Analysis Of The Use Of Social Media In The Clothing Retail Industry In Cape Town

Influencer marketing has become the foremost marketing strategy in our contemporary business world (Farseev et al., 2018). (Xiao et al., 2018) Defines the term Influencer Marketing as a strategy whereby companies use social influencers to spread word of mouth online through social media platforms. (Berger, 2012) defines an influencer as a person who has a greater-than-average reach or impact through word of mouth in a relevant marketplace. (Escobar-Rodríguez & Bonsón-Fernández, 2017) explicates that Word of Mouth Marketing (WOMM) is defined as the intentional influencing of consumer-to-consumer communications by professional techniques. (Pongjit & Beise-Zee, 2015) advocates that word of mouth (WOM) in a business sense exerts a strong impact on brand purchases and brand image.

The findings of (Hernández et al., 2011) suggests electronic word-of-mouth (eWOM) to be a promising marketing strategy for increasing sales Thus, we can suggest that influencer marketing shares similar characteristics to those of WOMM, deferring where Influencer marketing is demonstrated on a larger scaled audience. (Farseev et al., 2018) asserts their bold statement that Influencer Marketing is a dominant marketing strategy on the foundation of mitigating customer scepticism on sponsored advertisements, emphasising that marketers often leverage towards human-centric content channels. Furthermore (Farseev et al., 2018) states 92% of consumers are more likely to trust brands that advertise via influencer channels.

With (Mander, 2017) proclaiming that in 2016 the average internet user had over twice as many social accounts as they did in 2012, and (Berger, 2016) explicating that Micro–influencers have up to 22.2 times more “buying conversations” that include product recommendations each week than an average consumer, (Farseev et al., 2018) statements become less questionable and more believable. As previously stated, the dominant force known as Micro Influencers use social media platforms to engage with their audience, (Kaplan & Haenlein, 2010)

Defines Social media as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and allow the creation and exchange of user-generated content, (Illes & Zsolnai, 2015) proclaims that the major reason for social media success is that online communication offers the prospect of replacing physical proximity with virtual interaction.Social media platforms and the ability to use social media as a marketing tool provides opportunities to overcome limitations of time and financial resources, allowing start-up and small businesses to reach out to customers cost-effectively (Barnes et al., 2012). (Illes & Zsolnai, 2015) argues that these technologies are more important for small businesses primarily because such businesses lack the traditional resources to market their products and services.

The purpose of the research study aims to analyse the use of Social media in the clothing retail industry in Cape Town, focusing on Micro Influences as a marketing tool to enhance the exchange of user generated content for clothing Start-up companies as (Kaplan & Haenlein, 2010) previously explains. The research study and post analysis will be conducted in the efforts of gaining guaranteeing results on whether Micro Influencers can effectively market Start-up clothing companies in Cape Town and furthermore, how to market start-up clothing companies in Cape Town thereafter. (Godin, 2016) marketing guru and key writer in the marketing world of the 21st century asserts that it is “crucial to take vivid steps to establish a reputation. (Godin, 2016)

Continues by stating “you never get a second chance to make a first impression”. Conceptualising in a business context, when individuals establish a company, the initial launch of the company serves as the first impression, and in that sense making it a good first impression is vital. This is the area in which we enquire if Micro-Influencers have the capabilities of adding positively to the cause of establishing clothing start-up companies effectively. Relating to the research gap, while there is regularly updated consensus on the effective use of social influencers as a marketing tool, there is little to none research that pertains to effectively embracing Influencer Marketing for Start-up Clothing businesses.

Therefore, the following study explores how to effectively use micro influences on start-up clothing companies within Cape Town. The next section underlines the background to the research emphasising where the research problem transpires within the Retail industry as well as channelling previous research towards the current study.BackgroundThe research study is based on clothing start-up businesses within the Cape Town region of Western Cape, South Africa focusing on influencer marketing as a catalyst to deliver a formidable brand image for the company, producing constant brand exposure and to induce purchase decision through the Micro Influencer’s network audience.

The phenomenal growth of interactive digital technology has impacted almost every aspect of young consumers’ daily lives over the past two decades (Finne & Grönroos, 2017). (Esteban-Santos et al., 2018) broadly defines millennials as everyone born between 1981 and 1999. (Esteban-Santos et al., 2018) further expresses their thoughts towards the young public as individuals who want instant gratification and who are constantly seeking purchasing information. In the same breathe this comes as no surprise, (Smith, n.d.) explains that millennials are talking about products and services online more than the general population, justifying that these online channels in which to obtain instant gratification are accessible.

Focusing on small businesses and the use of traditional marketing methods (Jones et al., n.d.) postulates that It takes time and dedication to providing original, interesting content on a regular basis, which is contrary to (Esteban-Santos et al., 2018) comments on purchase information and the need for instant gratification. In regards to embracing the use of social media (Jones et al., n.d.) continues his statement explicating that it is important to note that despite facing multiple constraints (knowledge, time, finances), what small/start-up businesses do with their limited resources is remarkable. (Agrawal, 2018) proclaims that it's important for every business, especially start-ups to take advantage of the power of influencer marketing. (Agrawal, 2018)

Concludes his statement by noting that,” by implementing influencer marketing effectively, could be the key to taking your business from a humble start-up to a household name”.(de Villiers, 2017) Based in South Africa Influencer marketing in regard to the use of social media personalities to sell products reached an estimated $2 billion in 2017. (de Villiers, 2017) continues by forecasting that by 2022, influencer ad spend is expected to hit between $5 to $10 billion. Focusing on the clothing and fashion industry, (Berger, 2016) identifies the five major categories Micro Influencers have impacted in the retail industry, namely from to last respectively, Sporting goods/outdoor gear, Fashion/footwear, Fitness/nutrition/ wellness, Beauty, Consumer electronics. With the above statistical data, it is no surprise that large South African retailer (Woolworths, 2018) have found a liking to the concept of influencer marketing, launching a fashion driven campaign in accordance with (Livity Africa, 2018) focused primarily on Micro Influencers. (de Villiers, 2017) previously forecasted that for the year 2022, Influencer Marketing is expected to generate more than double in revenue, which indicates that (de Villiers, 2017) anticipates further South African brands and retailers to adopt this marketing strategy.

However, what has still yet to be proven is whether Micro influencers can effectively market start-up companies in general, and more importantly, start-up clothing companies within Cape Town, South Africa. (Weinswig, 2016) Notes that Influencers are the golden children of marketing strategies right now. This statement is based on statistics gathered by (Musefind, 2018) indicating that 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement. The article continues by addressing traditional forms of marketing indicating that 47% of customers are using extension applications blocking advertisements. (Weinswig, 2016) postulates by stating that traditional digital advertising channels often have limited effectiveness, somewhat justifying the generalisation made by (Farseev et al., 2018) and (Berger, 2016) (Berger, 2012).

Micro influencers in a holistic frame of mind are acting as strong marketing tools for business owners and have the potential to act supreme driving forcers for start-up business too. The world is becoming more digital by the second (Finne & Grönroos, 2017), placing emphasis on the word ‘potential’, what is clear to state is that Influencer marketing has grown significantly in recent years and is on its way to becoming a superlative form of social marketing (Farseev et al., 2018). The major area of concern embodies itself within the context where small start-up businesses lack the traditional resources to market their products or services (Illes & Zsolnai, 2015).

Despite the lack of literature focused on clothing Start-up companies embracing Influencer Marketing, (Jones et al., n.d.) findings concluded that small businesses could clearly benefit from improved use of the internet and social media individually and ‘collaboratively’. (Yang & Berger, 2017) findings suggests that innovative start-up companies were able to benefit from communicating on social media platforms, substantiating (Jones et al., n.d.) conclusions. The next section defines the problem statement in greater effect which highlights Micro Influencers as a marketing opportunity for clothing start-up companies.

As young individuals attempt to revolutionise the clothing market in Cape Town, South Africa, there are also those who are searching for niche gaps in the clothing industry and discovering ways to exploit these loopholes. For clothing start-up companies in Cape town, booming with positivity and remarkable ideas for their businesses, often, there is not enough resources to drive towards marketing the business effectively. The lack of funding and the lack of the required resources may be the defying barrier to successfully establishing a start-up clothing company as formidable competitors in the clothing industry of Cape Town.

To market a clothing start-up company effectively without the necessary resources would be an arduous and problematic undertaking thus, the practice of using Micro Influences as an opportunity to market the company in a cost-effective manner has been brought into question. As stated previously in the introduction, Micro influencers boast a significant social following on online platforms. These individuals are also regarded to be reliable and trusted sources which both can benefit start-up clothing companies in persuading purchase towards their target market.Ideally, the social presence of these individuals will act as a kick-start to initiate a strong brand image and brand reputation for the clothing retailer.

Following this success, clothing Start-up companies can work in collaboration with micro influencers towards the goal of gaining the establishment greater recognition and more importantly, to provoke purchase behaviour.Title How to effectively use Micro Influencers: A case study on Start-up Companies in Cape Town.

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