HYPE OR BUZZ?�SOCIAL MEDIA:�

THE NEW REALITIES FOR �ASIA-PACIFIC RETAILERS�

SIMON KEMP • we are social • RETAIL ASIA ROUNDTABLE, SINGAPORE, 13 OCTOBER 2011 �

SIMON KEMP �@ESKIMON

SOCIAL MEDIA’S�

ROLE IN RETAIL �

IN ASIA-PACIFIC  

3 QUESTIONS:�

WHAT EXACTLY ARE ‘SOCIAL MEDIA’?�

WHY ARE SOCIAL MEDIA RELEVANT TO YOU?�

HOW CAN RETAILERS IN ASIA HARNESS SOCIAL MEDIA?�

3 QUESTIONS:�

WHAT EXACTLY ARE ‘SOCIAL MEDIA’?�

WHY ARE SOCIAL MEDIA RELEVANT TO YOU?�

HOW CAN RETAILERS IN ASIA HARNESS SOCIAL MEDIA?�

SOCIAL MEDIA ARE INTERNET-POWERED PLATFORMS THAT MAKE IT EASY FOR

INDIVIDUALS, GROUPS OF PEOPLE, AND ORGANISATIONS TO CONVERSE AND

PARTICIPATE WITH ONE ANOTHER IN A�WIDE VARIETY OF SOCIAL ACTIVITIES.�

“ “

THE CONCEPT OF SOCIA MEDIA HAS�EXISTED SINCE THE DAYS OF CAVE PAINTINGS�

BUT THE INTERNET HAS MADE THINGS�POSSIBLE ON A WHOLE NEW SCALE �

EARLY ‘INTERNET-ENABLED’ SOCIAL MEDIA�INCLUDED BULLETIN BOARD SYSTEMS (BBS) �

THE WEB’S FIRST ‘SOCIAL NETWORK’ – �SIXDEGREES.COM – LAUNCHED IN 1997 �

NOW IT SEEMS LIKE A NEW SOCIAL �NETWORK LAUNCHES EVERY WEEK�

BUT IT’S NOT THE NUMBER OF PLATFORMS THAT�MAKE SOCIAL MEDIA SO IMPORTANT FOR RETAILERS�

3 QUESTIONS:�

WHAT EXACTLY ARE ‘SOCIAL MEDIA’?�

WHY ARE SOCIAL MEDIA RELEVANT TO YOU?�

HOW CAN RETAILERS IN ASIA HARNESS SOCIAL MEDIA?�

WORLWIDE USERS OF SOCIAL MEDIA:�

1,500,000,000+ �SOURCE: SITE-REPORTED FIGURES, WIKIPEDIA�

22%�PROPORTION OF THE WORLD’S�

POPULATION WHO USE SOCIAL MEDIA:�

SOURCE: SITE-REPORTED FIGURES, WIKIPEDIA, UN DATA�

1,338 �

1,183 �

800�

310�231 � 193 �

BRAZIL �INDIA�CHINA� USA�FACEBOOK� INDONESIA�

SOURCE: FACEBOOK, UN DATA�

AUG 2008 � NOV 2008 � FEB 2009 � MAY 2009 � AUG 2009 � NOV 2009 � FEB 2010 � MAY 2010 � AUG 2010 � NOV 2010 � FEB 2011 � MAY 2011 � AUG 2011 �

200M �

100M �

300M �

400M �

500M �

600M �

800M �700M �

SOURCE: FACEBOOK�

…AND GROWTH SHOWS NO SIGNS OF SLOWING  

500,000�

NEW USERS JOINING�FACEBOOK EVERY DAY:�

SOURCE: FACEBOOK�

800 M �

200 M �

FACEBOOK�

VKONTAKTE �

SINA WEIBO�

GOOGLE+ �

700 M �QQ �

135 M �

HABBO HOTEL �

200 M �

TWITTER �

200 M �

SOURCE: SITE-REPORTED FIGURES, WIKIPEDIA�

50 M �

ASIAN SOCIAL MEDIA USERS:�

800,000,000+ �SOURCE: SITE-REPORTED FIGURES, WIKIPEDIA�

THAILAND:�FACEBOOK�

VIETNAM:�ZING �

MALAYSIA:�FACEBOOK� INDONESIA:�

FACEBOOK�

SINGAPORE:�FACEBOOK�

PHILIPPINES:�FACEBOOK�

JAPAN:�MIXI�

SOUTH KOREA:�CYWORLD �

TAIWAN:�WRETCH �

25M �

11M �

2.5M �

11M �

39M �

29M �

INDIA:�FACEBOOK�

CHINA:�QZONE � 531M �

15M �

15M �

9M �

18M�

4M �

HONG KONG:�FACEBOOK�

SOURCE: BURSON MARSTELLER �

ASIA’S FAVOURITE �SOCIAL NETWORKS�

BY COUNTRY �

REACH �

50%�OF FACEBOOK USERS �SIGN IN EVERY DAY �

SOURCE: FACEBOOK�

FREQUENCY �

REACH �

MINUTES SPENT ON FACEBOOK EACH MONTH:�

700,000,000,000 �SOURCE: FACEBOOK�

THAT EQUATES TO MORE THAN�

1 MILLION YEARS�ON FACEBOOK EVERY MONTH �

( � ) �

FREQUENCY �

REACH �

AFFINITY �

13�OCT�

SOCIAL MEDIA ARE REAL-TIME �COMMUNICATION CHANNELS�

EACH FACEBOOK FAN IS WORTH �

US$3.60 �IN ‘EARNED MEDIA’ REACH �

SOURCE: VITRUE.COM �

FREQUENCY �

REACH �

AFFINITY �

EFFICIENCY �

BUY NOW!�

FREQUENCY �

REACH �

AFFINITY �

EFFICIENCY �

CONVERSION�

HOW CAN YOU TURN THIS POTENTIAL �INTO REAL BUSINESS OPPORTUNITY?�

3 QUESTIONS:�

WHAT EXACTLY ARE ‘SOCIAL MEDIA’?�

WHY ARE SOCIAL MEDIA RELEVANT TO MARKETING?�

HOW CAN RETAILERS IN ASIA HARNESS SOCIAL MEDIA?�

SOME ‘BEST PRACTICE’ SOCIAL MEDIA �CASE STUDIES FROM THE RETAIL SECTOR �

IKEA’S ‘SOCIAL CATALOGUE’ �

OBJECTIVE:�RAISE AWARENESS OF A NEW IKEA�

STORE WITH ALMOST ZERO MEDIA BUDGET�

APPROACH: UPLOAD PHOTOS OF ROOMS IN THE IKEA SHOWROOM TO FACEBOOK, AND LET PEOPLE ‘TAG’ THEMSELVES AGAINST AN ITEM OF FURNITURE FOR THE CHANCE TO WIN IT IN REAL LIFE �

WHEN SOMEONE IS TAGGED IN A PHOTO ON FACEBOOK, THEIR FRIENDS RECEIVE AN UPDATE THAT SHOWS THE PHOTO AND ITS

ACCOMPANYING STATUS UPDATE �

MORE IMPORTANTLY, THE SIMPLICITY OF THIS COMPETITION, AND THE GENERAL

DESIRE FOR ‘FREE STUFF’ MEANT THAT THE ACTIVITY RECEIVED HUGE PR COVERAGE �

TAG �

NOT ONLY DID THOUSANDS OF PEOPLE �HEAR ABOUT MALMÖ’S NEW STORE,�IT BECAME THE TALK OF THE TOWN�

UNIQLO’S ‘SOCIAL LOOKBOOK’�

OBJECTIVE:�ENGAGE A FASHIONABLE, TECH-SAVVY �

AUDIENCE WITH THE CHAIN’S NEW RANGE �

APPROACH: REINTERPRET THE SARTORIALIST’S BLOG BY INVITING EVERYDAY PEOPLE TO UPLOAD ‘UNIQLOOKS’ – THEIR OWN OUTFITS MADE UP OF UNIQLO ITEMS – AND ENCOURAGE THE PUBLIC TO VOTE FOR THEIR FAVOURITES AMONGST THESE PHOTOS �

THE ACTIVITY HAS PROVEN VERY POPULAR THROUGHOUT THE � WORLD, WITH MANY ASIAN COUNTRIES PARTICIPATING TOO�

BY THEN ENABLING OTHERS TO VOTE �VIA SOCIAL MEDIA, THE BRAND

BROADENED ENAGEMENT TO FRIENDS AND THEIR SOCIAL NETWORKS�

BY ENCOURAGING FASHIONISTAS TO CREATE THEIR OWN LOOKS AND SHARE

THEM VIA SOCIAL MEDIA, UNIQLO �CREATED A NETWORK OF ENDORSERS�

HUNDREDS OF PHOTOS UPLOADED,�AND HUNDREDS OF THOUSANDS �OF VOTES IN SINGAPORE ALONE �

BEST BUY’S�‘TWELPFORCE’�

OBJECTIVE:�REDUCE THE COST OF CUSTOMER SERVICE �

WHILE SIMULTANEOUSLY EXTENDING ITS REACH �

APPROACH: HARNESS THE COLLECTIVE KNOWLEDGE AND ENTHUSIASM OF THE WHOLE BEST BUY TEAM TO RESPOND TO CUSTOMERS’ QUESTIONS

AROUND THE CLOCK VIA A CONSOLIDATED TWITTER ACCOUNT�

APPROACH: ANY MEMBER OF BEST BUY’S TEAM ACROSS THE U.S. THAT HAS REGISTERED TO BE PART OF THE TWELPFORCE CAN OFFER

ASSISTANCE TO CUSTOMERS WHO TWEET QUESTIONS TO THE BRAND �

BY HARNESSING THE POWER OF TWITTER, BEST BUY REDUCED THE

COST OF DELIVERING ANSWERS WHILE ALSO DELIVERING THEM FASTER �

BY TAPPING INTO THE VAST BEST BUY NETWORK, THE BRAND MULTIPLIED THE LIKELIHOOD OF BEING ABLE TO DELIVER CUSTOMERS AN ANSWER �

REDUCED CUSTOMER �COMPLAINTS BY 20%�USING SOCIAL MEDIA�

DIESEL GOES SOCIAL �IN THE FITTING ROOM �

APPROACH: CREATE A BOOTH IN THE FITTING ROOM THAT ALLOWS PEOPLE TO TAKE PHOTOS OF THEMSELVES WEARING ITEMS THEY’RE TRYING ON, AND POST THESE PICTURES INSTANTLY TO

THEIR OWN FACEBOOK PROFILE IN ORDER TO GET FRIENDS’ OPINIONS AND SUGGESTIONS�

CUSTOMERS CAN GET OPINIONS AND OBJECTIVE ADVICE FROM

FRIENDS, EVEN IF THEY’RE NOT ACTUALLY SHOPPING TOGETHER �

DIESEL GAINS FREE EXPOSURE FOR ITS RANGE THANKS TO THE PHOTOS

THAT PEOPLE SHARE TO THEIR FACEBOOK PROFILES �

SUCCESSFULLY INTEGRATED THE REAL-WORLD SOCIAL ASPECT OF SHOPPING

INTO DIGITAL SOCIAL NETWORKS�

STARBUCKS’S�‘MAYOR OFFERS’�

APPROACH: OFFER DISCOUNTS TO THE �PERSON WHO ‘CHECKS IN’ TO EACH �

BRANCH MOST OFTEN ON FOURSQUARE �

CUSTOMERS GET VALUE IN THE FORM OF POTENTIAL DISCOUNTS, AND THE EGO BOOST OF BECOMING ‘MAYOR’

OF THEIR FAVOURITE STARBUCKS �

STARBUCKS GETS VALUE IN THE FORM OF WORD-OF-MOUTH

ADVOCACY, AS WELL AS THE ABILITY TO IDENTIFY ITS TOP CUSTOMERS�

150,000 CHECK-INS AT US �STARBUCKS OUTLETS PER WEEK�

CONVERTING SOCIAL �ACTIVITY INTO REVENUE �

OBJECTIVE:�DRIVE ACTUAL SALES AMONGST A�

FASHION AND MONEY-SAVVY AUDIENCE �

APPROACH: CREATE A BLOG THAT FOCUSES ON GREAT FASHION TIPS AND ADVICE, AND BRINGS EVERYTHING BACK TO HOW EVERYDAY CUSTOMERS

CAN AFFORD THE LOOK BY BUYING DIFFERENT ITEMS FROM TESCO�

APPROACH: EXTEND CREDIBILITY AND REACH BY PARTNERING WITH OTHER INFLUENTIAL BLOGGERS, AND CHALLENGE THEM TO CREATE NEW

LOOKS AND WRITE ABOUT THESE ON THEIR OWN PROPERTIES TOO�

APPROACH: MAKE IT STRAIGHTFORWARD FOR PEOPLE TO ENGAGE AND GET EXTRA INSPIRATION BY EXTENDING THE ACTIVITY INTO EVERYDAY ‘QUICK CONSUMPTION’ SOCIAL MEDIA LIKE FACEBOOK AND TWITTER �

GENERATED MORE THAN�£2 MILLION IN SALES�

FROM SOCIAL ACTIVITIES�

LOTS OF GREAT INSPIRATION�FROM PREVIOUS ACTIVITIES�

…BUT WHAT DOES�THE FUTURE HOLD?�

3 TRENDS SHAPING THE FUTURE �OF SOCIAL MEDIA FOR RETAILERS�

MOBILE DEVICES WILL MAKE �SOCIAL MEDIA UBIQUITOUS �

MOBILE �SEARCH �

SOCIAL �‘CHECK-INS’�

CONSTANT�COMMS�

DYNAMIC�OFFERS�

¥€$  

E-COMMERCE WILL �BECOME MORE SOCIAL �

‘COLLECTIVE BUYING POWER’�

SOCIAL ANALYTICS WILL MAKE �EVERYTHING ACCOUNTABLE �

I D E A �

SO HOW CAN RETAILERS IN ASIA�GET STARTED IN SOCIAL MEDIA?�

8 �STEPS TO SUCCESS�

STEP 1: DEFINE YOUR �BUSINESS OBJECTIVES�

STEP 2: MONITOR AND INTERPRET�YOUR AUDIENCE’S CONVERSATIONS�

STEP 3: UNDERSTAND YOUR � AUDIENCE’S MOTIVATIONS�

STEP 4: IDENTIFY HOW YOU CAN ADD �VALUE TO YOUR AUDIENCE’S WORLD �

STEP 5: SELECT�YOUR PLATFORMS�

STEP 6: STRATEGISE �YOUR APPROACH �

♔♘♗♕♖

STEP 7: TEST�AND LEARN �

STEP 8: RINSE �AND REPEAT �

STEP 1: SET YOUR OBJECTIVES �STEP 2: MONITOR CONVERSATIONS�STEP 3: UNDERSTAND MOTIVATIONS�STEP 4: IDENTIFY HOW TO ADD VALUE �STEP 5: SELECT YOUR PLATFORMS �STEP 6: STRATEGISE YOUR APPROACH �STEP 7: TEST AND LEARN�STEP 8: RINSE AND REPEAT�8 �

3 QUESTIONS:�

WHAT EXACTLY ARE ‘SOCIAL MEDIA’? MM �

WHY ARE SOCIAL MEDIA RELEVANT TO MARKETING? MM �

HOW CAN RETAILERS IN ASIA HARNESS SOCIAL MEDIA? MM �

HYPE OR BUZZ?�SOCIAL MEDIA:�

SIMON KEMP �@ESKIMON �

SIMON.KEMP@WEARESOCIAL.SG �HTTP://WEARESOCIAL.SG �