Wednesday, December 24, 2008

B2C E-Commerce in UK, 2007-2012


According to eMarketer, Business 2 Consumer E-Commerce in the UK will continue it's strong growth pattern.  The tough economic climate will not affect e-commerce as much as it will bricks and mortar retail.  Here's their analysis:

UK e-commerce revenues will remain strong in 2009, as Internet stores continue to weather the recessionary storm better than their brick-and-mortar counterparts. In September 2008, eMarketer forecast that UK business-to-consumer (B2C) online sales in 2009 would be worth £68.4 billion ($127.9 billion), and we have seen no reason to alter that forecast.

B2C E-Commerce: UK, 2007-2012

Major online retailers that upgrade to offer true multichannel shopping and delivery/return options, as well as value for money, will gain market share while a number of second-rank e-shops stagnate or go out of business. But market leaders will spend more than in 2008 to ensure they attract and keep consumers’ attention.

Most online retailers will continue to court shoppers with money-off promotions and discounted delivery charges, and at least one supermarket chain will experiment with large-scale e-mail distribution of promotional coupons for grocery products bought in-store.

Mobile marketing will take significant steps next year—albeit from a small base—as more UK advertisers, heartened by the growing number of high-specification (3G) mobile users, move to exploit this always-on medium. Data from the Office for National Statistics suggested that 19% of adults ages 16 and older accessed the Web via their mobile phone in the three months prior to polling in early 2008—and this was before the highly successful UK launch of the 3G iPhone in July.

The 2009 mobile growth spurt will take two main forms: increasingly sophisticated usage of SMS, short codes and bar codes in direct-response campaigns, and microsites designed for mobile users. November 2008 research by mobile marketing agency Sponge found that 40% of UK e-retailers polled already had a transactional Website that was mobile-friendly. Another 50% said they planned to create such a site in the next 12 months. Moreover, one in five online retailers reported having used mobile microsites to drive promotions during 2008.

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