Online Shopping - Has it Reached its Potential?- Ireland - December 2007

Table of Contents

• Issues in the Market
• Key themes in the market
• Definition
• Abbreviations
• Market in Brief
• The market grows by leaps and bounds
• Slow broadband rollout in RoI hampers potential
• Target markets gather on social sites
• New avenues for online shopping
• UK and Irish online shopping dominated by Amazon and eBay
• Travel is most popular online purchase
• Price drives consumers online
• Consumers watching their back online
• Still growth potential
• Internal Market Environment
• Key points
• Internet users on the rise
  • Figure 1: Forecast of PC market value, by retail sales, NI and RoI, 2000-09
• More consumers using the Internet opens up buying options for consumers
  • Figure 2: Accessed the Internet in last 12 months -- all adults, NI and RoI, 2004 and 2006
  • Figure 3: Internet used in the last 12 months -- all adults, NI and RoI, 2004 and 2006
  • Figure 4: Internet used in the last 12 months, by age, NI and RoI, 2004 and 2006
• Quarter of NI consumers log on every day
  • Figure 5: How often Internet is accessed -- all adults, NI and RoI, 2004 and 2006
• Higher PC penetration makes it easier to shop online
  • Figure 6: PC at home -- all adults, NI and RoI, 2003-06
• Alternate methods of accessing Internet slow to catch on
  • Figure 7: How the Internet is accessed -- all adults, NI and RoI, 2004 and 2006
• RoI consumers lagging behind in broadband stakes
  • Figure 8: Broadband connection at home -- all adults, NI and RoI, 2004 and 2006
• Availability in NI...
• ...in contrast to availability in RoI
• Take-up of broadband in RoI
  • Figure 9: Broadband subscribers per 100 inhabitants, UK and RoI, December 2006
• Holiday and flight purchases rule the roost
  • Figure 10: Air trips to and from Ireland, by number of passengers, NI and RoI, 1999-2004
• Grocery shopping online not a popular option
• Increasing awareness of Internet fraud
• However, cases of fraud remain high
• In-store vs online browsing
  • Figure 11: Agreement with statement ' I really enjoy any kind of shopping' , NI and RoI, 2004 and 2006
• Wet weather drives online sales
• Social networking sites present an opportunity
  • Figure 12: Global users of online social networks, 2007
• Target the right age group
• Bebo dominates Ireland
• Credit cards an essential component of shopping online
  • Figure 13: Penetration of credit and alternative (non-credit) plastic cards, NI and RoI, 2004 and 2006
• Are young consumers being prevented from shopping online?
  • Figure 14: Penetration of credit cards, by age, NI and RoI, 2006
• Alternative payment systems may boost online sales among the young
• Digital distribution
  • Figure 15: UK value sales of downloads, 2002-07
• Retailers attempting to stem the growth of digital distribution
• Practical aspects -- delivery charges
  • Figure 16: Competitive price matrix comparing cost of delivery of DVDs, NI and RoI, 2007
• Broader Market Environment
• Key points
• Consumer expenditure impacts online shopping
  • Figure 17: Consumer expenditure, NI and RoI, 2002-07*
• Fewer children, both a blessing and a curse for online shopping
  • Figure 18: Average household size, NI and RoI, 2000-05
• Population statistics
• The online market thrives as consumers age
• Market Value and Forecast
• Key points:
• Online shopping in Ireland still has much potential
  • Figure 21: Online retail sales, NI and RoI, 2001-12
• The 2004 ' explosion'
• Market potential not yet reached
  • Figure 22: Online retail sales growth index, NI and RoI, 2001-12
• Barriers that could slow market growth
• Evolution of the e-consumer
• Key points
• Evolution of the online shopper
  • Figure 23: The evolution of the e-consumer
• Shoppers broaden their online horizons
  • Figure 24: UK consumer online behaviour in the last three months, July 2007
• What are consumers spending more on -- online?
  • Figure 25: Trends in average spend per online buyer in the previous three months, all categories, 2002-07
• Movers and shakers
  • Figure 26: Top five named websites UK consumers actually purchased from in the last three months, July 2007
• Companies and Products
• Key points
• Pure-play entertainment retailers
• Amazon
• Play.com
• Sendit.com
• Direct2Drive
• Entertainment retailers
• Eason & Son
• Hmv.co.uk and hmv.ie
• Auction sites
• eBay
• Auction.ie
• General retailers
• Tesco.com/tesco.ie
• Superquinn
• Dunnes Stores
• Travel retailers
• easyJet
• Ryanair
• Ticketmaster.ie
• What Consumers Buy Online
• Key points
• Consumer purchases online
  • Figure 27: Purchases via Internet in the last 12 months -- all adults, NI and RoI, June 2007
• NI consumers -- online shopaholics
• Death of the travel agent
• Younger consumers are well travelled
  • Figure 28: Online travel purchases in the last 12 months, by age, NI and RoI, June 2007
• In-home entertainment popular with NI men
• The online changing room
• Broadband keeps RoI consumers unfashionable
  • Figure 29: Shopping preferences, NI and RoI, July 2007
• Worried about shopping online
• The fashion-conscious NI man
• Queuing for tickets -- without the lines or sleeping bags
• RoI consumers serious about entertainment
• Going once, going twice...
• ...sold?
• Online window shopping
  • Figure 30: Response to statement ' I browse online but never buy' , by age, NI and RoI, June 2007
• Consumers doing research before buying
• Appendix
• Regional definitions
• Conversion factors
  • Figure 37: Sterling to euro conversion rates, 2001-07
• Population 2006
  • Figure 38: BMRB Target Group Index (TGI) sample sizes, 2000-06
  • Figure 39: MORI sample sizes, 2007
• Take-up of broadband in NI
  • Figure 40: Households in NI with Internet access, by type, 2006 and 2007
• Reasons for poor take-up of broadband: NI and RoI
• Population tables
  • Figure 41: Forecast population, by age, NI, 2000-20
  • Figure 42: Forecast population, by age, RoI, 2000-20
• Employment statistics
  • Figure 43: Percentage in employment, by age group, NI and RoI, 2000-05
• What the Internet is used for
• Internet demographics
  • Figure 44: Internet used in the last 12 months, by gender, age, marital status, working status, socio-economic group, presence of children and lifestage groups, NI and RoI, 2004 and 2006
  • Figure 45: Broadband connection at home, by gender, age, marital status, working status, socio-economic group, presence of children and lifestage groups, NI and RoI, 2004 and 2006
  • Figure 46: How often Internet accessed, NI and RoI, 2004 and 2006
• Online spending -- detailed demographics
  • Figure 47: Websites actually purchased from in the last three months, 2002-07
  • Figure 48: Trends in average spend per online buyer in the previous three months, all categories, 2002-07
  • Figure 49: Books/CDs/digital music/DVDs/videos purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 50: Clothing/footwear/accessories purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 51: Household appliances purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 52: Computer software or console games/toys/games purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 53: Items from auction sites purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 54: Travel purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 55: Entertainment tickets purchased online, by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 56: ' I browse online but never buy' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 57: Groceries for home delivery purchased online, by gender, age and socio-economic group, NI and RoI, June 2007
  • Figure 58: Electronics or gadgets purchased online, by gender, age and socio-economic group, NI and RoI, June 2007
• Consumer attitudes towards online shopping -- detailed demographics
  • Figure 59: Agreement with attitudinal statements -- all adults, NI and RoI, June 2007
  • Figure 60: Agreement with statement ' Guaranteed security for credit and debit card payments' -- all adults, NI and RoI, June 2007
  • Figure 61: Agreement with statement ' Lower prices than in the shops' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 62: Agreement with statement ' Being able to specify a delivery time and place' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 63: Agreement with statement ' Free postage and packaging' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 64: Agreement with statement ' If I was able to buy from a trusted retailer' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 65: Agreement with statement ' Good customer support/returns policy' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 66: Agreement with statement ' Compensation for delays or missing items' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 67: Agreement with statement ' Guaranteed security for credit and debit card payments' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 68: Agreement with statement ' If I was assured that the item would arrive in good condition' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 69: Agreement with statement ' I Can buy items not available in the shops' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
  • Figure 70: Agreement with statement ' Recommendations from people I know' , by gender, age, socio-economic group and working status, NI and RoI, June 2007
• Consumer typologies demographics
  • Figure 71: NI target groups according to attitudes towards online shopping, June 2007
  • Figure 72: RoI target groups according to attitudes towards online shopping, June 2007