Instagramonomics
/, ɪnste, ɪgɹæm:ɒnɒmɪks
noun
Instagramonomics is the study of the impact of Instagram and other social media platforms on businesses, brands and the economy.
Instagramonomics, a term we coined here at LogChain, seeks to highlight both the advantages and risks these platforms present to brands. Social media platforms have shown the potential to drive brand awareness, influence consumer behaviour, strengthen business strategy, boost sales, and build and track audience engagement. Yet, their ability to spotlight corporate transparency or lack thereof, poses a significant risk, especially in the space of ESG.
This might be shrugged off as “cancel culture”, but the issue runs deeper. The world is evolving, but Generation Z’s buying behaviour is changing even faster. They have higher expectations than ever before, a welcome development. The youngest generation, Generation Z or Zoomers, is driving this change with their demand for sustainable brands.
So, why does this matter? Generation Z, now the largest generation, makes up 32% of the global population. Their preference for sustainable brands isn’t merely a passing trend. In fact, 62% of Generation Z are more inclined to buy from sustainable brands, with 54% willing to spend an additional 10% or more on sustainable products.
Adapting business strategy for this shift in consumer behaviour can lead to sustainable business growth. Particularly in the United States, Generation Z’s disposable income offers a huge opportunity for businesses to evolve and grow.
The next generation of consumers, while discerning, are fiercely loyal. By meeting their demands, companies can grow sustainably and ethically for generations to come.
Zooming into the supply chain and logistics industries: your actions and inactions can significantly impact your customer’s brand image. In today’s world, corporate transparency in the social media age can mean the difference between a positive or negative brand reputation.
This also extends to the realm of Environmental, Social and Governance (ESG) initiatives. For example, one company recently faced a hefty fine for making misleading sustainability claims, underlining the importance of authenticity in communicating environmental practices.
Contrarily, another company issued guidelines cautioning against making potentially misleading environmental claims. These guidelines stress the importance of clear, honest communication to avoid damaging corporate and brand reputations.
In the era of Instagramonomics, end buyers are taking a keen interest in the supply chains you manage. Companies that adapt to this shift by enhancing transparency and prioritising Environmental, Social and Governance goals will thrive.
Are you confident in your practices and your business partners? There’s no evading this change. You can either lead this transformation, positively impacting your business, or become a cautionary tale.
“It is not the strongest of the species that survives, nor the most intelligent; it is the one most adaptable to change.”
— Charles Darwin