Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Data sources
- Abbreviations
Insights and Opportunities
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- Established retailers well-positioned to say “trust us”
- Site design must account for mobile shopping
- Encouraging older consumers to be more adventurous
Market in Brief
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- €2.3 billion spent shopping online in 2010
- Little cause for optimism on economic front
- RoI consumers have money to spend – but they’re saving it
- Despite downturn, credit card penetration nudges upward
- Increasing broadband penetration grows potential market
- Online shopping meets modern lifestyles’ needs
- Safety concerns discourage a third of all consumers
- eBay and Amazon dominate online shopping sector
- Most internet users now shopping online
- Books, CDs and DVDs remain most popular online purchases
- Attitudes towards online shopping positive – but delivery fees unpopular
- Attitudes towards online grocery shopping quite positive
- Biggest consumer groups in NI and RoI are inactive online shoppers
Fast Forward Trends
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- Trend 1: Green Technology
- What’s it about?
- What we’ve seen
- What next?
- Trend 2: Patriot Games
- What’s it about?
- What we’ve seen
- What next?
Internal Market Environment
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- Key points
- More than a third ‘really enjoy’ shopping
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- Figure 1: Agreement with statement ‘I really enjoy any kind of shopping’, by age and gender, NI & RoI, 2010
- Online a perfect fit for time-stressed consumers
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- Figure 2: Agreement with statement ‘There are not enough hours in the day to do everything I would like’, by age and gender, NI & RoI, 2010
- But online ‘message’ not getting through
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- Figure 3: Agreement with statement ‘To do my shopping by internet makes my life easier’, by age and gender, NI & RoI, 2010
- A third of consumers put off by safety concerns
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- Figure 4: Agreement with statement ‘I would do my shopping by internet if there was a safe way to pay’, NI & RoI, 2003-10
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- Figure 5: Agreement with statement ‘I would do my shopping by internet if there was a safe way to pay’, by age and gender, NI & RoI, 2010
- Losses due to online fraud fall in 2009
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- Figure 6: CNP fraud losses on UK-issued cards, £ million, 1999-2009
- But total plastic card fraud losses increased in NI in 2009
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- Figure 7: Fraud losses on UK-issued plastic cards in the UK, 2005-09
- eBay and Amazon the most visited retail websites
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- Figure 8: Top 25 sites (by number of visits), RoI and UK (including NI), June 2011
- RoI consumers neglected by major online retailers
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- Figure 9: Online retail sites that feature in the top 500 most visited websites by RoI and UK (incl. NI) consumers, June 2011
- Comparatively low online shopping participation in RoI
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- Figure 10: Have purchased or ordered goods or services online, by category, in last 12 months, EU27, UK (including NI) & RoI, 2010
- Online retailers not keeping up with web developments
Broader Market Environment
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- Key points
- Economic outlook remains bleak
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- Figure 11: Economic outlook, RoI and NI, 2008-10
- Confidence improves, but remains low
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- Figure 12: Consumer Sentiment/Confidence Index,UK (Inc NI) and RoI, May 2010-July/August 2011
- RoI
- UK (including NI)
- Irish incomes down – but still above average
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- Figure 13: Gross Domestic Product (GDP) per capita expressed in Purchasing Power Standards, selected EU states, 2010
- RoI consumers prioritising saving over spending
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- Figure 14: Savings Index, RoI, May 2010-May 2011
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- Figure 15: Preference for spare funds, RoI, April & May 2011
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- Figure 16: Reason for saving among consumers who save regularly, RoI, May 2011
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- Figure 17: Average amount saved per month by consumers who save, April 2011-May 2011
- Credit card penetration increases despite downturn
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- Figure 18: Credit card/Charge card ownership, NI & RoI, 2009-10
- Growing broadband penetration opens online market
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- Figure 19: Consumers with a broadband connection at home, NI & RoI, 2005-10
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- Figure 20: Consumers who have used internet (any connection type) in the last 12 months, RoI and NI, 2010
- Faster connections further facilitate online shopping
- Going online through mobile phone becoming common
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- Figure 21: How consumers access the internet, NI and RoI, 2010
- More consumers buying products through mobile phones
- Internet competing with TV for consumers’ attention
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- Figure 22: Average time spent on media per day, in minutes, RoI, 2011
- Petrol prices could force consumers online
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- Figure 23: Average price per litre (pence or cent) of reg. unleaded petrol, NI and RoI, January 2009-June 2011
Competitive Context
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- Key points
- Online sales outperforming retail overall in UK (including NI)
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- Figure 24: Retail sales, volume and value, annual % change, UK (incl. NI), June 2011
- Online growing share of overall retail sales in UK (including NI)
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- Figure 25: Internet retail sales as percentage of total* retail sales, UK (including NI), 2007-11**
- RoI retail sales in freefall since start of recession
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- Figure 26: Total retail sales (excl. motor trade), indexed, value and volume, RoI, 2005-10
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- Figure 27: Volume of retail trade, annual % change on the same month of previous year, EU27, UK (incl. NI) & RoI, 2010/11
- Figure 28: Value of retail sales, annual % change, by retail business, May 2011
- Retail footfall data suggests NI retail sector in difficulty
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Incorporating a barcode reader into iPhone app
- An Post rebrands and re-launches online directory
- Limiting the potential loss through online fraud
Market Size and Forecast
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- Key points
- Online retail sales exceeded €2.3 billion in 2010
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- Figure 29: Online spending, actual and estimated, RoI, NI and All-Ireland, 2007-11
- But not all sectors performing well
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- Figure 30: Number of visits abroad by RoI residents, 000s, 2003-10
- Online sales to exceed €6.5 billion by 2015
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- Figure 31: Online spending, projected, RoI, NI and All-Ireland, 2012-15
Companies and Products
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- The dominant players
- Amazon
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- Figure 32: Visitors, by country, to Amazon.co.uk, June 2011
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- Figure 33: Visitors, by country to Amazon.com, June 2011
- eBay
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- Figure 34: Visitors, by country, to eBay.ie, June 2011
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- Figure 35: Visitors, by country to eBay.co.uk, June 2011
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- Figure 36: Visitors, by country to eBay.com, June 2011
- Other popular online retailers
- Argos
- Ticketmaster
- Littlewoods
- Pixmania
- ASOS
- Play
- Tesco
- Buy4Now
- Next
- Marks & Spencer
- Ebuyer
- John Lewis
- iloveshopping
Frequency of Online Shopping
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- Key points
- Majority of internet users shop online
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- Figure 37: How often consumers shop online, RoI and NI, June 2011
- ABC1s, aged 35-49 most ‘regular’ online shoppers
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- Figure 38: Consumers with above-average tendency to ‘regularly shop online’, NI and RoI, June 2011
- Transition from occasional to regular not certain
- Consumers aged 16-24 ‘rarely’ or ‘never’ shop online
Who Buys What Online?
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- Key points
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- Figure 39: Types of goods and services bought online, NI and RoI, June 2011
- Women more active online shoppers
- Consumers with families keener online shoppers
- Consumers aged 35-49 more active than other age cohorts
- ABC1s lead online buying activity
- NI consumers more ‘online keen’ than RoI consumers
- Favourite online purchases
- Hard copies of books/CDs/DVDs continue to lead the way
- Online fashion another popular choice
- RoI consumers going online for travel and accommodation products
- Consumers 25-49 buying entertainment tickets online
Attitudes Towards Online Shopping (General)
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- Key points
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- Figure 40: Agreement with statements relating to online shopping (general), NI & RoI, June 2011
- Delivery charges the biggest turn-off
- Concerns over quality discourage four in ten
- Only a minority worried about online safety
Attitudes Towards Online Shopping (Grocery)
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- Key points
- General attitudes towards online food shopping are positive
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- Figure 41: Agreement with statements relating to online grocery shopping, NI & RoI, June 2011
- Concerns about fresh food quality on women’s minds
- Students most disinclined to buy fresh food online
- C2DEs most adamant that they’ll never shop online for groceries
- Free delivery and lower prices would woo consumers
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- Figure 42: Factors that encourage consumers to try/do more online food shopping, NI & RoI,
- Women, 25-34s and ABC1s want free delivery
- One in five want delivery outside of working hours
- Lower prices appeal to consumers aged 35-49
- ABC1s and 25-34s keen on online-exclusive special offers
- Consumers in employment open to friendly recommendation
Consumer Target Groups
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- Key points
- NI target groups
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- Figure 43: Consumer typologies, NI, June 2011
- Offliners
- Freebies
- Freshers
- Quality Concerned
- RoI target groups
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- Figure 44: Consumer typologies, RoI, June 2011
- Try Buyers
- Pricers
- Quality Worriers
- Free Shippers
Appendix
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- TGI consumer data
- NI
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- Figure 45: Agreement with statements relating to shopping, by all demographics, NI, 2010
- Figure 46: Number of credit/debit cards owned, by all demographics, NI, 2010
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- Figure 47: Usage of internet and connection type, by all demographics, NI, 2010
- Figure 48: How consumers access the internet, by all demographics, NI, 2010
- RoI
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- Figure 49: Agreement with statements relating to shopping, by all demographics, RoI, 2010
- Figure 50: Number of credit/debit cards owned, by all demographics, RoI, 2010
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- Figure 51: Usage of internet and connection type, by all demographics, RoI, 2010
- Figure 52: How consumers access the internet, by all demographics, RoI, 2010
- Toluna consumer data
- RoI
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- Figure 53: Internet shopping habits, by demographics, RoI, June 2011
- Figure 54: Types of goods and services bought online, by demographics, RoI, June 2011
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- Figure 55: Types of goods and services bought online, by demographics, RoI, June 2011
- Figure 56: Types of goods and services bought online, by demographics, RoI, June 2011
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- Figure 57: Agreement with statements relating to online shopping, by demographics, RoI, June 2011
- Figure 58: Agreement with statements relating to online shopping, by demographics, RoI, June 2011
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- Figure 59: Agreement with statements relating to general shopping, by demographics, RoI, June 2011
- Figure 60: Agreement with statements relating to general shopping, by demographics, RoI, June 2011
- NI
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- Figure 61: Internet shopping habits, by demographics, NI, June 2011
- Figure 62: Types of goods and services bought online, by demographics, NI, June 2011
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- Figure 63: Types of goods and services bought online, by demographics, NI, June 2011
- Figure 64: Types of goods and services bought online, by demographics, NI, June 2011
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- Figure 65: Agreement with statements relating to online shopping, by demographics, NI, June 2011
- Figure 66: Agreement with statements relating to online shopping, by demographics, NI, June 2011
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- Figure 67: Agreement with statements relating to general shopping, by demographics, NI, June 2011
- Figure 68: Agreement with statements relating to general shopping, by demographics, NI, June 2011
- Consumer typology data (Toluna)
- RoI cluster tables
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- Figure 69: RoI consumer typologies, by demographics, RoI, June 2011
- Figure 70: RoI Agreement with selected statements about online shopping, by consumer types, RoI, June 2011
- Figure 71: Frequency of online shopping, by consumer types, RoI, June 2011
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- Figure 72: types of goods and services bought online, by consumer types, RoI, June 2011
- NI cluster tables
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- Figure 73: NI consumer types, by demographics, NI, June 2011
- Figure 74: NI Agreement with selected statements about online shopping, by consumer types, NI, June 2011
- Figure 75: Frequency of online shopping, by consumer types, NI, June 2011
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- Figure 76: Types of items bought online, by consumer types, NI, June 2011
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