Social commerce is growing by around 17 per cent a year, compared with 3 per cent for the wider ecommerce market, according to new research.
A new study by Retail Economics, looked to highlight the power social media has not only on ecommerce uplift but also in driving footfall to stores. It found one in every 20 in-person sale had been influenced by social content, in the past 12 months.
Additionally, 46 per cent of shoppers said a physical store or venue makes them more likely to trust a brand they discovered on social media.
Almost a third (32 per cent) of consumers visited additional shops, restaurants or venues during a social-influenced trip. With Gen Z and Millennials shoppers taking active steps to track down a viral product or venue – 83 per cent.
“For retailers, this presents a genuine sales and engagement opportunity” explained Dan Edelman, UK general manager, merchant services at American Express.
“But fully capitalising on it requires more than a social presence. It demands an understanding of who these shoppers are, their expectations, and what it takes to turn a single socially influenced visit into a lasting customer relationship.”
One brand to have seen the impact of social commerce is London-based womenswear brand House of Kind. After one of their T-shirts went viral following a collaboration with charity 50:50 Parliament, there has been a lasting impact on their online and in person sales.
Sonica Beckmann, founder and CEO of House of Kind, said: “Our Instagram followers grew by 67% in days, website traffic jumped by over 400%, and the product sold out across multiple sizes.
“At an independent Soho boutique where we are stocked, our in-person sales went up by 60% that week. This won us a new loyal customer base, and we’ve seen a lasting positive effect on the business.”
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