Bridging the Gap Between Buzz and Buying

While products going viral drives social media buzz, many retailers may need to fundamentally rethink their execution strategies to meet the fast ramp-up in demand for the goods involved. That’s the conclusion of new research from Relex Solutions, which found that while 84% of consumers purchase products they discover on social platforms, most take a measured approach to such buying — only 11% of consumers purchase trending products within 24 hours and 55% take up to a month, suggesting thoughtful consideration over impulse buying.

Despite that, many retailers still struggle to meet trending product demand overall. While social discovery is high, 68% of consumers need to check 2 to 4-plus stores before finding trending items in stock at all, with only 12% finding products at their first store visit. Nineteen percent of consumers give up searching altogether if they can’t find a product immediately.

“There’s clearly an existing gap between social discovery, physical availability, and fulfillment,” said Madhav Durbha, Group VP of CPG and Manufacturing at RELEX Solutions, a supply chain/retail planning platform. “But what our data also underscores is that ensuring consistent availability across the extended purchase consideration window rather than simply chasing viral moments will be what drives long-term success for businesses.”

Relex said it heard directly from retailers and brands that they’re experiencing these challenges too. In surveying 20 major and medium-sized retailers and brands on-site at NRF Big Show this year, 65% reported experiencing viral product-related stockouts, 45% cited inventory carrying costs as their biggest profitability challenge with viral products, and 45% take more than a week to respond to viral demand spikes.

Traditional retail factors also continue to dominate purchase decisions for consumers that retailers should keep in mind. Price (56%) and store convenience (42%) significantly outweigh trend-specific features like a store’s track record of stocking trending items (27%) and dedicated sections for trending products or the staff knowledge of viral products (both 18%) when selecting where to buy. To win viral product sales, retailers should therefore look at cost-efficiency, transparency and accessibility, Relex concludes.

Click here for more from the study.