For fashion, the digital and virtual world is now a fundamental part of the business. And, shifting the focus to the side of the tech and social media giants, the world of fashion represents a strategic field. The game of the big names in the sector is then lit up to win the interest of the fashion world and above all of the new generations of users, often digital natives, who increasingly use social media also as a shopping vehicle. A battle that now sees lined up on one side Metathe parent company of Facebook e Instagramand on the other TikTok.
According to a new report from the Irish consultancy Accenture, social media shopping will reach $ 1.2 trillion by 2025, or 16.7% of all e-commerce spending. Here, therefore, explains why Meta, in recent days, was the protagonist of one of the worst falls on the stock market, burning 220 billion dollars of capitalization. On the occasion of the quarterly data, which also showed lower profits compared to analysts’ expectations, Meta announced for the first time in its 18-year history a decrease in daily users: 1 billion and 929 million at the end of December compared to one billion and 930 million in the previous three months, for a decrease of about one million. Slowing advertising revenue growth, partly due to Apple’s 2021 privacy changes, also weighed on the share price.
Overall, the company is slowing its revenue growth in the face of competition from rivals such as TikTok and YouTube. Meta’s CEO, Mark Zuckerberg, admitted that the company’s sales growth has been hurt because younger people in particular have moved to other platforms. The reference goes to TikTok, the Chinese platform owned by ByteDance Ltd., which dominates social media for its main feature, which is the use of short user-generated videos. On the occasion of the presentation of the data, Meta made it known that it will suffer the greatest competition for the shift of the engagement within its apps towards videos such as Reelwhich monetize at lower rates than Feed and Stories (in the Reels the advertisements are not inserted in the videos, which are very short, but are added between one video and another; therefore they can be easily evaded by disinterested users).
But videos are proving to be the channel most in tune with the fashion world. And TikTok’s success story, which hit 1 billion monthly active users in September, confirms that. Last year the British Fashion Council announced TikTok as the lead partner for The Fashion Awards 2021. Also, the hashtag #FashionTikTok has exceeded seven billion views and ad hoc appointments such as the TikTok fashion month, the month of fashion shows and a celebration of fashion. Likewise, the use of influencers is now a reality on Tik Tok and allows fashion brands to connect with end users.
Here, therefore, explains the heated game between social media in the field of fashion. If TikTok seems to have an advantage precisely for the use of the video channel, on the other hand, he emphasizes Vogue Business, “Meta’s only advantage is its aggressive drive towards shopping; in recent years, it has rapidly rolled out technology that helps people purchase what they see on Instagram, specifically, including in-app checkout, computer vision to find shoppable versions of products seen on images, and live video purchases. The integration between Facebook and WhatsApp is also increasing to allow brands to create showcases, call stores, upload inventory and communicate with customers ”.
Meta’s other ace in the hole is called Metaverso and it is from here that its rebranding was born. Meta, focusing very decisively on the virtual reality sector and in the construction of the metaverse, an area in which fashion and luxury are also watching very carefully. However, these investments are currently at a loss. The segment Reality Labs di Meta ended the quarter with an operating loss of $ 3.3 billion.
As reported by Vogue Business“Meta is sacrificing its core business model for its fascination with the metaverse,” he said Rachel Jones, associate analyst at data and analytics firm GlobalData, in a statement. “Betting big on the metaverse isn’t a bad thing, but it will take at least another decade to really start, and the overwhelming number of daily Meta users on Facebook and Instagram indicates intensifying competition for user engagement with other platforms. “.