“Growing digital penetration as well as technological innovation in the country has led to heavy closure of high street retail shops within UK”.
Changing Consumer Trends: It was observed that UK retailers are increasingly turn-ing online mode by either opening their own website portal or listing their products on 3rd party websites. As a result, it led to closure / exit of numerous shops / offline stores and showrooms present in the high street. The companies have instead started focusing on creating mobile optimized websites owing to growing penetration of smart phones in the country. These companies are competing on the basis of personalized experience and social engagement.
Blending of Online and Physical Model: ROPO i.e. Research Online, Purchase Offline has been witnessed as the growing trend in UK retail industry where both online and physical market place combines together with consumer behavior. In this model, the customer visits the online platform of the company or the stores landing page to search about the product features, prices and other details and made the purchase through physical store in order to avoid shipping cost and delays. This facilitates the customer to have wider options & competitive pricing along with physical quality verification.
Rising Smartphone Penetration: In accordance with WeAreSocial Statistical Database, UK was evaluated with total of 45.0 million active social media users therefore, making a social media penetration of 67.0% and 71.7 million mobile subscription users as of January 2019. The increasing usage of internet via Smartphone has surged the growth of E-commerce industry in the country owing to the convenience and ease of accessing the websites from anywhere along with high internet speed of around 27.55 Mbps and increasing number of mobile optimized websites in UK thus, creating a positive impact on the country’s online retail sector.
Growth in Youth Population of UK: Millennial and young population is the major end user of digital platforms in UK. The increasing number of young online shoppers and solo travelers has majorly contributed towards growing consumption of online video and music streaming services and online travel market in UK. The youth population of UK is increasing with a CAGR of 0.7% during 2013-2018 thus, evaluated at 27.5 million in the year 2018. The well developed digital infrastructure and increasing penetration of internet in the country with 46.2 million users and 95% penetration rate in led to growth of E-commerce industry in the country.
Analysts at Ken Research in their latest publication “UK Online Retail Market Outlook to 2025 – By Product Categories (Apparel and Footwear, Food and Drink, Media Products, Consumer Electronics and Others), By Desktop and Mobile Mode, By Gender (Male and Female) and By Mode of Payment (Debit+Credit Card, Net Banking and Cash on Delivery)” observed that the online retail segment in UK is at a growing stage and it will further witness growth owing to factors such as rising digital advertising spent, surge in number of websites on desktop and mobile and increasing penetration of smart phones across the country. UK online retail market is expected to register a positive CAGR of 6.5% in terms of gross merchandise value during the forecast period 2018-2025.
Key Segments Covered:-
By Product Category Type (Apparel and Footwear, Beauty and Personal Care, Consumer Appliance, Consumer Electronics, Consumer Health, Food and Drink, Home Care, Home Improvement & Gardening, Homewares/Home Furnishings, Media Products, Personal Accessories and Eyewear, Pet Care, Traditional Toys and Games, Video Games Hardware and Other Internet Retailing)
By Type of Device (Mobile and Desktop)
By Gender (Female and Male)
By Mode of Payment (Cash on Delivery, Debit + Credit Card and Net Banking and M-Wallets)
Key Target Audience:-
Online Retail Companies
Third Party Websites of Online Retail
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2025F
J Sainsbury Plc
John Lewis Partnership Plc
For More Information on the research report, refer to below links:-
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Ankur Gupta, Head Marketing & Communications