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In the current age of digital transformation, social media platforms have become vital instruments for marketing, building brand identity, and interacting with consumers, particularly within the fashion industry. This study explores the relationship between social media marketing (SMM), electronic word of mouth (eWOM), and brand identity, with a specific focus on the fashion retail sector in Bangalore, India. Utilizing social identity theory, the study proposes a conceptual framework to analyze how SMM activities affect eWOM and how eWOM, in turn, influences the creation and strengthening of brand identity. The research adopts a quantitative approach, gathering primary data through structured questionnaires from 210 consumers who have previously engaged with online fashion retail via social media. By employing partial least squares structural equation modeling (PLS-SEM), the study examines the direct and mediating effects among the constructs. The findings indicate that SMM has a significant impact on eWOM, and eWOM strongly positively affects brand identity. Furthermore, eWOM mediates the relationship between SMM and brand identity, suggesting that consumer-generated content serves as a link between brand communication efforts and identity formation. These results have theoretical implications for expanding the literature on digital branding and consumer engagement, as well as practical significance for marketers seeking to enhance brand equity through interactive and trust-based communication strategies. The study highlights the importance for fashion retailers to invest in socially engaging content that promotes consumer participation, builds community identity, and reinforces brand values in a digitally saturated market.