according to a new report by EY and Collective Artists Network's Big Bang Social. This surge is driven by fashion, lifestyle, and beauty brands eager to reach India's highly connected consumers.
India on the Verge of a Social Shopping Revolution
The report, based on a survey of over 2,000 industry professionals, paints a picture of a nation on the cusp of a social media shopping revolution. With a projected 740 million active smartphones by 2030 and half of mobile usage dedicated to social media, influencer marketing has become an essential tool for brands.
Fashion Takes the Lead
Fashion, lifestyle, and beauty brands are spearheading the influencer marketing boom. These industries recognize the power of influencers to showcase products in a way that's both relatable and aspirational. Younger consumers, in particular, trust these social media personalities, making them valuable brand ambassadors.
Brands Embrace the Power of Influencers
Over 70% of brands already leverage influencer marketing, and this number is poised to rise further. The report highlights a shift in strategy, with 75% of brands integrating influencer marketing and planning to maintain or increase their budgets. Interestingly, brands are prioritizing engagement over direct sales. They're seeking influencers who resonate with their target audience and build genuine connections. This approach fuels the rise of micro and nano influencers, who boast higher engagement rates despite smaller followings.
The report suggests a two-pronged approach: utilizing established influencers for brand awareness and loyalty, while using micro/nano influencers for deeper audience engagement. This allows brands to target specific demographics and interests, crafting a more impactful message.
Beyond Big Names: The Rise of Short-Form Video Platforms
The influencer landscape isn't limited to established names. Short video platforms like Chingari and MX TakaTak offer new avenues for brands to connect with consumers, especially in non-metropolitan areas. These platforms, popular with young men, are diversifying the creator base and introducing innovative content formats.