Home Shopping - UK - March 2009

Table of Contents

• Issues in the Market
• Main themes
• Market definitions
• E-commerce
• Mail order
• Direct selling
• Direct response
• Television shopping
• Market shares
• Company profiles
• Abbreviations
• Explanations
• Market in Brief
• Future
• Market size and performance
• The competitive landscape
• The consumer landscape
• Internal Market Environment
• Key points
• Multichannel -- the holy grail?
• The online experience
• The challenge from store retailers
• Internet penetration continues to rise
  • Figure 1: British internet penetration at home/work/place of study or elsewhere, 2003-08
  • Figure 2: British internet penetration at home/work/place of study or elsewhere, by gender, age, and socio-economic group, 2003-08
• But broadband drives e-commerce
  • Figure 3: UK: Type of internet connection, 2006-08
• And has further to go
  • Figure 4: Broadband internet at home usage, by gender, age, and socio-economic group, July 2007 and July 2008
• Where and how consumers access the internet
• Where they access
  • Figure 5: Where consumers access the internet, UK, 2007
• How they access
  • Figure 6: How consumers access the internet, UK, 2005 and 2007
• Broader Market Environment
• Key points
• Mixed impact of changing demographics
  • Figure 7: Implications of changing demographics of the UK population for home shopping market, 2008-13
• The economy
  • Figure 8: UK GDP growth, 1990-2008
• Consumer concerns
  • Figure 9: How concerns of the British population have shifted over the past year and past two months, Feb 2008-Jan 2009
  • Figure 10: Concern over property prices and job/employment prospects, by gender, January 2009
  • Figure 11: Concern over job/employment prospects, by age, January 2009
• Consumer confidence
  • Figure 12: Nationwide Consumer Confidence Index, Jan 2006-Oct 2008
• The Home Shopping Market
• Key points
• Market size
• ' Mail order' sector
  • Figure 13: ' Mail order' * retailers sales, excl. VAT, at current prices, 2004-08
• Home shopping market
  • Figure 14: UK: Home shopping market size, and estimated breakdown by sub-sector, excl. sales tax, 2005-08
• Market trends
• Key product markets performed well in the boom
  • Figure 15: Consumer spending on key home shopping markets, incl VAT, 2003-07
• All change in 2008
  • Figure 16: Consumer spending on key home shopping markets, 2007 vs 2008 (cumulative to Q3)
• Consumer prices
  • Figure 17: Consumer price index on select non-food categories, 1996-2008
• Strengths and Weaknesses
• Retail Competitor Analysis
• Key points
• Expanding...
• ...and contracting
• Direct sellers and direct response struggle too
• Small is beautiful
• Explanations
  • Figure 18: Major home shopping retailers, excl. sales tax, 2007/08
• Market shares and evaluation
  • Figure 19: Leading home shopping specialists, market shares and evaluation, 2007
• Retail Advertising and Promotion
• Key points
• Direct response features prominently
• Mail order houses cut back too
• E-commerce operators buck the trend
  • Figure 20: Home shopping advertising expenditure, by top advertisers, 2004-07
• The Consumer -- Where They Shop
• Key points
• Which channels they use
  • Figure 21: Where they have bought goods in the last 12 months, January 2009
• Who buys where
• Opportunities for grocers
  • Figure 22: Where they have bought goods online in the last 12 months, by gender, age, socio-economic group and special groups, January 2009
• Big book revival in another form?
  • Figure 23: Where they have bought goods from other home channels, in the last 12 months, by gender, age, socio-economic group and special groups, January 2009
• A changing marketplace
  • Figure 24: Use of home shopping channel, UK, 2000-09
• Amazon Europe
  • Figure 50: Amazon Europe: Sales as share of non-store retailers in Europe, 2004-08
• Strategic evaluation
• History
• Financial performance
  • Figure 51: Amazon Europe: Group financial performance, 2004-08
• Retail offering
• Market positioning
• Brands
• Product offer
  • Figure 52: Amazon: B2B Services, 2009
• Pricing
• Operational issues
• Advertising and marketing
• e-commerce and home shopping
  • Figure 53: Amazon: Operational websites, 2009
• Alticor (Amway)
  • Figure 54: Alticor (Amway): Sales as share of non-store retailers in Europe, 2003-07
• Strategic evaluation
• History
• Financial performance
  • Figure 55: Alticor (Amway): Group financial performance, 2003-08
  • Figure 56: Alticor (Amway): Estimated breakdown of sales by market, 2007
  • Figure 57: Amway UK: Financial performance, 2003-07
• Retail offering
• Market positioning
• Brands
  • Figure 58: Amway: Brand list, 2009
• Product offer
• Operational issues
• Advertising and marketing
• e-commerce and home shopping
  • Figure 59: Amway: European websites, 2009
• Ann Summers
• History
• Financial performance
  • Figure 60: Ann Summers Ltd: Group financial performance, 2002/03-2006/07
• Store portfolio
  • Figure 61: Ann Summers Ltd: Outlet data, 2003-07
• Retail offering
• Market positioning
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
• Primondo (Arcandor)
  • Figure 62: Primondo: Sales as share of non-store retailers in Europe, 2004-08
• Strategic evaluation
• Recent history
• Financial performance
  • Figure 63: Primondo: Group financial performance, 2003-07/08
• Store portfolio
• Retail offering
• Market positioning and brands
  • Figure 64: Primondo: Specialty catalogues, 2009
  • Figure 65: Primondo, Own brands, 2009
• Product offer
• e-commerce and home shopping
• Avon
  • Figure 66: Avon Europe: Sales as share of non-store retailers in Europe, 2004-08
  • Figure 67: Avon Cosmetics Ltd: Sales as share of non-store retailers in UK, 2003-07
• Strategic evaluation
• History
• Financial performance
  • Figure 68: Avon: Group financial performance, 2004-08
• Stores
• Catalogues
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operations
• Advertising and marketing
• e-commerce
• Cotton Traders
  • Figure 69: Cotton Traders: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 70: Cotton Traders: Group financial performance, 2003/04-2007/08
• Store portfolio
  • Figure 71: Cotton Traders: outlet data, 2004-08
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• e-commerce and home shopping
• Damartex
  • Figure 72: Damartex: Sales as share of non-store retailers in Europe, 2003-07
• History
• Financial performance
  • Figure 73: Damartex: Group financial performance, 2003, 2004, 2005, 2006 and 2007
• Store portfolio
  • Figure 74: Damartex: Retail outlets, 2002, 2004, 2006 and 2008
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• e-commerce and home shopping
  • Figure 75: Damart: Websites, 2009
• Direct Wines
  • Figure 76: Direct Wines: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 77: Direct Wines: Group financial performance, 2003, 2004, 2005, 2006 and 2007
• Store portfolio
• Retail offering
• Market positioning
• Product offer
• Pricing
• e-commerce and home shopping
• eBay
• Strategic evaluation
• History
• Financial performance
• Group
  • Figure 78: eBay Inc: Group financial performance, 2004-08
  • Figure 79: eBay Inc: Net revenues by category, 2004-08
• Marketplaces
  • Figure 80: eBay.com: Marketplaces performance indicators, 2004-08
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Operational issues
• Advertising and marketing
• Findel
  • Figure 81: Findel: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 82: Findel: Home shopping financial performance, 2003/04-2007/08
• Store portfolio
• Retail offering
• Market positioning
• Product offer
  • Figure 83: Findel: Product ranges by consumer brand, 2009
• Advertising and marketing
• e-commerce and home shopping
  • Figure 84: Findel PLC: Websites by consumer brand, 2009
• JP Boden
  • Figure 85: JP Boden: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 86: JP Boden: Group financial performance, 2003-07
• Store portfolio
  • Figure 87: JP Boden: Outlet data, 2003-07
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
• Lands' End Direct Merchants UK
  • Figure 88: Lands' End Direct Merchants UK: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 89: Lands' End Europe: Financial performance, 2003/04-2007/08
• Store portfolio
• Retail offering
• Market positioning
• Product offer
• Pricing
• Advertising and marketing
• e-commerce
• N Brown
  • Figure 90: N Brown Group: Sales as share of non-store retailers in the UK, 2003-07
• History
• Financial performance
  • Figure 91: N Brown Group: group financial performance, 2003/04-2007/08
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
  • Figure 92: N Brown: Transactional websites, 2009
• Next Directory
  • Figure 93: Next Directory: Sales as share of non-store retailers in UK, 2004-08
• Strategic evaluation
• History
• Financial performance
  • Figure 94: Next Group: Group financial performance, 2003/04-2007/08
  • Figure 95: Next Directory: Estimated e-commerce sales, 2004/05-2008/09
• Store portfolio
  • Figure 96: Next Group: Outlet data, 2003/04-2007/08
• Catalogues
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Advertising and marketing
• e-commerce
• Otto Group
  • Figure 97: Otto Group: Retail sales as share of non-store retailers in Europe, 2003-07
  • Figure 98: Otto UK: Retail sales as share of UK non-store retailers, 2003-07
• Strategic evaluation
• History
• Financial performance
  • Figure 99: Otto multichannel retail division: Financial performance, 2003/04-2007/08
• Store portfolio
• Catalogues
  • Figure 100: Otto Europe: Multichannel retail operations, 2008
• Retail offering
• Market positioning
• Brands
• Product offer
• Advertising and marketing
• e-commerce
• Park Group
  • Figure 101: Park Group: Sales as share of non-store retailers in UK, 2003-07
• History
• Financial performance
  • Figure 102: Park Group: Group financial performance, 2003-07
  • Figure 103: Park Group: Revenue by segment, 2004-07
• Store portfolio
  • Figure 104: Park Group: Outlet data, 2004-08
• Retail offering
• Market positioning
• Brands
• Product offer
• e-commerce and home shopping
  • Figure 105: Park Group: Websites, 2009
• QVC
  • Figure 106: QVC: Sales as share of non-store retailers' sales in Europe, 2004-08
• Strategic evaluation
• History
• Financial performance
  • Figure 107: QVC: Group financial performance, 2003-08
  • Figure 108: QVC: Number of homes receiving QVC, 2003-08
• Store portfolio
• Retail offering
• Market positioning
  • Figure 109: QVC: Shopper age profile, Germany, 2008
• Brands
• Product offer
  • Figure 110: QVC: Sales by product type, Germany, 2007
• Pricing
• Advertising and marketing
• E-commerce
• Redcats Group
  • Figure 111: Redcats Europe: Sales as share of non-store retailers in Europe, 2004-08
  • Figure 112: Redcats France: Sales as share of non-store retailers in France, 2004-08
  • Figure 113: Redcats UK: Sales as share of non-store retailers in UK, 2004-08
• Strategic evaluation
• Tough times ahead
• History
• Financial performance
  • Figure 114: Redcats: Group financial performance, 2004-08
• Store portfolio
• Catalogues
  • Figure 115: Redcats: Main European catalogues/websites, 2008
• Retail offering
• Catalogue brands and market positioning
• Brands
• Product offer
  • Figure 116: Redcats: Sales by major product category, 2008
• Operational issues
• Marketing
• e-commerce
  • Figure 117: Redcats Group: E-commerce sales, excl. VAT, 2003-08
• Shop Direct Group
• Strategic evaluation
• History
• Financial performance
• Underlying profits gather pace too
  • Figure 118: Shop Direct Group: financial performance, 2005-08
• Store portfolio
• Catalogues
  • Figure 119: Littlewoods Shop Direct Group: Catalogues and websites, 2009
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Advertising and marketing
• e-commerce
• Tupperware
• Strategic evaluation
• History
  • Figure 120: Tupperware Group: Brands, 2009
• Financial performance
  • Figure 121: Tupperware Group: financial performance, 2003-08
  • Figure 122: Tupperware Group: Sales by segment, 2008
  • Figure 123: Tupperware Group: European sales & profit as share of group sales & profit, 2003-08
• Europe
  • Figure 124: Tupperware: sales in Germany, 2003-07
  • Figure 125: Tupperware: UK & Republic of Ireland, financial performance, 2002-06
• Store portfolio
  • Figure 126: Tupperware: Sales force by region, 2006-08
• Retail offering
• Market positioning
• Brands/product offer
• Operational issues
• Advertising and marketing
• Appendix -- Broader Market Environment
  • Figure 127: Trends and projections in UK population, by socio-economic group, 2003-13
  • Figure 128: Trends and projections in UK population, by age, 2003-13
  • Figure 129: Trends and projections in UK household size, 2003-13
• Appendix -- Where They Shop
  • Figure 130: Where they have bought goods in the last 12 months, by gender, age, socio-economic group, special groups, region, ACORN group, web use, daily newspaper and main supermarket, January 2009
  • Figure 131: Where they have bought goods in the last 12 months, by gender, age, socio-economic group, special groups, region, ACORN group, web use, daily newspaper and main supermarket, January 2009