UK Home Delivery and Fulfilment 2009

Table of Contents

EXECUTIVE SUMMARY

• Key findings
• Main conclusions
  • (Untitled sub-section)

MARKET ANALYSIS

• Introduction
  • Home delivery channel impacted by decline in big ticket purchases

• Expenditure growth
  • Sales trend turns negative

• Home delivery market by channel
  • Online overtakes store-based sales

• Home delivery market by sector
  • Music & video remains buoyant

CONSUMER RESEARCH SUMMARY

• Key findings
• Introduction
• Customer characteristics
  • Convenience of home delivery appeals to families

• Newspaper preferences
  • Broadsheet readers dominate home delivery

• Delivery frequency
  • Food & Grocery is the key home delivery sector

• Retailers used
  • Amazon continues to improve its offering

• Motivations
  • Delivery is the only option available for many products

• Ordering media
  • Internet continues to dominate

• Satisfaction
  • Majority of shoppers very satisfied

• Barriers to more frequent usage
  • Price of delivery is a deterrent

• Attitudes to home delivery charges
  • Delivery charge is of high importance

• Alternative delivery preferences
  • Delivery next door leads alternative delivery preferences

SECTOR RESEARCH ANALYSIS

• Books
  • Penetration growth is slowing
  • AB customers continue to dominate
  • The internet is the main reason for using home delivery

• Clothing & footwear
  • Number of users remains level
  • Women continue to dominate
  • Time saving is increasingly important

• DIY & gardening
  • Penetration has dropped back
  • Males continue to dominate
  • Price is increasingly important

• Electricals
  • Recession bites
  • Priorities have been reconsidered
  • Home delivery often the only option

• Food & grocery
  • Penetration continues to rise
  • Men realise the convenience of home delivery
  • Time saving is the main driver

• Furniture & floorcoverings
  • Penetration improves despite difficult trading conditions
  • ABs continue to dominate
  • Difficulties transporting makes home delivery popular

• Gifts
  • Penetration fluctuates as users grow
  • Convenience drives men to purchase gifts through home delivery
  • Time saving increasingly important

• Health & beauty
  • Number of home delivery users declines
  • Females continue to dominate the sector
  • Price has become more important

• Homewares
  • Recession has driven penetration down
  • Affluent ABs remain core customer
  • Nature of product suits home delivery

• Music & video
  • Downloads affect penetration
  • ABs dominate the market
  • Low prices are now expected

HOME DELIVERY & FULFILMENT OPERATORS

• Process
• Sector summary
• Key issues
  • Delivery service is crucial as competition intensifies
  • Retailer perspective
  • Solutions/Responses

• Operator services
• e-Fulfilment specialists
  • GSI Commerce (formerly Zendor)
  • iForce
  • MetaPack

• General parcel delivery
  • Business Post Group
  • DPD (formerly Parceline)
  • LYNX Express
  • Nightfreight
  • Royal Mail/Parcelforce
  • TNT Express

• Home delivery specialists
  • Hermes (formerly Parcelnet)
  • Home Delivery Network

• Logistics specialists
  • DHL Exel Supply Chain
  • Groupe Norbert Dentressangle (formerly Christian Salvesen)
  • Unipart Logistics

• Unattended delivery solutions

GLOSSARY

• Abbreviations

TABLES

• Table: Consumer spend on goods sent by home delivery 1999-2009e
• Table: Home delivery channels 1999-2009
• Table: Home delivery market spending by sector 2004-2009e
• Table: Year-on-growth rates by sector 2004-2009e
• Table: Home delivery shares of sector spending 2004-2009e
• Table: Home delivery shopper base and penetration by sector 2008
• Table: Daily newspapers read by home delivery customers 2008
• Table: Sunday newspapers read by home delivery customers 2008
• Table: Reasons for choosing order method 2008
• Table: Popularity of ordering methods for home/work delivery by sector 2008
• Table: Satisfaction with elements of delivery process 2008 on 2007
• Table: Satisfaction by ordering method 2008
• Table: What would make you more likely to use home delivery? 2008
• Table: What would make you more likely to use home delivery? (Continued) 2008
• Table: Books - regional profile of home delivery shoppers 2008
• Table: Clothing & footwear - regional profile vs population 2008
• Table: DIY & gardening - regional profile vs population 2008
• Table: Electricals - regional profile of home delivery shoppers 2008
• Table: Food & grocery - regional profile vs population 2008
• Table: Furniture & floorcoverings - regional profile vs population 2008
• Table: Gifts - regional profile of home delivery shoppers 2008
• Table: Health & beauty - regional profile vs population 2008
• Table: Homewares - regional profile of home delivery shoppers 2008
• Table: Music & video - regional profile vs population 2008
• Table: Reason, order method and main user (m/f) by sector 2008
• Table: Fulfilment issues, solutions and implications 2009
• Table: Fulfilment operator service proposition summary 2009
• Table: GSI Commerce company overview 2009
• Table: iForce company overview 2009
• Table: MetaPack company overview 2009
• Table: Business Post Group company overview 2009
• Table: DPD (Geopost) company overview 2009
• Table: LYNX Express company overview 2009
• Table: Nightfreight company overview 2009
• Table: Royal Mail/Parcelforce company overview 2009
• Table: TNT Express company overview 2009
• Table: Hermes company overview 2009
• Table: Home Delivery Network company overview 2009
• Table: DHL Exel Supply Chain company overview 2009
• Table: Norbert Dentressangle company overview 2009
• Table: Unipart Logistics company overview 2009
• Table: Unattended delivery solutions 2009

FIGURES

• Figure: Home delivery report structure 2009
• Figure: Home delivery purchase process 2009
• Figure: Home delivery process 2009
• Figure: Home delivery market change % 2004-2009e
• Figure: Home delivery channels sales breakdown % 1999-2009e
• Figure: Home delivery market growth by channel 2009e on 2008
• Figure: Reconciliation of mail order, e-retail, TV shopping and home delivery markets 2008
• Figure: Sector shares of home delivery market 2004 and 2009e
• Figure: Percentage of each demographic group using home delivery in the past 12 months 2005-2008
• Figure: Demographic profile of home delivery customer 2008
• Figure: Home delivery household penetration % by working status and income group 2008
• Figure: Home delivery household penetration % by ACORN group 2008
• Figure: Users of home delivery - penetration by size of household 2006-2008
• Figure: Users of home delivery - penetration by type of household 2006-2008
• Figure: % of daily newspaper readers using home delivery 2008
• Figure: % of Sunday newspaper readers using home delivery 2008
• Figure: Average number of home deliveries per year by sector 2006-2008
• Figure: Frequency of home deliveries by sector 2008
• Figure: Top 20 retailers used for home delivery - % of shoppers mentioning 2007 & 2008
• Figure: Retailers used for home delivery - percentage point change 2008 on 2007
• Figure: Top reasons for home delivery 2006-2008
• Figure: Ordering media for home delivery 2005-2008
• Figure: Level of consumer satisfaction/dissatisfaction across all delivery criteria 2005-2008
• Figure: Attitudes towards pricing and delivery 2008
• Figure: If delivery could not be made to your home, where would you like it to go? 2004-2008
• Figure: Books - home delivery shopper base 2005-2008
• Figure: Books - home delivery penetration % of income groups 2008
• Figure: Books - home delivery penetration % of ACORN groups 2008
• Figure: Books - profile of home delivery customer base 2008
• Figure: Books - home delivery household profile by lifestage 2008
• Figure: Books - leading reasons for using home delivery 2008
• Figure: Books - ordering media used for home delivery 2008
• Figure: Books - leading retailers used for home delivery 2008
• Figure: Clothing & footwear - home delivery shopper base 2005-2008
• Figure: Clothing & footwear - penetration % of income groups 2008
• Figure: Clothing & footwear - penetration % of ACORN groups 2008
• Figure: Clothing & footwear - profile of home delivery base 2008
• Figure: Clothing & footwear - household profile by lifestage 2008
• Figure: Clothing & footwear - reasons for using home delivery 2008
• Figure: Clothing & footwear - ordering media for home delivery 2008
• Figure: Clothing & footwear - retailers used for home delivery 2008
• Figure: DIY & gardening- home delivery shopper base 2005-2008
• Figure: DIY & gardening - penetration % of income groups 2008
• Figure: DIY & gardening - penetration % of ACORN groups 2008
• Figure: DIY & gardening - profile of home delivery customer base 2008
• Figure: DIY & gardening - household profile by lifestage 2008
• Figure: DIY & gardening - reasons for using home delivery 2008
• Figure: DIY & gardening - ordering media used for home delivery 2008
• Figure: DIY & gardening - leading retailers used for home delivery 2008
• Figure: Electricals - home delivery shopper base 2005-2008
• Figure: Electricals home delivery penetration % of income groups 2008
• Figure: Electricals - home delivery penetration of ACORN groups 2008
• Figure: Electricals - profile of home delivery customer base 2008
• Figure: Electricals - home delivery household profile by lifestage 2008
• Figure: Electricals - leading reasons for using home delivery 2008
• Figure: Electricals - ordering media used for home delivery 2008
• Figure: Electricals - leading retailers used for home delivery 2008
• Figure: Food & grocery - home delivery shopper base 2005-2008
• Figure: Food & grocery - penetration % of income groups 2008
• Figure: Food & grocery - penetration % of ACORN groups 2008
• Figure: Food & grocery - profile of home delivery customer base 2008
• Figure: Food & grocery - household profile by lifestage 2008
• Figure: Food & grocery - leading reasons for using home delivery 2008
• Figure: Food & grocery - ordering media used for home delivery 2008
• Figure: Food & grocery - leading retailers used for home delivery 2008
• Figure: Furniture & floorcoverings - home delivery users 2005-2008
• Figure: Furniture & floorcoverings - penetration of income groups 2008
• Figure: Furniture & floorcoverings penetration of ACORN groups 2008
• Figure: Furniture & floorcoverings - profile of home delivery customer base (% breakdowns by gender, age and class) 2008
• Figure: Furniture & floorcoverings household profile by lifestage 2008
• Figure: Furniture & floorcoverings - reasons for home delivery 2008
• Figure: Furniture & floorcoverings - home delivery ordering media 2008
• Figure: Furniture & floorcoverings - retailers used to home deliver 2008
• Figure: Gifts - home delivery shopper base 2005-2008
• Figure: Gifts - home delivery penetration % of income groups 2008
• Figure: Gifts - home delivery penetration % of ACORN groups 2008
• Figure: Gifts - profile of home delivery customer base 2008
• Figure: Gifts - home delivery household profile by lifestage 2008
• Figure: Gifts - leading reasons for using home delivery 2008
• Figure: Gifts - ordering media used for home delivery 2008
• Figure: Gifts - leading retailers used for home delivery 2008
• Figure: Health & beauty - home delivery shopper base 2005-2008
• Figure: Health & beauty - penetration % of income groups 2008
• Figure: Health & beauty - penetration % of ACORN groups 2008
• Figure: Health & beauty - profile of home delivery customer base 2008
• Figure: Health & beauty - household profile by lifestage 2008
• Figure: Health & beauty - reasons for using home delivery 2008
• Figure: Health & beauty - ordering media used for home delivery 2008
• Figure: Health & beauty - leading retailers used for home delivery 2008
• Figure: Homewares - home delivery shopper base 2005-2008
• Figure: Homewares - home delivery penetration of income groups 2008
• Figure: Homewares home delivery penetration of ACORN groups 2008
• Figure: Homewares - profile of home delivery customer base 2008
• Figure: Homewares home delivery household profile by lifestage 2008
• Figure: Homewares - leading reasons for using home delivery 2008
• Figure: Homewares - ordering media used for home delivery 2008
• Figure: Homewares - leading retailers used for home delivery 2008
• Figure: Music & video - home delivery shopper base 2005-2008
• Figure: Music & video - penetration % of income groups 2008
• Figure: Music & video - penetration % of ACORN groups 2008
• Figure: Music & video - profile of home delivery customer base 2008
• Figure: Music & video - household profile by lifestage 2008
• Figure: Music & video - leading reasons for using home delivery 2008
• Figure: Music & video - ordering media used for home delivery 2008
• Figure: Music & video - leading retailers used for home delivery 2008
• Figure: Fulfilment and delivery options in the home delivery process 2009
• Figure: Delivery & fulfilment issues for retailers 2009
• Figure: Delivery & fulfilment solutions for retailers 2009