Fashion Industry - Revenue and Opportunities
To illustrate how important the fashion industry is to Facebook (and/or Instagram), Google, and Shopify, by obtaining the advertising revenue and sales generated by these platforms in various industries (including the fashion industry). Also, to identify opportunities for these platforms to serve the fashion industry.
- Max Fashion, which is one of the largest fashion retailers in the Middle East, collaborated with a Facebook Marketing Partner to successfully generate leads and track conversions online and in-store. The brand increased its return on ad spend by 26 times.
- A 2017 FacebookIQ survey revealed that within a three-month period, 40% of Facebook users had discovered fashion inspiration through the platform.
- Also, three out of five (3/5) people in the survey admitted being tempted to purchase a fashion item which they had not intended to buy.
- According to a 2019 Catchoom report, "the percentage of consumers who made a purchase online grew in the past year to 58%". Half of these consumers were in the fashion retail segment.
Mobile commerce accounted for more than 65% of the traffic in online fashion. It also generated "57% of the total online sales".
- According to Shopify, some drivers of growth in the fashion industry are smartphone penetration and increasing online access.
Proposed next steps:
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Our initial research reveals that e-commerce platforms such as Shopify, technology platforms like Google, and social media platforms like Facebook/Instagram contribute significantly to the fashion industry's growth. We recommend additional research to provide the following:
1) The percentage of Shopify's revenue or sales which are generated from fashion products.
2) A breakdown of the total advertising revenue generated by Facebook (and/or Instagram) in various industries. We would include information on what percentage came from the fashion industry, as well as any other significant industries that contributed to the platform's ad revenues.
3) A breakdown of the total advertising revenue generated by Google in various industries. Our focus would remain on the fashion industry.
Also, we recommend further research to identify the opportunities that exist in the fashion industry for e-commerce platforms such as Shopify, technology platforms like Google, and social media platforms like Facebook/Instagram. Since these platforms offer varying services, we would split this project into 3 research briefs.
Alternatively, we recommend additional research to provide an analysis of the impact or significance of technology platforms like Google to the fashion industry. We would focus on providing insight backed with quantitative data. Also, we would identify opportunities for technology platforms in the fashion industry.