Bulletin of Social Informatics Theory and Application ISSN 2614-0047

Vol. 6, No. 1, March 2022, pp. 13-20 13

https:doi.org/10.31763/businta.v6i1.439

Instagram performance analysis of micro, small, and medium

enterprises: a case study in the fashion sector

Ahmad Saufi Maulana a,1,*, Agung Andhika F. a,2, Balqies Savina a,3, F.ti Ayyu Syaidul L a,4,

Fachrul Kurniawan b,5

a Universitas Negeri Malang, Malang, Indonesia
b Universitas Islam Negeri Maulana Malik Ibrahim Malang, Malang, Indonesia
1 ahmadmaulana.1805356@students.um.ac.id ; 2 agungandhikaf.1805356@students.um.ac.id; 3 balqies.savina.1805356@students.um.ac.id; 4

f.ti.1805356@students.um.ac.id; 5 fachrulk@ti.uin-malang.ac.id

* corresponding author

1. Introduction

Instagram was established in 2010 [1]. Instagram allows users to snap a photo or video and share
it globally with their followers [2]. Instagram was the third most popular social network among college
students in the United States [3]. On April 12, 2012, Facebook acquired Instagram and continued to
run Instagram as an independent application [4]. Instagram has 100 million monthly active users, 40
million photos are uploaded daily, 8,500 likes, and 1,000 comments are gained per second [5], making
Instagram a worldwide social media platform.

According to The Pew Internet and American Life Project [6], 13% of Internet users are also
Instagram users. Following the Pew survey, individuals who show positive interest in Instagram are
adults between 18-29, African Americans, Latinos, women, and urban residents [7]. Instagram helps
a company to promote its products or services [8]. The point that makes Instagram different from other
social media is that Instagram applies a visual-based strategy [9]. Everything about Instagram is about
photography [10]. Instagram marketing is an effective way to advertise a product, as it is said that a
picture speaks a thousand words. This is significantly more than any other platform, making Instagram
the most beneficial platform for influencers.

Micro Small and Medium Enterprises (MSMEs) are essential to the national or regional economy,
as in Indonesia. The development of MSMEs has a special meaning in efforts to increase economic
growth and reduce a country's poverty rate [11]. For example, from 2011 to 2012, Gross Domestic
Product (GDP) contribution only reached 57.94 percent, while MSMEs contributed 99.9 percent of
the number of business entities in Indonesia and 97.24 percent in employment . So it can be concluded
that growth and development in the MSME sector are often interpreted as indicators of successful
development, especially in countries with low per capita income.

A R T I C L E I N F O A B S T R A C T

Article history

Received December 18, 2021

Revised January 18, 2022

Accepted February 3, 2022

People nowadays rely on social media, which has become a necessity in their
everyday lives. With 13 % of internet users, Instagram is currently the largest
social network. This is an opportunity for Micro, Small, and Medium Enterprise
(MSME) owners who target Instagram users as their market. This paper
analyses the performance of Instagram in selling MSME fashion products,
especially thrift shops. Based on the data, followers, likes, and comments do not
influence the item's sale. The research finds some factors that can increase the
sale of goods on Instagram, such as ads, paid promotions, endorsements, events,
and giveaways. Furthermore, The results deliver strategies to improve sales
through the Instagram platform.

This is an open access article under the CC–BY-SA license.

Keywords

Social media

Instagram

Micro, small, and medium

Enterprise

Thriftshop

Fashion

mailto:ahmadmaulana.1805356@students.um.ac.id
http://creativecommons.org/licenses/by-sa/4.0/
http://creativecommons.org/licenses/by-sa/4.0/

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Maulana et.al (Instagram performance analysis of micro)

Product marketing at MSMEs can be divided into traditional or offline marketing methods and
digital or online marketing methods. These two methods differ in the marketing costs associated with
time, quality, target reach, and the marketing media used [12]. In digital or online marketing, one can
use social media promotion. In the development of MSMEs, social media is very influential in product
marketing because, in this current era, most people use Instagram as a medium to find references when
buying a product.

In Indonesia, Facebook applications such as WhatsApp and Instagram can aid entrepreneurs and
Micro, Small, and Medium Businesses (MSMEs) to get started in business and identify new
opportunities. The applications can, in general, provide MSMEs with some of the benefits of scale
because they enable greater reach to a higher number of better-targeted customers and partners. Of
those MSMEs surveyed, 75% agreed that Facebook applications reduce the cost of marketing, 63%
agreed that the applications reduce customer service costs, and 56% mentioned the lower cost of
research and development. 92% of MSMEs surveyed also said that using Facebook applications
helped them grow their number of customers. In addition to assisting businesses in minimizing the
cost of marketing and sales, Facebook applications can help reduce resource requirements across other
aspects of their operations, which can be critical to the success of MSMEs in their initial growth phase.
74% of MSMEs agreed that Facebook applications help reduce barriers to growth, and 71% agreed
that the apps help them efficiently manage operational staff and processes [13]. This concludes that
most micro, small, and medium enterprises in Indonesia use Instagram to market their products.

However, there are still problems regarding what factors affect the performance of online sales
made by micro, small, and medium enterprises (MSMEs) using the Instagram social media platform,
such as marketing strategies, quality of content on Instagram from the products being sold, and
feedback from sellers. This research compares the performance of social media Instagram on micro,
small, and medium enterprises (MSMEs), focusing on the fashion sector. This research aims to
determine what factors affect online sales performance on Instagram social media, specifically in the
fashion sector.

2. Method

The research method in this study is observation, which directly observes the situation and
conditions of the research from the field [14]. Post observations were made from three Instagram
accounts offering thrift clothes in Jakarta and Makassar. Namely, Instagram accounts A, B, and C.
The number of likes, comments, and availability of items sold from the three accounts were recorded
in tabular form. The data consist of usage, the number of followers, and the overall quality of the
posts. The next step compares the three accounts using tables and charts to examine the elements that
might affect an account’s sales and finds some factors that can increase the sale of goods on Instagram.
Fig.1 shows the research steps.

Fig. 1. Block Diagram of the Method Steps

The research mainly discusses Instagram and its impact on Micro, Small, and Medium Enterprises
(MSMEs). Creating data begins with determining and observing the MSMES’ accounts (Instagram
accounts A based in Jakarta and B and C in Makassar). The data was analyzed and then used to form
an abstract, discussion regarding the influence of Instagram, proposed solutions, and conclusion. The
analytic data in this study is utilized to determine the various types of cases that result in more excellent
sales of the items. To conclude will be carried out based on the document assessment of the study
results.

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Maulana et.al (Instagram performance analysis of micro)

The first Instagram account is MSMEs in the fashion sector, a Korean-style thrift shop in Jakarta.
In sales, this account has a concept divided into several parts ranging from volume 1 to volume 15.
The goods provided are limited to specific stocks. On this Instagram account, every item that has been
sold out will be reported with the caption "SOLD". The concept of selling on this first account is by
opening orders which are carried out for each volume.

In addition to sales, this Instagram account in volumes 14 and 15 there is a giveaway event, which
has the following requirements:

• Follow the account

• Must be active during the volume upload period 14 by commenting & liking as much as
possible.

Whereas point 2 impacts the reach and traffic of this account, on volumes 14 and 15, the number
of comments and likes has increased quite drastically. Parameter of Instagram account A show in
Table 1.

Table.1 Parameter Table

Description Amount
Followers 3700

Total Post 179

Item for Sale 144

Sold Item 125

Non-Sold Item 19
a. Parameter Table of Instagram Account A

The second Instagram account is for a thrift shop located in Makassar. This account has a concept
in sales, which is divided into several chapters from chapter 1 to chapter 5. The goods provided are
also limited by only having one stock of each type to be sold. Every item sold out will be reported
with the caption "Sold, No restock". One uniqueness of this Instagram account is the hashtag
#dtvready to indicate products that have not been sold in the account. Buyers do not need to look at
existing posts individually if they want to buy or see items that are still available. The concept of
selling on this account is by ordering via direct message (DM) or through the Shopee e-commerce
platform. Parameter of Instagram account B show in Table 2.

Table.2 Parameter Table

Description Amount
Followers 43.900

Total Post 67

Item for Sale 62

Sold Item 54

Non-Sold Item 8
b. Parameter Table of Instagram Account B

Instagram account C is MSMEs in the thrift shop sector. Founded on June 10, 2020, this account
focuses on women's clothing, such as sweaters and shirts. This account has a concept in sales where
each item is displayed on one Instagram feed. The goods provided are limited to 1 stock per product.
Items sold out will be reported with the caption "SOLD". Parameter of Instagram account C show in
Table 3.

Table.3 Parameter Table

Description Amount
Followers 10.200

Total Post 197

Item for Sale 185

Sold Item 178

Non-Sold Item 7
c. Parameter Table of Instagram Account C

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Maulana et.al (Instagram performance analysis of micro)

3. Results and Discussion

Table 4 shows the various marketing strategies of each merchant. Some use Instagram ads,
giveaways, or endorsements to reach more account visitors. Merchant A uses Instagram ads as its
marketing strategy, B's account uses endorsements, while C creates events and makes giveaways for
its marketing strategy. It can be said that the quality of the content is pretty good for all of the accounts.
In this case, each Instagram account has a different way of carrying out its marketing strategy.
Marketing on social media platforms is more effective and less expensive than traditional marketing
[15].

Table.4 Comparison Table

Accounts

Feedback Advertising Strategy Content Quality

Likes Comments Instagram

Endorsement Event Product

Image

Quality

Clear

Product

Description

A 8460 2012 Yes No Yes

average,

in each

post, the

product

image

quality is

quite

good,

looks

detailed,

has

original

images,

and uses

a model

Each post

caption

contains the

following:

Product

name,

brand, size

(LD), and

additional

information

(such as

condition,

model

description,

materials,

etc.)

B 1691 13 No Yes No

Each post

has pretty

good

product

image

quality

and uses

original

images.

Each post

caption

contains the

following:

Product code,

price, and

conditions

(several posts

attach the

product

brand)

C 12022 167 No No Yes

average,

in each

post, the

quality of

product

images is

quite

good.

Looks

detailed,

original

images.

Each post

caption

contains the

following:

product code,

price,

size (LD),

and additional

information

(such as

condition,

model

description,

materials,

etc.)
d. Comparison Table of Parameter Instagram Accounts A, B, and C

Moreover, there is an advantage that the communication involved with the social media
phenomenon provides both the means for customer-to-customer interactions and customer-to-
business interactions and business-to-customer interactions [16]. Social media platforms allow
message recipients to interact with authors and convey messages to the entire community [2]. From
all data in the table, does it all affect the sales figures for each account? In the following, we present
several parameters with the sales figures for each account using a chart.

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Fig. 2 shows that there is no correlation between followers and sold items. B has many followers
but has few items sold.

A's Instagram account has 3,700 followers and 125 sold items. B's Instagram has 43,900 followers
and 54 sold items. This is a high number of followers but has a low number of sold items. Moreover,
account C, with 10,200 followers, is lower than Instagram B and bigger than Instagram account C but
has the highest sales among the three. It shows that the number of followers does not affect the items
sold.

Fig. 2. Comparison Chart Followers Ratio and Sold Item of Instagram Accounts A, B, and C

Between the establishment of each account until April 14, 2021, data of likes, comments, and sold
items are shown in Fig. 3.

Fig. 3. Comparison Chart Like Ratio, Comment Ratio, and Sold Item of Instagram Accounts A, B, and C

As in Fig. 3, Instagram accounts A has many likes and comments, specifically 8,400 likes and
20,120 comments, with the number of sold items as many as 125. Even though account A has a
relatively large number of comments compared to the other two accounts, sales on account A are not
the highest. Account B has 130 likes and 1,691 comments and has the lowest sales, 54 items. As for
account C, it has 12,022 likes and 167 comments, with 178 sold items. Even though it has a small
number of comments, sales on account C are the highest compared to the other two accounts.

3.7

43.9

10.2

125

178

100

120

140

160

180

200

A B C

Followers Ratio 1:1000 Sold Item

84.6

16.91

120.22

201.2

1.3
16.7

125

178

100

150

200

250

A B C

Like ratio 1:100 Comment Ratio 1:10 Sold Item

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According to the data, the number of followers and comments does not impact the item's sale. The
followers tend to like and comment just because they want, not because they want to buy the item.
For example, C's Instagram account has a small number of followers and comments but has high sales
compared to the other two accounts. Many likes and comments can also be caused by an event or
giveaway that requires participants to like and comment a lot.

The data show that followers and comments do not influence the item's sale. The following things
are solutions that might increase sales, such as instagram ads, paid promote and endorsement, and
giveaway and event.

More and more days have changed, and Instagram continues to develop services for users,
increasing the sophistication of its features. So users can quickly meet their needs to do marketing.
For instance, Instagram ads are posts or stories that a business pays to promote a user's Instagram feed.
They can look like regular Instagram posts but are always identified by the label "Sponsored".
Instagram ads can reach and emulate the current follower's demography [17]. With a potential
audience of over a million people, Instagram advertising is the ultimate tool for any social media
marketer. Instagram ads are an effective strategy that's easy to implement.

Instagram uses ad targeting like Facebook Ads to get more specific information about Instagram
users. Target Instagram Ads based on age, location, and gender. In addition, they can also get
Instagram user data based on user interests, hobbies, and connections. Instagram Ads offers a large
selection of ad formats. There are at least three types of ads to choose from, namely images, videos,
and multiple images in one post. Many advertisements on Instagram make users more interested in
actions such as giving likes to posts, comments, or even following the account. Moreover, in the end,
it will be profitable in terms of growing interactions between the brands that suit their market.

Promotion is one marketing component, by promoting institutions, collections, systems and types
of services, information processes approach the user [18]. By using Instagram, ads will help MSMEs
actors for promoting their products. There are many advantages when using Instagram ads.
Advertising using Instagram Ads will assist in obtaining more specific information data about
Instagram users. One way to increase the business brand awareness is through Instagram Ads, such as
making interesting visual posts. With Instagram Ads, they can enter a link that will direct users to their
website.

Another promotional term that is often used by online businesses is paid promotion. Paid
promotion can be defined as a paid promotion service. A person or group of people provides this
service based on doing a social media promotion service with a particular contract value according to
the agreement. Such services could help online businesses promote products or services sold [19].
This service is related to Instagram social media or the telegram profession. Paid promotion service
providers are. Generally, Instagram accounts with a large following: accounts belonging to public
figures, selebgram, artists, or YouTubers. The use of paid promotion should consider account
selection. The account must be trusted and have genuine followers.

While endorsement promotes positive reviews about a product or service provided by public
figures on their Instagram, product owners, goods, and services, give their products to account owners
for free to get positive reviews while promoting them to all their followers. Reviews can be uploaded
via stories or feeds, depending on the agreement between the product owner and the account owner.

Celebrity endorsement shows attributes and product quality, increasing acceptance from
consumers. Because of consumer confidence in celebrity endorsement, consumers tend to transfer
celebrity endorse perceptions against the product [20]. Paid promotion and endorsement could be one
of the creative strategies in the advertisement. It could help any enterprise to boost its turnover widely
and quickly.

A Giveaway is an activity of distributing prizes with certain conditions. Each participant taking
part in the giveaway must meet every requirement according to the giveaway event, from enlivening
posts to making particular challenges. The giveaway contest aims to get feedback in the form of
awareness, profits, promotion of a product, etc. Meanwhile, the public is considered more interested
in the giveaway contest because it is free. This was also evidenced by the high interest of people
participating in the event. That way, enterprises can take advantage of this in new followers,
awareness, and drawing attention. Even though it is not in the form of money, it can significantly

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Maulana et.al (Instagram performance analysis of micro)

affect the product. Many people will use the giveaway products, and in the end, many people also see
the outcome. The hope is that audience will be moved to become customers.

There is a positive and significant influence between social intensity media use for consumptive
behavior [21]. This means that the higher the intensity of the use of Instagram social media, the higher
the consumptive behavior. The attractive shop displays offline and online to attract consumers, and
several promotional offers such as discounts, giveaways, and special price offers to make consumers
more and more compelled to buy the product offered [22]. Some advantages of a giveaway are that it
can increase leads, namely potential customers and engagement. Engagement is the communication
between business actors and customers. That is important to build loyal customers. With good
engagement, it is easier for a business to grow.

4. Conclusion

From the data that has been analyzed, it can be concluded that the number of comments, likes, and
followers do not affect the sale of thrift items. For example, even though Instagram B has the highest
number of followers, which is 43,900, this does not make Instagram B the account with the most
significant sales. Meanwhile, C's Instagram account, with fewer followers than B's, has the most
significant sales of 178 items.

When viewed by percentage, account A's followers are not more than 10% of account B's total
followers, but sales on account A are two times more than account B. The same thing happened to the
number of comments, where the number of comments had nothing to do with the number of items
sold. In general, buyers follow and interact with the selling posts of an Instagram account because
they want to. It does not mean they are interested in buying.

Researchers feel that every business actor who sells products through social media, especially
Instagram, needs to pay attention to marketing strategies. They must implement several sales strategies
like Instagram ads, paid promotions, or endorsements. It can attract more reach tailored to the seller's
target market. This is undoubtedly a good strategy. Suppose you want to introduce the business of an
MSMEs actor to Instagram users. Apart from ads, other marketing strategies include events and
giveaways, which can be an alternative, especially for business actors who want to interact with their
customers.

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