Despite the fact that the UK is still technically in recession, consumer confidence has recently been on the increase. As the housing market stabilises, observers (Shutl included) are cautiously optimistic that this year’s Christmas sales will be an improvement on last year’s dismal results. Kelkoo, the online shopping comparison site, are predicting that retail sales in the six weeks to Christmas will jump £832m YoY to £44.7bn.
2009 saw some of the more traditional retail names on the UK high street hit the wall as they were unable to compete with their more efficient rivals. Conversely, online shopping has managed to win market share throughout the downturn and this trend is surely set to continue over the holiday period. Kelkoo estimate that the amount spent online will hit £8.9bn this Christmas, equivalent to 20 pence in every pound spent. IMRG and eDigitalResearch indicate that a massive 93% of consumers will do some of their Christmas
shopping online this year, with 71% of those questioned planning to buy more than half of their presents on ecommerce sites. At the very least, even if they don’t actually make purchases over the internet, shoppers will use the internet to research products and shop around for the best prices. With bricks and mortar retailers being cautious and holding lower inventories this year, many people will be driven online to search for the last remaining must-have gifts for their friends and family.
Price remains the most important reason for shopping with one online retailer over another. However, it is increasingly being shown that people will not put up with poor service and are choosing convenience over price. For example, one of the biggest reasons for not buying Dad’s jumper and Gran’s book online are fears of late delivery or delivery failure.
If online retail sales for the festive period are to continue to grow at an annual rate of 24% (Kelkoo), online and multi-channel retailers will need to put their customers in the driving seat and adopt innovative solutions to provide their shoppers with the services they really demand. Perhaps offering a combination of convenience and value will hold the key to the continued success of ecommerce?
We think so.
Despite the fact that the UK is still technically in recession, consumer confidence has recently been on the increase. As the housing market stabilises, observers (Shutl included) are cautiously optimistic that this year’s Christmas sales will be an improvement on last year’s dismal results. Kelkoo, the online shopping comparison site, are predicting that retail sales in the six weeks to Christmas will jump £832m YoY to £44.7bn.
2009 saw some of the more traditional retail names on the UK high street hit the wall as they were unable to compete with their more efficient rivals. Conversely, online shopping has managed to win market share throughout the downturn and this trend is surely set to continue over the holiday period. Kelkoo estimate that the amount spent online will hit £8.9bn this Christmas, equivalent to 20 pence in every pound spent. IMRG and eDigitalResearch indicate that a massive 93% of consumers will do some of their Christmas shopping online this year, with 71% of those questioned planning to buy more than half of their presents on ecommerce sites. At the very least, even if they don’t actually make purchases over the internet, shoppers will use the internet to research products and shop around for the best prices. With bricks and mortar retailers being cautious and holding lower inventories this year, many people will be driven online to search for the last remaining must-have gifts for their friends and family.
Price remains the most important reason for shopping with one online retailer over another. However, it is increasingly being shown that people will not put up with poor service and are choosing convenience over price. For example, one of the biggest reasons for not buying Dad’s jumper and Gran’s book online are fears of late delivery or delivery failure.
If online retail sales for the festive period are to continue to grow at an annual rate of 24% (Kelkoo), online and multi-channel retailers will need to put their customers in the driving seat and adopt innovative solutions to provide their shoppers with the services they really demand. Perhaps offering a combination of convenience and value will hold the key to the continued success of ecommerce?
We think so.
