From the days of flyers and telephone calls to the evolving world of social media content and tailored online advertising, brands and businesses are constantly thinking of new ways to gain exposure and sell their products to customers.

Thanks to the power of social media, almost every company includes platforms like Facebook and YouTube. From TikTok to Instagram, it’s all part of a strategy to reach new audiences and increase sales.

You’ll already know that “influencer marketing” has been the way forward for many marketing professionals. Tapping into the success of everyday people who’ve taken the internet by storm has been seen as the logical way to go about it.

But, with high follower counts comes the high price you’ll have to pay to get social media users—who are bombarded by brand deals—to pay attention. Even if you opt for an influencer with fewer followers, you can never guarantee a return on investment.

Today, we look at how new tactics are being used to corner the social media market, including User-Generated Content and the phenomenon of “unboxing”.

Unique touches over fake presence

The traditional use of influencer marketing, where you pay a social celebrity to post your product on their platform, is a dying art. The facts and figures certainly back this up, especially around the use of fake followers.

According to a report in 2019, fake followers cost advertisers $1.9 billion, with companies “ripped off” for the price they paid for sponsored posts. It’s no small cost for a market said to be worth $8.5 million in the same year—based on advertising spend.

But it’s not just fake followers that point to influencer marketing being less effective than it once was. In the same year, American internet sensation Ariana Renee had to cancel her own clothing range after failing to sell the minimum 36 T-shirts required to start her first shipment, despite having a following of 2.6 million on Instagram. 

Examples like this has got brands thinking. How can they promote their products in a way that people on social media will share it, without having to be paid a small fortune for the pleasure?

The answer in a nutshell—User-Generated Content (UGC). In simple terms, UGC is any content, whether it be videos, text, or audio, that’s shared by social media users. For brands, it’s a means to get creative and add personal touches to their products and packaging. This will have people reaching for their phones to post about it without hesitation.

Personalisation has boomed in recent times, with everything from personalised wrapping paper to personalised candle holders available online. It’s a trend that even celebrities are on board with. David Beckham’s 45^th birthday celebrations saw Victoria give him his presents wrapped in paper printed with his own face!

It’s more than plausible to say that people want more unique, personal items these days, with the world of social media playing a key role in the desire for personalisation. If you think about it for a second, what is more likely to be shared on social media, a shopping bag with a brand name on it, or one that’s been designed to feel like it’s special to a specific individual and nobody else?

To quantify this from a financial point of view, it’s estimated that the global market for personalised gifts will rise to $38 billion by 2021. This provides a closer look at what direction things are heading in.

Unboxing–the never-ending phenomenon

With a continuous conveyor belt of products to choose from, there comes the opportunity for trends to emerge on social media. One of the most popular ones right now is known as unboxing.

Recognised in the Oxford Dictionary, ‘unboxing’ is defined as:

‘An act or instance of removing a newly purchased product from its packaging and examining its features, typically when filmed and shared on a social media site.’

Search for ‘unboxing’ on YouTube and you instantly get a sense of how popular it’s become. A channel known as ‘Unbox Therapy’ has amassed 17.1 million subscribers since its creation in 2010, with over 3.7 billion views in that time, with viewers tuning in for the excitement of unboxing the latest products.

Not only do unboxing videos fuel anticipation of what’s inside, but it always gives key information on the product itself. This is a big deal for consumers, and a recipe for success when brands think of new ways to present their latest craze.

Unboxing is not some sort of look into the future, it’s an established way to present and digest content right now. As of 2019, YouTube channel Ryan’s Toy Reviews, where youngster Ryan unboxes the latest toys and reviews them with his parents, was worth a whopping $26 million.

Personal reviews, not just views

It’s clear to see that the days of brands relying on social media megastars to post about how much they love the product they’ve just been paid handsomely to share are over. It just doesn’t yield the same results that it used to.

Now people want to see more personalised branding and opinions from the people in the position to blog, vlog and talk about. Not only that, but the everyday person also wants to share what they buy on social media. Making simple changes to packaging, adding unique touches, and even handwriting a note to fit inside the box are all ways for companies to up their UGC game.

Article researched by UK commercial print company: Where The Trade Buys.

If your business is on the receiving end of serious creditor pressure, the next step is likely to be legal action to force your business into making debt repayments. The severity of legal action can gradually increase over time if you no longer have the necessary funds to fulfil liabilities. The best way to protect your business is to fight the threat face-on by raising finance to repay your debts or to seek a company rescue or closure solution.

What action can a creditor take against my business?

A creditor will need to demonstrate that every possible avenue to recoup funds has been taken before issuing a winding up petition against your business to force it into liquidation. Here are some of the ways a creditor can launch legal action against your company to recover outstanding funds:  

Statutory Demand – A statutory demand is the first step which is a formal demand requesting payment, failure to fulfil the statutory demand could result in serious legal action. The statutory demand should be fulfilled in 21 days by either making the payment or entering into a payment agreement with the creditor(s).

County Court Judgment (CCJ) – A County Court Judgment is a form of legal action taken against a business, calling for the urgent repayment of debts. Failure to settle the debt within one month could leave a permanent mark, adversely affecting your credit rating as the CCJ will remain on your record for six years.

Winding up petition – If a statutory demand or County Court Judgment is ignored, a creditor can issue a winding up petition, which if granted by the court could lead to the forced closure of your insolvent business. This action can only be taken if the debtor owes £750 or more.

How can you dispute a winding up petition?

Object – If you have reasonable grounds to object the winding up petition, you should do this early to avoid advertisement in the Gazette which could draw other creditors to your door. The London Gazette publishes legal notices concerning insolvency action involving UK businesses.

Make repayment – If you have the funds to repay creditors, you should make repayment to prevent the court from issuing a winding up order. If the court date is set and you have repaid the debt, you must still attend court and show formal evidence illustrating settlement of the debt.

Negotiate payment plan – You can avoid company liquidation and the winding up petition can be withdrawn if you enter negotiations with the creditor and arrive at an agreement to repay the debt.

Seek formal insolvency procedure – If your business requires professional support to get your finances in order, seek urgent advice from a licensed insolvency practitioner to explore the business rescue or closure options available to your business. Taking a route as such could protect your business against legal action from creditors and the looming threat of forced closure.

What route can I take to rescue my business from debt?

Time to Pay Arrangement – A Time to Pay Arrangement (TTP) is a formal agreement with HMRC to restructure your tax liabilities into affordable instalments. A TTP is more likely to be accepted if you propose realistic repayments which are feasible. By spreading your tax payments following an agreement with HMRC, you can allocate any funds to repay your creditors.

Traditional or Commercial Finance – By borrowing funds to repay creditors, you can clear your debtor book, inject your business with cash and invest in your services, stimulating the growth of your business. Traditional finance consists of calling for investment from family and friends or turning to the bank for a business loan. Commercial finance is essentially asset-based finance to fuel working capital and increase cash flow. There are many variations of commercial finance which can be used to stimulate company development.

Company Voluntary Arrangement – Halting legal action from creditors, a Company Voluntary Arrangement is an insolvency procedure used to renegotiate payment terms with creditors to reduce the burden of repayment and to generate returns for creditors.  If your ailing business shows signs of viability and has the potential to generate profits, a CVA is an ideal way to keep creditors at bay and help rescue the business.

Company Administration – If you are experiencing creditor pressure and there is an indication that legal action will be launched against your business, an administration order could protect your business from company liquidation. This is a suitable route for an insolvent business with asset value, as by realising assets to generate funds to repay creditors, the business can avoid liquidation.

The route you take will be ultimately determined by the financial health of your business and the expected rate of survival. Facing the problem later than necessary could lead to the forced liquidation of your company, closing the door to any possible actions of defence. If you act early, you may be able to arrive at an agreement with creditors or seek the necessary support for your business.