Fashion has been a driving force behind the explosive growth of e-commerce in India. The lockdown period only fueled this growth, as consumers immersed themselves in all things digital. However, as lockdown restrictions gradually eased, the question that lingered for marketers — would online shopping sustain its momentum, or would customers return to physical retail? Especially so, since in India shopping is often a social event, with family or friends.
Data indicates that online shopping will remain relevant and continue to grow. According to Kalagato’s digital consumer database of over 3 million consumers, the average number of fashion shopping apps on a consumer’s device doubled between 2021 and 2022. Usage metrics also support the continued engagement of shoppers in online fashion shopping. For example, the monthly active usage of leading e-commerce fashion apps increased significantly (on average, 8–10%), while uninstall rates decreased across the board.
Given this context, it is evident that fashion retailers need to prioritize their online presence to stay ahead. And, there is a critical milestone they must achieve to attract online fashion shoppers — getting their app downloaded. Most shopping now happens on mobile devices, and past studies have shown that customers tend to make more frequent purchases and spend more when using an app, thanks to the convenience and seamless shopping experience it offers.
As of December 2022, more than 2 in 3 digital consumers in Kalagato’s database used multiple apps for fashion shopping, with half of them using three or more apps. Consumer data from past studies also indicate that all online purchases are typically made through these apps. Therefore, crossing the milestone of getting downloaded and staying on the consumer’s device is crucial for fashion retailers to be ‘actively’ considered by fashion shoppers.
What are the factors that contribute to downloading an app? Let’s look at the apps that currently reside on consumer devices (Source — Kalagato Digital Consumer database of 3 million+ consumers)
- To start with, Flipkart and Amazon have the highest proportion of users (More than 2 in 3 consumers have at least one of these apps on their devices). The dominance of these two retailers is further corroborated by the substantial overlap between the two; hence for those consumers who have one or two apps on their device, it would be invariably one of these apps or both (Refer Exhibit 1).
- And, all those with any of the other apps like Meesho, Myntra, and Ajio on their devices have a high overlap with at least one of these apps. In fact, many have both. Refer Exhibit 2
While the wider reach of Flipkart and Amazon can be attributed to their status as marketplaces catering to more than just fashion shopping, purchase data confirms that most consumers’ online fashion needs are met by these platforms.
Given this context, how do specialist fashion retailers ensure that their apps are downloaded and used? Drawing parallels from physical retail, let’s consider the example of a shopping mall versus a specialist store. A mall attracts more footfall, often resulting in higher purchase volumes. In contrast, specialist stores attract more serious shoppers who shop with a purpose, whether it’s for a specific occasion or to take advantage of sale offers, with the expectations of both a wider and more exclusive range. It is reasonable to assume that the same dynamics apply in the online world. When shoppers have a specific purpose, they are likely to turn to specialist fashion retailers with similar expectations. But there lies another challenge, perhaps even more significant than competing with online giants like Flipkart and Amazon. Shoppers in a more serious shopping mindset will also be willing to go the extra mile to fulfill their needs and hence may opt to visit physical stores to satisfy their requirements fully.
Hence, the crucial next question — how does an online fashion retailer secure the coveted spot on the shopper’s device and become their go-to “store” in the digital realm, rather than a physical store? The future lies in delivering an exceptional user experience. An online fashion retailer can build a competitive edge over physical retail by going beyond replicating the convenience and familiarity of in-store shopping. It is critical to understand user journeys, utilize data analytics and AI and leverage technology to offer personalized experiences, tailor promotions, create a sense of exclusivity, and incorporate social elements for engagement; all of which should result in an excellent customer experience. The key to converting and sustaining loyalty among online fashion shoppers lies in continuous innovation, enabling retailers to stay ahead of the curve and ensure a seamless, personalized, and immersive shopping experience.
For more such insights on digital consumers, write to sushmita@kalagato.co
