of brands are already investing in influencer marketing, and 75 per cent plan to incorporate it into their future strategies.
Shifting priorities: Brands are prioritizing engagement and awareness over direct sales conversions when selecting influencers.
Rise of micro and nano influencers: Almost 47 per cent brands favor micro and nano influencers due to their cost-effectiveness and high engagement rates.
Performance-based compensation: The traditional fixed fee model is evolving, with brands exploring performance-linked models to ensure accountability.
Emerging platforms: While Instagram and YouTube remain dominant, platforms like Chingari and MX TakaTak are gaining traction with new consumer segments.
However, despite the positive outlook, challenges remain. Marketers struggle to measure the return on investment (ROI) of influencer campaigns, while influencers prioritize building audience loyalty and maintaining credibility. Addressing these challenges will be crucial to ensure the sustainable growth of the influencer marketing industry in India. With a clear understanding of these challenges and a focus on innovative strategies, influencer marketing is poised to be a game-changer for brands and creators alike, particularly in the fashion, lifestyle, and beauty sectors.
Latest Publications
