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This could be big for future sales



by Sue Mitchell

Myer and Country Road Group are the first major Australian retailers to explore the latest way of separating shoppers from their cash, partnering with social media giant Instagram to trial shoppable posts.

After 12 months testing shoppable posts in the US, Instagram is launching its new shopping tool in Australia and seven other countries, including the UK, France, Germany and Spain this week, accelerating the social media platform's shift from a site where businesses are discovered to one where business is done.

The new shopping function means that Instagram's 9 million active users in Australia, who follow retailers such as Myer and brands such as Country Road, Witchery and Mimco, can browse and shop by clicking on tags embedded in Instagram posts in their feeds rather than exiting the site and searching the retailers' online stores.

Instagram's global head of business, Jim Squires, likens shoppable posts to old-fashioned window shopping at bricks and mortar stores.

Instagram global head of business Jim Squires says shoppable posts are just like old-fashioned window shopping. Supplied

"When you see something in the window you walk in and see other products and do some browsing, then you decide if you want to make a purchase," Mr Squires told The Australian Financial Review on Tuesday.

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"It's similar to that rather than just rushing right to the register – it moves from being just transactional to being more of a meaningful shopping experience.

"What we wanted to do is create a more seamless experience for people and businesses so when you see something you might be interested in directly inside Instagram, you can get more information about that product, see other related products and ... if you see something you want to purchase you can tap in directly and make a purchase from the business."

(Transactions are completed on the retailer's e-commerce site, rather than within the Instagram app.)

Mr Squires said shoppable tags had been strongly embraced by consumers and brands in the US, where 80 per cent of Instagram users follow businesses.

"Half of daily actives are now following businesses that use these shopping features – there's a lot of interest in the businesses that are doing this," he said.

Mr Squires said US businesses using the shopping function had enjoyed stronger site traffic and conversion rates, citing a small US clothing retailer, Lulus, which specialises in prom dresses. Lulus received 100,000 additional visits and 1200 additional orders after adding shoppable posts.

"For a small business that's really meaningful and they attribute that to this new shopping function," he said.

"We're seeing it resonate really strongly with consumers and we're seeing results for business as people come into contact with those products and make more purchases."

At the moment Instagram users can view shoppable posts through search, visiting a business's profile or receiving a direct message or a notification. However, over time businesses will seek to expand beyond their followers and market to new consumers by promoting shoppable tags.

"We haven't announced that yet, that's something we'll look at in the future," Mr Squires said.

Anna Delaney, national manager for social media and digital partnerships at Myer, which has 310,000 Instagram followers, said customers used the platform for inspiration and ideas on fashion, beauty and lifestyles.

"For Myer the launch of Instagram shopping means we will be able to inspire consumers and drive action with a single piece of Instagram content in a way that's user friendly for business and shoppers alike," Ms Delaney said.

Country Road marketing manager, new channels, Paul Conti said the retailer's customers had fully embraced mobile e-commerce and Instagram in particular had become an important part of its wider marketing strategy. The retailer has 521,000 followers.

"People naturally want to learn more about and shop the products they see and love on Instagram," Mr Conti said.