Forecast £28bn online Sales by 2011
Date Published 14/07/2007 - Click here for more recent news
According to a recent study by retail analysts Verdict Research, online sales in the UK will almost triple over the next 5 years and they predict that online spending will reach £28.1bn in the UK by 2011 - equivalent to 8.9% of all UK retail spending.
Now here at EASIserv.com we well understand that famous dictum, that to be a successful forecaster you need to forecast often and there's enough forecasting going on these days to make even the most sceptical blanche. But there's plenty of supporting evidence around that gives rise to the feeling that they may not be that far off the mark with this forecast.
From our point of view as champions of the benefits of 'buying online' there's hardly a thing these days that we don't buy online. For example, just today we've bought and paid online for a new Dell laptop for £2.3k and never turned a hair. Think back 5 years or so when folks were so nervous about buying anything at all online (yes, we know some still are) but the playing field has changed enormously since then and we're enormously encouraged by this e-Tail 2007 report.
The report reveals the fastest rate of growth in the online sector since the bursting of the dotcom bubble (ouch!) in 2001. In 2006, online retail spending in the UK grew by 33.4%, to a record £10.9bn, almost 13 times faster than the retail sector overall. (NB: Verdict Research figures in this report exclude spending on services such as flights, tickets and insurance).
And what's driving this growth in an online shopping population that now numbers 18m? Broadband - that's what. Of the 3k consumers surveyed for the report, 66% said they had Broadband access and shopped online more frequently as a result. Stands to reason doesn't it, when you think how less usable it used to be online - in the dark days of dial-up and dodgy modems!
Despite the scale of this online opportunity, the report urges retailers to take care not to jeopardise the trust of their customers. Whilst we mentioned earlier that we're pretty relaxed about spending £2.3k online, not all online shoppers are like us and many shoppers still need great assurance that their financial details are safe online.
It's the oft quoted view of those 'in the industry' - that it's generally more secure to use your credit card online than it is to use it in person in (say) a restaurant or garage forecourt, but you can't convince everybody of that fact. But security enhancements similar to Chip and PIN are beginning to take root in online transactions too - with the introduction of programmes like 'Verified by Visa' and others. Still much to do - but they're getting there.
However, the report winds-up by pointing out that whilst many retailers have a long way to go to create a truly seamless multi-channel operation - the rewards for doing so successfully will certainly outweigh the investment. At EASIserv.com we say hip-hip-hoorah to that. If we can help you get online - do give us a call.
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