Platforms for success

Social media is now a major shopping channel, but which consumers are using it the most?

A study conducted by Argos this week showed that one in four Brits are now "practically addicted" to online shopping, thanks to lockdown. Consumers may have been unable to access the physical store, but the online marketplace has remained open and consumers and sellers alike, have found innovative and diverse platforms on which to sell and purchase products.

Social commerce is where companies sell products directly within social media platforms. It is a relatively new phenomenon and over the last five years, we have seen social platforms begin to capitalise on their popularity, particularly amongst tech-savvy Gen-Z and Millennials, to create commercial opportunities. The most established platforms are Instagram, which launched Instagram Checkout in 2019 to facilitate in-app purchases and Facebook Shop, which enables brands to create an entire store through the app.

Gen-Z and Millennials frequently engage with and are strongly influenced by social media content with Instagram, Facebook, Pinterest, Snapchat and TikTok being the most popular platforms. Over half of Millennials use these platforms to discover and research new products and brands. A further 40% will use social media to regularly make in-app purchases. But the physical store still plays a part, for c.70% of Millennials with omnichannel accessibility being key to their purchase journey.

This commercialisation of social platforms can also provide a means to bridge the gap between online and offline. TikTok, which gained popularity over the lock-down period, has partnered with Superdrug and E.L.F cosmetics to sell beauty products which go viral on its platform in Superdrug stores across the UK under the “Trending on TikTok” banner. Burberry also launched its first `Social media store' in Shenzhen, China this summer. Partnering with Tencent and its WeChat app, customers are able to earn rewards through the Burberry social currency feature, unlocking exclusive content as they engage in-store and online.

This integration of social platforms for higher price point retailers is interesting and reinforces our belief that Baby Boomers and Gen X should not be overlooked in this segment. They may be less likely than a Millennial to make an in-app purchase through a social media platform, but it is a misconception that these consumer groups do not shop online or use social media. They have the highest disposable incomes,  and of those surveyed 85% will research products on the internet and 66% will make a purchase. Over 75% have at least one social media account – Facebook and LinkedIn are popular platforms – but convenience and customer experience are the important underpinnings of the purchase journey for Baby Boomers, rather than content and image. Streamlining the purchase process, such as ensuring minimal steps to payment and easy access to product information, combined with clienteling apps can aid this.

The promise of a seamless and streamlined shopping experience suggests that if brands can make the purchase journey easier for consumers, by combining convenience with inspiration and engagement, there is a real opportunity within the post-Covid landscape to capitalise on social media platforms.

Olivia Gannon