It is no surprise to anyone that online shopping is increasing year by year. However it is interesting to see just how comfortable consumers are becoming with net shopping. Where previously online shopping was limited to certain sites and certain consumers, today the online boom means that most retail outlets also sell online. It is predicted that by 2012 the internet will make up 15% of the retail industry’s market share. This is estimated to be worth £45 billion. Even with the credit crunch biting, it seems that online shopping is not slowing down, but steadily increasing. A survey run by IMRG and Capgemini says that this year alone UK shoppers have spent 17 pence of every pound on the internet. This is an impressive growth of 38% on last year. This will come as no surprise when we consider that while retail spending on the high street was markedly lower in Christmas 2007, online there was £15.2 billion spent in the three months between October and December. This is a 50% increase on spend at Christmas 2006 and that was an increase of 50% on spent at Christmas 2005 (figures also from IMRG). This stunning growth, even during the credit crunch, is holding online retailers in good stead. This increased confidence in online shopping is a reflection of changing attitudes towards the internet. Security is constantly improving and standardising and users are more savvy about how to shop safely. As retailers innovate online, consumers are becoming more comfortable with how to shop on the net. Many users now feel that online shopping is more convenient than high street shopping. As Mike Petevinos, head of retail consulting at Capgemini, said in an interview with the BBC: “Convenience has a sharper edge in a world of soaring fuel prices and the ability to research and make more informed choices in a time of heightened price sensitivity is a key advantage of the online channel.” I It is great news to online retailers that the EU is proposing new rules to make it easier for consumers to shop online within Europe. The proposal intends to outline a more consistent approach to online retail, from consumer rights to standard practices. This will cover things like cooling off periods and guarantees to help open up online retail between countries across Europe. EU Consumer Commissioner Meglena Kuneva is proposing a broad range of practises that should help consumers shop online, including a crackdown on hidden charges (particularly by cheap airlines) as well as cutting costs of telecommunications using broadband such as text messages and downloads. So while the gloom of recession has made it tough for the high street, it is good news to hear that online retail is holding its course and growth. With the standardisation of retail practises and the growing consumer confidence in online shopping, it seems like the internet is staying on course.
Justin Drummond,
Chief Executive - Media Corporation plc
Revolution Magazine
