When was the last time you went shopping before doing any pre-shopping online first? Consumers are increasingly engaging with brands through social media and digital platforms, making the “digital front door” and social-first retail more critical than ever. This shift signals a profound transformation, moving beyond traditional brick-and-mortar experiences to a world where digital discovery and social influence reign supreme.
At our recent Retail Summits, experts from across the retail battlefield all agreed: social-driven retail is a major opportunity and a major challenge. Our community of senior retail leaders came together to tackle this challenge, here’s what they had to say.
The New Front Door
The way consumers discover products has fundamentally changed. What was once primarily a “saw in store” experience, where customers encountered products on shelves, has been replaced by digital discovery. At our recent Retail Summit, Jason Goldberg , Chief Commerce Strategy Officer at Publicis Groupe used Walmart as a prime example:
To really quantify the scale of what Goldberg is referring to, the Walmart app currently has 50 million active users visiting, as the CEO of Walmart affectionately terms it, “50 million stores”.
The digital influence is immense. Back in 2022, Forrester predicted that by the end of 2027, 70% of all retail sales will be digitally influenced. The driving force behind it all? Social media.
Social media platforms, particularly TikTok, have become powerful engines for generating demand and creating viral trends that can instantly impact sales. One notable example was the Stanley Cup that survived a car fire, leading to a 10x sales increase after the CEO offered the customer a new car.
In one fell swoop, Stanley demonstrated the quality of their product, became a must have accessory, and won the people’s hearts for the cost of a new car. Marketing teams have spent a lot more for a lot less.
Harnessing this rapid, often unpredictable, discovery through social channels presents a huge opportunity for growth, but also a serious challenge for your supply chains.
Agility is the New Black
The speed and unpredictability of social-driven trends demands unprecedented agility. Goldberg highlighted Shein as the gold standard for the “large scale test and reorder” model. Here’s how it works:
- AI scrapes TikTok for trending items
- Once they’ve got a hit, they send an order to one of their 5,000 factories to produce 400 units
- The product hits the website the following day and if those 400 units sell, they make 40,000 more
Shein sell 100% of what they make because they are producing what people already want. Meanwhile, traditional clothing manufacturers are sat with long lead times and excess inventory.
Now, not every company has the capacity of Shein. How then can businesses capitalize on social-first retail trends without a small army and thousands of factories at their disposal?
Follow Fast
Goldberg made an exceptionally good point when he said that “first movers fail almost 50% of the time. Fast followers? Only 8%.”
Instead of attempting to be the first to market, lay the groundwork to be a fast follower. Observe successful trends and quickly adapt.
Embrace Experimentation
Brad Wolanksy, CEO Emeritus at Dover Saddlery suggested companies adopt a mindset of “spaghetti throwing.” Try new ideas and accept that many will fail, but when one works, be ready to pounce!
Test Early and Often
At last September’s Retail Summit, Andrew Haarsager, Founding Director of Cartier’s Retail Innovation Lab, underscored the importance of testing and iterating upon your products.
Really Listen to Your Customers
Stay ahead of virality by prioritizing a deep understanding of your audience. Leverage data and insights to understand what customers want and how they behave.
Don’t have that data? Start there!
Customer discovery has shifted. You need to be aware of where your customers are discovering products and adapt accordingly.
Social-First Retail
The era of the social-first consumer here. With platforms like TikTok, Instagram, and others influencing purchase behavior, the “front door” of retail has moved from physical storefronts to the stores we all carry in our pockets. Success in this landscape isn’t about being first; it’s about being flexible and fearless.
Brands that win will be those that embrace social-driven discovery, build agile systems to meet unpredictable demand, and cultivate a culture of rapid experimentation. By listening to your customers, being open to experimentation, and moving quickly when you’ve found what works, you’ll be better positioned to ride the wave of your capricious, social-driven customers!
Retail isn’t just about selling, it’s about connecting. In the age of the social-first consumer, that connection begins online.
To continue exploring how your peers are navigating these challenges, and shaping what’s next, join us at our upcoming Retail Summit.
To see all our upcoming summits, visit our events page.
