Consumer Attitudes & Online Retail Dynamics in the UK

Synopsis

"Consumer Attitudes & Online Retail Dynamics in the UK" provides in-depth analysis of the latest trends in online consumer shopping, covering drivers of online shopping, consumer insights, market dynamics (covering 25 product categories) and reviews of latest best practice in online retail site design.

Based on the latest data, the report not only provides details of the size and growth of this increasingly important channel, it also provides essential contexts on the penetration of online sales by product groups, how growth has developed over time and key drivers of this market in the future.

Summary

This report is the result of ICD’s extensive market research covering the online retail industry in the UK. “Consumer Attitudes & Online Retail Development in the UK” provides the magnitude, growth, share, and dynamics of the online retail market and is an essential tool for companies either active in this sector or which are seeking to target this channel.

The report provides core insights into consumer behaviour and highlights the latest online trends and their impact on online product sales. Core data sets give both historical contexts and a view into the future - providing data from 2005 through to 2015 and allowing marketers to update their strategic planning and fill gaps in their knowledge about this rapidly evolving channel.

By examining best practice from leading national large-scale online retailers (but specifically excluding the likes of Amazon whose sites are well-known and vary little by country), as well as reviewing innovative approaches from smaller players, the report also provides insights and ideas about how best to approach growing online sales for your business.

Together these three core elements; market dynamics, consumer understanding and best practice examples will allow readers to easily understand the nature and development of online retail in the UK and provide insight into how best to exploit the opportunities in the market.

Scope

The report analyses online consumer behaviour, market dynamics and best practice approaches to online retail in the UK. In particular, core market data sets cover 8 product groups and 25 individual product markets within the UK.

Product Coverage:
Clothing & Footwear
Jewelry & Watches
Luggage & Leather goods
Printed Media
Stationery & Cards
Communications Equipment
Computer Hardware & Software
Consumer Electronics
Household Appliances
Photographic Equipment
Drinks
Household Products
Packaged Food
Personal Care
Tobacco
Unpackaged Food
Floor Coverings
Furniture
Gardening & Outdoor Living
Home Improvement
Home Wares
Games Software
Music & Video
Sports Equipment
Toys & Games

Reasons to Buy

This report provides readers with unparalled levels of detail and insight into the development of online retail sales within the United Kingdom:

- Understand consumer behavior and online trends in the UK
- Understand which products will be the major winners and losers in the coming years
- Assess the impact of economic recession and recovery on market growth
- Learn from best practice approaches outlined in the case studies of leading online retailers
- Improve market and strategic planning using highly granular, forward-looking market data

Key Highlights

Online retailing in the UK has grown rapidly in recent years, driven by high internet penetration rates — XX% of the population access the internet on a frequent basis — and a growing willingness to use online retail channels. The main factors behind this growing willingness are the convenience of online shopping, the belief that online offers better value for money and the breadth of choice in product ranges available online. The most popular products sold online are consumer electronics, books and music and video products while online apparel and grocery sales are also gaining momentum. In fact, the UK is the world’s most developed online grocery market.

Before making a purchase online, UK consumers are highly likely to spend time reviewing product specifications and reading product reviews and ratings. Retailers have learnt this and increasingly ensure these details are accessible on their sites and are further adapting their technologies to suit modern British lifestyles by offering m-commerce sites and applications - helping to target the busy, time-starved on-the-go consumer.

Table of contents

1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.3.1 Overview
1.3.2 The Triangulated Market Sizing Method
1.3.3 Industry Surveys in the creation of Retail Market Data
1.3.4 Quality Control and Standardized Processes
2 Consumer Insight: Online Shopping Attitudes & Behaviours
2.1 The UK is one of the world’s most advanced online retailing environments
2.2 Overview of the UK Online Shopping Environment
2.2.1 Growth in Internet users drives online retail sales
2.2.2 Growth in Broadband Internet Subscribers allows for more effective online sales
2.2.3 Very high mobile phone penetration rates make m-commerce a growth area
2.3 Consumer Attitudes & Behaviors
2.3.1 Increase in online population promotes online spending
2.3.2 Over half of the UK adult population made online purchases in 2010
2.3.3 Mobile e-retailing is changing the way consumers shop, but payment systems need to evolve
2.3.4 Changes in consumer preferences, convenience and value will fuel the future growth of online retailing in the UK
2.3.5 UK remains the world’s most developed online grocery market
2.3.6 Retailers are increasingly marketing through social networking sites to drive sales
2.3.7 Despite robust growth in online retailing, consumer behaviour across product categories reflects significant variation
2.3.8 Online customers spend significant time researching products before making an actual purchase
2.3.9 Debit and credit cards remain the favourite modes of payment for online shoppers in the UK
2.3.10 Customers are satisfied with current delivery options and are prepared to pay more for specific delivery slots
2.3.11 More flexible returns and quick refund options are being offered to customers
3 Online Channel Dynamics
3.1 Online’s Share of Total Retail Sales
3.1.1 UK Online vs. Offline Channel Forecasts
3.1.2 Online Penetration: Global & Regional Comparisons
3.2 Channel Dynamics
3.2.1 UK Channel Group Dynamics – Future Performance
3.2.2 Channel Group Share Development
3.2.3 Individual Channel Performance
3.3 Category Dynamics
3.3.1 Online Vs Offline Retail Sales Comparison by Product Category Group 2010
3.3.2 Online Retail Market Dynamics by Category Group
3.3.3 Online Retail Sales Share by Product Group
3.3.4 Online Retail Sales Growth by individual Product Categories
3.3.4.1 Food & Grocery Categories Market Size and Forecasts
3.3.4.2 Electrical & Electronics Categories Market Size and Forecasts
3.3.4.3 Music, Video & Entertainment Software Group Market Size and Forecasts
3.3.4.4 Apparel, Accessories & Luxury group Market Size and Forecasts
3.3.4.5 Books, News & Stationery Group Market Size and Forecasts
3.3.4.6 Sports & Leisure Equipment Product Group Market Size and Forecasts
3.3.4.7 Furniture & Floor Coverings Product Group Market Size and Forecasts
3.3.4.8 Home & Garden Product Groups Market Size and Forecasts
4 Case Studies: Leading Online Retailers in the UK
4.1 Retailer 1: John Lewis
4.1.1 Business Description
4.1.2 Site Experience
4.2 Retailer 2: ASOS plc
4.2.1 Business Description
4.2.2 Site Experience
4.3 Retailer 3: Next plc
4.3.1 Business Description
4.3.2 Site Experience
4.4 Other Innovative Retailers in the UK
4.4.1 Maplin Electronics
4.4.2 Ebuyer.com
4.4.3 Play.com
5 Appendix
5.1 Methodology
5.2 Contact us
5.3 About ICD Research
5.4 Disclaimer

List of Tables

Table 1: UK Exchange Rate US$-GBP (Annual Average), 2005-2010
Table 2: ICD Research Retail Channel Definitions
Table 3: ICD Research Retail Category Definitions
Table 4: ICD Research Retail Country Coverage
Table 5: UK Channel Retail Sales & Forecast (GBP billion), By Channel Group, 2005-2015
Table 6: UK Channel Retail Sales & Forecast (US$ billion), By Channel Group, 2005-2015
Table 7: UK Channel Retail Sales & Forecast (% Share), 2005-2015
Table 8: UK Online Sales Vs Global Average
Table 9: UK Online Sales Vs Western Europe
Table 10: UK Overall Retail Segmentation (GBP billion), By Channel Group, 2005-2015
Table 11: UK Channel Retail Sales & Forecast (GBP billion), By Channel Group, 2005-2015
Table 12: UK Channel Retail Sales & Forecast (US$ billion), By Channel Group, 2005-2015
Table 13: UK Channel Retail Sales & Forecast ( % Share), By Channel Group, 2005-2015
Table 14: UK Channel Retail Sales & Forecast (GBP billion), By Channels, 2005-2015
Table 15: UK Channel Retail Sales & Forecast (US$ billion), By Channels, 2005-2015
Table 16: UK Retail Sales Split (GBP billion), Online Vs Offline, 2010
Table 17: UK Retail Sales Split (US$ billion), Online Vs Offline, 2010
Table 18: UK Online Retailers Market Dynamics, By Category Group, 2005-2015
Table 19: UK Online Retail Sales & Forecast (GBP billion), By Category Group, 2005-2015
Table 20: UK Online Retail Sales & Forecast (US$ billion), By Category Group, 2005-2015
Table 21: UK Total and Online Retail Sales in Food & Grocery Product Categories (GBP million), 2005-2015
Table 22: UK Total and Online Retail Sales in Food & Grocery Product Categories (US$ million), 2005-2015
Table 23: UK Total and Online Retail Sales in Electrical & Electronics Categories (GBP million), 2005-2015
Table 24: UK Total and Online Retail Sales in Electrical & Electronics Categories (US$ million), 2005-2015
Table 25: UK Total and Online Retail Sales in Music, video & entertainment Categories (GBP million), 2005-2015
Table 26: UK Total and Online Retail Sales in Music, video & entertainment Categories (US$ million), 2005-2015
Table 27: UK Total and Online Retail Sales in Apparel, Accessories & Luxury Categories (GBP million), 2005-2015
Table 28: UK Total and Online Retail Sales in Apparel, Accessories & Luxury Categories (US$ million), 2005-2015
Table 29: UK Total and Online Retail Sales in Books, News & Stationery Categories (GBP million), 2005-2015
Table 30: UK Total and Online Retail Sales in Books, News & Stationery Categories (US$ million), 2005-2015
Table 31: UK Total and Online Retail Sales in Sports & Leisure Equipment (GBP million), 2005-2015
Table 32: UK Total and Online Retail Sales in Sports & Leisure Equipment (US$ million), 2005-2015
Table 33: UK Total and Online Retail Sales in Furniture & Floor Coverings Categories (GBP million), 2005-2015
Table 34: UK Total and Online Retail Sales in Furniture & Floor Coverings Categories (US$ million), 2005-2015
Table 35: UK Total and Online Retail Sales in Home & Garden Product Categories (GBP million), 2005-2015
Table 36: UK Total and Online Retail Sales in Home & Garden Product Categories (US$ million), 2005-2015

List of Figures

Figure 1: The Triangulated Market Sizing Methodology
Figure 2: Total Internet Users (millions)
Figure 3: Total Fixed Broadband Internet Subscribers (millions)
Figure 4: Mobile Phone Penetration
Figure 5: UK Online Retail Consumers as a % of Total Online Population, 2010
Figure 6: UK Online Retail Sales as a % of Total Retail Sales
Figure 7: UK Growth of Traditional Retailing Vs Online Retailing, 2006-2015
Figure 8: UK Online Grocery Retail Sales
Figure 9: UK Online Sales Split (%), 2010
Figure 10: UK Channel Retail Sales & Forecast (US$ billion), By Channel Group, 2005-2015
Figure 11: UK Online Sales Vs Global Average (% of Total Retail)
Figure 12: UK Online Sales Vs Western European Countries Average (% of Total Retail)
Figure 13: UK Overall Retail Market Dynamics, By Channel, 2005-2015
Figure 14: UK Retail Sales & Forecast (GBP billion), By Channel Group, 2005-2015
Figure 15: UK Retail Sales Split, Online Vs Offline 2010
Figure 16: UK Online Retailers Market Dynamics, By Category Group, 2005-2015
Figure 17: UK Online Retail Sales & Forecast (US$ billion), By Category Group, 2005-2015
Figure 18: www.johnlewis.com: Well Organized Product Pages
Figure 19: www.johnlewis.com: Search Capabilities
Figure 20: www.johnlewis.com: Best Practices followed during checkout
Figure 21: www.johnlewis.com: Tools to aid Purchase
Figure 22: www.johnlewis.com: Mobile Edition of the Site
Figure 23: ASOS – Use of Online Space
Figure 24: ASOS – Trend Tool to aid Purchase Decision
Figure 25: Next - Use of Online Space
Figure 26: Next - Tools to aid Purchase
Figure 27: Maplin: Site Layout
Figure 28: E Buyer: Site Layout
Figure 29: Play.com: Site Layout

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Related research categories

By sector: Retail (in Off-trade), Consumer (in Trends)

By market: United Kingdom (in Europe)