The Impact of the Social Media on the Cultural and Economic Trends in the Modern World - Research Paper Example

The Impact of the Social Media on the Cultural and Economic Trends in the Modern World: A Critique of the New Digital Economy Introduction The new digital economy has evolved as a term used to describe the evolution of products and services from traditional systems to electronic and computerized forms which are available on computers, mobile phones and similar devices[ CITATION Cor09 \l 1033 \m Coy13 \m Her12]. The new digital economy has culminated in the modification of the systems, methods and processes within which these extremely new products are also marketed[ CITATION Her12 \l 1033 ]. It is typical for people to prefer to purchase products online than through the use of normal purchasing channels of going to shops and making purchases from shops. One of the biggest influences of the modifying terrain of transacting business is the social media which provides an unconscious system and medium through which many people converge, interact and exchange information[ CITATION Gho12 \l 1033 ]. The hypothesis put forward for this paper is that: the social media has had a major impact on users and this has transformed the cultural and economic practices and impacted on the fashion industry with an emphasis on blogging and social media marketing. The aim of this paper is to identify the political economic perspectives in today’s world and the impact of the social media on users as well as cultural and economic practices in the world. The following pointers will form the core highlights of the study: 1. A critical review of the social media and its roles in the lives of people; 2. An assessment of the impact of social media marketing on fashion consumers; 3. An analysis of the aggregate impact of the social media on cultural and economic practices around the world; 4. An evaluation of the ways through which social media and blogging has impacted on the fashion industry. This paper fundamentally aims at identifying the main influence and impact of the social media on the way in which individuals and groups of people perceive cultural and social matters and systems. To this end, the paper will critique various secondary sources in order to draw conclusions and inferences on the impact of social media on current trends and processes. Literature Review This section will involve a critical review of secondary sources and other documents to lay the theoretical and definitive framework. To this end, the literature review will evaluate fundamental definitions and ideas that form the basic framework and discussions in this topic. Also, the literature review will integrate important elements and aspects of theories and concepts that are important in providing the parameters within which discussions and analysis can be done. New Digital Economy The new digital economy is an economy based on digital technologies[ CITATION Tap12 \l 2057 ]. This implies that the new digital economy is steeped in the fact that it is a system that enables people to transact various forms of business activities over digital systems and processes. “The world economy is now characterised by sluggish growth in the West with a shift in power to the East, and value driven customer sand rising risks everywhere. At the same time, the downturn has hastened the adoption of key technologies, mobility, cloud computing, business intelligence and social media – that are transforming businesses and sparking a new wave of wealth creation, particularly in the emerging world”[ CITATION Oxf13 \p 2 \l 2057 ]. This implies that there is a general change and a trend through which the society has been modified in such a way that businesses particularly in the developing world are becoming digitalised and modified. The global digital economy has come of age and this has led to a third wave of Capitalism. Secondly, the digital divide has been modified and moved to the East and nations in Asia and the southern continents are more prone to becoming digitalised in order to carry out their activities There is a dramatic growth in electronics and electronic commerce due to the fact that there are more computers and there is an increased access to the Internet[ CITATION Hal13 \l 2057 ]. This has caused changes in measures of conducting business and transactions and there is a general change in policy frameworks in different countries around the world. Also, communication infrastructure changes have contributed to the growth of the digital media because there is a general process and system through which nations have invested heavily in digitalised communications[ CITATION Ale10 \l 2057 ]. Therefore the need for better economic transactions and faster processing and conduct of business has made it a necessity for firms to carry out various business transactions and processes in different parts of the world. The growth and expansion of computers, routers and other hardware has also played a role in the expansion and growth of the new digital economy[ CITATION Mes12 \l 2057 ]. Also, the advancement of technology relating to the transmission devices and processes have led to the creation of a stronger and enhanced position that made it convenient for business transactions to be conducted over the Internet and similar networks rather than through normal and traditional channels[ CITATION Mes12 \l 2057 ]. The availability of support services for online transactions and similar activities like website development and website hosting as well as e-commerce has promoted the conduct of businesses and activities over the digital platforms rather than through normal and standard systems and traditional processes. Finally, the presence and growth of human capital in the industry has led to the creation of professions like programmers and other activities that are conducted over digital platforms as opposed to other traditional and manual processes and systems. The need for the use of platforms and systems on the new digital market has also taken a social dimension because most people conduct social activities and social transactions through the use of digital processes and digital systems rather than manual systems[ CITATION Bri13 \l 2057 ]. This dimension has played a symbiotic relationship with the growth of ecommerce and social media processes and systems. Social Media There are different definitions and views of social media and how it works in around the world and influences businesses, particularly fashion businesses. “Social media is a container within which social life is digitalised.”[ CITATION Lov12 \p 295 \l 2057 ]. This implies that social media is a system or environment within which there is a digital version of social life presented and depicted in the lives of people. Social media sites are electronic social networks in which people can open accounts and interact with others by sharing information through mobile connectivity, blogging, photo sharing and other activities[ CITATION Boy07 \l 2057 ]. Social media is characterised by the fact that it aids user generated content and this turns ordinary individuals into mass communicators[ CITATION Tan121 \l 2057 ]. Social media involves a system and process through which a person can register and join a given social media network or website. When this is done, an individual can form a network which will include adding certain people and given individuals. Through this, the individual can share information and data through the social media platform. Social media is a convergence point for different people, hence, there is a potential for the marketing and promotion of products for various corporate entities[ CITATION Kap12 \l 2057 ]. Social media therefore provides a process through which businesses can get in touch with consumers directly or study trends and processes that relates to consumers[ CITATION Kap12 \l 2057 ]. Social media is therefore a tool that helps and promotes the discounts and relationship development. Loyalty programmes can be designed around the data and information taken and gathered over the social media networks and platforms. This enables the entity to communicate directly or learn about entities through observation of social media accounts and outlets. Communication and the Fashion Industry The garment manufacturing and retail industry has a unique and distinct process and system through which the information marketing and communication can be conducted and carried out[ CITATION Han14 \l 2057 ]. This is because most luxury products and different categories of garments have specific markets which involve different and specific niches within which consumers make purchases[ CITATION Han14 \l 2057 ]. This provides a small and restricted niche within which products can be identified and dealt with. Hence, there is the potential for social media to provide a convergence point for specific fashion and garment consumers to share information. An empirical study identifies that fashion consumers in all countries are sensitive to the pricing of products[ CITATION Lee11 \l 2057 ]. The study also identified that the channel through which a product is sold is important and local products are sold in local outlets whilst international products are often sold via online and other electronic or digital platforms[ CITATION Lee11 \l 2057 ]. Ostentation also plays a role in fixing and defining the prices of fashion products to consumers around the world. Changes in technology and the ability towards mass customisation has led to the creation of a process and a system through which mass customisation and the comparison of prices is key and popular[ CITATION Kim09 \l 2057 ]. Therefore, the issue of pricing, views on ostentation and flexibility of technology play a role in the promotion and marketing of products in the fashion industry. Hence, this creates a gap in the marketing and promotion of different products in the fashion industry and its related and allied processes. Section 1: Fashion Consumers and the New Digital Economy The definition of fashion and luxury is steeped in the view that it revolves around something that is either hard to attain or obtain or something that is rare and one has to pay more to acquire it[ CITATION Jou14 \l 2057 ]. This is the fundamental view of fashion which connects ostentation and high quality products with luxury goods and services. Traditionally, these luxury products and high quality items of great value including clothes and jewellery were sold in upmarket shops in suburbs of cities and malls of major cities[ CITATION Oko07 \l 2057 ]. This is because that is where the rich and wealthy people in society could be targeted. In case of mass production and the production of goods that have a populist appeal, most traders sought to present them to consumers via the central-business districts or downtowns of cities around the world[ CITATION Oko07 \l 2057 ]. This is because these parts of the cities are places that the highest numbers of people can access through conventional transportation routes. So, poorer persons in the society could go to these places easily and acquire these cheaper clothes and fashion products. At the advent of the digital economy, fashion marketing was mainly steeped in the use of what has become known as the traditional 4Ps. This is because everything was done according to traditional systems that did not use computerised or electronic systems[ CITATION Gum12 \l 2057 ]. This involved the following: 1. Price: The prices were fixed for products by the producers in relation to the competition of others who offered similar products. Consumers could compare prices only through window shopping; 2. Place: The sale of products were done through the use of outlets that varied, for cheaper products, the sales were done through cheap city-centre outlets; for luxury goods, boutiques and shops in suburban and transitional zones as well as malls were used[ CITATION Oko07 \l 2057 ]; 3. Product: Products were mainly sold through mass production of cheaper products and bespoke designer products designed by known designers which sold for astronomical prices[ CITATION Pil12 \l 2057 ]; 4. Promotion: This was mainly through brand marketing for cheap fashion products and modelling events in major cities around the world for luxury brands[ CITATION Gum12 \l 2057 ]. This was mainly done through the traditional media like radio and television. Thus, based on this, there was an approach for producing fashion products for consumers around the world. This was done through traditional systems and practices that were usually devoid of electronic platforms as we have it today in the 21st Century. The new digital economy and its impact has created a lot of changes and modifications for the fashion industry and how the fashion industry is ran and carried out. First of all, prices are fixed by a stronger involvement of consumers because consumers have the opportunity to compare prices by means of a click of their phone or computers. The ability to compare prices has forced consumers to become better bargainers and they are able to come up with positive and improved methods of compelling producers to make competitive price offerings to consumers since the competition is fierce and opportunities are given to consumers in a much easier fashion[ CITATION Ric12 \l 2057 ]. This has caused so many competitive processes and activities that cause business in the fashion industry to interact and come up with good prices and offerings. In terms of place, most businesses now sell online through the Internet and hence, they have to present their products in such a way that they are able to display their products over the Internet and take payments over the Internet[ CITATION Bri13 \l 2057 ]. This is one of the biggest revolutions that the new digital economy has brought to the fashion industry. Hence, people are able to find ways and means of making purchases online and also comparing prices before they do so. The new digital economy has also caused products to change. According to authorities in the field of fashion management, there has been a continuous trend from bespoke designing to mass customisation because more businesses can now conveniently take orders and use cheaper methods and processes to customise products than it was in the 1970s[ CITATION Oko07 \l 2057 ]. This was the tradition as it existed before the Industrial Revolution when a few people in places like France and New York were rich enough to afford extremely expensive products from fashion designers. However, in today’s world, it is much cheaper to take orders through the new digital economy and design products to meet consumers’ tastes. This has widen the population of people who could afford these products from luxury shops and bespoke manufacturers. Promotion in the fashion industry today is done through the use of various online platforms and processes like the use of Internet marketing and other things. This is because of the fact that more people converge online and the new digital economy has changed the social patterns of discussions and gatherings to include people who converge on online platform. This has changed the traditional marketing processes in the fashion industry to different automated tools and systems. All-in-all, it can be said that the new digital economy has altered the social and economic systems and this has affected the way fashion products are designed, marketed and sold to consumers. Thus, the effect of the new digital media is strongly felt in the fashion industry and a lot of things herein has changed significantly. Section 2: Social Media and the Marketing of Fashion Products The social media creates a system and process through which different people can converge and discuss things. Naturally, this creates a situation in which people are going to talk about things that are important to them and try to make referrals and give advice. Weber identifies that the social media has a natural fit for the fashion industry. This is because fashion thrives in discussions and other recommendations that are made by a person (particularly women) to other persons[ CITATION Web12 \l 1033 ]. “What you wear is inherently meant to be shared, as it’s first and foremost a representation of yourself — one that many like to broadcast out for all their friends to see.”[ CITATION Web12 \p "ara 2" \l 1033 ]. This implies that people will want to share the idea of what they are wearing and the kind of fashion they indulge in. The social media provides a propitious outlet for this because people can share their pictures on most social media outlets. Hence, there is a natural compatibility between the social media and the fashion products. The assertion in the paragraph above seems to relate to the needs and expectations of ordinary people who tend to desire to share their fashion trends and processes with the public. This is because members of online communities and other societies might want to discuss their things within a limited circle and if they have a good thing, they will want to be at the centre of attraction and get all the attention that comes with it. Some psychologists identify aspects of the way the human mind works and this seem to provide some kind of explanation for the role of social media and the role it plays in influencing people[ CITATION Cha99 \l 1033 ]. The concept of chameleon effect is presented by these psychologists to explain the tendency for people to imitate gestures and postures of people around them in an unconscious manner and fashion[ CITATION Lak03 \l 1033 ]. This implies that there is an unconscious section of the human mind that enables people to naturally copy and imitate others in their activities and processes without giving it much thought[ CITATION Cha99 \l 1033 ]. This chameleon effect is a strong and ever-present in the activities and imitation of people who use social media. This is because where a person sees another person wearing a given fashion product, they are likely to have a desire to imitate that person because of an unconscious desire and unconscious expectation to try to imitate this person in question. The chameleon effect therefore provides the basis to identify that the desire to mimic various patterns and trends in the fashion industry is natural and inherent in nature. Therefore, the social media becomes a natural and propitious system through which fashion can be shown and presented in order to get people to become interested in it. Aside the natural trend and tendency to mimic good fashion, there is also a desire and conscious effort to try to promote various brands through the social media system and outlets. The importance and competency of the social media in promoting fashion advertisements and marketing drives involve the inherent competency of the social media to promote interactivity[ CITATION Pre12 \l 1033 ]. This leads to three main pointers that can be easily utilised by major fashion entities around the world: 1. Interactivity 2. Brand recognition 3. Customer relations Interactivity implies that there could be discussions and other contacts that will be made online that can get people interested in certain products on the markets. This includes the presentation of continuous articles and the writing and rewriting of information about various products and services. As this is done, ordinary social media users can also add their voices by giving comments or sharing their opinions about issues and matters. This naturally culminates in some kind of interpersonal connection between customers and the producers of fashion brands. This is a strong tool and advantage that social media has which no other outlet has. This is because in the traditional media, consumers are told what good fashion is. They cannot share their views on what they prefer or what should be done to enhance things or improve things. Brand recognition is about the promotion or exposure of a firm’s brand to consumers in different parts of the world. Since pictures and high volumes of information can be easily shared on social media, it is easy and fairly straightforward for companies to present their brands and expand its exposure through the use of social media outlets. This will naturally make the brand more attractive and preferred within a given network and system. Customer relations refer to the ability of fashion companies to build relationships and connect with clients. This is a two-way affair in which consumers can make their views heard in fashion companies. This will improve their relationship with the company. On the other hand, fashion entities and fashion companies can gauge consumer views and expectations. From there, the company can streamline its affairs and make changes to its strategy and processes without having to spend too much money in to gather this valuable information. Section 3: Case Analysis of the Link between Social Media, Blogging and British Luxury Brands The previous section establishes that in theory, social media provides an ideal and propitious system through which firms can potentially market their fashion products and build a rapport with clients. The inherent nature of people to copy others adds to the ability to create an impact or effect on consumers because consumers get the chance and opportunity to interact on these social platforms and they can discuss important elements and aspects of a given fashion house on the social media. However, how do British fashion brands and luxury firms utilise these benefits and advantages of social media in marketing and promoting their products and services? This section of the essay examines this into details. Read More