How social media fosters consumer engagement [Interview]

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Why do some products enjoy instantaneous success, while other fade away without a trace? At this year’s Fi Europe, Euromonitor International consultant Linda Lichtmess will discuss how the emergence of social media as a key channel of consumer interaction is reshaping how companies position themselves – and is even influencing the pace of innovation.

“Of course, celebrities promoting brands is nothing new,” she says. “Think of George Clooney endorsing Nespresso. But this sort of thing has changed rapidly with the emergence of new platforms.”

Lichtmess notes that influencers began to make their presence felt through the promotion of beauty and fashion brands on platforms like Instagram and TikTok. This has now spilled over into food and drink brands. A huge number of products – iced tea is a good example – are currently endorsed online by celebrities.

Some products are short-lived, while others are still on the market. What is noticeable, says Lichtmess, is that new products are coming online all the time, and that the speed of innovation has been ratcheted up.

Keeping track of new product innovation

At Fi Europe, Lichtmess will show how Euromonitor is not only keeping track of new product innovation, but also following the whole product lifecycle. Her presentation, entitled “From posts to profits: How influencers are shaping food and drink brands”, will outline why some brands succeed while others fail quickly, and how emerging consumer trends are shaping the future of FMCG brands.

“We can see for example where on the market a particular product is appearing, and what flavours are popular in different regions,” she says. “We can see successes and failures and identify certain patterns. The social media influencer angle is quite interesting to apply here, as established brands often ask us why a new brand that has just popped up appears to be so successful.”

Lichtmess notes that many established brands and companies often rely on standing and tradition. The challenge for them is that consumer habits and behaviours – especially among young generations – are changing.

“There are so many trends currently impacting the market,” she says. “Brands need to move with the time and not stand still, to put it mildly. It is noticeable for example that new brands in, say, the energy drink segment are eating into the market share of more traditional brands.”

Making consumers part of innovation

Engaging with consumers, Lichtmess believes, is the key. “It is important to note that consumers want to engage; they want to be part of innovation. Social media is an easy way to achieve this.”

Influencers for example can ask their community about their flavour preferences, and vote. Consumers feel engaged, and the brand stays relevant and connected to its target audience.

“At the same time of course, there is a risk to attaching your product to a particular online personality,” adds Lichtmess. “It is important that your product is seen as an independent brand. The creator economy is a little different of course, with creators bringing their own brand to the market.”

Lichtmess believes that deeper engagement with target audiences through social media is only set to continue. She notes that major brands are investing heavily in this space, and that a whole generation of consumers views social media as their primary source of information.