How did things go so wrong for Topshop? Owner Arcadia reported falling operating profits for the year (down 16%), yet Topshop’s finger is still firmly on the fashion pulse.  Its error, then, resides in failing to effectively respond to changes in how millennials shop.

GlobalData research shows that an increasing proportion of millennials spend their free time browsing social media – where they absorb an abundance of fleeting fashion content; among 15-24 year olds regular social media users increased from 83% in 2016 to 88% in 2017.

Topshop, as a principally bricks and mortar retailer, simply can’t react quickly enough – certainly not compared with online pureplays ASOS and boohoo where profits are quite a different story (pre-tax profits at boohoo doubled for the year ending February 2017).

The millennial is not an easy customer; they have high expectations from retailers for low prices, fast fashion trends and constant online engagement – and picture-sharing mobile platform Instagram is where they go to get this.

In the last two years, Instagram use among 15-24 year olds has increased from 44% to 67% in the last two years, and it’s almost doubled within 25-34 year olds. This is in stark contrast to Facebook, where usage has grown a modest 3% for 15-24 year olds and has declined among older 35-44 year olds.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Instagram is no longer just a medium for trend inspiration; it’s increasingly how consumers shop too. In March 2017, 30% of Instagram users had either bought products advertised on the platform or used the ‘shop now’ button. And as Instagram invests more in functionality, this figure is only going to increase.

Retailers that only dabble in social media, and therefore struggle to keep pace, need to carefully think who their customer is and how to best attract them. In these changing times, that may mean greater investment in their online presence, even if that’s at the expense of their store estate.