E-retail in the UK – 2017

2017-07-27
Price :
Published : Jul-2017
No. of Pages : 199

E-retail in the UK – 2017

Summary

Online channel is forecast to account for 15.8% of total retail spend in 2017, rising to 18.5% by 2022. Clothing & footwear is driving much of this growth, with online spend in this sector rising £7.2bn to 2022, thanks to retailers’ continued investment in the online shopping experience, their strategic focus on mobile and improvements to delivery propositions – largely due to online pure plays like ASOS which are paving the way for multichannel retailers.

Only 34.0% of online shoppers have bought homewares online and just 22.5% of online shoppers have bought furniture & floorcoverings online, demonstrating the importance of the offline channel within these sectors. Homewares and furniture & floorcoverings retailers must offer more competitive delivery and returns options to give shoppers the confidence to buy online and return products should they not wish to keep them.

Online shoppers have a high penetration for social media usage, with 80.1% of mobile shoppers using Facebook. As a result social media platforms offer retailers a prime opportunity to influence online shoppers. For example, 35.0% of mobile shoppers stated they had visited a retailer’s store or website to browse products seen on Instagram. Retailers operating in sectors with low online penetration, like homewares or furniture & floorcoverings, should capitalise on the rise of social media celebrities and send them products to trial and feature in blog or social media posts, to drive awareness and ultimately spend.

Consumers are increasingly shopping online to access a wider range of products available. In 2017, 17.2% of consumers stated they shopped online because the product was not available elsewhere, up 1.6 ppts on last year. This shift in sentiment is driven by online pureplays such as ASOS which offer a broad assortment, a part of which is from brands that sell exclusively online. The retailer sells some brands that have no or very limited UK physical presence, allowing consumers across the UK to purchase these products, meeting demand for a broader choice online and affording ASOS a competitive advantage.

The report “E-retail in the UK – 2017″ offers comprehensive insight and analysis of the online channel in the UK, the main trends and hot issues, major players and consumer shopping behavior.

In depth, this report provides the following analysis –
- The hot issues
- What people buy
- Who shops
- The shopper journey
- Where people shop

Companies mentioned in this report: Amazon, Waterstones, Wh Smith, The Book People, The Works, Book Depository, Wordery, Tesco, Asda, Abebooks.co.uk, iBooks, iTunes, Google Play, Marks & Spencer, Next, ASOS, New Look, Debenhams, Sports Direct, H&M, very.co.uk, boohoo.com, Missguided, B&Q, Screwfix, Wilko, Homebase/Bunnings, Wickes, Thompson-morgan.com, IKEA, John Lewis, Argos, Currys PC World, AO.com, Apple, Game,Boots, Sainsbury’s, Iceland, Morrisons, Ocado, Waitrose, Milk and more, Holland & Barrett, Tesco Wine, Aldi, Moonpig, Thorntons, Graze, Hotel Chocolat, Home bargins, DFS, Dunelm, House of Fraser, The Range, Superdrug, The Body Shop, Lush, Avon, HMV, Shop Direct, Dixons Carphone, PlayStation Network, Steam, Xbox.

Scope

- Sales via smartphone are a key area of growth for the online channel over the next five years, with spend via mobile set to grow 112.0%, overtaking tablet sales in 2018. Mobile growth is predominantly driven by food & grocery and clothing & footwear sectors, with the latter category aided by the ‘see now, buy now’ mentality of consumers frequently browsing social media. Retailers should prioritise investment in mobile platforms and apps to capitalise on the forecast growth in mobile spend.
- Due to its fast online growth, clothing & footwear will further dominate the online returns market, with the category forecast to account for almost 70% of all online returns by 2022. Clothing & footwear retailers must enhance the way products are displayed online to curtail the anticipated rise in returns, using by video content, higher image quality and styled model images.
- Consumers are increasingly shopping online in order to access a wider of products. This year 17.2% of consumers stated they shopped online because a product was not available elsewhere, which was up 1.6 ppts on last year. This is driven by successful online pureplays ASOS and Amazon, the latter using its Marketplace and Handmade platform to supply customers with a huge assortment, with many items unavailable in UK physical stores. Multichannel players should use their online platforms to showcase an extended collection, enabling them to trial ranges, with a view to allocate store space if online sales warrant this.

Reasons to buy

- Utilise our five year forecasts to 2022 for the online channel, and sector penetration to help form an effective growth strategy.
- Review our analysis on hot issues and understand the factors driving the market.
- Identify the key players in the online channel using our in-depth analysis of how and why certain sectors are performing well in the market to gain strategic insight.
- Understand the journey of consumers throughout the process of purchasing online.
- Recognise which consumers are shopping online and utilise analysis of shoppers’ motivations to enable a better understanding of the online channel moving forward.

Filed in: Consumer Goods, Retail
Publisher : GlobalData
More Reports
Title Price Buy Now

Cigarettes in Latvia, 2017

Cigarettes in Latvia, 2017 Summary "Cigarettes in Latvia, 2017", is an analytical report by GlobalData that provides extensive and highly detailed current and future market trends in the Latvian market. The report analyzes the market size and structure, on both an overall and and per capita basis, based upon a unique combination of industry research, fieldwork, market sizing analysis, and our in-house expertise. Key companies and consumer trends are also analyzed. Latvia is one of the three Baltic States and, like its two neighbors, joined the EU in 2004 and adopted the euro in 2014. As a result, cigarette taxes and prices are much higher in Latvia than other eastern European countries, like Belarus and Russia, as the country is forced to meet EU requirements and minimum pricing rules. ......
$975

Cigarettes in Zambia, 2017

Cigarettes in Zambia, 2017 Summary "Cigarettes in Zambia, 2017", is an analytical report by GlobalData that provides extensive and highly detailed current and future market trends in the Zambian market. The report analyzes the market size and structure, on both an overall and and per capita basis, based upon a unique combination of industry research, fieldwork, market sizing analysis, and our in-house expertise. Key companies and consumer trends are also analyzed. The Zambian cigarette market is intimately linked to the performance of the overall economy and as a result goes through regular peaks and troughs that follow the cyclical nature of the commodities-based Zambian economy. Cigarette consumption increased steadily throughout the 2000's but has seen substantial contractions in rec......
$975

Cigarettes in Laos, 2017

Cigarettes in Laos, 2017 Summary "Cigarettes in Laos, 2017", is an analytical report by GlobalData that provides extensive and highly detailed current and future market trends in the Laotian market. The report analyzes the market size and structure, on both an overall and and per capita basis, based upon a unique combination of industry research, fieldwork, market sizing analysis, and our in-house expertise. Key companies and consumer trends are also analyzed. Laos is a small, agrarian south-east Asian country with a population of only seven million. Agriculture accounts for almost half of the economy but the nation has experienced high and stable economic growth in recent years as the country continues to modernize and industrialize. However, the cigarette market in the country has see......
$975

FMCG Industry Business Confidence Report H2 2017

FMCG Industry Business Confidence Report H2 2017 Summary GlobalData's "FMCG Industry Business Confidence Report H2 2017", examines executives' opinion about the business environment during H2 2017. It also highlights existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities, including comparison for H1 2017 wherever applicable. Additionally, the report provides information categorized by region. The existing economic environment is stable for the FMCG industry, and customer confidence levels will remain constant during next six months. FMCG companies are positive about economic conditions in the Asia-Pacific region due to a growing population, rapid urbanization, and increase in household income......
$1950

The UK Health & Beauty Market 2017-2022

The UK Health & Beauty Market 2017-2022 Summary United Kingdom Health & Beauty market is forecast to grow by 21.1% over the next five years, in part driven by inflation which is set to reach 2.1% in 2017 - the highest level since 2000. While some shoppers will rein in self treating and gifting purchases, the essential nature of the sector protects spend from being diverted elsewhere. Meanwhile, growing consumer interest in health and wellness is supporting wants-driven purchases despite squeezed disposable incomes. Skincare is forecast to be the fastest growing subsector out to 2022, rising 27.9%, with much of this due to product innovation in both the mass and premium markets. We expect skin preparation products such as masks, serums and primers to outperform. Health & beauty ......
$5759

Country Profile: Make-Up Sector in Italy

Country Profile: Make-Up Sector in Italy Summary Italian Make-Up sector accounted for a volume share of 1.5% of the global market and 9% of the regional (Western Europe) market, in 2016. The sector is expected to grow at a CAGR of 2.9% during 2016-2021. A Large base of middle aged women population, with their desire to enhance their looks is the key driver for the growth of make-up sector in the country. Per capita consumption stood at 1.4 units compared to the global and Western Europe levels of 1.1 units and 2.3 units, respectively, in 2016. Face Make-Up was the largest with value sales of €416.9 Million (US$460.9 Million) in 2016. However, Lip Make-Up is expected to grow the fastest at a CAGR of 5.2% compared to Eye Make-Up (1.1%), Face Make-Up (3.9%), and Nail Make-Up. Hyp......
$875

Country Profile: Make-Up Sector in Mexico

Country Profile: Make-Up Sector in Mexico Summary Mexican Make-Up sector accounted for a volume share of 2.37% of the global market and 16.59% of the regional (Latin America) market, in 2016. The sector is expected to grow at a CAGR of 4.7% during 2016-2021. Increasing women in workforce leading to higher purchasing power is the key factor that is driving the growth of the Mexican Make-Up sector. Per capita consumption stood at 1.08 units compared to the global and Latin America levels of 1.08 units and 1.59 units, respectively, in 2016. Lip Make-Up was the largest market with value sales of Mex$5,512.4 Million (US$295.3 Million) in 2016. However, Nail Make-Up is expected to grow the fastest at a CAGR of 6% compared to Eye Make-Up, Lip Make-Up, and Face Make-Up (4%). Hypermarke......
$875

Country Profile: Make-Up Sector in South Korea

Country Profile: Make-Up Sector in South Korea Summary South Korean Make-Up sector accounted for a volume share of 1.65% of the global market and 8.9% of the regional (Asia-Pacific) market, in 2016. The sector is expected to grow at a CAGR of 4.6% during 2016-2021. Rising spending power among women, driven by increasing participation in work force, and men embracing Make-Up products is driving the sector in South Korea. Per capita consumption stood at 1.81 units compared to the global and Asia-Pacific levels of 1.08 units and 0.31 units, respectively, in 2016. Face Make-Up was the largest with value sales of ?978,574.9 Million (US$843.6 Million) in 2016. However, Eye Make-Up is expected to grow the fastest at a CAGR of 6.3% compared to Face Make-Up, Nail Make-Up, and Lip Make-Up ......
$875

Country Profile: Make-Up Sector in India

Country Profile: Make-Up Sector in India Summary Indian Make-Up sector accounted for a volume share of 3.1% of the global market and 16.9% of the regional (Asia-Pacific) market, in 2016. The sector is expected to grow at a CAGR of 17.9% during 2016-2021. Indian consumers are increasingly opting for premium make-up products supported by growing economy of the country. Moreover, introduction of innovative products with additional benefits is also driving growth of the sector. Per capita consumption stood at 0.14 units compared to the global and Asia-Pacific levels of 1.08 units and 0.31 units, respectively, in 2016. Lip Make-Up was the largest with value sales of INR24,335.1 Million (US$362.1 Million) in 2016. However, Nail Make-Up is expected to register the fastest growth at a CAG......
$875

Country Profile: Make-Up Sector in Canada

Country Profile: Make-Up Sector in Canada Summary Canadian Make-Up sector accounted for a volume share of 2.9% of the global market and 7.38% of the regional (North America) market, in 2016. The sector is expected to grow at a CAGR of 4.6% during 2016-2021. More women are entering the workforce and have increasing purchasing power, which means Canadian women are buying more Make-Up products. Per capita consumption stood at 4.44 units compared to the global and North America levels of 1.08 units and 6.06 units, respectively, in 2016. Eye Make-Up was the largest with value sales of C$515.4 Million (US$388.8 Million) in 2016. However, Nail Make-Up is expected to grow the fastest at a CAGR of 5% compared to Eye Make-Up, Lip Make-Up (4.7%), and Face Make-Up. Department Stores were t......
$875