Majestic and Naked Wines Join Forces – Proving That Social Media is Vital To Survival
Majestic, Britain’s largest wine retailer, has purchased Naked Wines, the online boutique wine shop, in a £ 70 million deal. Naked Wine’s strong social media presence makes it attractive to Majestic, which has recently seen a downturn in sales and profits. What does this say about marketing a product in today’s world?
In this day and age it pays to have a digital presence and that’s what Naked Wines has – a huge social media presence. Not just a good website. Not just a regularly updated blog. But a full social media presence which is important these days. Just look at the facts:
- Consumers in their twenties do not care about advertising. They grew up with DVRs, skipping commercials and they are the least likely to click on banner ads or side bar ads.
- These same consumers read online reviews of products and visit social media sites to decide on purchases. They are most likely to listen to peers (or savvy social media writers who have the voice of their peers).
- Authenticity is key to consumers in their 20’s and 30’s. They want to trust a company and base their purchases on that, not on slick advertising or brand name notoriety. It’s not always about status with today’s younger market.
- It’s all about relationships – today’s consumer wants to engage with a brand, not just be told what to do by it. Having a Facebook page or Instagram account is not enough – the modern consumer wants to interact with the brand, and, in some cases, have a say. This is why crowd sourced wine is gaining notoriety.
- Consumers in their 20’s, 30’s, 40’s and beyond use handheld devices to access the internet on a daily basis – phones, tablets, wearables – more than they use a traditional computer. Social media thrives on these types of devices which means they are highly accessible. Think about it – how much of your news do you get from FaceBook or Twitter on your phone? How often do you open a newspaper or magazine?
The Deal Has Been Made And Includes A Serious Perk
Majestic was clearly aware that being a retailer is not enough – a social media presence with a trustworthy voice, interaction, and good mobile platforms are what sells – they needed an image makeover and who better to do it than Naked?
In the deal Majestic also got the head of Naked Wines, Rowan Gormley. He will head up the combined enterprise and bring the social media savvy to Majestic in an effort to grow their international reputation by having physical and online retail ability with a strong focus on social media.
Can Majestic Be Revitalized?
Of course a flashy FaceBook page and clever Twitter handle aren’t enough. Despite the merger, shares in Majestic have seen a slight downturn but all is not lost. By keeping Naked Wine’s philosophy of capturing the Social Media corner while keeping physical storefronts open, Majestic will get twice the bang for its buck. The retailers will operate separately but the goal is to have Naked Wines and its leadership boost Majestic’s shares.
What Will Make Or Break The Future Of Majestic?
In addition to social media, Majestic will need to focus on all of the things important to today’s consumer, especially the current millennials, who will be in the market longest.
- Reasonable Pricing. Despite the fact that millennials are doing okay financially, they are savvy and like to save. Providing good wines at fair price points will be helpful to attracting and retaining this client base. And that’s important since they will be around for the next seventy years.
- Brand Loyalty. As explained above, millennials are less likely to be wooed by a specific brand because of advertising or perceived status. However, once they find something they like they are highly loyal. Majestic needs to get them in now, make them happy, and then can expect to keep them as loyal customers.
- Social Responsibility. Millennials view a company’s contribution to the greater good as paramount in supporting a brand. This is why they wear Tom’s shoes. The company donates a pair of shoes to children in need every time a pair is purchased. This is not lost on millennials who despite their care in the world often participate in slacktivism. Knowing that their money is going toward the greater good is more attractive than participating or volunteering – especially for those starting out in the workplace. Many are likely to be in business for themselves as entrepreneurs or freelancers with limited time to give back.
Keep an eye on Majestic and Naked – it will be interesting to see if they study the trends and spending habits of what should be their target market. If they do, they’re likely to see huge, sustainable growth.