Cashing in on the social media hype

When Ms Yvonne Tan and Mr Vincent Goh started online Korean fashion shop Ministry Of Retail in 2009, they faced the inevitable challenge that all start-ups grapple with.

"Getting people to know about us was a challenge," Mr Goh said. "Online stores at that time usually relied on word-of-mouth to make themselves known."

The husband-and-wife team then decided to take a shot at search engine marketing by buying keyword ads on Internet search engines.

However, that maiden venture fizzled out within three months, as people who shop online do not usually search for clothes unless they know what they want, said Mr Goh, who is well-versed in Web design and programming.

"Most online fashion shoppers don't know what they want until they see the clothes, so they usually prefer to explore within a website rather than search online," he said.

Armed with this important learning point, Ministry Of Retail then turned to social media giant Facebook.

"Online shopping is an emotional experience," Mr Goh said. "To entice people to buy, you need to have pretty pictures, which shoppers can explore on our Facebook page."

The social media engagement effort has paid off for Ministry Of Retail, which has been using Facebook to build brand awareness and generate sales leads since 2009. It made more than $500,000 in sales last year.

Mr Goh said half of the company's sales now come from customers who go on to buy clothes on Ministry Of Retail's website after visiting its Facebook page, adding that 60 per cent of the company's website traffic comes from Facebook.

To build its Facebook audience, Ministry Of Retail relies on a combination of posts featuring new arrivals and promotions, as well as content which resonates with fashion shoppers.

"We also post beauty tips and lifestyle articles, such as how to pick clothes that fit the shape of your body," Ms Tan said.

Ministry Of Retail also runs ads to target shoppers who are not following its Facebook page.

So far, the company has spent a low five-figure sum on Facebook ads each month, but has reaped two to three times more in sales.

The five-employee outfit is now profitable,vMr Goh said, as it minimises its inventory as much as possible.

"We order the clothes from our suppliers only when we receive orders from customers," he said. "The lead time is about two weeks, but our customers are fine with that, as they don't usually need the clothes urgently."

According to a survey released last November by marketing industry association The Chief Marketing Officer Council and Adobe Systems, 90 per cent of marketers in the Asia-Pacific region believe digital marketing - a field which includes search engine, e-mail and social media marketing - could create a competitive advantage for their company. Nearly 63 per cent said customer preferences were driving the move to digital marketing activities, acknowledging that their audiences now expect and prefer digital engagement.

"All the hype's on social media and everyone is on it," said Ms Jolyn Chua, co-owner of bicycle boutique Tokyobike Singapore, which started a Facebook page about three weeks before she opened her Haji Lane store in 2011.

"We sell cycling as a lifestyle, so our content is built around that brand image," she said. "It's about using your bike to get to the market, or taking your kids to school on a bike."

Besides posting cycling-related articles and pictures taken by Tokyobike bicycle owners,

Ms Chua also uses the Facebook page to broadcast announcements and reminders. For example, she posted updates on the store's one-day closure during the haze situation in June, along with reminders for cyclists to wear masks.

Ms Chua also uses the page to suss out customer preferences based on feedback from fans. "If I put up posts on bicycle accessories, I can immediately tell if people like them. That helps us to make decisions on what products to bring in," she said.

Ms Chua said Tokyobike's social media efforts have paid off.

About 60 per cent of the store's visitors already know about Tokyobike through its Facebook page, while 40 per cent are walk-in customers. Each month, it sells about 50 to 60 bicycles, which cost up to $1,200 each.

"As an SME, we don't have big budgets for marketing and public relations, so social media comes in handy for engaging our fan base."

Despite the allure of digital marketing, Ms Chua said SMEs should not set up a social media presence for the sake of it.

"They should do so only if it is relevant to the products they're selling and if their customers are on social media," she said.

"Also, never let someone else manage your social media presence, as you know your brand and products best. If you let an intern manage your Facebook page, it's hard to control the content that goes out."

As for social media campaigns, Ministry Of Retail's Mr Goh advised SMEs to first test what works and resonates with their audience, measure the results and tweak their efforts accordingly.

"What works for one industry may not work for another," he said.

aarontan@sph.com.sg

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