Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Best- and worst-case forecast of online sales of household goods, 2005-15
- UK consumers spend £2.9 billion online for the home
- Online shopping is growing share of consumer spend on home goods
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- Figure 2: Online share of consumer spending on goods for the home, 2006-10
- Market factors
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- Figure 3: Broadband penetration, by age, 2010
- The connected consumer
- Online shopping is going mobile
- High willingness to shop online
- Home goods hit by poor market conditions
- Companies, brands and innovation
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- Figure 4: Websites used for online shopping, March 2011
- Four general retailers are the most used
- Some home goods retailers risk being left behind
- Plenty of innovation in evidence
- The consumer
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- Figure 5: Products bought for the home and shopping patterns, March 2011
- Large electrical appliances top the list of goods for the home online
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- Figure 6: Attitudes towards shopping for the home online, March 2011
- Convenience and saving money the biggest factors
- Voice of real customers
- Not worth the bother of shopping online for smaller items
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- Figure 7: Further attitudes towards shopping for the home online, March 2011
- Not the end of shopping as we know it
- What we think
Issues in the Market
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- Which websites are consumers visiting for online purchases of household goods?
- Why are some goods more suitable for shopping online than others and what are retailers doing to expand appeal?
- What do consumers feel are the advantages of online shopping for the home?
- What are the latest developments in online shopping for household goods and who is ahead of the game?
- What are the key factors driving or holding back development of this market?
- What is the future for online shopping for goods for the home?
Future Opportunities
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- Trend – Affection
- Trend – Guiding Choice
Internal Market Environment
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- Key points
- More than eight in ten under-45s have broadband
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- Figure 8: Trends in broadband penetration, by age, 2004-10
- Only 13% of internet users do not shop online
- Rapid uptake of smartphones
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- Figure 9: Device ownership summary, April 2009-October 2010
- M-commerce will bring sweeping changes
- 16-24s early to adopt m-commerce
- Trust the voice of real people
- Use of the internet for information
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- Figure 10: Agreement with selected lifestyle statements on other media, 2006-10
- Multichannel shoppers spend more
Broader Market Environment
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- Key points
- Slow housing market dents demand for housewares
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- Figure 11: Number of £40,000+ UK residential property transactions (SA), Q1 2007-Q3 2010
- Consumers return to saving
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- Figure 12: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
- More 25-34s – positive for spending on the home
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- Figure 13: Trends in the age structure of the UK population, 2005-15
- Social climbing
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- Figure 14: Trends in the socio-economic structure of the UK population, 2005-15
- Golden age for retirement?
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- Figure 15: Trends in the lifestage structure of the UK population, 2005-15
Online Shopping for the Home in Context
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- Key points
- Shopping activity in context
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- Figure 16: Goods/services bought online, December 2010
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Market Size and Forecast
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- Key points
- High growth from low base
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- Figure 17: Online sales of household goods, at current prices, 2005-10
- Cannibalising store sales
- Home goods sales
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- Figure 18: Retail value sales of household goods, 2006-10
- How much is online?
- A note of caution
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- Figure 19: Estimated consumer spending on household goods and household goods bought online, 2006-10
- Plenty of growth in prospect
- Will online shopping reshape retailing?
- Forecast
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- Figure 20: Best- and worst-case forecast of online sales of household goods, 2005-15
- Online for the home will grow by more than half over five years
Retail Competitor Analysis
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- Key points
- Furniture/housewares specialists
- IKEA
- Carpetright
- Dreams
- Allied Carpets
- Habitat
- Lakeland
- Other leading furniture retailers with no, or limited, e-commerce
- Other housewares stores online
- Argos
- Amazon
- Dunelm
- eBay
- John Lewis
- Next
- Marks & Spencer
- DIY stores
- B&Q
- Homebase
- Electrical stores
- DSGI (Currys/Dixons)
- Comet
- Grocers
- Tesco
- Asda
- Sainsbury’s
The Consumer – How They Shop for Products for the Home
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- Key points
- Electrical home goods highest for online shopping
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- Figure 21: Products bought for home and shopping patterns, March 2011
- Stores have strong conversion rates
- Over a third browse and buy appliances in-store
- About one in four buy appliances online
- Carry-home items less likely to be purchased online
- Many items for the home have weak online sales
- 25-34s more inclined to shop online
- Silver shoppers gravitate to stores
- See it first, then order online
- Repertoire of products bought
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- Figure 22: Repertoire of products bought online, March 2011
Consumer – Websites Used for Shopping for the Home
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- Key points
- Argos tops the list of websites used
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- Figure 23: Websites used for shopping for the home, March 2011
- Websites used – demographic analysis
- Shoppers who use Amazon
- Why consumers like to shop online with Argos
- Tesco hitting Argos customers
- Specialist stores
- eBay for bargains
Consumer – Buying Behaviour for Household Products
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- Key points
- Online shopping is convenient
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- Figure 24: Attitudes towards shopping for the home online, March 2011
- Hands-on experience important
- Advice from ‘real people’
- Weighing up the delivery costs
- Convenience rules
- Saving wasted time
- Browsing at leisure
- Seeking out scarce items
- Price savings influence shoppers
- Four in ten compare prices
- M-commerce still small
- Giving up
- The issues associated with buying furniture and carpets online
Consumer – Attitudes towards Shopping Online for the Home
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- Key points
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- Figure 25: Level of agreement with attitudes towards buying for the home online, March 2011
- Use of the internet is growing
- No worries about human contact
- Easy to find what you want
- For some delivery takes too long
- Negatives about shopping for the home online
- Buying from unfamiliar websites
- Attitudes towards prices online
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- Figure 26: Agreement that prices online are better than in the shops, by age, March 2011
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- Figure 27: Agreement that for some items, consumers would never consider buying online, by age, March 2011
The Consumer – Target Groups
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- Figure 28: Target groups for online shopping for the home, March 2011
- E-shoppers (32%)
- Occasional onliners (40%)
- Cost-cutters (28%)
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Appendix – Internal Market Environment
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- Figure 29: Broadband penetration, by demographics, 2004-10
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Appendix – Consumer – How they Shop for Products for the Home
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- Figure 30: Most popular products ever bought, by demographics, March 2011
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- Figure 31: Next most popular products ever bought, by demographics, March 2011
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- Figure 32: Most popular products bought online, by demographics, March 2011
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- Figure 33: Next most popular products bought online, by demographics, March 2011
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- Figure 34: Most popular products browsed online and ordered online, by demographics, March 2011
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- Figure 35: Next most popular products browsed online and ordered online, by demographics, March 2011
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- Figure 36: Most popular products browsed online and then bought in-store, by demographics, March 2011
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- Figure 37: Next most popular products browsed online and then bought in-store, by demographics, March 2011
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- Figure 38: Most popular products browsed and bought in-store, by demographics, March 2011
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- Figure 39: Next most popular products browsed and bought in-store, by demographics, March 2011
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Appendix – Consumer – Websites Used for Shopping for the Home
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- Figure 40: Products ever bought, by most popular websites used to buy products, March 2011
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- Figure 41: Products ever bought, by next most popular websites used to buy products, March 2011
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- Figure 42: Products ever bought, by other websites used to buy products, March 2011
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- Figure 43: Products ever bought, by least popular websites used to buy products, March 2011
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- Figure 44: Products bought online, by most popular websites used to buy products, March 2011
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- Figure 45: Products bought online, by next most popular websites used to buy products, March 2011
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- Figure 46: Products bought online, by other websites used to buy products, March 2011
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- Figure 47: Products bought online, by least popular websites used to buy products, March 2011
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- Figure 48: Most popular websites used to buy products, by demographics, March 2011
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- Figure 49: Next most popular websites used to buy products, by demographics, March 2011
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- Figure 50: Other websites used to buy products, by demographics, March 2011
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- Figure 51: Least popular websites used to buy products, by demographics, March 2011
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Appendix – Consumer – Buying Behaviour for Products for the Home
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- Figure 52: Most popular statements on buying for the home online, by demographics, March 2011
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- Figure 53: Next most popular statements on buying for the home online, by demographics, March 2011
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- Figure 54: Websites used to buy products, by most popular statements on buying for the home online, March 2011
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- Figure 55: Websites used to buy products, by next most popular statements on buying for the home online, March 2011
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- Figure 56: Websites used to buy products, by other statements on buying for the home online, March 2011
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- Figure 57: Products bought online, by most popular statements on buying for the home online, March 2011
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- Figure 58: Products bought online, by next most popular statements on buying for the home online, March 2011
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- Figure 59: Products bought online, by other statements on buying for the home online, March 2011
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- Figure 60: Products bought online, by most popular websites used to buy products, March 2011
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- Figure 61: Products bought online, by next most popular websites used to buy products, March 2011
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- Figure 62: Products bought online, by other websites used to buy products, March 2011
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- Figure 63: Products bought online, by most popular websites used to buy products, March 2011
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Appendix – Consumer– Attitudes Towards Household Shopping Online
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- Figure 64: Products ever bought, by most popular attitudes towards buying for the home online, March 2011
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- Figure 65: Products ever bought, by next most popular attitudes towards buying for the home online, March 2011
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- Figure 66: Products ever bought, by other attitudes towards buying for the home online, March 2011
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- Figure 67: Products bought online, by most popular attitudes towards buying for the home online, March 2011
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- Figure 68: Products bought online, by next most popular attitudes towards buying for the home online, March 2011
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- Figure 69: Products bought online, by other attitudes towards buying for the home online, March 2011
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- Figure 70: Websites used to buy products, by most popular attitudes towards buying for the home online, March 2011
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- Figure 71: Websites used to buy products, by next most popular attitudes towards buying for the home online, March 2011
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- Figure 72: Websites used to buy products, by other attitudes towards buying for the home online, March 2011
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- Figure 73: Statements on buying for the home online, by most popular attitudes towards buying for the home online, March 2011
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- Figure 74: Statements on buying for the home online, by next most popular attitudes towards buying for the home online, March 2011
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- Figure 75: Statements on buying for the home online, by other attitudes towards buying for the home online, March 2011
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- Figure 76: Repertoire of products bought online, March 2011
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- Figure 77: Repertoire of products bought online, by demographics, March 2011
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Appendix – The Consumer – Target Groups
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- Figure 78: Target groups, by demographics, March 2011
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- Figure 79: Products ever bought, by attitudes towards buying for the home online, March 2011
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- Figure 80: Products bought online, by attitudes towards buying for the home online, March 2011
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- Figure 81: Websites used to buy products, by target groups, March 2011
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- Figure 82: Websites used to buy products, by repertoire of products bought online, March 2011
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- Figure 83: Attitudes towards buying for the home online, by target groups, March 2011
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- Figure 84: Attitudes towards buying for the home online, by repertoire of products bought online, March 2011
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- Figure 85: Target groups, by repertoire of products bought online, March 2011
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- Figure 86: Statements on buying for the home online, by repertoire of products bought online, March 2011
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- Figure 87: Statements on buying for the home online, by target groups, March 2011
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