Social influence has a ‘rapidly growing effect’ on shoe sales

A product recommendation by a trusted friend plays a powerful role in the decision to purchase.

‘Social shopping’ (often termed ‘s-commerce’) is emerging as a powerful force in footwear sales and marketing, with the fashion, music, film and grocery sectors also benefiting. In the UK alone, 45 per cent of consumers aged 25 to 34 are already influenced by or using social media to make a purchase, according to research conducted for Barclays Bank. By 2021, analysts expect the figure to have jumped to 73 per cent.

Nearly three-quarters of all internet shoppers are reported to be actively using social platforms, with the number set to grow further as Facebook, Twitter, Pinterest and other social micro-blogging websites continue to merge retail channels.

Social media particularly works well as an influencer rather than a direct sales channel, with users often receptive to new ideas and recommendations. A study into current and future social media use suggests that UK revenue from influenced sales in all markets is expected to increase from £1.4 billion to £3.3 billion in the next five years.

According to Richard Lowe, Head of Retail and Wholesale at Barclays Bank, a recommendation by a trusted friend is extremely powerful, and the typical social shopper is not afraid to express over the internet how much they love or hate a product or service.

“As more people post reviews, more people read them and, in turn, they give their own feedback which is picked up by a new group of consumers,” he says. “Retailers should be exploring ways to tap into these communities in order to create more personalised shopping experiences.”

“We believe our industry must innovate dramatically in order to stay relevant to the young athletes of today,” Nike Brand President, Charlie Denson told a recent conference in Canada. Recognising the global reach of social media, he highlighted the 340 million tweets and 300 million Facebook photos uploaded every day by 900 million active Facebook users.

Social media appears to be booming in China. A recent survey of Chinese users claims that 95 per cent of people living in major cities are registered on social media sites, and that social media has a greater influence on purchase decisions than anywhere else in the world. Social media is also gaining in popularity in the US, with Pinterest receiving 21.5 million visits during one recent week – 30 times the number experienced just six months before.

Publishing Data

This article was originally published on page 2 of the July/August 2012 issue of SATRA Bulletin.

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