How integral is influencer marketing to a fashion label in India?

While influencer marketing has become the industry norm, is this the only way for a brand to gain exposure?

Earlier this year, McKinsey & Company reported that the global influencer marketing economy was valued at US$ 16.4 billion. Given that we live in an attention economy, the figure isn't surprising. Influencers have become the go-to medium for most brands to advertise their products—from vitamin gummies to fashion, travel, cars, and everything in between. 

"We live in a digital age and technology allows brand marketing and linkages to sales to be interactive versus the one-way interface of other mediums such as, say, ads in newspapers and magazines," says Pareina Thapar, co-founder and managing partner of Delhi-based PR agency Longform. While influencer marketing has been around for over a decade, the onset of the Coronavirus pandemic further catapulted its momentum. India, too, has been riding this wave. According to Statista, as of 2022, nearly 55 million urban Indians were direct consumers of influencers of various kinds. In the fashion industry too, an increasing number of Indian designers are regularly collaborating with macro influencers to promote their brands, both locally and internationally. The Established attempts to break down various aspects of influencer marketing in the fashion industry—from what goes on behind a single paid collaboration to ROIs (return on investments), and offers potential solutions for emerging brands who can't afford to go this route. 

Built upon trust and respect

It is essential to understand what well-known influencers in the industry bring to the table. Content creators can range from nano influencers with a few thousand followers to macro influencers whose following runs into millions. What creators have in common is a community they've built over the years, with an audience that trusts and respects the products they are promoting. While some endorse every product that comes their way, others, like Masoom Minwala, for instance, have a more genuine approach. "I have nurtured a relationship with my community where they recognise my genuine recommendation," says Minawala. 

Having started her journey online with her fashion blog Miss Style Fiesta back in 2010, Minawala is often a popular choice amongst Indian designers. She says her ROI is driven by multiple factors, including authenticity and longevity in the industry. "My posts or stories [on Instagram] significantly boost brand visibility and expose brands to a wider audience, potentially attracting new customers, " she explains. Minawala also regularly monitors her posts' performance through analytics to understand their effectiveness and ROI, which she then shares with the respective brand. 

ROI is an important tool to measure the success of a brand's influencer marketing campaign, and studies show that influencer marketing delivers 11x ROI over all other forms of digital media. So it's not surprising that brands prefer to go down this route. "There is definitely ROI for brands in influencer marketing. However, how you create a narrative and storytelling with an influencer, and decide who the influencer is makes all the difference," adds Thapar. 

Inner workings 

With influencer marketing comes a dedicated budget, given the hefty fee involved. Influencers now have an entire team (stylist, photographer, editor, make-up artist) working for them, so their fees also include salaries which are paid forward. Depending on the brand's brief, a campaign can be as simple as putting on an outfit and taking a photo for a single post online or a lengthy process spanning a few days. "It starts with discussing the brand's goals, and once I understand the brand's product/service, I do my research, which helps me ensure authenticity. Then I move on to brainstorming creative concepts for the post, after which I create the content where I have to figure out the styling, framing, the aesthetics of the shot and more," says Minawala. The charges differ from creator to creator and the kind of content they're shooting.

While influencer marketing has become the norm, other ways to boost a brand's presence on social media do exist. Some labels prefer organic growth by using a different approach online. "We have not allocated a budget for influencers; instead, we invest heavily in creating high-quality visual content that showcases our products in a captivating way. This helps maintain a consistent and visually appealing presence on social media," says designer Kanika Goyal. She also regularly partners with industry experts like stylists, fashion photographers and editors and believes that doing so amplifies the brand's exposure. Even when it comes to gifting influencers, Goyal is careful of the recipient, selecting someone who aligns with the brand's values and people she can build a nurturing relationship with over time. She believes that by vetting the recipient (understanding their style, interests, etc.), the endorsement would add credibility and aspirational value to her brand. 

"While macro influencers have a large following, the demographics and interests of their audience may not always align perfectly with our brand's target audience. To maintain the exclusivity of our luxury brand, we prioritise building relationships with individuals who have a genuine affinity for our products and can provide a more personal endorsement," adds Goyal. 

Goyal's strategy offers optimism to budding brands that may not always want to pursue influencer marketing.  Case in point: Staple, an eclectic homegrown label creating elevated closet staples. "As small businesses, we do not have big budgets to spend on influencer marketing. We have so many operational costs that marketing gets prioritised later, which should not be the case," says Staple's co-founder Vidha Chadha. 

Although celebrities like Sonam Kapoor Ahuja and Kriti Sanon have worn Staple’s designs, their journey would have been different had they been able to enlist a big influencer. "We know the kind of strength it holds. We once gifted an influencer something, she posted a Reel wearing it, and the product ended up being an overnight seller for us," adds Chadha. On the flip side, she also says it can pose a risk for small businesses because only some influencers can give a brand the return they want. In her experience, there have been times when the return has actually been nil. This poses a considerable risk if budgets are low. For now, her strategy involves spending on sponsored ads via Instagram, targeting micro-influencers and reaching out to young talent. Alternatively, Mumbai-based clothing label Polite Society's Surmai Jain believes that influencer marketing isn't absolutely necessary for a young label's growth. "It's good for a push now and then, but emerging designers can reach out to artists and creators who align with the brand and would be happy to promote it without hefty monetary engagements," elaborates Jain. She doesn't think it's the only marketing strategy a brand should rely on–instead, she feels that organic brand building attracts a loyal audience who believes in the brand's vision.

Beyond monetary gains 

Many influencers' are willing to support young talent they believe in despite their rate cards by exploring barter options or sourcing opportunities. "I use my platform to drive more traction to these brands and designers to get them new customers, readers and engagement by posting about the labels I would truly believe in and love under the hashtag #SupportIndianDesigners," she says. She also adds that 70 per cent of the outfits she wears during international fashion weeks are sourced from younger labels where no monetary relationship is involved.

Similarly, Delhi-based influencer Tarini Manchanda works frequently on a barter basis to support young brands that suit her aesthetic. "I have a 'gifting relationship' with many smaller homegrown brands who send me products that they think would look good on me. I don't charge for these collaborations and do them often," she adds. 

Brands can also seek out micro-influencers; given their niche and relatively smaller audience, their engagement rates can be very high. According to Statista, in 2022, a study of Instagram influencer engagement rates worldwide showed that micro-influencers have been seeing the highest popularity compared to other tier profiles. Goyal recommends brands to encourage their customers to create and share content featuring their products. "User-generated content can be a powerful way to generate buzz and gain exposure without spending significant money," adds Goyal. Other strategies she recommends focus on content creation by incorporating videos, podcasts or infographics. According to her, by consistently producing valuable content, young brands can attract organic traffic and build brand awareness over time. She also suggests that brands identify and collaborate with other brands with a similar target audience but offer different products or services. This can help them tap into their existing customer base and gain exposure to new potential customers.

“Building a brand only through influencer marketing is as challenging as building a brand with no influencer marketing,” says Thapar. Brands, both emerging and veteran, must identify what works for them—in terms of finances and how a particular influencer can benefit them. Narrowing down to a single influencer whose values and aesthetics align with a brand might be more fruitful than enlisting multiple content creators at once. 

Ultimately, while influencer marketing can be a powerful tool for a brand’s growth, it isn’t the only way—organic reach comes with its benefits and often with loyal followers. “Young designers should strive for organic collaborations because if you are very talented, people will love to support you. Don’t get pressured with industry norms as it may not be sustainable for your business,” says designer Rahul Mishra. Every brand has a unique journey, and there’s no one-size-fits-all formula. It all boils down to financial planning and a well-thought-out risk analysis plan when budgeting for influencer marketing.

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