A Foolish Take: Social Networks Are Sparking Fashion Purchases

Over half of Gen Z and millennial shoppers find inspiration for fashion purchases on social media.

| More on:
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Shoppers are finding inspiration for fashion purchases on social networks, according to a recent study by Yotpo. That isn’t surprising, since many fashion brands are boosting their presence on Facebook subsidiary (NASDAQ: FB) Instagram, Pinterest (NYSE: PINS), and other social platforms.

Chart showing percentage of fashion purchases influenced by social media across four generations

Data source: Yotpo. Chart by author.

Younger shoppers clearly turn to social networks for fashion ideas more than older generations, and it’s helping smaller brands gain ground.

For example, Fashion Nova — an apparel retailer that owns just six brick-and-mortar stores in California — became the most searched-for fashion brand on Google last year, thanks to glowing social media endorsements from celebrities like Kylie Jenner. It now has 16.3 million followers on Instagram and over 10 million monthly viewers on Pinterest.

That’s why Instagram, Pinterest, and others are launching more e-commerce features like “shoppable posts.” Pinterest has an edge in that market: A Cowen & Co. study from earlier this year found that 48% of its users used the platform to find and shop for goods, versus just 10% of Instagram’s users.

Therefore, investors in fashion brands should keep a close eye on their social media presence. Shrewd social media strategies can strengthen tiny brands like Fashion Nova, but lackluster ones can weaken well-established players.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun owns shares of Facebook. The Motley Fool owns shares of and recommends GOOGL, GOOG, Facebook, and Pinterest. The Motley Fool has a disclosure policy.

More on Tech Stocks

Growth from coins
Tech Stocks

Got $1,000? Buy These 3 Under-$20 Growth Stocks to Earn Higher Returns

These under-$20 growth stocks can deliver solid returns in the long run.

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Tech Stocks

TFSA Investors: 3 TSX Stocks You’ll Regret Not Buying on the Dip

Among wide range of investments allowed in a TFSA, now is the time to invest in stocks.

Read more »

Tired or stressed businessman sitting on the walkway in panic digital stock market financial background
Tech Stocks

2 Stocks That Lost Over 50% in 2022

The recovery of the TSX’s tech superstar and a promising high-growth stock that lost more than 50% in 2022 is…

Read more »

Man holding magnifying glass over a document
Tech Stocks

Why BlackBerry Stock Looks Way Too Undervalued After Q1 Earnings

BB stock hasn’t seen any appreciation lately, despite its continued progress on the IVY platform and early signs of the…

Read more »

A stock price graph showing declines
Tech Stocks

BlackBerry Q1 Earnings: The Declining Revenue Streak Continues!

Will BB stock break below $6?

Read more »

A bull outlined against a field
Tech Stocks

After the Recent Fall, it’s Time to Turn Bullish on 2 TSX Growth Stocks

With the kind of lows these TSX stocks have seen, the negatives appear to be priced in.

Read more »

man sitting in front of 3 screens programming
Tech Stocks

3 Ultra-Cheap Tech Stocks to Consider Buying

Three ultra-cheap tech stocks are interesting picks for their favourable business outlooks and long growth runways.

Read more »

Question marks in a pile
Tech Stocks

Crypto Selloff: Has the Bottom Shifted After the Interest Rate Hike?

The measures taken to control the inflation in the U.S. and Canada, including an increase in interest rates, can adversely…

Read more »