Online Retailing - Europe - July 2018

OVERVIEW
Coverage
Consumer research
Market definition
Market sizes
Methodology
Financial definitions
VAT rates
Figure 1: VAT rates around Europe, 2013-18
Abbreviations
EXECUTIVE SUMMARY – EUROPE – THE MARKET
 ONLINE SALES
The data
Retail
Continued growth
Online sales estimates
Pan-European online sales
Figure 2: Europe:  total online retail sales (inc VAT), 2010-23
Figure 3: Europe:  total online retail sales (inc VAT) as % all retail sales (excluding fuel), 2010-23
Online sales by country
Figure 4: Europe:  online sales, by country, including VAT, 2013-17
Figure 5: Europe:  forecast online sales, including VAT, by country, 2018-23
Stage of development
Figure 6: Europe: online sales as % all retail sales, excluding fuel, 2017
 LEADING RETAILERS
Amazon and eBay
Other marketplaces
AliExpress
Former mail order companies
Fashion
Figure 7: Europe:  leading online retailers, sales, excluding VAT, 2015/16-2017/18
Market shares
Figure 8: Europe:  leading online retailers’ shares’ of all online sales, 2015-17
What we think
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
How many bought online?
Figure 9: Europe:  proportion of adults who have bought online in the last 12 months, 2017
What they buy online
Figure 10: Europe:  products purchased online in the last 12 months, May 2018
Where they shop online
Figure 11: Europe:  retailers bought from online in the last 12 months, by type, May 2018
Figure 12: Europe:  proportion of online shoppers who have shopped at Amazon in the last 12 months, May 2018
Important features of online retailers
Figure 13: Europe: important features of retailers when shopping online, May 2018
Figure 14: Europe:  key factors ranked by country, May 2017
Membership of Amazon Prime
Figure 15: Europe:  Amazon prime membership, May 2018
EXECUTIVE SUMMARY – EUROPE - LAUNCH ACTIVITY AND INNOVATION
Zalando establishing itself as the go-to destination for fashion and lifestyle products
Otto and Zara roll out augmented reality experiences
Home delivery while the customer is away
Collaborative delivery platforms
National online event days
Autonomous digital grocery shopping store
Figure 16: LateBird artists impression, June 2018
Figure 17: LateBird, inside artists impression, June 2018
New text-based personal shopping service
Live streaming
Local online marketplaces
Parcel collection at the press of a button
FRANCE
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
The economy
Online sales
Figure 18: France: online sales (including VAT), 2011-23
Segmentation/What they buy online
Broadband access
Device ownership and internet access
Online shopping
Leading players
Key metrics
Market shares
Figure 19: France:  leading online retailers’ shares of all online sales, 2017
The consumer
What they buy online
Figure 20: France: products purchased online in the last 12 months, May 2018
Where they shop online
Figure 21: France: retailers bought from online in the last 12 months, May 2018
Important features of online retailers
Figure 22: France: important features of retailers when shopping online, May 2018
Membership of Amazon Prime
What we think
 ISSUES AND INSIGHTS
The future of online grocery in France
The facts
The implications
Can French retailers stand up to Amazon?
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
Economy recovering
Online stabilising
Electricals and clothing are biggest online markets
Broadband access relatively low
Accessing internet on smartphone increasingly common
Two-thirds of French adults had bought online
 MARKET SIZE
The economy
Figure 23: France: online sales (incl. VAT), 2013-18
Figure 24: France: forecast online sales (incl VAT), 2018-23
More details from FEVAD
Segmentation/What they buy online
Figure 25: France: products purchased online in the last 12 months, May 2018
Figure 26: France: online sales: selected retail categories, 2015-16
Grocery
DIY
Beauty and Personal Care
Electricals
Clothing
 MARKET DRIVERS
Broadband access
Figure 27: France:  broadband penetration, % all households, 2010-17
Device ownership and internet access
Figure 28: France: technology products personally owned, Q3 2017
Figure 29: France: devices used to access the internet in the last three months, Q3 2017
Online shopping
Figure 30: France:  percentage saying they have bought online in the last year, 2008-17
 LEADING PLAYERS – WHAT YOU NEED TO KNOW
The march of Amazon continues
Drive dominates grocery
Casino upping the ante
Carrefour is ambitious too
Physical/online tie-ups
Amazon takes 16.5% of the market
 LEADING PLAYERS
Amazon continues to grow
Local retailers fight back
Drive dominates grocery
Home delivery the next battleground
Physical/online tie-ups
Marketplaces
Carrefour’s ambitions
Figure 31: France:  leading online retailers, sales, 2015-17
Website visitors
Figure 32: France:  top retail sites by number of unique visitors, Jan-March 2018
 MARKET SHARES
Figure 33: France:  leading online retailers’ estimated shares of all online sales, 2017
 THE CONSUMER – WHAT YOU NEED TO KNOW
Clothing the most shopped for online
Online-only retailers ahead
French shoppers want free returns and free delivery
Amazon Prime has room to grow
 WHAT THEY BUY ONLINE?
Figure 34: France: products purchased online in the last 12 months, May 2018
Broad spectrum shops online
Figure 35: France: profile of shoppers by products bought online in the last 12 months, May 2018
Figure 36: France: products purchased online in the last 12 months by gender, May 2018
 WHERE THEY SHOP ONLINE
Amazon dominates, but less than in other countries
Over half shop at store-based retailers
Grocers are popular
Figure 37: France: retailers bought from online in the last 12 months, May 2018
Figure 38: France: profile of shoppers by retailer bought from online in the last 12 months, May 2018
Where they shop and what they bought
Figure 39: France: Amazon vs Cdiscount:  relative strength by product, May 2018
Figure 40: France: Fnac vs Darty:  relative strength by product, May 2018
 IMPORTANT FEATURES OF ONLINE RETAILERS
Freebies please
Click and collect
Figure 41: France: important features of retailers when shopping online, % agreeing “extremely important” May 2018
Important features by what they buy
Free delivery and returns especially important for clothing shoppers
Figure 42: France: extremely important features of online retailers, fashion shoppers compared to the average, May 2018
For grocery free delivery and low prices are extremely important.
Figure 43: France: extremely important features of online retailers, grocery shoppers compared to the average, May 2018
Price more important for shoppers of goods for the home
Figure 44: France: online shoppers describing ‘low prices’ as an ‘extremely important’ feature of an online retailer, percentage point difference from the average, May 2018
Figure 45: France: online shoppers describing ‘a wide range of products’ as an ‘extremely important’ feature of an online retailer, percentage point difference from the average, May 2018
 MEMBERSHIP OF AMAZON PRIME
Lowest membership of the big five countries
Figure 46: France:  membership of Amazon Prime, May 2018
Young men most likely to be Prime members
Figure 47: France: current members of Amazon Prime, by age and gender, May 2018
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
GERMANY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
The economy
Online sales
Segmentation/what they buy online
Figure 49: Germany: online sales by product category, 2017
Broadband access
Leading players
Key metrics
Figure 50: Germany: leading online retailers’ shares of online sales, 2017
The consumer
What they buy online
Figure 51: Germany: products purchased online in the last 12 months, May 2018
Where they shop online
Figure 52: Germany: retailers bought from online in the last 12 months, May 2018
Important features of online retailers
Figure 53: Germany: important features of retailers when shopping online, May 2018
Membership of Amazon Prime
Figure 54: Germany: membership of Amazon Prime, May 2018
What we think
 ISSUES AND INSIGHTS
Is now the time for multichannel retailers?
The facts
The implications
Grocery e-commerce – an update
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
German economy continues to grow
Online sales grow 10.9%
Clothing and electronics are the biggest categories
Broadband access hits 92%
84% of German consumers own a smartphone
Three-quarters of Germans shop online
 MARKET SIZE
The economy
Online sales and forecasts
Figure 55: Germany: online sales (incl VAT), 2013-18
Figure 56: Germany: online sales (incl VAT), forecasts, 2018-23
Segmentation/What they buy online
Clothing and electronics account for half of online spending
Food still underrepresented despite growth
Figure 57: Germany: online sales by product category, incl VAT, 2017
Household goods the fastest growing category
Could books be the first category to reach online maturity?
Figure 58: Germany: growth in online spending by product category, 2016-17
 MARKET DRIVERS
Broadband access hits 92%
Figure 59: Germany:  broadband penetration, % all households, 2008-17
84% own a smartphone
Figure 60: Germany: technology products personally owned, Q3 2017
PC still the most popular way to access the internet
Figure 61: Germany: devices used to access the internet in the last three months, Q3 2017
Migration online continues
Figure 62: Germany:  percentage saying they have bought online in the last year, 2013-17
 LEADING PLAYERS – WHAT YOU NEED TO KNOW
Amazon’s domination continues
eBay is now the slowest growing of the leading online players
Ceconomy enjoys strong growth away from Metro Group
Amazon continues to grow its share of the market
 LEADING PLAYERS
Amazon’s continues to dominate
eBay the slowest growing of the leading online players
Otto Group sales boosted by launch of marketplace
Zalando keeps on growing
Ceconomy sees strong growth away from Metro Group
Figure 63: Germany: leading online retailers, sales, 2015-17
 MARKET SHARES
Diverging fortunes for the American giants
Figure 64: Germany: leading online retailers’ shares of all online sales, 2015-17
 THE CONSUMER – WHAT YOU NEED TO KNOW
Clothing the most popular online purchase
Amazon dominates German e-commerce
Free returns are the most important feature
31% are members of Amazon Prime
 WHAT THEY BUY ONLINE
92% of internet users have shopped online
Almost two-thirds buy clothing online
Food and drink remain relatively niche
Figure 65: Germany: products purchased online in the last 12 months, May 2018
All demographics shop for clothing online
Similar story for electronics
DIY/gardening attracts an older and more affluent customer
Figure 66: Germany: products purchased online in the last 12 months, by age and affluence, May 2018
 WHERE THEY SHOP ONLINE?
Amazon dominates German e-commerce
Store-based retailers were slow to get going
Figure 67: Germany: retailers bought from online in the last 12 months, May 2018
Broad appeal of Amazon…
…leaves others looking niche
Figure 68: Germany: profile of shoppers by retailer bought from online in the last 12 months, May 2018
 IMPORTANT FEATURES OF ONLINE RETAILERS
Free returns are vital for online shoppers
Price is an important driver of online shopping
German consumers don’t need stores
Figure 69: Germany: important features of retailers when shopping online, May 2018
Price-conscious older shoppers
Express delivery appeals to the young
Figure 70: Germany: extremely important factors, by average age and household income, May 2018
Important features by what they buy
Free delivery and returns especially important for clothing shoppers
Figure 71: Germany: extremely important features of online retailers, clothing shoppers compared to the average, May 2018
While electronics shoppers look for range and ease of navigation
Figure 72: Germany: extremely important features of online retailers, consumer electronic shoppers compared to the average, May 2018
Online food and drink shoppers most likely to want physical stores
Figure 73: Germany: online shoppers describing physical stores as an ‘extremely important’ feature of an online retailer, percentage point difference from the average, May 2018
 MEMBERSHIP OF AMAZON PRIME
31% are currently members of Amazon Prime
Figure 74: Germany: membership of Amazon Prime, May 2018
Young parents see the appeal of Prime
Figure 75: Germany: membership of Amazon Prime, by age, May 2018
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ITALY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
The economy
Online sales
Figure 76: Italy: online sales (incl. VAT), 2011-23
Segmentation/What they buy online
Broadband access
Device ownership and internet access
Online shopping
Leading players
Key metrics
Market shares
The consumer
What they buy online
Figure 77: Italy: products purchased online in the last 12 months, May 2018
Where they shop online
Figure 78: Italy: retailers purchased from online in the last 12 months, May 2018
Important features of online retailers
Figure 79: Italy: important features of retailers when shopping online, % agreeing “extremely important” May 2018
Membership of Amazon Prime
What we think
 ISSUES AND INSIGHTS
Is e-commerce finally taking off in Italy?
The facts
The implications
Mobile is essential
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
Economy looking up
Online growing strongly
Clothing the most purchased category
Broadband extending reach
High usage of smartphones
Online shopping low amongst general population but high amongst those online
 MARKET SIZE
The economy
Figure 80: Italy: online sales (incl VAT), 2013-18
Figure 81: Italy: forecast online sales (incl. VAT), 2018-23
Segmentation/What they buy online
Figure 82: Italy: products purchased online in the last 12 months, May 2018
Grocery
Clothing
Electricals
Beauty and Personal Care
 MARKET DRIVERS
Broadband access
Figure 83: Italy:  broadband penetration, % all households, 2010-17
Device ownership and internet access
Figure 84: Italy: technology products personally owned, Q3 2017
Figure 85: Italy: devices used to access the internet in the last three months, Q3 2017
Figure 86: Italy: demographic profile of those using a smartphone to access the internet in the last three months, Q3 2017
Online shopping
Figure 87: France:  percentage saying they have bought online in the last year, 2008-17
 LEADING PLAYERS – WHAT YOU NEED TO KNOW
An international sector
Domestic players lag behind
Online grocery in its infancy
Amazon leads
 LEADING PLAYERS
International players dominate
Amazon investing and innovating
Sector specialists too
Domestic players lag behind
YNAP
ePrice
Grocery
Figure 88: Italy:  leading online retailers, sales, 2015-17
 MARKET SHARES
Amazon leads, followed by a long tail
Figure 89: Italy:  leading online retailers’ shares of all online sales, 2017
 THE CONSUMER – WHAT YOU NEED TO KNOW
Over half buy clothing/footwear online
Variation by demographics
Online-only retailers dominate
Range and costs are important to consumers
Highest membership of Amazon Prime
 WHAT THEY BUY ONLINE
Over half buy clothing/footwear online
Figure 90: Italy: products purchased online in the last 12 months, May 2018
Figure 91: Italy: products purchased online in the last 12 months, by gender, May 2018
Figure 92: Italy: profile of shoppers by type of product bought online in the last 12 months, May 2018
 WHERE THEY SHOP ONLINE
Amazon dominates
Figure 93: Italy: retailers bought from online in the last 12 months, May 2018
Figure 94: Italy: profile of shoppers by retailer bought from online in the last 12 months, May 2018
 IMPORTANT FEATURES OF ONLINE RETAILERS
Range and cost are paramount
Figure 95: Italy: important features of retailers when shopping online, May 2018
What’s important for different categories?
Costs are important to fashion buyers
Figure 96: Italy: extremely important features of online retailers, clothing shoppers compared to the average, May 2018
Choice and price matching important to beauty shoppers
Figure 97: Italy: extremely important features of online retailers, beauty shoppers compared to the average, May 2018
 MEMBERSHIP OF AMAZON PRIME
Figure 98: Italy: membership of Amazon Prime, May 2018
Figure 99: Italy: current members of Amazon Prime, by age and gender, May 2018
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
SPAIN
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
The economy
Online sales
Figure 100: Spain: online sales (including VAT), 2012-23
Segmentation/what they buy online
Figure 101: Spain:  estimated share of online sales by product category, 2017
Broadband access
Figure 102: Spain:  broadband penetration, % all households, 2008-17
Online shopping
Figure 103: Spain:  percentage saying they have bought online in the last year, 2008-17
Leading players
Market share
Figure 104: Spain:  leading online retailers’ shares of online sales, 2017
Other leading players
The consumer
What they buy online
Figure 105: Spain:  products purchased online in the last 12 months, May 2018
Where they shop online
Figure 106: Spain:  retailers bought from online in the last 12 months, May 2018
Important features of online retailers
Figure 107: Spain:  important features of retailers when shopping online, May 2018
Membership of Amazon Prime
Figure 108: Spain:  membership of Amazon Prime, May 2017-May 2018
What we think
 ISSUES AND INSIGHTS
How quickly will Spain catch up with Northern Europe in online?
The facts
The implications
Small, but perfectly formed
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
Economy growing
Online sales of €8.7 billion in 2018
Clothing the biggest sector online
Broadband penetration still below average
Online shopping growing in popularity
 MARKET SIZE
The economy
Online sales and forecasts
Figure 109: Spain:  online sales (incl VAT), 2013-18
Figure 110: Spain: forecast online sales, 2018-23
Segmentation/What they buy online
Figure 111: Spain: percentage saying they have bought online in the last year, by product category, 2017
Figure 112: Spain:  products purchased online in the last 12 months, May 2018
Figure 113: Spain:  estimated online sales by product category, 2017
Figure 114: Spain:  estimated online share of sales, by sector, 2017
 MARKET DRIVERS
Broadband access
Figure 115: Spain:  broadband penetration, % of all households, 2008-17
Device ownership and internet access
Figure 116: Spain: technology products personally owned, Q3 2017
Figure 117: Spain: devices used to access the internet in the last three months, Q3 2017
Online shopping
Figure 118: Spain:  percentage saying they have bought online in the last year, 2013-17
 LEADING PLAYERS – WHAT YOU NEED TO KNOW
Food retailing developing
AliExpress an important player
Fashion – multichannel leads the way
Amazon and El Corte Inglés lead the way
 LEADING PLAYERS
El Corte Inglés close behind Amazon
Amazon and eBay
Zara and Grupo Inditex well established online
Zalando gaining ground
AliExpress
Figure 119: Spain:  leading online retailers, sales, 2015-17
 MARKET SHARES
Figure 120: Spain:  leading online retailers, market shares, 2017
 THE CONSUMER – WHAT YOU NEED TO KNOW
Clothing the most bought item
Amazon way out in front
Low costs and breadth of range are most important
A third of Spanish internet users are members of Prime
 WHAT THEY BUY ONLINE?
Figure 121: Spain:  products purchased online in the last 12 months, May 2018
Figure 122: Spain:  profile of shoppers by what they bought online in the last 12 months, May 2018
 WHERE THEY SHOP ONLINE?
Figure 123: Spain:  retailers purchased from online in the last 12 months, May 2018
Figure 124: Spain:  profile of shoppers by retailer purchased from online in the last 12 months, May 2018
Where they shop and what they bought
Amazon
Figure 125: Amazon:  relative strength by product, May 2018
AliExpress
Figure 126: AliExpress:  relative strength by product, May 2018
eBay
Figure 127: eBay:  relative strength by product, May 2018
Privalia
Figure 128: Privalia:  relative strength by product, May 2018
 IMPORTANT FEATURES OF ONLINE RETAILERS
Figure 129: Spain:  important features of retailers when shopping online, May 2018
Figure 130: Spain:  profiles of those who rated features of online retailers extremely important, May 2018
Important features of online retailers by where they shop
Figure 131: Spain: those who think free standard delivery is extremely important by where they shop, May 2018
Figure 132: Spain: those who think low prices are extremely important by where they shop, May 2018
Figure 133: Spain: those who think having a price promise is extremely important by where they shop, May 2018
 MEMBERSHIP OF AMAZON PRIME
Figure 134: Spain:  membership of Amazon Prime, 2017-18
Figure 135: Spain: profile by membership of Amazon Prime, May 2018
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
UK
 OVERVIEW
What you need to know
Products covered in this Report
 EXECUTIVE SUMMARY
The market
Online retail continues to grow in the double-digits
Figure 136: All online sales and forecast, 2013-23
Online retail accounts for just a sixth of all retail, leaving much room to grow
Figure 137: Online as a % of all UK retail sales, 2008-17
Pure players growing a little faster than store-based online sales
Figure 138: Online pure players’ and store-based retailers’ share of all online sales, 2008-18 (May)
Fashion the largest category
Figure 139: Online sales by product, 2017
Leading retailers
Amazon dominant…
Figure 140: Leading retailers’ share of all online sales, 2017
…and its brand is in rude health
Figure 141: Key metrics for selected brands, November 2017-May 2018
The consumer
Nine in 10 purchased products online in the past year
Figure 142: Change in online shopping use, by age and gender, April 2018
Almost half of online shoppers collected products in the past year
Clothing, footwear and accessories most popular online
Figure 143: Products purchased online in the past year, April 2018
Smartphone purchasing growing, particularly amongst 16-34s
Figure 144: Devices used to shop online in the past 12 months, by age, April 2018
Voice commerce has potential but needs to avoid the ‘gimmick’ tag
Figure 145: Attitudes towards voice commerce, April 2018
More shop with online-only retailers than multi-channel retailers
Figure 146: Retailers shopped with in the past 12 months, April 2018
Convenience driving online use, but consumers know this comes at a cost
Figure 147: Attitudes towards online’s effect on the high street, April 2018
Amazon is fostering an ecosystem through Prime and its consumer electronics
Wide range and low prices staples of online retailing
Figure 148: Importance of factors when choosing where to shop online, April 2018
Majority are concerned about the level of data collected by retailers
Figure 149: Attitudes towards data collection and shopping online, April 2018
What we think
 ISSUES AND INSIGHTS
The changing retail landscape: Online and the high street
The facts
The implications
The Amazon ecosystem is thriving, but are there any ways to combat it?
The facts
The implications
Voice commerce: VR 2.0 or the next leap in customer interaction?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Market conditions fertile for online growth
Online retail continues to grow in the double-digits
Pure players growing a little faster than store-based online sales
Digital downloads worth £4.7 billion
 MARKET DRIVERS
Internet access at near universal levels
Figure 150: UK household internet access, 2008-17
Four fifths own a smartphone
Figure 151: Ownership of mobile phones, January 2012-December 2017
Real incomes begin to climb once more
Figure 152: Real wage growth: average weekly earnings vs inflation, January 2015-May 2018
Confidence takes a hit in 2017
Figure 153: Mintel Financial Confidence Tracker, January 2016-June 2018
Retail sector continues to grow during a tough period
Figure 154: Annual % change in all UK retail sales (ex-fuel), by value and volume, Jan 2016-April 2018
 MARKET SIZE AND FORECAST
Further double-digit growth for the online sector in 2017
Figure 155: All online sales and forecast, 2013-23
Figure 156: All online sales and forecast, at current and constant prices, 2013-23
Online accounts for a sixth of UK retail
Figure 157: Online as a % of all UK retail sales, 2008-17
Online claims its greatest share in November
Figure 158: Online retail sales as % of all retail sales, non-seasonally adjusted, January 2015-Apr 2018
Whilst share peaks in November, sales peak in December
Figure 159: Average weekly value of retail sales online, non-seasonally adjusted, January 2015-April 2018
Forecast methodology
 MARKET SEGMENTATION
Online sales – Stores vs online pure players
Figure 160: Online pure players’ and store-based retailers’ share of all online sales, 2008-18 (May)
Figure 161: Online pure players’ and store-based retailers’ share of all online sales, 20014-18 (May)
Online sales by type of retailer chart
Figure 162: Online sales by type of retailers, 2017
Figure 163: Online share of major retail sectors, 2017
Home shopping
Figure 164: Online sales as proportion all non-store retailers’ sales, 2008-17
High street vs online
Figure 165: Growth in sales, non-store retailers vs store-based retailers, 2008-17
Forecasts
Store-based retailers
Figure 166: Store based retailers: online sales and forecast 2013-23
Figure 167: Store-based retailers: online sales and forecast (inc VAT), in current and constant prices, 2013-23
Pure players
Figure 168: Online pure players: sales and forecast, 2013-23
Figure 169: Online pure players: sales and forecast (inc VAT), in current and constant prices, 2013-23
Market segmentation by product
Figure 170: Online sales by product, 2017
Digital spending
Books – A return to hard copy
Figure 171: The book market, 2013-18
Figure 172: E-books as a proportion of all book sales, 2013-18
Music – Growth from streaming rather than digital
Figure 173: Spending on recorded music, 2012-17
Figure 174: Spending on recorded music, by format, 2012-17
Video another sector switching to streaming
Games
The total download market
Figure 175: The digital download market, 2017
 THE CONSUMER – WHAT YOU NEED TO KNOW
Nine in 10 purchased products online in the past year
Almost half of online shoppers collected products in the past year
Clothing, footwear and accessories most popular online
Smartphone purchasing growing, particularly amongst 16-34s
Voice commerce has potential but needs to avoid the ‘gimmick’ tag
More shop with online-only retailers than multi-channel retailers
Amazon is fostering an ecosystem through Prime and its consumer electronics
Wide range and low prices staples of online retailing
A majority are concerned about the level of data collected by retailers
 WHO BUYS ONLINE AND WHO IS DRIVING GROWTH?
Nine in 10 bought online in the past year
Figure 176: All online retail users, by age, April 2018
Market being driven by encouraging users to bring more of their shopping online
Figure 177: Change in online shopping use, April 2018
Young males most likely to have increased their levels of online shopping
Figure 178: Change in online shopping use, by age and gender, April 2018
 PRODUCTS PURCHASED ONLINE
Fashion the most popular online purchase
Figure 179: Products purchased online in the past year, April 2018
Demographic comparisons
Figure 180: Products purchased online in the past year, by gender, April 2018
Figure 181: Products purchased online in the past year, by age, April 2018
Female online shoppers have a wider repertoire of purchases online
Figure 182: Repertoire of product categories purchased online in the past year, by age and gender, April 2018
 DEVICES USED TO PURCHASE ONLINE
Laptops/desktops remain the most used devices, but smartphones are catching up quickly
Figure 183: Devices used to shop online in the past 12 months, April 2018
Figure 184: Trend data: devices used to shop online, April 2017 and April 2018
Younger consumers far more likely to shop by mobile
Figure 185: Devices used to shop online in the past 12 months, by age, April 2018
 INTEREST IN AND ATTITUDES TOWARDS VOICE COMMERCE
One in 10 households have a personal assistant
Figure 186: Ownership of smart voice-controlled speakers, March 2018
Amazon has a clear first-mover advantage
Figure 187: Brand ownership of smart voice-controlled speakers, March 2018
There is work to be done to overcome the ‘gimmick’ label
Figure 188: Attitudes towards voice-commerce, April 2018
Figure 189: Attitudes towards voice commerce, April 2018
 HOW THEY RECEIVE ONLINE PURCHASES
Almost half of online shoppers have collected purchases
Figure 190: Delivery methods used in the past 12 months, April 2018
Younger consumers more likely to collect
Figure 191: Detailed delivery methods used in the past 12 months, April 2018
Figure 192: Detailed delivery methods used in the past 12 months, by age, April 2018
Most consumers stick to one delivery method
Figure 193: Repertoire of delivery methods used in the past 12 months, by age, April 2018
 ONLINE AND THE HIGH STREET
More online shoppers use online-only retailers than those with stores
Figure 194: Type of retailer shopped with online in the past year, April 2018
The effect of online growth on the high street
Figure 195: Attitudes toward online’s effect on the high street, April 2018
 RETAILERS USED
Nine in 10 online shoppers used Amazon in the past year
Figure 196: Online-only and multi-channel retailers shopped with online in the past year, April 2018
Figure 197: Retailers shopped with in the past 12 months, April 2018
Newer entrants to the market appealing to younger consumers
Figure 198: Retailers shopped with in the past 12 months, by age and socio-economic group, April 2018
Multi-channel shoppers show a broader repertoire
Figure 199: Repertoire of online-only and multi-channel retailers shopped with in the past year, April 2018
 AMAZON: PRIME AND CONSUMER ELECTRONICS
A quarter of consumers are now Amazon Prime members
Figure 200: Membership of Amazon Prime, March 2017-18
Two thirds of 16-34s have some experience with Prime
Figure 201: Membership of Amazon Prime, March 2017-18
The Amazon ecosystem
Figure 202: Amazon services used in the past year, March 2018
Figure 203: Amazon device ownership, by Prime membership status, March 2018
Prime membership translates into greater purchasing
Figure 204: Purchases made via Amazon, by Prime membership status, March 2018
 WHAT IS IMPORTANT WHEN CHOOSING WHERE TO SHOP?
Wide range a must for those trading online
Figure 205: Importance of factors when choosing where to shop online, April 2018
Figure 206: Select factors which were selected as being “extremely important”, by age, April 2018
Free returns drive appeal
Figure 207: TURF analysis – Online retailing, May 2018
 ATTITUDES TOWARDS DATA AND BUYING ONLINE
Half of consumers feel the level of data retailers collect is a concern
Figure 208: Attitudes towards data collection and shopping online, April 2018
Figure 209: Agreement with statements around data collection and shopping online, by generation, April 2018
Clear communication about the use of data could ease concerns
Figure 210: Attitudes towards data sharing, December 2017
Figure 211: Companies consumers would share more data with in exchange for incentives, December 2017
 KEY PLAYERS – WHAT YOU NEED TO KNOW
Amazon dominant
eBay second, but the gap with Amazon is widening
Tesco downsizing
Not as big as rumour would suggest
Amazon brand in rude health
Online players continue to look to make the shopping experience ‘frictionless’
 LEADING ONLINE RETAILERS
Amazon and eBay
Tesco and Sainsbury’s
John Lewis
Mail order companies
Fast-growing pure players
Figure 212: UK: Top 30 leading online retailers, 2015/16-2017/18
 MARKET SHARES
Amazon accounts for just under a quarter of online retail in the UK
Figure 213: Leading retailers share of all online sales, 2017
Figure 214: Leading retailers: share of all online sales, 2015-17
 BRAND RESEARCH
What you need to know
Brand map
Figure 215: Attitudes towards and usage of selected brands, November 2017-May 2018
Key brand metrics
Figure 216: Key metrics for selected brands, November 2017-May 2018
Brand attitudes: innovation driving ASOS
Figure 217: Attitudes, by brand, November 2017-May 2018
Brand personality: Amazon, eBay and Ikea lead in the fun stakes
Figure 218: Brand personality – Macro image, November 2017-May 2018
Premium position for John Lewis
Figure 219: Brand personality – Micro image, November 2017-May 2018
Brand analysis
Amazon: excelling in the experience stakes
ao.com: low usage impacting perceptions
Argos: universally known but work needed on the experience
ASOS: younger consumers driving a positive brand image
Boots: high trust levels
Currys PC World: lacking trust and customer experience
Debenhams: improvement needed in the customer experience
eBay: seen as innovative and trustworthy
Ikea: brand perception strongest with younger consumers
John Lewis: a premium position despite the price match
M&S: a strong brand that has lost its cutting edge
Next: accessible but fun
Shop Direct – Very & Littlewoods: a tale of two halves
 LAUNCH ACTIVITY AND INNOVATION
Returns and deliveries
Making returns as convenient as deliveries
Amazon poised to launch its own delivery service
Bus depots as delivery hubs
Amazon and Volvo in unique test drive initiative
Sainsbury’s trialling zero emission bikes for grocery deliveries
New e-commerce venture
Lidl to launch online grocery service in the UK?
Innovative app
Cashing in on unwanted clothes
Augmented and virtual reality
Nike using Facebook Messenger’s new AR try-and-buy tool
Argos launches augmented reality feature on its mobile app
Purchasing options
Try before you buy
 ADVERTISING AND MARKETING ACTIVITY
Online retail advertising spend up for a third consecutive year in 2017
Figure 220: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, 2014-17
eBay rebranding itself into a shopping destination
Amazon puts fashion and delivery in the spotlight
Notonthehighstreet Christmas campaign
Ocado the leading online supermarket/grocer/food retail advertiser
Pretty Little Thing nationwide taxi TV advertising campaign
Party with the Porters
Figure 221: Leading UK online retailers: recorded above-the-line, online display and direct mail total advertising expenditure, 2014-17
Over half of total advertising spend channelled through TV
Figure 222: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, by media type, 2014-17
Nielsen Ad Intel coverage
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
VAT
Financial definitions
Abbreviations
Consumer research methodology
TURF analysis – Methodology
Figure 223: Table – TURF analysis – Online retailing, May 2018
 APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
AMAZON.COM
What we think
Geographical expansion
Prime
Marketplace
AWS
Profitability
What next?
Food
Clothing
Electricals and others
Company background
Company performance
Published sales and total sales volumes
Figure 224: Amazon: sales breakdown by source of income, 2015-17
Figure 225: Amazon: sales breakdown by source of income, 2017
First quarter 2018
Gross merchandise volume (GMV)
Figure 226: Amazon: estimated group gross merchandise volume, 2015-17
GMV by country
Figure 227: Amazon.com Inc: group financial performance, 2013-17
UK sales by product
Figure 228: Amazon UK: estimated sales by product, 2017
Retail offering
AO WORLD
What we think
New markets on the horizon?
New categories for all markets
Addressing the growth in m-commerce
Recycling facility provides competitive edge
Company background
Company performance
Figure 229: AO World Plc: group financial performance, 2013/14-2017/18
Figure 230: AO World Plc: UK turnover breakdown by segment, 2016/17 and 2017/18
Retail offering
ARGOS 
What we think
Argos in Asda supermarkets
Bolstering tech team to keep ahead of the competition
Beefed up market-leading Fast Track home delivery service
Local Sainsbury's collection points
Co-branded ventures bringing Argos and Sainsbury’s closer together
Company background
Company performance
Figure 231: Argos: group financial performance, 2013/14-2017/18
Figure 232: Argos: outlet data, 2013/14-2017/18
Retail offering
ASOS
What we think
Positive and empowering approach
Try before you buy
Expansion and innovations
Leisurewear launches
Mobile coming to the fore
Seamless service
Company background
Company performance
Figure 233: ASOS: group financial performance, 2012/13-2016/17
Retail offering
CDISCOUNT
What we think
M-commerce: still room for growth
Stepping up on fulfilment
Product range extension boosts home and family and leisure segments
Innovation at the heart of Cdiscount’s strategy
Let’s get phygital…
Company background
Company performance
Figure 234: Cdiscount: group financial performance, 2013-17
Retail offering
DIXONS CARPHONE 
What we think
A shift in focus towards delivery
Reducing barriers to online purchasing
Extending online ranges
Company background
Figure 235: Dixons Carphone: retail brands, by country, 2018
Company performance
Figure 236: Dixons Carphone: group financial performance, 2013/14-2017/18
Online performance
Figure 237: Dixons Carphone: estimated online sales, 2013/14-2016/17
Figure 238: Dixons Carphone: estimated online sales, by channel, 2013/14-2016/17
Figure 239: Dixons Carphone: outlet data, 2013/14-2017/18
Retail offering
EBAY 
What we think
Marketplace
No longer a fast-growing business
Progress in 2017
Shortcomings vs Amazon
What next?
Company background
Company performance
Figure 240: eBay: group gross merchandise volume, 2013-17
Figure 241: eBay: major markets, estimated growth in GMV in local currency, 2014-17
Figure 242: eBay Europe: sales, excluding VAT, 2015-17
Retail offering
FNAC DARTY 
What we think
Integrating e-commerce platform with Google voice assistant
Immediate access to installation and troubleshooting support
Strategic collaborations to strengthen product and pricing proposition
Capitalising on smartphone popularity to push audio books
Making store collection and home delivery more convenient
French ‘Black Friday’
Company background
Company performance
Figure 243: Fnac Darty: pro-forma group financial performance, 2015-17
Figure 244: Fnac Darty: pro-forma store network, 2015-17
Retail offering
JOHN LEWIS (DEPARTMENT STORE)
What we think
A need for more flexible fulfilment options
Enhancements to app reflect steady shift to m-commerce
Home Solutions broaden range of services offered
JLAB helps keep finger on technology pulse
Company background
Company performance
Figure 245: John Lewis Plc (department store): group financial performance, 2013/14-2017/18
Figure 246: John Lewis Plc (department store): outlet data, 2013/14-2017/18
Retail offering
NEXT GROUP
What we think
Clawing back lost ground
Next follows the trend towards personalisation
Increasing range of payment options aims to drive sales growth
Company background
Company performance
Figure 247: Next Group: group financial performance, 2013/14-2017/18
Figure 248: Next Group: outlet data, 2013/14-2017/18
Figure 249: Next Group: average active customers, 2016/17 and 2017/18
Retail offering
OCADO GROUP
What we think
Ocado and Waitrose
Putting it in perspective
Capacity
Solutions – The second growth arm
What next?
Company background
Company performance
Figure 250: Ocado Group plc: group financial performance, 2011/12-2016/17
Retail offering
OTTO GROUP (MULTICHANNEL RETAIL)
What we think
Marketplace development widening product choice and attracting new customers
ABOUT YOU doubles sales
‘Conversational commerce’
Sports lifestyle hub
Parcel shops, micro depots and trunk delivery
Using augmented reality technology to make choosing the right product easier
Otto Now expanded to include over 100 products
Company background
Company performance
Figure 251: Otto Group (Multichannel Retail): group sales performance, 2013/14-2017/18
Figure 252: Otto Group: major brands within the Multichannel Retail segment, 2017/18
Retail offering
SHOP DIRECT GROUP 
What we think
Change at the top
Where next for Littlewoods?
Very restricting its appeal
What next?
Company background
Very vs Littlewoods
Company performance
Figure 253: Shop Direct Group: group financial performance, 2012/13-2017/18
Retail offering
TESCO 
What we think
Closing its non-food website
Same-day delivered groceries
Tackling wastage through over ordering
Exploring new delivery methods
Company background
Company performance
Figure 254: Tesco Plc: group financial performance, 2013/14-2017/18
Figure 255: Tesco Plc: outlet data, 2013/14-2017/18
Retail offering
VENTE-PRIVÉE
What we think
Priority must be to digest acquisitions
Mobile commerce increases in importance
Delivery pass and marketplace launches aim to further increase appeal
Investment in innovation driving growth
A growing contribution from entertainment
Potential clouds on the horizon?
Company background
Company performance
Figure 256: Vente-privée: group sales performance, 2013-17
Retail offering
YNAP GROUP
What we think
Richemont takeover completed
YNAP focuses on m-commerce…
…and expands product range
Sustainability commitments
Company background
Company performance
Figure 257: YNAP Group: group financial performance, 2014-17
Retail offering
ZALANDO
What we think
Complementary beauty category offering
Pop-up an opportunity to raise awareness of the online style advisory service
Growing role of personalisation
Scaling up logistics network and order fulfilment options
Rising fulfilment costs a sign of things to come?
Local and regional-specific payment options boosting basket size and conversion rates
Company background
Company performance
Figure 258: Zalando: group financial performance, 2013-17
Figure 259: Zalando: key metrics, 2015-Q1 2018
Retail offering