Research: Social media key driver of online retail

The future of e-commerce is "social commerce" as online shoppers, particularly younger generations, are heavily influenced by social media and Web 2.0 technologies, according to Hill & Knowlton's Future of Commerce report.
The report, which surveyed 600 US adults, found social media is "Word of Mouth 2.0" for younger generations, with youths predominately influenced by social media channels.
Twenty seven per cent of Gen Y said they were influenced by online or community blogs, compared to 19 per cent of Gen X participants and nine per cent of Baby Boomers.
Joshua Reynolds, worldwide technology practice director at Hill & Knowlton (H&K) and co-author of the report, said online retailing was being profoundly impacted by the integration of social media into what historically has been a transactional experience.
When asked of the impart of the economy on their shopping habits, around 46 per cent said they shopped less overall, both online and offline, however 50 per cent said they were shopping online more to look for better bargains.