The Effect of Social Media Marketing on Sales Growth of Small and Medium Enterprises in the Fashion Industry in Nairobi County, Kenya

Abstract

Small and medium enterprises in the various sectors of the Kenyan economy have been adopting social media marketing to steer their marketing objectives. The fashion enterprises have not been left behind in adopting and engaging their customers through the social media marketing channels. The traditional channels of marketing that include television, radio and billboard marketing are perceived to be more expensive compared to social media marketing channels, and thus has led to more enterprises switching to social media marketing. However, the local enterprises in the fashion industry still face stiff competition from cheap imported second-hand fashion products from other countries. The local fashion designers also face stiff competition from well-established global fashion brands that have penetrated the Kenyan market. High cost of capital and limited access to financing has also been a major challenge for the fashion enterprises and has led to many of them lacking sufficient resources to implement their marketing objectives. Furthermore, the fashion industry is very dynamic and there exists the challenge posed by the ever-changing consumer preferences in relation to the fashion trends. Lack of market readiness has led to poor performance of the fashion enterprises. The study sought to establish the effect of social media marketing on sales growth of small and medium enterprises in the fashion industry in Nairobi County. The study was anchored on two theories that include Technology Acceptance Model and Social Network Theory that related to the variables under study. The research used descriptive cross-sectional design with the target population comprising of the 210 fashion SMEs in Nairobi County dealing in fashion accessories, bodywear and footwear. The study used a census technique, where all the 210 listed fashion enterprises were studied. Primary data was collected through structured questionnaires. Data analysis was done using the Statistical Package for Social Science Software (S.P.S.S) version 25. Regression analysis was performed to test the hypotheses of the study. The study established that Social media marketing had a positive significant effect on sales growth of small and medium enterprises in the fashion industry in Nairobi County. The study recommends that the fashion enterprises adopt effective social media marketing tools to steer their marketing campaigns and improve sales performance. Furthermore, the marketing strategies adopted should be optimized and enhanced to improve customer service and customer interaction with the fashion enterprises. Through social media adoption, the enterprises ought to share relevant and up-to-date content on their social media platforms to target their customers so as to accrue its benefits that include low costs of adoption and improved interaction between the customers and the fashion enterprises.