Influencer Marketing in 2024

Since the past decade, the world has witnessed a new type of marketing influenced by industry leaders with expertise in the fashion industry who were termed as Fashion Influencers. At the later part of the decade, all type of mini & micro level Influencers popped-up like mushrooms, who claimed to have expertise in specific niches of the industry. For instance, there are influencers who specialise in handbags, foot wear, and so on. Their influence was particularly noticeable during the Covid-19 pandemic induced lockdowns, during which fashionistas had no choice but to stay home and watch reels on Instagram instead of getting bitten by the monster virus. But in 2022 and 2023, the demand for influencers gradually decreased as brands spent millions of dollars, smashing themselves on dead-end walls and secondly, an overcrowded influencer market.

So where does all this take us in 2024? Where are influencers headed this year?

Consider this:

• The Business Of Fashion (BOF) - McKinsey State of Fashion 20204 Consumer Survey found that 65% of respondents rely less on fashion influencers compared to previous years.

• Consumers prefer increasingly entertaining and relatable personalities, with less-polished aesthetics, quirkiness, humour, and vulnerability.

• To capture and hold the attention of consumers online in 2024, fashion marketers should break free of the tried-and-tested and explore new ways of partnering with creators.

• On Instagram, engagement rates have fallen, by roughly 30% year-over-year in 2022, while the reach of posts has diminished. Consumers are showing signs of fatigue towards traditional influencer marketing after years of being bombarded with product promotions and brand announcements (68% of respondents were unhappy about the high volume of sponsored content on social media platforms and 65% were turning less to fashion influencers than a few years ago).

• Young consumers are becoming particularly adept at tuning out the noise. One study found that Gen-Z loses active attention for advertising after just 1.3 seconds.

Inspite of these negative developments in the fashion industry, influencer marketing continues to be a powerful marketing channel to break the noise and connect with consumers, with the industry expected to reach $21.1 billion in 2023, up from $16.4 billion in 2022.

The influencer landscape has been evolving in the past few years as consumers increasingly demand authenticity, entertainment and relatable personalities, with this trend likely to gather momentum in the years ahead.

So, what's the trend?

• According to the BOF-McKinsey consumer survey, consumers are gravitating towards relatable and authentic influencers far more than other attributes such as an aspirational lifestyle or celebrity status. For instance, TikTok, often regarded as a platform that promotes authenticity, has taken the lead among some user groups. A March 2023 study estimated that US adults spent nearly 56 minutes a day on average on TikTok (surpassing Instagram at just over 30 minutes a day).

• Creative and entertaining content can reach a wide audience, even if the creator doesn't have a high number of followers. For instance, the platform BeReal saw surging user growth since 2022 with ordinary creators.

• According to a recent Stanford University study, Gen-Z value pursuing their own unique identities and appreciate diversity among other attributes. Their favourite platform for following influencers is TikTok (surpassing YouTube and Instagram).

• While traditional influencers who convey an inspirational lifestyle and command large audiences are likely to remain important for fashion marketing, another cohort of less scripted or polished influencers are blooming. Their off-beat, personal approaches to content creation, which reads as being authentic to who they are rather than pursued purely for "likes" or to convey an unattainable ideal, have helped them gain audiences.

• Brands are building deep partnerships with these traditional and new age influencers than one-off videos or fashion show invitations. Realising the importance and reach of these personalities, brands are investing significantly in their engagement.

• When creating content, brands must develop innovative and surprising campaigns that resonate with followers and reach new audiences. They should also consider incorporating humour, self-awareness, and unfiltered tones into short videos and other popular social media formats.

• Brands should collaborate closely to integrate its presence into the influencers content style. In the most ideal collaborations, a brand finds an avenue to convey its message and perspective in a manner that feels seamless and authentic.

• Fashion businesses should exercise diligence to minimise potential image risks when taking new creative directions. But new directions are also likely to lead to some of the greatest rewards.

As noted, Influencer marketing industry is undergoing major transformations to become more authentic, relatable, and entertaining to its audience. Brands and Influencers who follow these trends are most likely to reap the rewards.

References: http://businessoffashion.com