Wallets at the ready
Shopping through social media channels such as Facebook will ‘take off' in 2011 after a slow start characterised by cynicism from UK retailers, according to Ovum.
The independent technology analyst firm believes 2011 will be the year that social network-based shopping will live up to its hype and experience 'substantial growth' via sites like Facebook.
Christine Bardwell, an analyst at Ovum said: "Contrary to the current waves of cynicism in the UK retail sector, 2011 will be the year when social commerce will really take off.
"In the UK, the leading retail brands have been slow to adopt a strategy for social commerce and the success stories have been few and far between. However, it offers good sales potential in 2011 and will be the big story in retail technology. It definitely should not be disregarded as a fad."
She believes retailers will start to take the form seriously next year and consumers will start to see more products and services available on social networks.
Bardwell alsopredicts retailers will start to exploit TV sets hooked up to the internet. She said: "There are definitely signs that this will be a channel that opens up for retailers in the near future. We will start to see the option to click through consumers' favourite soap operas or music videos to make a purchase."
She warned retailers need to keep up with new shopping channel trends as quickly as they are introduced.
She said: "Integrating all these channels is the key to driving repeat business, which is crucial as the days of high growth on the high street are over and the signs are that the online market is starting to mature and should not be relied on for long-term growth."
"It is important that retailers link all the channels as multichannel shoppers spend a third more than their single-channel counterparts. Consumers demand greater convenience and channel choice and retailers need to keep abreast of these changing habits," she added.
