THE IMPACT OF INFLUENCER MARKETING: ROI ANALYSIS ACROSS FASHION, TECH AND FMCG SECTORS

Abstract

Influencer marketing has rapidly emerged as one of the most influential strategies in digital marketing, transforming how brands engage with consumers. With the rise of social media platforms such as Instagram, YouTube, and TikTok, influencer marketing has become a key driver of brand awareness, consumer engagement, and sales growth. This report delves into the Return on Investment (ROI) of influencer marketing across three key sectors in India: fashion (Nykaa), tech (boAt), and FMCG (Patanjali). Through a detailed ROI analysis, the study examines how influencer marketing campaigns in these sectors contribute to a brand's sales, market share, and customer loyalty. The analysis demonstrates that Nykaa, a leading player in the Indian fashion industry, yields the highest ROI from its influencer collaborations. The brand utilizes both macro and micro- influencers across multiple platforms, with a clear focus on beauty influencers who align with Nykaa’s audience. With an engagement rate of 3.2% and a substantial marketing budget of INR 30 Crores, Nykaa has been able to generate a significant return, with every ₹1 spent resulting in approximately ₹4.2 in sales. In the tech sector, boAt, a prominent brand in the audio equipment market, also sees substantial returns from influencer marketing. With an average engagement rate of 2.7% and an INR 25 Crore influencer marketing budget, boAt has managed to generate an ROI of ₹3.8 for every ₹1 spent. boAt’s influencer marketing strategy focuses on lifestyle influencers, athletes, and tech enthusiasts, helping the brand resonate with younger, tech-savvy audiences. On the other hand, Patanjali, a leading FMCG brand, employs a more conservative approach to influencer marketing, focusing on health and wellness influencers. Despite a lower average engagement rate of 1.9%, Patanjali has experienced a moderate ROI of ₹2.5 for every ₹1 spent, demonstrating the value of aligning influencer marketing with the brand’s trust-building and authenticity-driven messaging. This report concludes that while the ROI varies across sectors, influencer marketing remains a potent tool for driving sales and enhancing brand engagement. The success of influencer campaigns depends on aligning the right influencers with the brand's values, target audience, and goals. Brands like Nykaa, boAt, and Patanjali offer valuable insights into the strategic role of influencer marketing in different sectors, showcasing how brands can harness social media influence to achieve measurable business outcomes.