30/07/2009

Online retail driven by social media

According to Hill & Knowlton's Future of Commerce report, the future of ecommerce is "social commerce," as more and more young online shoppers claim to be heavily influenced by social media channels when making purchases online.

Of the 600 US adults surveyed, 27 per cent of Gen Y said they were influenced by online or community blogs, compared to 19 per cent of Gen X participants and nine per cent of Baby Boomers.

Participants in the survey claimed that the most effective way for retailers to reach consumers online is via highly-targeted campaigns tailored to engage micro communities which form around common interests.

Additionally, an analysis of traditional news channels covering e-commerce leaders over a period of 12 months found a strong link between companies who talk about the industry and not just themselves and increased brand valuation. As these e-commerce companies work to establish a position and maintain a strong voice in the market, consumers are inclined to pay more attention to their brands.

It was also found then Gen X and Gen Y participants are more likely than Baby Boomers to shop online for bargains in a down economy.

Read the full story here: http://www.etailtoday.com.au/Articles/tabid/54/Latest/176/Social-media-key-driver-of-online-retail.aspx

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