HOT TOPICS: SOCIAL MEDIA, LUXURY BRANDS
The use of smart mobile technologies can effect social change and influence purchasing behavior. While social media are still in the early development stages, we believe they will affect the apparel and accessories industry, as we discuss below. (Kumar, 2006)
Wikipedia defines social media as “the use of web-based and mobile technologies to turn communication into an interactive dialogue.” This includes a potential “network effect” of huge numbers of participants in the conversation, which has significant implications for business. The development of the web has supported new communication tools for consumers and companies alike. Such communication spans the gamut from fashion bloggers to customer feedback and consumer reviews, and corporate-sponsored Facebook pages to comments by “friends.” (John Struat Mill, 2011)
One of the benefits of social media is the elevation of brand advocates from individual word-of-mouth, grass-roots brand supporters to the more viral support that a network creates. These customers provide unpaid authenticity, arguably one of the best forms of marketing—similar to word-of-mouth, but on a potentially far larger scale. (California State Library, 2011)
By far the largest social media platform is Facebook, with 750 million active users worldwide, about one third of whom access the site on their mobile devices. According to a study by ForeSee, a customer satisfaction measurement firm, 81% of shoppers who use social sites use Facebook, 31% use YouTube, and 16% use Twitter. People on these platforms are talking about their brand experiences, and we believe that brand managers need to listen and be a part of the conversation. (Kumar, 2006) Cash flow is very critical to the company or the business will run out of the required working capital. Any business venture requires a working capital and needs to manage the timing of cash paid and cash received. If the timings do not match for most of the times, management will always be stressed out to align these two critical junctures. Once in possession of all required information, the financial function analyzed in depth it in order to quantify the financial impact, to calculate the total cash flow forecasts and if the project is likely to be released. (Kohlbergs)
As we can see that cash levels over the three years have gone down, the reason for the same can be attributed to the fact that company was looking for expansion in future years and lot of payments were paid to suppliers so that international tie ups can be generated. The sale of an online product and application is dependent on how many customers one can reach and what kind of service can be provided to those customers. This is the reason why cash levels have been impacted for the company in next two years.