2022
9
UK Impact Of Social Media On Retail Market Report 2022
2022-02-01T03:03:44+00:00
OX1101331
2195
147549
[{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"},{"name":"Social Media","url":"https:\/\/store.mintel.com\/industries\/media-marketing\/social-media"}]
Report
en_GB
"Social media platforms have evolved to accommodate the entire shopping journey from discovery to purchase. Recent investments from major platforms have sought a more active role in bringing product and…

UK Impact Of Social Media On Retail Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Impact Of Social Media On Retail report identifies consumer attitudes towards social media use, future purchasing factors, and the impact of social media in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the UK Impact Of Social Media On Retail market in the UK.

Click here to view our German market research on Social Media & the Metaverse 2022.

 

Current Market Landscape

Social media platforms can now accommodate consumers’ entire shopping experience from discovery to purchase in one seamless journey. The role of social media in retailing has grown over time, with the pandemic catapulting it into the forefront as people spent longer on social media platforms.

  • 14% of social media users have directly purchased items from social media in the past three months.
  • 79% are cautious about saving card details on social media platforms.
  • 31% of consumers want rewards for shopping on social media

The pandemic has helped boost social commerce to the fore with people’s greater reliance and time spent in the digital channel creating alternative pathways for retailers to derive income. Social media has become an important pillar for retailers’ online strategies. It has also become a vital touchpoint for customers and more recently become an extension of online shopping with Instagram, Facebook and Pinterest all offering ways for customers to buy directly from retailers.

Future Market Trends in Social Media On Retail

However, privacy concerns the main reason people are cautious about doing so. This will be the biggest barrier social platforms have to address if social commerce is to develop in the future and full commerce, including payment, takes place on their platforms.

Social commerce has evolved steadily but still has some way to go. Tying rewards to actions on social (and making them lucrative enough to do so) will encourage consumers to incorporate social media into their shopping habits and give brands another avenue to provide inspiration and rewards to their loyal shoppers.

Read on to discover more details or take a look at all of our UK Retail market research.

Quickly understand

  • What social media platforms consumers use and how frequently.
  • What social media activities consumers have done in the past three months.
  • What they have bought directly or indirectly though social media.
  • What factors would encourage future purchasing on social media.
  • Behaviours relating to the impact of social media.

Covered in this report

Brands: Meta (Facebook), Instagram, TikTok, Shopify, YouTube, Snapchat, Pinterest, Twitter, LinkedIn, Reddit, Twitch, Tumblr, Bottega Veneta, Lush, Balenciaga,

Expert analysis from a specialist in the field

This report, written by Emily Viberg, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Social media platforms have evolved to accommodate the entire shopping journey from discovery to purchase. Recent investments from major platforms have sought a more active role in bringing product and brands to the consumer, which will make their influence even more potent. However, trust issues present a barrier for UK platforms to develop into more fully fledged social commerce nations like China.

Emily Viberg
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • COVID-19 accelerates social commerce capabilities for leading platforms
      • Figure 1: Short, medium and long-term impact of COVID-19 on social media retailing, 2021
    • The market
    • Continued growth of online beats expectations in 2021
      • Figure 2: All online retail sales (including VAT) and annual % change, 2009-21
    • Concern regarding the virus boosts online shopping
      • Figure 3: Impact of COVID-19 on consumer behaviours 2020-21
    • Store-based retailers take a majority of online sales for the first time since 2015
      • Figure 4: All online retail sales, split by broad category of retailer, 2016-21
    • Social media most popular online activity
      • Figure 5: Online activities on any device in the last three months, 2018-21
    • Social media continues to gain visitors a year into the pandemic
      • Figure 6: UK unique visitors to top consumer categories and % change March 2020 and March 2021
    • Companies and brands
    • Facebook Pay extended to Shopify sellers
    • Instagram launched ads in Reels
    • TikTok and Shopify roll out in-app shopping pilot in the UK and Ireland
    • YouTube introduces shoppable CTV ads
    • Snapchat to offer in-app shopping after partnering with Verishop
    • Pinterest rolls out Shopping List
    • Virtual fashion launches on social media
    • The consumer
    • Eight in 10 have used social media networks in the past three months
      • Figure 7: Percentage of people who have used social media platforms in the past three months, 2021
    • 55% use social media multiple times day
      • Figure 8: Frequency of visits to social media sites in the last three months, 2021
    • Smartphone devices help people access social media on-the-go
      • Figure 9: How they access social media platforms, 2021
    • Over a third of 16-24s purchased from a retailer after seeing items on social media
      • Figure 10: Retail interactions on social media platforms, 2021
    • Fashion tops the shopping list for social media users…
      • Figure 11: What they buy on social media, 2021
    • Rewards for shopping on social media platforms would help more
      • Figure 12: Factors that would encourage people to shop more via social media, 2021
    • Data privacy tops concerns when shopping on social media
      • Figure 13: Factors that would encourage people to shop more via social media, 2021
  3. Issues and Insights

    • The pandemic accelerated social media’s move into commerce…
    • …but still has some way to go
    • The role of small and local businesses in social commerce
  4. Market Drivers

    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 14: Household financial wellbeing index, 2016-21
    • … and future financial confidence dips as well…
      • Figure 15: The financial confidence index, 2015-21
    • …and concerns over inflation are coming to the fore
      • Figure 16: Consumer concerns over cost-of-living changes, 2021
    • The pandemic boosts online shopping
      • Figure 17: Impact of COVID-19 on consumer behaviours 2020-21
    • In-person browsing important despite new Omicron variant
      • Figure 18: Impact of COVID-19 on consumer behaviours in stores 2021
    • Population changes in key demographics
      • Figure 19: Changes in population 2020-30
      • Figure 20: Population trends in the UK, 2020-30
    • Summary of key economic data, 2020-26
      • Figure 21: Key economic data, 2020-26
  5. Online Retail Sales

    • Continued growth of online beats expectations in 2021
      • Figure 22: All online retail sales (including VAT) and annual % change, 2009-21
    • Pandemic sees record high online sales
      • Figure 23: All online retail sales, average weekly sales, non-seasonally adjusted, 2019-21
    • Online sales growth peak during first lockdown
      • Figure 24: Year-on-year percentage change of online retail sales January 2019-November 2021
    • Store closures move non-food online
      • Figure 25: All online sales as a percentage of all retail sales, by store-based grocery and non-food retailers, 2020-21
    • Store-based retailers take a majority of online sales for the first time since 2015
      • Figure 26: All online retail sales, split by broad category of retailer, 2016-21
  6. Social Media Landscape

    • Pandemic conditions boost social media usage
      • Figure 27: Short, medium and long-term impact of COVID-19 on social media retailing, 2021
    • Digital device ownership accelerated
      • Figure 28: Portable technology purchasing in the last three months, 2019-20
    • Social media most popular online activity
      • Figure 29: Online activities on any device in the last three months, 2018-21
    • Social media continues to gain visitors a year into the pandemic
      • Figure 30: UK unique visitors to top consumer categories and % change March 2020 and March 2021
    • Pandemic to lift social platforms to a new level in the retail sector
      • Figure 31: Changes and expected changes in online shopping via social media usage, by age, 2021
    • Consumers spend more time on social media apps
      • Figure 32: Average time spent on selected sites / apps with social video capabilities, UK adults: September 2020
  7. Social Media – Key Players and Innovations

    • Meta
    • Facebook Pay extended to Shopify sellers
    • Instagram launches 10 Days of Shopping event
    • Instagram launched ads in Reels
    • Meta’s upcoming launches in social commerce
    • TikTok
    • TikTok launches business platform to help retailers engage with younger audiences
    • TikTok and Shopify rollout in-app shopping pilot in the UK and Ireland
    • TikTok opens pop-up at Westfield London
      • Figure 33: TikTok pop-up at Westfield London, 2021
    • TikTok launches food delivery service
    • TikTok launches on Amazon and Samsung TV
      • Figure 34: TikTok on Samsung TV, 2021
    • TikTok’s first Back Friday event
    • YouTube
    • YouTube testing shopping feature
    • YouTube introduces shoppable CTV ads
    • YouTube launches new live shopping events
    • Snapchat
    • Snap launches studio to create augmented reality ads
      • Figure 35: AR advertising feature from Arcadia Studio, 2021
    • Snapchat to offer in-app shopping after partnering with Verishop
    • Snapchat teams up with Poshmark for social shopping experience
      • Figure 36: Poshmark and Snapchat collaboration, 2021
    • Pinterest
    • Pinterest rolls out Shopping List
    • Pinterest makes it easier for retailers to sell on the platform
  8. Retailer Innovation in Social Commerce

    • Virtual fashion provides brands with a stepping stone into the metaverse
    • Nike acquires virtual fashion platform RTFKT
    • Farfetch uses voice controls to let Snapchat users search for items
      • Figure 37: Farfetch voice-enabled Try on feature, 2021
    • Louis The Game
    • JD Sport teams up with Nike and TikTok for virtual shoe try-on
    • Inditex launches AR game for Pull & Bear girls collection
      • Figure 38: Pull & Bear AR game, 2021
    • Clinique launches social media competition to win limited-edition NFT
    • Hugo Boss puts social media at the centre during Milan Fashion Week
    • Social media goes physical
    • C&A reveals TikTok window display
    • The O2 launch social media store Tikky Town
    • Retailer’s move away from social media
    • Bottega Veneta launches own digital magazine
    • Lush to withdraw from social media from all of its 48 markets
    • Balenciaga seen erasing feeds from social media
  9. Social Media Platform Usage

    • Eight in 10 have used social media networks in the past three months
      • Figure 39: Usage of social media platforms in the past three months, 2021
    • Newer social media sites appeal to younger
      • Figure 40: Usage of social media platforms in the past three months, by gender and age, 2021
    • A sixth use three social media sites
      • Figure 41: Repertoire of social media sites used, 2021
  10. Frequency of Social Media Use

    • 55% use social media multiple times a day
      • Figure 42: Frequency of visits to social media sites in the last three months, 2021
    • Females aged 16-34’s most prolific social media users
      • Figure 43: Frequency of visits to social media sites in the last three months, by gender and age, 2021
  11. How Social Media Platforms Are Accessed

    • Smartphone devices help people access social media on-the-go
      • Figure 44: How social media platforms are accessed, 2021
    • 16-24s most likely to access social media via smartphone
      • Figure 45: How social media platforms are accessed, by age, 2021
    • TikTok and Snapchat appeal to younger native smartphone users
      • Figure 46: How social media platforms are accessed, by social media platform used in the past three months, 2021
  12. Retail Interactions on Social Media

    • Over a third of 16-24s purchased from a retailer after seeing items on social media
    • 14% purchase directly from retailers via social media
      • Figure 47: Retail interactions on social media platforms, 2021
    • Over a fifth of frequent social media users bought items from social media
      • Figure 48: Social media activities of consumers who have used social media networks multiple times a day, 2021
    • Young shoppers want to be heard on social media platforms
      • Figure 49: Percentage of consumers who have written review on social media, by gender and age 2021
  13. What They Buy on Social Media

    • Fashion tops the shopping list for social media users
    • Beauty brands look to engage online communities on social media
    • More affluent shoppers like to buy food and drink on social media
    • Pandemic boosts digital media demand
      • Figure 50: What they buy on social media, 2021
    • Social has, and will, provide the opportunity for brands to enter the metaverse
    • Emerging technology can help close gender differences for fashion shoppers on social
      • Figure 51: What they buy on social media, by gender, 2021
    • Second-hand key opportunity for social media platforms
      • Figure 52: Which social media platform they buy second-hand items on, 2021
    • Facebook captures 74% of social media purchases
      • Figure 53: Platform usage and purchasing via social media, 2021
    • Shoppers want to share purchasing experiences on social media
      • Figure 54: Consumers who bought on social media and who posted about it on social media or wrote a review, 2021
  14. Factors to Encourage Future Purchasing via Social Media

    • Rewards for shopping on social media would drive purchasing
    • Visual search technologies help product discovery
    • Direct in-app checkout features would bring true social commerce
    • Filtering products across retailers help make shopping more streamlined
      • Figure 55: Factors that would encourage people to shop more via social media, 2021
    • Future purchases on social media need direct-checkout options
      • Figure 56: Encouraging factors for those who have made purchases via social media, 2021
    • Brands should leverage influencers when livestreaming content
  15. Attitudes Towards Social Media and Retail

    • Data privacy tops concerns when shopping on social media
      • Figure 57: Attitudes to social media and retailing, 2021
    • Get customers involved in the product development process
      • Figure 58: Social media buyers and interest in feedback on new products, 2021
    • Younger social media users feel more connected when ads reflect them
      • Figure 59: Attitudes to social media communities and use of everyday people in social media adverts, by gender and age 2021
    • Facebook helps people discover brands
      • Figure 60: Percentage of social media users who find that social media sites help them discover brands, 2021
  16. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch