Role of Influencers in Increasing Sales within the Fashion Industry
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This report analyzes the role of influencers in increasing sales within the fashion industry. It focuses on the growing importance of fashion influencers in the UK, how they work to increase sales of fashion companies, and the future of fashion influencers within the industry.
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Contents INTRODUCTION...........................................................................................................................1 Aims/hypothesis..............................................................................................................................1 Research Aim:.............................................................................................................................1 Research Objectives:...................................................................................................................1 Methodology....................................................................................................................................1 Method.........................................................................................................................................1 Research philosophy..................................................................................................................1 Research design...........................................................................................................................2 Research method..........................................................................................................................2 Data Collection............................................................................................................................3 Sample.........................................................................................................................................3 Ethical considerations..................................................................................................................3 Result...............................................................................................................................................4 Discussion........................................................................................................................................4 Evaluation(including recommendations for future research)........................................................13 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Influencers currently have significant role in the marketing strategies of various companies. Influencers can be described as people having various social followers on digital platforms like Twitter, Instagram, and YouTube. In order to become an influencer, individual must have power to influence the perception and viewpoint of others in some way. For this report, the undertaken company is H&M which is leading and fastest growing fashion firm having headquarters is in Sweden. The aim of the report is to focus on the role of influencers in increasing sales within the fashion industry. Aims/hypothesis Research Aim: ‘To analyze the role of influencers in increasing sales within the fashion industry’. Research Objectives: ●To understand who fashion influencers are. ●To analyze the growing importance of fashion influencers in UK ●To find out how fashion influencers work to increase the sales of fashion companies, and ●To assess the future of fashion influencers within fashion industry Methodology Method Research philosophy In the research process, research philosophy is an important part as it includes the set of beliefs that are followed for the accumulation, interpretation, and analysis of data. There are basically three types of philosophies i.e., positivism, realism, and interpretivism. Positivism philosophy depends upon the scientific results which are drawn from the quantitative methods. Plus, interpretivism philosophy depends upon subjective results generated from the observations of respondents through qualitative methods. For this specific research, interpretivism research philosophy is selected as this research philosophy is helpful in analyzing how influencers are helpful in improving the sales of fashion companies based on the qualitative research. The study is descriptive in nature so subjective philosophy is required to complete the research. The reason for selecting interpretivism research philosophy is that the nature of this research philosophy is 1
systematic and objective in nature (Stainton, 2020). In addition to this, interpretivism research philosophy focuses on subjective analysis of research problem in significant manner. So, interpretivismresearchphilosophyisselectedtoanalyzetheobservationsandcollected information from the cases and other academic data. Research design Based on information to complete the study, a qualitative research method is identified and selected. Qualitative data such as information in journal articles, newspapers, official websites, and other sources is used to improve the research findings. Further, qualitative research method is used for conducting this study as this method is helpful in understanding how the collection of various empirical materials such as case studies and individual experiences are helpful in conducting the study in significant manner. In addition to this, the analyzed and interpreted data from qualitative research method is also helpful in achieving a clear and better understanding related to research questions. Apart from this, the descriptive research design is also considered to gather significant data related to research problem. The reason of selecting this research design is that this method is helpful in describing the phenomenon or situation in precise and systematic manner. In this particular research, detailed and deep analysis is essential related to the importance of influencers in improving the sales of fashion companies (Opie, 2019). Research method The aim of this research is to understand how influencers are helpful in increasing sales of fashion companiesin UK. Basically,there are two types of research methodsincluding qualitative method and quantitative method. For this specific study, qualitative research method is used to gather significant data. The study is conducted using qualitative research for understanding the types of influencers that are used by the fashion companies to increase sales. Further, there are various methods in qualitative research i.e., case study, interviews, and observations. This research is explorative in nature which is conducted to understand the impact of influencers on increasing the sales of fashion companies so; the adopted strategy is qualitative research method. In order to collect significant information related to research problems, various sources like academic sources, journals, books, official website, newspaper, and magazines are considered to achieve the desired results (Basias & Pollalis, 2018). 2
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Data Collection This is a crucial part of overall research process to gather significant information related to the research problems. For this specific research, data collection process is done with the help of varioussecondarysourceslikemagazines,newspapers,officialwebsite,journals,books, academic sources, and data provided by other organizations. This research is exploratory or descriptive in nature that is helpful in understanding the impact of influencers on increasing the sales of fashion companies. In order to verify this fact, information related to fashion companies of UK is gathered from various sources. The primary data will be collected through the survey designed so that the views of people can be collected. Basically, interpretivism approach is used to complete the research so analysis of documents, unstructured observations, and systematic collection of data are used to gather significant information related to impact of influencers (Kumar, 2019). Information associated with fashion companies of UK will be gathered for this particular study. For instance, annual reports of companies are helpful in conducting information related to the influences used by them to increase sales. In addition to this, articles and journals given by various authors and authenticated companies will be gathered and analysed for collecting significant information. Through all these evidence, important data related to the impact of influencers by fashion brands to increase the sales has been collected so that the study can be completed in proper manner. Sample For conducting the research in significant manner, sample size for this particular research is 25 in which information related to influencers and their impact on companies’ sales (Etikan & Bala, 2017). The respondents for the survey have been selected through convenience sampling method. The number of respondents will be 25 therefore, the sample size will be 25. Ethical considerations The research has been done with utmost sincerity. Everything in the report includingthe findings, analysis, and data has been reported honestly. There is no made-updata in the research. This research does not present any form of contradictory information. This research has been conducted with full honesty and integrity. In addition to this, The research has been conducted with competence as well as carefulness. The data has been properly analysed and examined and all the reckless mistakes have been avoided. All the records of the data have been managed carefully including the research, data gathering, research methodology, as well as others. 3
Result The result of research indicates that, the influencers have significant impact on the buying behaviour as well as it also helps to understand the decision making approach. Through such study fashion industry is able to provide better services according to the demand. Furthermore, the paper provides information about the changing environment which able organization to make decision for sustainable growth. It has been identified that, blog influencers have greater impact on the minds of customers as their review change perception or decision of audience. There has been both negative and positive shift in fashion industry which directly impact on the sales of the company. One of the positive aspect about social media is that, it appeal the global audience through which company have increased the revenue in shorter time span. From the study it has been analysed that, customers are more loyal towards influencers who decide the future sales of fashion industry. Discussion Question 1: Do you buy products online? OptionsFrequency Yes24 No1 4
Interpretation –From the above graph, it can be stated that majority of the respondents, i.e., 24 out of 25 respondents stated that they do buy products online. This is because they think that better product quality is available online, there is a lot of variety and also, there are different deals for different brands. Due to this, the respondents are attracted towards purchasing products from different online websites. On the other hand, only one respondent stated that they do not buy products online because they believed that the product quality might be low and the brands can charge high price for the same. Question 2: What is your age group? OptionsFrequency Below 18 years1 18-25 Years13 26-35 Years10 36-45 Years1 45 Years and above0 Interpretation –From the above graph, it can be stated that out of the 25 respondents, only 1 respondent stated that they were below 18 years of age. 13 respondents stated that they belonged to the age group of 18-25 years. 10 respondents stated that they belonged to the age 5
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group of 26-35 years of age and this helped them to respond during the study in an effective manner. on the other hand, 1 respondent stated that their age group was 36-45 years of age. But it was observed that none of the respondents were in the age group of 45 years or above. Question 3: From where do you mostly do online shopping? OptionsFrequency Websites7 Social media websites1 Mobile Applications16 Others1 Interpretation –From the above graph, it can be concluded that 7 respondents stated that they shop from, online websites as they are convenient. On the other hand, 1 respondent stated that they shop from social media websites such as Instagram and Facebook. 16 respondents out of the remaining respondents stated that they use the mobile applications of various brands in order to shop online. This is because they get an access to a variety of products as well as services. this is also because they are able to compare the prices of different products. Lastly, only one respondent stated that they use other mediums for online shopping. 6
Question 4: Do you know who fashion influencers are? OptionsFrequency Yes21 No4 Interpretation –From the graph, it can be interpreted that 21 respondents stated that they were aware about who fashion influencers were as they have either watched their videos or follow them online. On the other hand, the remaining 4 respondents did not know who fashion influencers are as they did not have any social media accounts and neither they’d read about them anywhere. Therefore, it be said that there is a significant level of awareness about fashion influencers among people. Question 5: Do you follow any of the fashion influencers? OptionsFrequency Yes17 No8 I don’t know0 7
Interpretation –From the above graph, it can be concluded that out of 25 respondents, 17 respondents stated that they follow some of the famous fashion influencers on different social media platforms such as Instagram, Facebook as well as Twitter because they find their content to be relevant and interesting. They also felt that the content shared by the fashion influencers is informativeandhashelpedthemenhancetheirpersonalstyling.Ontheotherhand,8 respondents stated that they did not follow any of the fashion influencers online. Lastly, it was found that none of the 25 respondents stated that they did not know if they followed any fashion influencer or not. Question 6: Do you adhere to the information they share? OptionsFrequency Yes8 No7 Can’t say10 8
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Interpretation –From the above graph, it can be stated that out of the 25 respondents, 8 respondents stated that they adhere to the information that the fashion influencers share on their platform. On the other hand, it was observed that 7 of the remaining respondents stated that they did not adhere to the information that is shared by the fashion influencers and that it is only a goodwayofdistractingthemselvesfromtheirdailyroutine.Lastly,theremaining10 respondents stated that they did not have any idea if they adhere to the information shared by the influencers or not. Question 7: How do you ascertain the validity of information they share? OptionsFrequency By developing trust4 Checking reviews of product15 I just buy products after checking the information shared by an influence 2 Any other4 9
Interpretation –From the above graph, it can be stated that 4 respondents stated that the way in which they ascertain the validity of information the fashion influencers share is by developing a trust on them. On the other hand, 15 respondents stated that they check the reviews of the products for which the influencers share information. Out of the remaining respondents, it was found that 2 respondents stated that they just buy the product after checking the information that is shared by the fashion influencers. And lastly, 4 respondents stated that they ascertain validity of the information in other ways. Question 8: Do you think influencers are next generation marketing channel? OptionsFrequency Yes12 No3 Can’t say10 10
Interpretation –From the above graph, it can be stated that out of the 25 respondents, 12 respondents stated that they think influencers are next generation marketing channel. This is because the content that is created and information that is shared by the influencers is relevant and honest. On the other hand, the remaining 3 respondents did not agree to this while the 10 respondents stated that they were not certain if fashion influencers could be the next generation marketing channels. Therefore, it was observed that there was a need to determine if fashion influencers could really serve to be the marketing channels for the next generation. Question 9: How do you mostly get influenced to buy products? OptionFrequency By viewing their advertisement on television5 By checking their reviews after getting recommended through friends or family 16 When influencers recommend the products4 Any other0 11
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Interpretation –There can be various factors that can influence people to buy a product. It can be stated by analysing the graph that out of 25 respondents, 5 stated that advertisements on the television influence them to buy the products. 16 of the remaining respondents stated that they go through the reviews of the products that are recommended by friends or family. The remaining 4 respondents stated that they get influenced to buy a product because of the fashion influencers recommending the same to them. It was observed that bone of the respondents stated that there is any other factor that influences them to buy products. Question 10: How important do you find influencers for marketing of fashion products? OptionsFrequency Very Important2 Important13 Neutral9 Not important0 Not at all important1 12
Interpretation –It can be interpreted from the above graph that only 2 out of the 25 respondents stated that they believe that fashion influencers are very important for the marketing of fashion products. On the other hand, it was found that 13 respondents stated that fashion influencers are important while one of the respondents stated that they are not at all important for the marketing of fashion products. It was also analysed that 9 respondents were neutral about this fact whereas none of the respondents stated that fashion influencers are not important for marketing and promoting fashion products among the customers. Evaluation(including recommendations for future research) It has been recommended to fashion industry such as H&M to focus on social media platforms like blogs and Instagram as they have large customer base to offer product and service. Quality content is crucial for the company as this provide useful message in a creative manner. Regardless of influencer popularity the absence of good content may fail. Hence, this becomes essential for the company to hire influencer which helps company to increase sales respectively. The influencers have creative mind through which they are able to attract audience and develop positive bond. The further suggestion to fashion industry is to focus on contest and giveaways as in result it increase audience engagement as well as encourage company to explore different ways to capture people attention. It is essential to make proper planning to promote products at 13
large scale. For example, if company wants to launch new purse in this scenario, management can hire influencers as brand ambassador. Such strategy often increase sales and provide sustainable business model. It also suggested that, in the present market customer buying behaviour changes are per the environment. This is vital for fashion industry to constantly take feedback from the loyal customers and make changes in the product and services to gain trust. Apart from this, collaborating with different bloggers is crucial as this leads to brand exposure and it also helps company to generate high rate of return. The first step for the firm is to identify the influencer who is willing to promote the product to its customers. Another strategy which can be used by the company is to make marketing strategy on different social media platform like making short clothing video or commercial video as to make aware about its new product. This is considered as most effective way to capture large people of different age group. This is essential to focus on existing customers by maintaining quality of the product and services. Apart from this, analysing competitor’s strategy is also important as this provide better insight in take corrective action for development and growth. CONCLUSION From the above stated report is has been concluded that, influencers have vital role in fashion industry for increasing sales respectively. For the fashion companies in UK targeting right audience is essential to develop brand image in the market. Apart from this, it manages to provide better experience to their customer which leads to relation building for long duration. The influencer has wider reach which assist company to expand its business in shorter time span. They have ability to connect with the audience which raise brand awareness more effectively. From the research, it has been analysed that, working with fashion influencers company can reduce advertisement cost and drive followers towards the brand. Along with this, it also increases the visibility to the brand at large scale which ultimately leads to profit. Collaboration with the influencers fashion industry in UK can improve the quality of content which increase brand loyalty among the customers. 14
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REFERENCES Books and Journal Stainton, H., 2020.Positivism and Interpretivism: A Simple Explanation. Accessed on 17thMay 2021 fromhttps://tourismteacher.com/positivism-and-interpretivism-simple-explanation/ Stumpfegger, E., 2017.Qualitative Versus Quantitative Research. Accessed on 17thMay 2021 fromhttps://www.munich-business-school.de/insights/en/2017/qualitative-vs- quantitative- Sudha M. and Sheena K. 2017. Impact of Influencers in Consumer Decision Process: the Fashion Industry.Journal of Indian Management,14(3), pp.14-30. Sudha, M. and Sheena, K., 2017. Impact of influencers in consumer decision process: the fashion industry.SCMS Journal of Indian Management,14(3), pp.14-30. Tomovska,E.,2020.TheroleofInstagraminfluencersasasourceoffashion information.Tekstilna industrija,68(4), pp.58-64. Torres, P., Augusto, M. and Matos, M., 2019. Antecedents and outcomes of digital influencer endorsement: An exploratory study.Psychology & Marketing,36(12), pp.1267-1276. Trivedi, J. and Sama, R., 2020. The effect of influencer marketing on consumers’ brand admiration and online purchase intentions: An emerging market perspective.Journal of Internet Commerce,19(1), pp.103-124. Trivedi, J.P., 2018. Measuring the comparative efficacy of an attractive celebrity influencer vis- à-visanexpertinfluencer-afashionindustryperspective.InternationalJournalof Electronic Customer Relationship Management,11(3), pp.256-271. Vaismoradi, M. and Snelgrove, S., 2019. Theme in qualitative content analysis and thematic analysis.Qualitative Social Research, 20 (3). Xiao,M.,Wang,R.andChan-Olmsted,S.,2018.FactorsaffectingYouTubeinfluencer marketingcredibility:aheuristic-systematicmodel.Journalofmediabusiness studies,15(3), pp.188-213. Opie, C., 2019. Research approaches.Getting Started in Your Educational Research: Design, Data Production and Analysis, p.137. Kumar, R., 2019.Research methodology: A step-by-step guide for beginners. Sage Publications Limited. 15