Covid magnifies digital influence on apparel and phone purchases

Bengaluru/New Delhi:The covid-19 pandemic has magnified digital influence in the buying of smartphones and apparel, with retail brands amping up their social media presence and devising digital strategies to push sales, according to the ‘Turn the Tide’ report by Facebook Inc. and Boston Consulting Group (BCG).

The share of online purchases of smartphones is expected to rise to 45% from 38% in pre-covid times, the report said.

“We know that digital influence has significantly increased across the path-to-purchase, up to 70% for some categories. We are now seeing businesses convert this increased digital influence into tangible business outcomes,” said Sandeep Bhushan, director and lead, global marketing solutions, Facebook India.

“We expect the online sales market for mobiles to touch 45% in the next two years. Eight in 10 consumers are avoiding going out, which will lead to casualization of wardrobes,” said Nimisha Jain, managing director and partner, BCG. “About 70% urban consumers for mobile and 55-60% for apparel will be digitally influenced. It’s critical that brands amp up their digital engagement and customize proposition to win in the new normal.”

Close to 29% of the respondents to the BCG survey said they are more likely to decrease spending in the next six months. About 40% might buy a cheaper variant of a mobile phone, while 15% of them might look at a cheaper brand altogether. Consumer buying behaviour for phones is now triggered by pure replacement needs than a desire to upgrade.

There has also been a 25% increase in price salience among customers, with pricing coming across as the top driver for sales. Consumers are also expected to be more feature conscious, especially around video conferencing, with close to 70% respondents of the survey stating that they are more likely to stick with the brand they have chosen.

On the other hand, consumer spending sentiment on apparel shopping has been further affected, with one out of two customers aiming to curtail spends, the report said. Some 40% of those surveyed said they plan to increase spends on apparel shopping only when discounts are offered or a promotional campaign is on. With the ongoing covid-19 crisis, there will also likely be a rise in demand for athleisure, ‘stay-at-home’ or fitness clothing in the coming months.

Many consumers also aim to trade down to cheaper brands or lower variants of brands, with precautionary equipment such as face masks becoming a part of fashion accessories.

tarush.b@livemint.com