Online and Mobile Retailing - Ireland - March 2017

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Forecast
Figure 1: Indexed forecast value of online and mobile retail sales, NI and RoI, 2012-22
Market factors
UK Europe’s leading e-commerce market
Mobile purchasing appeals to consumers
RoI consumers spending more online
High device ownership positive for online shopping
Companies, brands and innovations
The consumer
Consumers using multiple devices to shop online at home
Figure 2: Usage of devices to shop online in the last 12 months, NI and RoI, January 2017
Fashion and travel important online shopping categories
Figure 3: Types of items/services bought online via laptop/desktop computer, smartphone and tablet, NI and RoI, January 2017
Home delivery the preferred delivery method for Irish consumers
Figure 4: Types of delivery used by consumers when shopping online in the last 12 months, NI and RoI, January 2017
Free postage important but consumers also willing to pay for speedy delivery
Figure 5: Agreement with statements relating to online and mobile retailing, NI and RoI, January 2017
What we think
THE MARKET – WHAT YOU NEED TO KNOW
Online sales in Ireland to continue growing in 2017
The UK has the highest level of online shoppers in the EU
RoI consumers increase the amount they spend online
Digital single market to boost online shopping but Brexit presents challenges to Irish retailers
MARKET SIZE AND FORECAST
Strong growth in online sales to continue in 2017
Figure 6: Estimated online and mobile retail expenditure, IoI, NI and RoI, 2012-22
Figure 7: Proportion of total retail sales made online, UK (including NI), 2011-16
Online retail sales will continue growing through to 2022
Figure 8: Indexed forecast value of online and mobile retail sales, NI and RoI, 2012-22
MARKET DRIVERS
UK remains top e-commerce market in Europe
Figure 9: Online purchases in selected European Union markets, 2016
Online spending increases in RoI
Figure 10: Average monthly spend online per person, RoI, 2014 and 2016
Mobile devices are key purchasing channel
Figure 11: Share of total monthly purchases online via mobile devices (smartphone and tablet), by country, 2016
Drone deliveries being trialled
Figure 12: Agreement with the statement ‘I am interested in having packages delivered by drone (eg Amazon Prime Air)’, NI and RoI, 2016 and 2017
High device ownership positive for online shopping in Ireland
Figure 13: Ownership of or access to mobile technology devices, NI and RoI, February 2016 and January 2017
Brexit has potential to impact UK/NI retailers’ participation in digital single market
Brexit upset could see more cross-border online shopping
Figure 14: If consumers intend to shop for various goods/services in NI/UK during the next six months to take advantage of the shift in the £/€ exchange rate, RoI, August 2016
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Amazon launches Dash Button in the UK
‘eBay Authenticate’ to help reduce risk of buying online
Home Retail acquisition positions Sainsbury’s to better meet ‘on-demand’ culture
Next uses customer data to personalise website
COMPETITIVE STRATEGIES 
Pure-play retailers
Amazon
Amazon Go
ASOS
eBay
Littlewoods Ireland
Multichannel retailers
Arnotts
Harvey Norman
Next
Sainsbury’s
Tesco
THE CONSUMER – WHAT YOU NEED TO KNOW
Multiple devices used to shop online at home
Fashion and travel services the main items Irish consumers are buying online
Home deliveries the main delivery method but in-store click-and-collect also popular
Free postage important but consumers willing to pay to have goods delivered next day
DEVICES USED TO SHOP ONLINE
Home the preferred location for online shopping
Figure 15: Usage of devices to shop online in the last 12 months, NI and RoI, January 2017
Desktop and laptop computers popular among older consumers when shopping online
Figure 16: Usage of desktop/laptop computers to shop online while at home, by age, NI and RoI, January 2017
NI women more likely to use mobile devices to shop online
Figure 17: Use of smartphones and tablets to shop online in the last 12 months, by gender, NI, January 2017
Figure 18: Use of smartphones and tablets to shop online in the last 12 months, by gender, RoI, January 2017
ITEMS PURCHASED ONLINE
Fashion and travel the most important online categories
Figure 19: Types of items/services bought online via laptop/desktop computer, smartphone and tablet in the last 12 months, NI and RoI, January 2017
High-earning consumers using laptops and desktops to buy travel services
Figure 20: Consumers who have purchased travel services (eg flights, holiday packages, hotels) using a laptop or desktop computer in the last 12 months, by gross annual household income, NI, January 2017
Figure 21: Consumers who have purchased travel services (eg flights, holiday packages, hotels) using a laptop or desktop computer in the last 12 months, by gross annual household income, RoI, January 2017
Women and Millennials buying clothes via smartphones
Figure 22: Consumers who have purchased clothing, footwear and accessories using a smartphone in the last 12 months, by gender and age, NI and RoI, January 2017
Married consumers buying entertainment items via laptops and desktops
Figure 23: Consumers who have bought entertainment (eg tickets for cinema, concerts, sporting events) items via a laptop/desktop and smartphone in the last 12 months, by marital status, NI, January 2017
Figure 24: Consumers who have bought entertainment (eg tickets for cinema, concerts, sporting events) items via a laptop/desktop and smartphone in the last 12 months, by marital status, RoI, January 2017
Streaming popular among consumers from rural areas
Figure 25: Consumers who have streamed or downloaded books/music/movies/games downloads (including rentals) via a smartphone in the last 12 months, by location, NI, January 2017
Figure 26: Consumers who have streamed or downloaded books/music/movies/games downloads (including rentals) via a smartphone in the last 12 months, by location, RoI, January 2017
DELIVERY METHODS USED
Irish consumers prefer to get goods delivered to home
Figure 27: Types of delivery used by consumers when shopping online in the last 12 months, NI and RoI, January 2017
Home deliveries appeal to older consumers
Figure 28: Consumers who have had goods purchased online delivered to home, by age, NI and RoI, January 2017
Affluent consumers using in-store click-and-collect
Figure 29: Consumers who have collected goods purchased online in-store from the retailer that they bought from, by social class, NI and RoI, January 2017
ATTITUDES TOWARDS ONLINE AND MOBILE RETAILING
Consumers prepared to wait longer in return for free postage
Figure 30: Agreement with statements relating to online and mobile retailing, NI and RoI, January 2017
Mature consumers focus on cost; Millennials on expediency
Figure 31: Agreement with statements relating to online and mobile retailing, by age, NI, January 2017
Figure 32: Agreement with statements relating to online and mobile retailing, by age, RoI, January 2017
Retailers’ data breaches a concern for over-45s
Figure 33: Agreement with the statement ‘I would be less inclined to shop with a company that has experienced a data breach’, by age, NI and RoI, January 2017
Irish consumers looking for more locally based online retailers
Figure 34: Agreement with the statement 'I would shop online more if there were more NI/RoI-based online retailers', by social class, NI and RoI, January 2017
Older consumers find it easier to buy online via websites
Figure 35: Agreement with the statement ‘I find it easier to shop via a standard website compared to a dedicated app’, by gender and age, NI and RoI, January 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Generational cohort definitions
Abbreviations