News Analysis: Why have retailers been slow to adopt social media?
Following the release of data last week that showed that retail brands are still proving to be slow adopters of social media, The Drum investigates why.
Brands haven't been slow in adopting Facebook Pages or branded Twitter accounts – but how many are selling directly to customers via social channels? Research last week showed only one in five of the UK's top 100 retailers has a mobile-optimised version of its website and said many were brands were ignoring social media shopping altogether.
One iota, the firm behind the research said the coming year would be the time for retailers to integrate shopping functions across multiple channels, giving shoppers the opportunity to buy from brands they 'like' and 'follow' through social media channels. The research warned that a failure to do implement social media buying strategies could lead to a loss of business through poor conversion and engagement.
Are retailers missing out or has technology developed sufficiently to allow retailers to sell safely and legally through a Facebook Page?
Tim Orell, managing director at Golley Retail said that social shopping will have a future in the online development of major brands but questioned whether social media and mobile technology were ready to replace traditional ways of shopping. He commented: “Shopping has moved on from the two stage shopping model to a three part model. Consumers used to research a product before buying, now they validate a product by asking friends online. But consumers know what they want, and easily spot gimmicks”.
Orell, whose firm works with Proctor and Gamble brands like Ariel and Gillette, said that brands should focus on simple ways of improving a shoppers online experience, adding that technology is unlikely to replace traditions like the grocery shopping list. He added that retailers should provide “solutions for customers” and not over complicate the shopping procedure. The customer is always right after all.
Fashion retailer Asos will launch its first 'Facebook Store' later this week, allowing its 400,000 strong user base to buy products using their existing Asos log in. But online reports from October last year showed that both Facebook and Twitter failed to pass the encryption and identification process of SSL (Secure Sockets Layer) meaning users visiting an authentication page did not know for sure if the page was HTTP secure.
Asos' Facebook development is being keenly watched by other well positioned fashion brands who could follow their social path in the coming months. For larger retailers, there may be some time before they become fully integrated in social shopping.