Task 3 - Sample 1

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3. The impact of nano-influencers on consumer behaviour within the fashion industry 3.1 Introduction In this task, the author will evaluate the impact of nano-influencers on consumer behaviour within the fashion industry. Consumer behaviour will change drastically in the fashion industry due to the emerging theme of nano-influencers. Adegeest (2021a) states that fashion brands have begun to utilise nano-influencers as a critical marketing tool over recent months, and Lewy (2020) asserts that online has never been so vital. How consumers will be purchasing, and their behaviours will change in future as a result of the emerging theme of nano-influencers. 3.2 Reduced decision-making process Prior to The Customer Decision Journey (McKinsey, 2009), the consumer purchase decision-making process was linear, refer to figure 13 ; however, Bosomworth (2012) stated due to noise, two-way communication, alignment and loyalty, the change was needed. Currently, The Customer Decision Journey (McKinsey, 2009), referred to in figure 14 , is a circular journey consisting of four stages: initial consideration, the active evaluation, also referred to as the method of exploring potential purchases, consumers buying brands and post-purchase when experienced by consumers. Nash (2019) suggests consumers are no longer predictable as the CDMP theory suggests, with multiple layers of motivations from different factors; this theory will continue to change over the coming years due to the impact of nano-influencers. As a result of the impact of nano-influencers, fashion brands will need to strategically reconsider the process as nano-influencers will, in future, act as a replacement for steps 1 and 2, Statista (2020b) data shows that 28.8% of UK fashion sales take place online, with the industry seeing a 5.7% growth in 2021. Forest (2021) claims nano-influencers generate 22% more conversations leading to purchases, being 9.8% more impactful. Wiley (2021b) describes nano-influencer content as less like advertisements, consisting of relevant recommendations trusted by consumers; according to Geyser (2020), 69% of marketers are using social media to create brand awareness for fashion brands, see figure 15 , discussing the benefits of

influencer marketing on reach/discovery, driving of sales and product consideration. Norris (2022) describes the fashion industry's constant change in consumer behaviour as unknowing and indirect due to nano-influencer marketing, predicting an increase in spending patterns and alternatives.

BusinessWire (2020) proclaims that 61% of people trust influencers’ recommendations over traditional ads, therefore suggesting there will be a surge from fashion brands trying to work on campaigns alongside nano-influencers in the coming years. Vos (2020) claims that 82% of customers are more likely to purchase due to nano-influencer recommendations and Adegeest (2021b) states that nano- influencers create loyal relationships and growth with dedicated and engaged audiences, therefore alleviating steps 1 and 2, refer to figure 16 for the brand post opinion for influencers. According to Divinic (2020), future budget cuts for the fashion industry are predictable, suggesting nano-influencers will be utilised regularly by fashion brands in future to work cost-effectively, creating a reduced decision-making process, generating more sales. Campestrini (2021) describes nano-influencers as having niches, such as fashion, acting as key partners for proximity markets and driving in- store and online sales. Brands such as PLT have employed influencer marketing from the beginning; PLT as a market leader has recently released several nano- influencer campaigns, see figure 17. Mira (2019) states that ASOS has also

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launched a nano-influencer programme, refer to figure 18 , suggesting that more brands will need to roll this out to stay relevant. Lavey (2021) says staying ahead of the competition is the main focus of fashion brands. Other fashion brands will need to begin working with nano-influencers over the coming years to keep up with the competition the demand for nano-influencers will grow. Consumer behaviour has created an expectation that clothing is available for customers in the fashion industry on a readily available basis, being reachable immediately; this will progress over the coming years as steps 1 and 2 are alleviated. McKinsey (2021b) declares that in the coming years, fashion brands will need to align with the changing customer needs, focusing on the bottom line; according to Kang (2021), purpose-driven consumerism will be on the rise, trust being one of the key factors impacting this, which can be solved by implementing nano-influencer marketing. As for information search, Digital Marketing Institute (2021) say that 49% of consumers depend entirely on influencer

recommendations, and 57% of fashion brands are participating in influencer marketing, highlighting the future growth and demand for nano-influencers with social awareness in the fashion industry.

3.3 Increase in brand loyalty Miller (2021) reported that 3 of 5 people feel loyalty toward specific fashion brands. However, McKinsey (2021a) states that brand loyalty isn’t as resilient as it will be in future, with 30 to 40% of consumers switching brands and retailers. Kopp (2021) defines brand loyalty as positive associations consumers connect with specific brands or products. Raphael’s (2022) study states that 61% of people are loyal to one to five brands; however, this is set to rise in future years due to the emerging theme of nano-influencers due to their greater engagement rates, Helaouet (2019) states that future loyalty programmes should be pitched to customers, as nano- influencers of their brand. Ledikwe (2020) study determined that there is a direct relationship between brand trust and loyalty, and an interrelationship linking brand awareness, brand image, brand trust, brand commitment and brand loyalty. Das (2016) states that brand awareness and trust are essential in building brand loyalty, this can only come from engagement with consumers, and according to Statista (2020a), nano-influencers have 2x the engagement rate of those with 1000000 followers at 4.4%. In the future, fashion brands will need to use nano-influencers to build trust; Morneau (2022) claims that they can build brand awareness as they have a close relationship with their followers and genuine credibility. Edelman Trust (2021) put forward that when choosing brands, 88% of consumers believe trust in the brand is vital, refer to figure 19.

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This ties in with Expectancy Theory (Vroom,1964), see figure 20 , as Rahman et al. (2014) research into ET suggests that customer satisfaction has a direct impact on brand loyalty this being a problem for the fashion industry as Saleh (2016) reported that 30% of online purchases are returned due to not meeting customer satisfaction needs, suggesting nano-influencers could assist fashion brands in future in building their lacking brand loyalty. Nano-influencers will need to be implemented into Expectancy Theory (Vroom,1964) at the effort stage in future for fashion brands to improve competitive advantage and avoid strategic wear out. As social platforms and points-of- sale evolve, so will the nano- influencer to build brand loyalty; an example of a successful increase in brand loyalty through nano-influencer marketing i s Teemu Nurmela working alongside outdoor fashion brand ‘Revolution Race’, see figure 21 .

Task 3 - Sample 1

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