UK e-Retail 2009

Table of Contents

EXECUTIVE SUMMARY

• Key Findings
• Main Conclusions

STRATEGIES FOR SUCCESS

• Optimisation the website
  • Winning, Converting and Keeping Online Shoppers
  • Continuous cycle of improvement
  • Effective use of Web Analytics
  • Ensuring website is of interest and value to customers

• Maximising Revenues
  • Targeting Demographic Groups
  • Online Merchandising

• Managing the Downturn
  • Strategies for the recession
  • Exploit being multichannel
  • Exploit the broader customer base
  • Exploit niche categories

KEY ISSUES

• Channel Intricacy
  • Multichannel Retailing Becomes Increasingly Complex
  • More Online Channels

• More Ways to Drive Traffic to Websites
  • Proliferation of Affiliate Sites
  • Increasing Role of Social Media
  • Dominance of Google
  • Influence of Customer Reviews and Forums

• More Fulfilment Requirements
  • Delivery & Fulfilment Operations Grow in Scale
  • Expansion of EU Cross-border e-retail

• Wider Economic Slump
  • Impact of Global Recession

• Fraud & Security
  • Online Shopping Security
  • Card Payment Security

THE FUTURE OF E-RETAIL

• Store of the Future
  • Heigthened Interaction
  • Improved Customer Experience

• Website of the Future
  • Innovate and Differentiate
  • Visual Merchandising Key
  • Widgets Provide Customer Interaction

• Mobile Technology
  • Obstacles to m-Commerce
  • Mobile-friendly Stores
  • Mobiles as a Pretailing Tool
  • Easier Interaction With Customers
  • Mobile Phone Tagging
  • Mobiles Improve Instore Efficiency

MARKET ANALYSIS

• Market Definition & Research Methodology
• Key Market Facts
• Online Shopper Population
• Online Market Expenditure
• How Spending is Channelled
• Spending Forecasts
• Online Retail Sales as a Percentage of All Retail Sales
• Expenditure per head
• Frequency of Purchase & Transaction Values

SECTOR ANALYSIS

• Sector Comparisons
• Online Sector Shoppers by Gender
• Books
  • Major Players
  • Outlook

• Clothing & Footwear
  • Major Players
  • Outlook

• DIY & Gardening
  • Major Players
  • Outlook

• Electricals
  • Base: Online electricals shoppers 15+
  • Major Players
  • Outlook

• Food & Grocery
  • Major Players
  • Outlook

• Furniture & Floorcoverings
  • Major Players
  • Outlook

• Health & Beauty
  • Major Specialists
  • Outlook

• Homewares
  • * Shop Direct Group includes Littlewoods, Littlewoods Shop Direct, Additions Direct, Great Universal, Choice, Kays, Abound, Marshall Ward
  • Major Players
  • Outlook

• Music & Video
  • Digital Downloading
  • Major Players
  • Outlook

CONSUMER ANALYSIS

• Summary
• Consumers Internet Access
• Internet Usage
• Preferred Remote Shopping Channels
• Choosing the Internet to Shop
• Internet Shopping Profile by Age Group
• Internet Shopper Profile by Gender
• Internet Shopper Profile by Socio-demographic Group
• Internet Shopper Penetration by Access Device
• Shopping Frequency & Transaction Value
• Frequent Online Shoppers
• Consumer Attitudes to Online Shopping
• Internet as a Research Tool
• Consumer Use of Multichannel Services
• Finding a Retailer
• Choosing a Retailer
• Loyalty Drivers

GLOSSARY

• Abbreviations

TABLES

• Table: Examples of social media sites with a retail interest 2009
• Table: Fulfilment issues, solutions and implications 2009
• Table: PCI DSS requirements 2009
• Table: Online spending growth 2003-2008
• Table: Shopping population by sector 2013 on 2008
• Table: Online spending by sector 2003-2008
• Table: Sector sales y ear-on-year change % 2003-2008
• Table: Online retail spending sector summary 2013 on 2008
• Table: Online penetration (share of retail) by sector 2013 on 2008
• Table: Online spending by sector (books to furniture) 2003-2013
• Table: Online spending by sector (health to total) 2003-2013
• Table: Online spend change % by sector (books to furniture) 2003-13
• Table: Online spend change % by sector (health to total) 2003-2013
• Table: Online as a % of spend by sector (books to furniture) 2003-2013
• Table: Online as a % of spend by sector (health to total) 2003-2013
• Table: Sector spending breakdown between Internet and the rest 2008
• Table: Spend per head by sector 2008
• Table: Frequency of shopping by sector 2008
• Table: What is important when buying online? % of online shoppers by sector October 2008
• Table: Why buy from one retailer in preference to another? 2008
• Table: Why buy from one retailer in preference to another? ( Continued) 2008
• Table: Sectors A-F breakdown of online shoppers by gender 2008
• Table: Sectors F-Z breakdown of online shoppers by gender ( continued ) 2008
• Table: Online spending on books 2003-2008
• Table: Clothing & footwear spending online 2003-2008
• Table: DIY & gardening spending online 2003-2008
• Table: Electricals spending online 2003-2008
• Table: Food & grocery spending online 2003-2008
• Table: Online furniture & floorcoverings 2003-2008
• Table: Health & beauty spending online 2003-2008
• Table: Homewares spending online 2003-2008
• Table: Music & video spending 2003-2008
• Table: Internet users and online shopper profiles 2008
• Table: Profile of online shoppers 2003-2008
• Table: Online shopping v physical shopping October 2008
• Table: Number of online shoppers by age group 2003-2008
• Table: Online spend by age group - total & per head 2008
• Table: Online spend per head by age group 2003-2008
• Table: Online spend by socio-economic group - total & per head 2008
• Table: Online shopper profile by demographic 2008
• Table: Researching products before purchasing - by sector 2008

FIGURES

• Figure: Strategies for e-retail success
• Figure: Managing the multichannel experience 2009
• Figure: Website optimisation cycle
• Figure: Process of website optimisation
• Figure: Respondents saying consumer views on a website are important 2008
• Figure: Respondents saying consumer views on a website are unimportant 2008
• Figure: Respondents saying other website features are important 2008
• Figure: Respondents saying other website features are unimportant 2008
• Figure: Respondents saying product information and guidance on a website is important 2008
• Figure: Respondents saying product information and guidance on a website is unimportant 2008
• Figure: Respondents saying return and delivery options are important when shopping online 2008
• Figure: Respondents saying return and delivery options are unimportant when shopping online 2008
• Figure: Respondents saying the technical aspects of a shopping website are important 2008
• Figure: Respondents saying the technical aspects of a shopping website are unimportant 2008
• Figure: Respondents saying customer support in an important aspect of an online store 2008
• Figure: Respondents saying customer support is an unimportant aspect of an online store 2008
• Figure: Key issues in online retailing 2009
• Figure: Customer brand interaction more intricate 2009
• Figure: Benefits of instore kiosk 2009
• Figure: Using a mobile to shop 2009
• Figure: Use of affiliate sites 2009
• Figure: Benefits to retailers of utilising social media sites 2009
• Figure: How to maximise benefits of social networking sites 2009
• Figure: Components of a useful retail-related social networking site 2009
• Figure: Marketplace sites consumers have purchased from 2008
• Figure: Online shoppers use of online reviews 2008
• Figure: Managing a successful product review site 2009
• Figure: Home shopping purchasing process 2009
• Figure: Home shopping delivery process 2009
• Figure: Potential benefits of EU cross-border e-retail 2009
• Figure: Retailer barriers to EU cross-border e-retail 2009
• Figure: Consumer barriers to EU cross-border e-retail 2009
• Figure: e-Retail expenditure and y-o-y growth 2008-2013
• Figure: Future of e-retail 2009
• Figure: Key market facts 2008 on 2007 and forecasts for 2009/2013
• Figure: Number of online shoppers and growth % 2003-2008
• Figure: Percentage of adult population shopping online 2003-2013
• Figure: Online shoppers as % of those with Internet access 2006-2008
• Figure: Online shoppers as % of those with Internet access 2006-2013
• Figure: Online spending share of retail 2003-2013
• Figure: Year-on-year growth in online shopping population 2003-2013
• Figure: Percentage breakdown of online spending by sector 2008
• Figure: Value of online retail spending 2003-2013
• Figure: Online sales as a percentage of total UK retail 2008
• Figure: Average online spend per head 2003-2008
• Figure: Online spending per head 2003-2013
• Figure: Average online transaction value & trips per year 2003-2008
• Figure: Why shop for books online? October 2006-2008
• Figure: Books: internet v instore October 2008
• Figure: Books penetration of online shoppers October 2006-2008
• Figure: Which retailers do online book shoppers buy from? October 2007-2008
• Figure: Why shop for clothing & footwear online? October 2006-2008
• Figure: Clothing & footwear: internet v instore October 2008
• Figure: Clothing & footwear penetration of online shoppers Oct 2006-08
• Figure: Which retailers do online clothing & footwear shoppers buy from? October 2007-2008
• Figure: Why shop for DIY online? October 2006-2008
• Figure: DIY: internet v Instore October 2008
• Figure: DIY penetration of online shoppers October 2006-2008
• Figure: Which retailers do online DIY shoppers buy from? October 2007-2008
• Figure: Why shop for electricals online? October 2006-2008
• Figure: Electricals: internet v instore October 2008
• Figure: Electricals penetration of online shoppers October 2006-2008
• Figure: Which retailers do online electricals shoppers buy from? Oct 2007-2008
• Figure: Why shop for food & grocery online? October 2006-2008
• Figure: Food & grocery: internet v instore October 2008
• Figure: Food & grocery penetration of online shoppers October 2006-2008
• Figure: Which retailers do online food & grocery shoppers buy from? October 2007-2008
• Figure: Why shop online for furniture & floorcoverings? Oct 2006-2008
• Figure: Furniture & Floorcoverings: internet v instore October 2008
• Figure: Furniture & floorcoverings penetration of online shoppers October 2006-2008
• Figure: Which retailers do online furniture & floorcoverings shoppers buy from October 2007-2008
• Figure: Why shop for health & beauty online? October 2006-2008
• Figure: Health & beauty: internet v instore October 2007
• Figure: Health & beauty penetration of online shoppers Oct 2006-2008
• Figure: Which sites do online health & beauty shoppers buy from? October 2007-2008
• Figure: Why shop for homewares online? October 2006-2008
• Figure: Homewares: internet v instore October 2008
• Figure: Homewares penetration of online shoppers October 2006-2008
• Figure: Which sites do online homewares shoppers buy from? October 2007-2008
• Figure: Why shop for music & video online? October 2006-2008
• Figure: Music & video: internet v instore October 2008
• Figure: Music & video penetration of online shoppers Oct 2006-2008
• Figure: Have you ever downloaded free music files from the Internet? October 2005-2008
• Figure: Which retailers do online music & video shoppers buy from? October 2007-2008
• Figure: Internet access by gender 2006-2008
• Figure: Internet access by age 2006-2008
• Figure: Internet access by socio-economic group 2006-2008
• Figure: Internet access by device 2008
• Figure: Mobile broadband penetration 2008
• Figure: Uses cited for the internet 2008
• Figure: Internet use breakdown by gender 2008
• Figure: Use of remote shopping channels by gender 2008
• Figure: Use of remote shopping channels by age group 2008
• Figure: Use of remote shopping channels by class 2008
• Figure: Consumers preference of shopping method October 2008
• Figure: Consumer satisfaction with online retail 2008
• Figure: Penetration: online shoppers % all adults by region 2008
• Figure: Profile of online shoppers by age group 2006-2008
• Figure: Number of online shoppers by age group 2006-2008
• Figure: Online spend by age group 2006-2008
• Figure: Age breakdown of internet food & grocery shopping usage 2008 %
• Figure: Age breakdown of internet non-food shopping usage 2008 %
• Figure: Online shoppers breakdown by gender 2006-2008
• Figure: Number of online shoppers 2006-2008
• Figure: Total online spending by gender 2003-2008
• Figure: Average spend per head by gender 2003-2008
• Figure: Online gender split of shopper numbers by category 2008
• Figure: Socio-economic profile of internet shoppers 2006-2008
• Figure: Number of online shoppers by class 2006-2008
• Figure: Total online spending by socio-economic group 2006-2008
• Figure: Penetration by device - % of users shopping on internet 2008
• Figure: Average number of online shopping trips in the past 12 months by gender and total 2006-2008
• Figure: Number of online shopping trips in the past 12 months by age 2006-2008
• Figure: Average transaction size by age 2006-2008
• Figure: Frequent online shoppers (10+ times a year) 2003-2008
• Figure: Consumer attitudes to online shopping: security issues 2008
• Figure: Consumer attitudes: retailer reputation preferences 2008
• Figure: Consumer attitudes to online shopping: value issues 2008
• Figure: Consumer attitudes: logistical/technical issues 2008
• Figure: Researching before purchases by demographic 2008
• Figure: Click & collect penetration - pay online or instore 2008
• Figure: Top 10 methods of finding a website 2006-2008
• Figure: Top10 reasons shoppers buy from one site over another 06-08
• Figure: Reasons online shoppers return to websites 2008