HOW IS THE RECESSION AFFECTING ONLINE SHOPPING?
A survey released this week shows that despite the current economic state, UK shoppers intend to continue spending online. In total 36% of respondents said they planned to spend more online than on the high street in 2009.
Ecommerce Market Growing
Additionally, online research specialists eMarketer estimate that the ecommerce market in the UK will grow by 14% to over £68.4 billion in 2009. Factors that will help online merchants to capture their share of this spend include multi channel shopping experiences, extra delivery & return options as well as providing value for money. With the current downturn expected to last well into 2010, 34% of people questioned said they were planning to use price comparison web sites in 2009 to find better deals.
The research also highlighted that not having a quality ecommerce Web site as well as a 'bricks and mortar' shop could be the difference between losing money and having to close for good. Late in 2008, five large UK brands, Adams, Zavvi, Whittards of Chelsea, Woolworths and MFI entered administration. All five had poorly performing web sites.
Online Success
In stark contrast, Play.com (which operates 100% online) noted an increase in sales of 24% during the Christmas period. However, even Play.com plans to expand into new areas including clothing and other entertainment in an attempt to protect themselves from what may happen in the coming year.
Other online successes over the Christmas period include John Lewis, who saw 12 times as many people visit their Web site on Christmas Day in 2008 than in 2007. Another 'bricks and mortar' company performing beyond expectations online in 2008 was Domino's Pizza who generated sales of £58 million through their online ordering service alone.
Ecommerce Advantages
The advantages of an ecommerce store are evident; lower overheads, lower staff costs and an ability to react more quickly to market demand. However, it also costs less for consumers to go online than it does to buy petrol, drive and park in a busy town or shopping centre, potentially large savings in a period of recession.
To talk to a consultant to see how you could benefit from an ecommerce solution please either complete our contact form or alternatively give us a call on 0845 058 9050.
