Online trading

Finally some good news for retailers

 Results show more and more consumers agree, “now is a good time for people to make major purchases such as furniture or electrical goods.” This has translated into substantial increases in both the UK Consumer Confidence Index* (+6 pts) and the Major Purchasing Index (+14 pts) to 7 and 16 points, respectively. (KBBDaily)

This uplift in consumer confidence is a stark contrast to 12 months ago where confidence was low (The Major Purchasing Index was 18 points lower this time last year). With consumers now more likely to part with their hard earned cash there is renewed optimism for retailers, particularly those online.

The recession had a hugely negative impact on a vast majority of businesses, one of which was to encourage shoppers to buy online rather than from traditional stores. This allows shoppers to look around, compare prices and potentially get a “deal”. As a result online sales have seen a 15.8% growth in 2014 and a predicted 16.2% growth in 2015 to £52.52 billion.

Research conducted by RbD showed over a third of consumers are likely to purchase a TV (39%) or washing machine (34%) online rather than in-store. Fuelling the power of e-commerce further a separate study showed half of customers consult online reviews regularly to determine whether a product is suitable.  

With significant shifts towards online shopping, retailers need to ensure they have a clear, customer focussed online offering to entice the consumer to not only purchase their products but to spread the word about their experience, such as in online reviews, further increasing the reach of the retailer amongst its target audience.

*UK consumer confidence index (CCI) measures the degree of optimism on the state of the economy consumers express through their activities of spending & savings. 

Source: http://www.retailresearch.org/onlineretailing.php

By Asad Khaliq, Senior Research Executive

This entry was posted in B2C, tagged Retail, Consumer, Shopping, Quantitative, E-commerce, Online shopping and posted on July 31, 2015


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