Today We start a new series called Retailer Priorities. This is based on a report by Deloitte and we will be looking at the 7 areas identified by the consulting firm. This week we will start with social; commerce and the role of Gen Z in it. 

Social commerce is an exciting new industry projected to grow globally three times faster than regular e-commerce. In fact, projections suggest that the global market will grow from $492 billion in 2021 to $1.2 trillion by 2025. In the United Kingdom alone, it is expected to grow by 37%, reaching $21 billion by the end of 2022. With the rise of Gen Z’s usage of smart devices, this is a demographic that all online retailers should be focusing on.  

Immersed in social media  

Generation Z sheds light on the future of commerce. Gen Z consumers are more likely to be influenced to shop by social media. This is evident with hashtags such as #tiktokmademebuyit amassing 8.1B views on TikTok. Social media is an essential part of Gen Z. In fact, instead of using Google Search or Maps, a large percentage of 18-24-year-olds instead use applications like Instagram and TikTok.  

Gen Z-Influencer Relationship 

Consumers across any generation are more likely to trust the opinion of fellow consumers, over an ad or an advertisement from said company. This is where the relationships between influencers and your target audience are key.  Gen Zs are immersed in the internet world and therefore are likely to develop one-sided para-social relationships with social media creators, which builds rapport and trust. Due to this relationship between content creator and consumer, influencers have become “important mediators in consumer decision making, particularly for younger consumers”. 

How Can I Use Social Commerce 

The social channel has no barriers to entry. This is great because you can get started right away by recording and creating content to attract more customers. However, that does mean that there is an immense amount of competition. It is important to understand the target audience that you are targeting and create content geared toward them. The use of influencers as discussed before can also be very beneficial to your business. You can commission them to make a video about your product/store or sponsor one of their posts. You can also give them an affiliate link which will help them profit from the ad while helping you track the success of your campaign. 

We hope that you enjoyed this article. For the next 7 weeks, we will be posting one article a week outlining the 7 priorities for retailers for the next 12 months. To keep updated, please subscribe to our newsletter.

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