Christmas online retail spend to hit record level
With the help of mobile devices, online retail spend figures will hit a record number of an estimated £10bn in December this year.
According to analysis carried out on the IMRG Capgemini e-Retail Sales Index, as well as going over the £10bn mark for the first time ever, the new findings also show that during the November and December period of 2013, consumer online retail spend will reach a total of £20.4bn.
Tina Spooner, chief information officer at IMRG said: “For the first time in 3 years we expect annual e-retail growth to exceed the level recorded in the previous year, with 2013 sales on target to achieve 15% growth on last year. The increase in the number of browsers that convert to buyers is also positive news for retailers as they gear up for the key festive trading period, with the average conversion rate expected to reach pre-recession levels during the fourth quarter.
In preparation for Christmas and in a bid to beat the competition retailers are offering additional services such as click & collect, next day delivery and one-hour delivery slots.
Chris Webster, head of retail consulting and technology at Capgemini, puts the increase in online sales down to mobile devices. “The impact of mobile devices in 2013 has been very significant, and this forecast is in direct response to the overwhelming growth we have seen in sales via tablets and smartphones over the last few years. The huge strides in technology and the improved mobile services from retailers, such as digital wallets, mobile coupons and location based services, have all played a major role in driving growth through these channels. Improved mobile sites has made shopping on the move much easier, so we are also seeing an increase in click & collect services,” he said.
During a roundtable session IMRG and Capgemini presented their findings to a host of leading UK retailers and discussed possible contributing factors to the emerging trend. Accessibility, convenience and confidence all came up in the debate.
- Accessibility: smart phone technology is now widely accessible due to the low rates provided by mobile phone contractors. As a result laptops are being pushed out.
- Convenience: as always convenience wins within consumerism. The leisurely nature of a mobile device encourages users to browse and buy while they travel, eat and watch tv.
- Confidence: online shopping is has made it to the familiar. Retailers have raised their game in terms of mobile website and user experience and as a result shoppers are far more confident in m-retail.
In support of the significant change in consumer behaviour that these findings suggest, where UK online shoppers are migrating from desktops and laptop computers to smartphones and tablet devices, John Lewis has also announced that they expect to see the first truly ‘mobile’ Christmas this year, as traffic from mobile devices will exceed that of desktop on their site on Christmas Day itself.
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