Online and Mobile Retailing - Ireland - March 2015

INTRODUCTION
Key themes in the report
Definition
Data sources
Abbreviations
EXECUTIVE SUMMARY
The market
Forecast
Figure 1: Indexed forecast value of online and mobile retail sales, NI and RoI, 2010-20
Market factors
Internet connectivity continuing to improve across Ireland
Mobile retail to be boosted by increasing ownership of smartphones and tablets
Social network sites catering to retailers
EU VAT regulations, caps on interchange fees and a weakening Euro impacting prices
Introduction of postcodes in RoI may boost online sales in the region
Innovations
The consumer
Irish consumers more likely to engage in online and mobile retailing while at home
Figure 2: Usage of devices to shop online in the last 12 months, NI and RoI, December 2014
Physical media, fashion and travel the most popular items purchased online
Figure 3: Types of items that consumers have bought online in the last 12 months, by device, NI and RoI, December 2014
Delivery to the home the most popular method of receiving items
Figure 4: Methods used to have items delivered – or return items in the last 12 months, NI and RoI, December 2014
Irish consumers more likely to value cheaper delivery over faster delivery
Figure 5: Agreement with statements relating to online and mobile retailing, NI and RoI, December 2014
What we think
ISSUES AND INSIGHTS
What devices do Irish consumers use to purchase items online?
The facts
The implications
What types of products and services are Irish consumers buying online?
The facts
The implications
What are consumers’ delivery preferences?
The facts
The implications
What impact will the introduction of the postcode system in RoI have upon online retail?
The facts
The implications
What is the value of the online and mobile retail sector in Ireland?
The facts
The implications
TREND APPLICATION
Locavore
FSTR HYPR
Experience Is All
MARKET OVERVIEW
Key points
Internet access key to online and mobile retail
Figure 6: Household broadband penetration (fixed and mobile), NI and RoI, 2009-14
Increasing availability and use of Wi-Fi hotspots in RoI
Figure 7: Public Wi-Fi hotspots, RoI, 2009-14
Growing levels of mobile device ownership to boost m-commerce
Figure 8: Increase in smartphone ownership, NI and RoI, 2013-14
Tablet ownership sees strong increase
Figure 9: Increase in tablet ownership, NI, and RoI 2013-14
Increasing engagement with shopping apps
Social commerce a big opportunity for retailers?
Figure 10: Use of Facebook and Twitter in the last three months, NI and RoI, April 2014
Facebook attempting to bring order to group selling
‘Place of Supply’ VAT regulations impacting buyers and sellers of digital goods
Lower card transaction fees expected in 2015
Weakening euro will increase costs for RoI consumers shopping from UK retailers
Figure 11: Value of Euro to Pound Sterling, 2005-15
RoI to benefit from a national postcode system
Three out of 10 RoI consumers to shop online more in response to postal codes
Figure 12: Agreement with the statement ‘I expect that I will shop online more when the postal code is introduced in 2015’, RoI, December 2014
MARKET SIZE AND FORECAST
Key points
Online and mobile retail expenditure expected to increase in 2015
Figure 13: Estimated online and mobile retail expenditure, IoI, NI and RoI, 2010-20
Strong growth forecast to 2020
Figure 14: Indexed forecast value of online and mobile retail sales, NI and RoI, 2010-20
Figure 15: Consumers making online purchases in the last 12 months, UK (including NI) and RoI, 2005-14
Figure 16: Proportion of total sales made online (excluding automotive fuel) and year-on-year growth rate, UK (including NI), 2011-14
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Innovations
HeartThis app allows customers to shop in all their favourite stores through one app
New apps enable art shoppers to preview prospective purchases in their homes
Haggling comes to Amazon with the new ‘Make an Offer’ feature
Development of apps to enable shopping from wearables gaining momentum
First Amazon staffed pickup location announced at US University
Alibaba is the first to trial a drone delivery service on customers
COMPANY PROFILES
 PURE-PLAY ‘E-TAILERS’
Amazon
Key facts
Brands and products
Recent developments
ASOS
Key facts
Brands and products
Recent developments
eBay
Key facts
Brands and products
Recent developments
Littlewoods (Shop Direct)
Key facts
Brands and products
Recent developments
 MULTI-CHANNEL RETAILERS
Arnotts
Key facts
Brands and products
Recent developments
Avoca
Key facts
Brands and products
Recent developments
Boots (Walgreens Boots Alliance)
Key facts
Brands and products
Recent developments
Debenhams
Key facts
Brands and products
Recent developments
Eason and Son (Easons)
Key facts
Recent developments
Dunnes
Key facts
Brands and products
Recent developments
Harvey Norman
Key facts
Brands and products
Next
Key facts
Brands and products
Recent developments
SuperValu
Key facts
Brands and products
Recent developments
Tesco
Key facts
Brands and products
Recent developments
THE CONSUMER – DEVICES USED TO SHOP ONLINE
Key points
Laptop/desktop computers more likely to be used for online shopping
Figure 17: Usage of devices to shop online in the last 12 months, NI and RoI, December 2014
Devices usage reflective of ownership
Figure 18: Ownership of devices in household, NI and RoI, December 2014
Women more likely to engage in mobile retailing, particularly while at home
Figure 19: Use of smartphones and tablets to shop online in the last 12 months, by gender, NI, December 2014
Figure 20: Use of smartphones and tablets to shop online in the last 12 months, by gender, RoI, December 2014
THE CONSUMER – ITEMS PURCHASED
Key points
NI consumers exhibit higher online purchasing levels across most types of goods and services
Figure 21: Types of items that consumers have bought online in the last 12 months, by device, NI and RoI, December 2014
Digital media sales strong via smartphones
Figure 22: Consumers who purchased books/CDs/DVDs/video games or music/movies/game downloads in the last 12 months via smartphone devices, NI and RoI, December 2014
Purchasing fashion items via tablet devices peaks amongst 45-54-year-olds
Figure 23: Consumers who purchased clothing/footwear/accessories online via a tablet device in the last 12 months, by age, NI and RoI, December 2014
NI consumers twice as likely to purchase household appliances online
Figure 24: Consumers who purchased household appliances online in the last 12 months via laptop/desktop computers, NI and RoI, December 2014
Irish consumers less likely to purchase DIY and garden products, or furniture and home furnishings online
Figure 25: Consumers who purchased DIY and garden, or furniture and home furnishings online via a laptop/desktop computer over the last 12 months, NI and RoI, December 2014
THE CONSUMER – METHODS OF DELIVERY AND RETURN
Key points
Home delivery dominates
Figure 26: Methods used to have items delivered – or to return items in the last 12 months, NI and RoI, December 2014
Click-and-collect more likely amongst consumers with children
Figure 27: Consumers who have used click-and-collect services from the retailer they purchased from, by presence of children in household. NI and RoI, December 2014
RoI women significantly more likely than men to return purchases via post
Figure 28: Consumers who have returned an online purchase by post in the last 12 months, RoI, December 2014
THE CONSUMER – ATTITUDES TO ONLINE AND MOBILE RETAILING
Key points
Majority of consumers value delivery cost savings over faster delivery
Figure 29: Agreement with statements relating to online and mobile retailing, NI and RoI, December 2014
More local businesses trading online would be a catalyst for online shopping
Figure 30: Consumers who agreed with the statement ‘I would shop online more if there were more NI/RoI based online retailers,’ by age, NI and RoI, December 2014
Seven out of 10 consumers feel there are more bargains online
Figure 31: Consumers who agreed with the statement ‘There are more bargains online compared to high street shops,’ by age, NI and RoI, December 2014
Almost four in 10 consumers research purchases online, but buy offline
Figure 32: Agreement with the statements ‘I research purchases online, but prefer to make the purchase in-store,’ versus ‘I prefer to look at a product in-store and then buy it online,’ NI and RoI, December 2014
APPENDIX
NI Toluna data
Figure 33: Types of device that consumers have used to shop online in the last 12 months, while at home, NI, by demographics, December 2014
Figure 34: Types of device that consumers have used to shop online in the last 12 months, while not at home (eg at work, in a café), NI, by demographics, December 2014
Figure 35: Types of device that consumers have not used to buy products online in the last 12 months, NI, by demographics, December 2014
Figure 36: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, NI, by demographics, December 2014
Figure 37: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 38: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 39: Types of items that consumers have bought online via a smartphone device in the last 12 months, NI, by demographics, December 2014
Figure 40: Types of items that consumers have bought online via a smartphone device in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 41: Types of items that consumers have bought online via a smartphone device in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 42: Types of items that consumers have bought online via a tablet device in the last 12 months, NI, by demographics, December 2014
Figure 43: Types of items that consumers have bought online via a tablet device in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 44: Types of items that consumers have bought online via a tablet device in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 45: Types of delivery methods used to have items delivered – or to return items in the last 12 months, NI, by demographics, December 2014
Figure 46: Types of delivery methods used to have items delivered – or to return items in the last 12 months, NI, by demographics, December 2014 (continued)
Figure 47: Agreement with the statement ‘Time-limited online sales encourage me to shop at websites I may not normally use’, NI, by demographics, December 2014
Figure 48: Agreement with the statement ‘I am interested in having packages deliver by drone (eg amazon prime air)’, NI, by demographics, December 2014
Figure 49: Agreement with the statement ‘I would shop online more if there were more NI/RoI based online retailers’, NI, by demographics, December 2014
Figure 50: Agreement with the statement ‘I am willing to wait longer for deliveries if it means cheaper/free postage’, NI, by demographics, December 2014
Figure 51: Agreement with the statement ‘I prefer to look at a product in- store and then buy it online’, NI, by demographics, December 2014
Figure 52: Agreement with the statement ‘I find it easier to shop via a standard website compared to a dedicated app’, NI, by demographics, December 2014
Figure 53: Agreement with the statement ‘I don’t trust online security when paying for goods/services’, NI, by demographics, December 2014
Figure 54: Agreement with the statement ‘I prefer to buy and download music/movies/games/etc rather than buy physical copies’, NI, by demographics, December 2014
Figure 55: Agreement with the statement ‘I research purchases online but prefer to make the purchase in-store’, NI, by demographics, December 2014
Figure 56: Agreement with the statement ‘There are more bargains online compared to high street shops’, NI, by demographics, December 2014
Figure 57: Agreement with the statement ‘I am willing to pay more for delivery to get products faster’, NI, by demographics, December 2014
RoI Toluna data
Figure 58: Types of device that consumers have used to shop online in the last 12 months, while at home, RoI, by demographics, December 2014
Figure 59: Types of device that consumers have used to shop online in the last 12 months, while not at home (eg at work, in a café), RoI, by demographics, December 2014
Figure 60: Types of device that consumers have not used to buy products online in the last 12 months, RoI, by demographics, December 2014
Figure 61: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, RoI, by demographics, December 2014
Figure 62: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 63: Types of items that consumers have bought online via a laptop/desktop computer in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 64: Types of items that consumers have bought online via a smartphone device in the last 12 months, RoI, by demographics, December 2014
Figure 65: Types of items that consumers have bought online via a smartphone device in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 66: Types of items that consumers have bought online via a smartphone device in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 67: Types of items that consumers have bought online via a tablet device in the last 12 months, RoI, by demographics, December 2014
Figure 68: Types of items that consumers have bought online via a tablet device in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 69: Types of items that consumers have bought online via a tablet device in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 70: Types of delivery methods used to have items delivered – or to return items in the last 12 months, RoI, by demographics, December 2014
Figure 71: Types of delivery methods used to have items delivered – or to return items in the last 12 months, RoI, by demographics, December 2014 (continued)
Figure 72: Agreement with the statement ‘Time-limited online sales encourage me to shop at websites I may not normally use’, RoI, by demographics, December 2014
Figure 73: Agreement with the statement ‘I am interested in having packages deliver by drone (eg amazon prime air)’, RoI, by demographics, December 2014
Figure 74: Agreement with the statement ‘I expect that I will shop online more when the postal code is introduced in 2015’, RoI, by demographics, December 2014
Figure 75: Agreement with the statement ‘I would shop online more if there were more NI/RoI based online retailers’, RoI, by demographics, December 2014
Figure 76: Agreement with the statement ‘I am willing to wait longer for deliveries if it means cheaper/free postage’, RoI, by demographics, December 2014
Figure 77: Agreement with the statement ‘I prefer to look at a product in- store and then buy it online’, RoI, by demographics, December 2014
Figure 78: Agreement with the statement ‘I find it easier to shop via a standard website compared to a dedicated app’, RoI, by demographics, December 2014
Figure 79: Agreement with the statement ‘I don’t trust online security when paying for goods/services’, RoI, by demographics, December 2014
Figure 80: Agreement with the statement ‘I prefer to buy and download music/movies/games/etc rather than buy physical copies’, RoI, by demographics, December 2014
Figure 81: Agreement with the statement ‘I research purchases online but prefer to make the purchase in-store’, RoI, by demographics, December 2014
Figure 82: Agreement with the statement ‘There are more bargains online compared to high street shops’, RoI, by demographics, December 2014
Figure 83: Agreement with the statement ‘I am willing to pay more for delivery to get products faster’, RoI, by demographics, December 2014