New research from Barclays reports that social commerce sales will more than double to 3.3 million pounds with in next five years. 41% of UK consumers will be using social media or at least influenced by it to make their purchases by 2021. The figure is likely to be significantly higher with 25-34 year olds - as much as 73% as 45% of this age group is already utilising this platform for their purchases.
Richard Lowe, head of retail and wholesale at Barclays, explained: "Shopping has always been a social activity right back to the days when people bartered rather than paid for goods. It wasn't until the arrival of e-commerce that the social aspect of shopping was removed". "For most consumers the social element is fundamental - shopping it is a leisure activity in the British psyche - so being able to reintroduce this aspect into the online purchasing process is a powerful tool for retailers."
Research has shown that 70% of internet shoppers are already active on social platforms. This number is growing as the micro-blogging websites like Facebook, Twitter and Pinterest breaking down the boundaries of traditional retail channels. The research from Barclays has shown us that social media it the prime driver and integrator of retail channels rather than a direct sales channel with the users being influenced by suggestions to purchase but not actually being in a conscious state of mind to make active purchases
Translated into revenues, Barclays estimates that social media influenced sales will more than double from 1.4 billion to 3.3 billion in the next five years. This contrasts with direct sales which are expected to rise from 210 million to 300 million. The retailers found to be enjoying the biggest sales uplifts as a result of social media influence were in the fashion, footwear, music, film and grocery sectors.
Richard Lowe has added, "When someone you know and trusts makes a recommendation it's extremely powerful and we've seen that the social shopper isn't afraid to express online how much they want, love or dislike a product or service. "This in turn creates a feedback loop on a product or brand. 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. Retailers should be exploring ways to tap into these communities in order to create more personalised shopping experiences."
Richard Lowe, head of retail and wholesale at Barclays, explained: "Shopping has always been a social activity right back to the days when people bartered rather than paid for goods. It wasn't until the arrival of e-commerce that the social aspect of shopping was removed". "For most consumers the social element is fundamental - shopping it is a leisure activity in the British psyche - so being able to reintroduce this aspect into the online purchasing process is a powerful tool for retailers."
Research has shown that 70% of internet shoppers are already active on social platforms. This number is growing as the micro-blogging websites like Facebook, Twitter and Pinterest breaking down the boundaries of traditional retail channels. The research from Barclays has shown us that social media it the prime driver and integrator of retail channels rather than a direct sales channel with the users being influenced by suggestions to purchase but not actually being in a conscious state of mind to make active purchases
Translated into revenues, Barclays estimates that social media influenced sales will more than double from 1.4 billion to 3.3 billion in the next five years. This contrasts with direct sales which are expected to rise from 210 million to 300 million. The retailers found to be enjoying the biggest sales uplifts as a result of social media influence were in the fashion, footwear, music, film and grocery sectors.
Richard Lowe has added, "When someone you know and trusts makes a recommendation it's extremely powerful and we've seen that the social shopper isn't afraid to express online how much they want, love or dislike a product or service. "This in turn creates a feedback loop on a product or brand. 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. Retailers should be exploring ways to tap into these communities in order to create more personalised shopping experiences."
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