Social media spurs organic sales growth

Brands leverage social platforms for brand expansion.

In the retail landscape of the Asia Pacific (APAC), 65% of retail professionals are prioritising promotional activities to boost sales, with a significant focus on organic growth through social media. 

According to Rabia Yasmeen, a spokesperson for Euromonitor APAC, the evolution of social media platforms like TikTok and Douyin is reshaping how brands engage with consumers and drive sales organically.

“So social media has been evolving rapidly. We know it's going beyond just the platform for social connection and engagement. The number of users on social media platforms has been increasing,” she said.

Yasmeen emphasised the critical role of social media in marketing strategies, highlighting its transformation beyond mere platforms for social engagement. With 750 million users in China and 1.1 billion TikTok users globally, social media platforms offer unprecedented opportunities for brands to reach a vast audience. 

The key, Yasmeen noted, is leveraging the creative potential of these platforms, where everyday content creators play a pivotal role alongside influencers in promoting products organically.

“If we look at the concept of boosting sales organically, this basically streamlines along the creative potential offered by these platforms where users are generating a volume and a plethora of content just by showcasing their daily lifestyles and experiences,” she explained.

She added that the success of organic content marketing is evident in the viral trends under hashtags like #JBeauty and #KBeauty, where consumers share their experiences with Japanese and Korean beauty products. Such strategies have not only boosted brand visibility but also facilitated global expansion for brands that traditionally relied on conventional marketing approaches.

Yasmeen also said that the growing trend of re-commerce among younger consumers, driven by digitization, sustainability concerns, and the economic slowdown presents both challenges and opportunities for brands, particularly in the luxury segment, where the demand for pre-owned goods is rising. 

“Going for second hand products was not something that was preferred by a larger share of the population. But that notably is changing given younger consumers are looking to save more. They are wanting to participate in sustainability initiatives and they're really seeing the value in just opting for secondhand products rather than going for firsthand purchases,” she said.

Brands like Gucci and Louis Vuitton are finding new markets in China, previously untapped due to cultural preferences for new over second-hand products.

Yasmeen pointed out that the shift towards second-hand goods and the circular economy is not without its hurdles, such as product authentication and the risk of counterfeits. However, by partnering with e-commerce platforms specialising in second-hand sales, brands can overcome these challenges and tap into new revenue streams. 

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