Observed Signal · Jun 28, 2023 · Analysis · Source: CMSWire · Impact: 2/5 · Sentiment: Neutral

What Brands Can Learn From Lush's Social Exit

Executive Signal Summary

This CMSWire analysis examines the growing trend of major brands such as Lush, Tesla, Bottega Veneta, and Wetherspoons exiting mainstream social media platforms. The article argues that social media is becoming increasingly cluttered, expensive, and unstable due to walled gardens, algorithm changes, and privacy concerns. It advises brands to rebalance their social media strategies, focusing on social selling, influencer marketing, and community-driven engagement rather than relying solely on organic reach. The piece notes that 96% of business leaders still view social media investment as essential, and that brands spend an average of 32% of marketing budgets on social media. It highlights Lush's successful pivot to digital website and app sales, which contributed to a $34.8 million pre-tax profit in FY 2022 after a loss the prior year. The article also emphasizes the importance of adapting to Gen Z's preference for private, intimate channels and suggests leveraging employee and user-generated content to build trust.

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High Confidence

Analysis of brands leaving social media, relevant to social media marketing strategy but not a major industry event.

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Key Takeaways & Evidence Grounding

  • Lush exited Meta-owned channels and TikTok.
  • Lush reported a pre-tax profit of $34.8 million in FY 2022 after a loss of $54 million in FY21.
  • Brands like Tesla, Bottega Veneta, and Wetherspoons have also gone 'off' social media.
  • 96% of business leaders say social media investments are still essential.
  • On average, 32% of marketing budgets are spent on social media.

Connected Companies & Entities

3 Entities mapped

“brands such as Tesla, Lush, Bottega Veneta and pub chain Wetherspoons, all large brands, have claimed to have gone “off” social media...”

Primary Source Grounding & Direct Attribution
Direct Origin Attribution
Primary Reporting: CMSWire•Published: Jun 28, 2023

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