November 04, 2019 / By mobanmarket
Social media plays an imperative role in all consumer goods industries, but
can be considered even more relevant in the fashion world. As the global
social media base passes the 2.0 billion user milestone and internet
retailing continues to grow, at a constant 2014 value CAGR of 14 percent
globally over 2014-2019, brands are eager to expand beyond trending
hashtags and create a lucrative sales channel.
Developing countries have been making strides in s-commerce, while advanced
economies are struggling to capitalise on the opportunities social media
presents. According to the latest Euromonitor International survey data, in
China and India, 43 percent of consumers make purchases through social
media, while only 11 percent and 15 percent of consumers use s-commerce in
the US and UK, respectively. Growth in emerging markets is being driven by
the dominating e-commerce behemoths Flipkart, Alibaba and TaoBao. These
local players have monopolised the s-commerce cycle, controlling the
online marketplace, social media platforms and marketing channels.
Facebook and Twitter, the two biggest social media sites, have tried to
introduce ‘buy buttons’ and failed as consumers have balked at the prospect
of using a platform intended for socialising as somewhere to shop.
Retailers such as Nordstrom and Gap Inc set up Facebook Stores in 2011,
which were then closed within a year; although Facebook is important in
driving traffic to a brand’s website, it has not proved to be an ideal
sales channel. The latest social media player to announce plans to
introduce a ‘buy button’ feature is Pinterest, allowing users to be
redirected to external websites where they are able to purchase a desired
item.
Given that the concept of Pinterest revolves around ‘pinning’ images of
garments and objects users admire, the ‘buy button’ seems a natural fit.
Furthermore, there is already demand for such features, with applications
such as Wanelo Inc, The Hunt and Dash Hudson informing Pinterest and
Instagram users where they can purchase particular items.
Social media sites centred on visual aspects have a clear advantage over
those created for the purpose of sharing information. It is also worth
noting the differing demographic factors and concept of each platform;
consumers are not likely to be using Twitter and Pinterest in the same way.
As s-commerce begins to gain popularity, social media sites designed for
the purpose of shopping are emerging; Grabble, otherwise known as the
‘Tinder for Fashion’, allows consumers to create their own shoppable
fashion content by ‘grabbing’ clothing items from any brand’s website; the
most popular brands appear to be Topshop, Urban Outfitters and Zara to name
but a few. Shopa, meanwhile, focuses on independent London-based brands,
aiming to monetise the ‘power of recommendation’ among millennials by
rewarding customers with discounts if one of their ‘connections’ purchases
an item they endorsed.
The digital age is changing the way consumers shop and the increasing
uptake in smartphones is leading to robust growth in mobile internet
retailing and social media usage, with mobile-friendly platforms such as
Instagram and Vine experiencing rapid growth. In the US, mobile internet
retailing grew from 14.0 billion dollars in 2011 to 43.0 billion dollars in
2014, illustrating the increasing popularity of this sales channel. The
boundaries between m-commerce and s-commerce will begin to blur as a new
generation of shoppers, born in the digital age, enters the market and the
role of smartphones in consumers’ lives continues to evolve, creating a new
form of retail that brands will need to adapt to.
Click Here: pandora Bangle cheap
Although a saturated digital landscape in emerging markets is causing
growth to stagnate in social media expansion, there is still a vast amount
of untapped potential in s-commerce. In the meantime, tech-savvy consumers
seeking convenience in emerging markets will continue to fuel growth in
this area, driving new social media uses and influencing global social
networking trends.
By:
Bernadette Kissane, Apparel and Footwear Associate at Euromonitor
International
Images: Shopa.com and Grabble.com
Categories: News