E-Commerce - UK - July 2014

INTRODUCTION
Market definition
Financial definitions
VAT
Abbreviations
EXECUTIVE SUMMARY
The market
Online reaches 11% of all retail sales
Figure 1: Internet retail sales (incl. VAT), 2009-19
Share of all retailing
Figure 2: Internet retail sales as % of all retail sales, 2009-19
Market segmentation
Figure 3: Breakdown of online retail sales by major category, 2014 (est)
Figure 4: Online sales as % of total category sales, 2013 and 2014
Companies, brands and innovation
Figure 5: Leading online retailers: share of all online retail sales, 2013
The consumer
Shopping online, by device used
Figure 6: The consumer: devices used to buy products online in the last 12 months, May 2014
Categories bought, by device used
Figure 7: The consumer: Items bought online in the last 12 months – any device, May 2014
Figure 8: The consumer: Items bought online in the last 12 months – by device, May 2014
Where they shopped, by food and non-food
Figure 9: The consumer: Retailers used for food/drink purchases online in the past 12 months, May 2014
Figure 10: The consumer: Retailers used for non-food purchases online in the past 12 months, May 2014
Delivery, return and customers services used
Figure 11: The consumer: Online delivery/return services and customer services used, May 2014
Delivery, return and customers services they would use again
Figure 12: The consumer: Likelihood of using online delivery/return services or customer services again, May 2014
What would improve the online shopping experience
Figure 13: The consumer: Factors likely to improve the online shopping experience, May 2014
What we think
ISSUES AND INSIGHTS
How big will online get?
The facts
The implications
Why are pureplays outperforming?
The facts
The implications
Does m-commerce matter?
The facts
The implications
TREND APPLICATION
Experience is all
Life hacking
Mintel futures
THE MARKET ENVIRONMENT
Key points
Proportion shopping online
Figure 14: The consumer: Percentage having shopped online in the past three months, June 2013, September 2013, December 2013 and April 2014
Device ownership
Figure 15: Technology products personally owned, selected internet-enabled products, June 2013, September 2013, December 2013 and April 2014
Figure 16: Technology products in household, selected internet-enabled products, June 2013, September 2013, December 2013 and April 2014
Broadband access
Figure 17: Percentage of all households with broadband access, 2011-13
Consumer context
Figure 18: Consumer confidence levels, June 2013-May 2014
Figure 19: Annual % change in average weekly earnings versus annual % change in consumer prices, January 2010-February 2014
MARKET SIZE AND FORECAST
Key points
Growth buoyed by m-commerce in 2013
Figure 20: Internet retail sales (incl. VAT), 2009-19
Figure 21: Internet retail sales as % of all retail sales, 2009-19
Figure 22: Internet retail sales (incl. VAT), in current and constant prices, 2009-19
Segmentation: Store-based retailers versus non-store retailers
Figure 23: Internet retail sales, segmented by store-based/non-store retailers, 2014 (est)
Segmentation: Store-based retailers slowly losing out
Figure 24: Internet retail sales by store-based retailers (incl. VAT), 2009-19
Figure 25: Internet retail sales by store-based retailers (incl. VAT), in current and constant prices, 2009-19
Segmentation: Non-store retailers gaining share
Figure 26: Internet retail sales by retailers without stores (incl. VAT), 2009-19
Figure 27: Breakdown of internet retail sales by retailers without stores, by type of retailer, 2012-14
Figure 28: Internet retail sales by retailers without stores (incl. VAT), in current and constant prices, 2009-19
Forecast methodology
The fan chart
SEGMENTATION BY PRODUCT CATEGORY
Key points
Apparel, electricals and grocery dominate online
Figure 29: Breakdown of online retail sales by major category, 2014 (est)
Figure 30: Breakdown of online retail sales by major category (incl. VAT where applicable), in £ and % terms, 2013 and 2014 (est)
Proportion of sales online by category
Figure 31: Online sales as % of total category sales, 2013 and 2014
Review of major product categories
Electrical goods
Clothing and footwear
Grocery
DIGITAL SPENDING
Key points
Digital set to near £2 billion
Figure 32: Breakdown of estimated spending on digital entertainment products, 2014
Figure 33: Digital sales – e-books, 2013 and 2014
Figure 34: Digital sales – music, 2013 and 2014
Figure 35: Digital sales – video, 2013 and 2014
Figure 36: Digital sales – computer/console games, 2013 and 2014
WHO’S INNOVATING?
Key points
Parcelpod offers immediate returns
Shopping centre launches superior click-and-collect service
iBeacon proximity technology to alert shoppers
Point-and-buy shopping app
Amazon smartphone’s product recognition technology
Bluetooth enabled shop mannequins
Premier shopping street to pioneer unique app
New app aimed at time-conscious shoppers
Apps that make the world ‘shoppable’
Virtual trunk shows
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
LEADING ONLINE RETAILERS
Key points
The top 25 online retailers: Amazon retains a major lead
Figure 37: Leading online retailers’ net internet revenues, 2011-13
Top 25: Pureplays versus multichannel
Figure 38: Distribution of the revenues of the top-25 online retailers (as ranked in 2013), by type of retailer, 2011-13
Top 25: Proportion of sales generated online
Figure 39: Top 25 online retailers: Proportion of total sales transacted online, 2013
Top 25: By main category traded in
Figure 40: Top 25 online retailers, by major category traded in, 2013
MARKET SHARES
Key points
Top 25 account for 72% of all online sales
Figure 41: Top 25 online retailers: Share of all online retail sales, 2011-13
BRAND RESEARCH
Brand map
Figure 42: Attitudes towards and usage of brands in the online shopping sector, May 2014
Correspondence analysis
Brand attitudes
Figure 43: Attitudes, by online shopping brand, May 2014
Brand personality
Figure 44: Online shopping brand personality – macro image, May 2014
Figure 45: Online shopping brand personality – micro image, May 2014
Brand experience
Figure 46: Online shopping brand usage, May 2014
Figure 47: Satisfaction with various online shopping brands, May 2014
Figure 48: Consideration of online shopping brands, May 2014
Figure 49: Consumer perceptions of current online shopping brand performance, May 2014
Brand recommendation
Figure 50: Likely recommendation of various online shopping brands, May 2014
THE CONSUMER – LEADING FOOD RETAILERS – CUSTOMER PROFILES
Key points
Note on the charts
Region
Figure 51: Leading online food retailers, relative strength by region, May 2014
Area lived in
Figure 52: Leading online food retailers, relative strength by type of area lived in, May 2014
Financial situation
Figure 53: Leading online food retailers, relative strength by current financial situation, May 2014
THE CONSUMER – LEADING NON-FOOD RETAILERS – CUSTOMER PROFILES
Key points
Region
Figure 54: Leading clothing and department store retailers, relative strength by region, May 2014
Figure 55: Leading online electrical/DIY retailers, relative strength by region, May 2014
Figure 56: Leading online miscellaneous retailers, relative strength by region, May 2014
Area lived in
Figure 57: Leading clothing and department store retailers, relative strength by type of area lived in, May 2014
Figure 58: Leading online electrical/DIY retailers, relative strength by type of area lived in, May 2014
Figure 59: Leading online miscellaneous retailers, relative strength by type of area lived in, May 2014
Financial situation
Figure 60: Leading clothing and department store retailers, relative strength by financial situation, May 2014
Figure 61: Leading online electrical/DIY retailers, relative strength by financial situation, May 2014
Figure 62: Leading online miscellaneous retailers, relative strength by financial situation, May 2014
THE CONSUMER – DEVICES USED AND WHO BUYS WHAT
Key points
What we asked
Devices for online access
Figure 63: Smartphone, laptop and tablet ownership, May 2014
Devices used for shopping and where
Figure 64: Device usage for shopping, May 2014
Who does what
Figure 65: Profile of devices users, May 2014
Who buys what, and on which devices
Figure 66: The consumer: Items bought online in the last 12 months – any device, May 2014
Figure 67: Items bought online in the last 12 months by device, as % of all respondents, May 2014
Proportion of device owners buying by category
Figure 68: Items bought online in the last 12 months by device, as % of device owners, May 2014
Figure 69: Profile of shoppers by products bought, May 2014
Repertoire analysis
Figure 70: Number of non-food items bought by device, May 2014
Figure 71: Number of different non-food items bought by device, May 2014
Using devices for research
Figure 72: Device usage for research as % of all online buyers, May 2014
Figure 73: Device usage for research as % all device owners, May 2014
THE CONSUMER – WHO SHOPS WHERE
Key points
What we asked
Food
Figure 74: Food buyers – where they shop, May 2014
Amazon
Profiles
Figure 75: Online food shoppers profile, May 2014
Repertoire
Figure 76: Number of different online food retailers used, May 2014
Non-foods
Figure 77: Non-food buyers – where they shop online, May 2014
Spend per customer
Figure 78: Estimated online non-food sales per customer, 2013
Repertoire
Figure 79: Number of retailers non-foods bought from online, May 2014
Figure 80: Number of retailers used to buy non-foods online, by age and socio-economic group, May 2014
Profile of online non-food shoppers
Figure 81: Profile of online non-food shoppers by retailers used, May 2014
Food shoppers – purchases and retailers used
Figure 82: Non-food products bought online by grocery shoppers, May 2014
Non-food shoppers – purchases and retailers used
Figure 83: Products bought by online shoppers from clothing and department store retailers, May 2014
Figure 84: Products bought by online shoppers from homewares retailers, May 2014
Figure 85: Products bought by online shoppers from other non-food retailers, May 2014
THE CONSUMER – SERVICE AND DELIVERY
Key points
What we asked
Home delivery still far more popular than click-and-collect
Figure 86: Delivery and returns methods used, May 2014
Delivery and returns
Figure 87: Delivery and return profiles, by age and socio-economic group, May 2014
Personal service
Figure 88: Online shopping – use of service options, May 2014
Figure 89: Profile of users contacting customer services, May 2014
Service and delivery – likelihood of using again
Figure 90: Delivery and service options – likelihood of using again, May 2014
Figure 91: Delivery and service options – likelihood of using again, May 2014
THE CONSUMER – ATTITUDES – WHAT THEY WOULD LIKE
Key points
What we asked
Delivery improvements are most popular
Figure 92: What would improve the online shopping experience, May 2014
Figure 93: Profile of those who want different services, May 2014
AMAZON EUROPE
What we think
Company background
Company performance
Figure 94: Amazon.com Inc: Group financial performance, 2009-13
Sales mix
Figure 95: Amazon Europe: Estimated composition of sales, 2013
Mintel’s consumer research
Figure 96: The consumer: Percentage that bought electrical goods from Amazon in the past year, January 2014
Figure 97: The consumer: Percentage that bought clothing from Amazon in the past year, August 2013
Retail offering
Figure 98: Number of SKUs listed on Amazon.co.uk, May 2014
AO WORLD
What we think
Company background
Company performance
Figure 99: Appliances Online/DRL Ltd: Group financial performance, 2008/09-2013/14
Figure 100: AO World: Divisional sales, 2012/13-2013/14
Retail offering
ARGOS
What we think
Company background
Company performance
Figure 101: Argos: Group financial performance, 2009-10 – 2013/14
Figure 102: Argos: Outlet data, 2009-10 – 2013/14
Retail offering
ASOS
What we think
Company background
Company performance
Figure 104: ASOS: Group financial performance, 2009-10 and 2012-13
Retail offering
DEBENHAMS.COM
What we think
Company background
Company performance
Figure 105: Debenhams: Group financial performance, 2008-09 and 2012-13
Retail offering
DIXONS CARPHONE
What we think
Company background
Company performance
Figure 106: Dixons retail, Estimated online sales, 2013/14
Figure 107: Dixons Retail Plc: Group financial performance, 2008/09-2013/14
Figure 108: Dixons Retail Plc: Outlet data, 2008/09-2013/14
Figure 109: The Carphone Warehouse Plc: Group financial performance, 2008/09-2013/14
Figure 110: The Carphone Warehouse Plc: Outlet data, 2008/09-2013/14
Retail offering
EBAY INC.
What we think
Company background
Company performance
Figure 112: eBay Inc.: Group financial performance, 2009-13
Figure 113: International sales as % of eBay Inc’s total net revenues (a) / gross merchandise volumes (b)
Figure 114: eBay Marketplaces segment: number of active users, 2009-13
Retail offering
Figure 115: Number of SKUs listed on eBay.co.uk, April 2014
JOHNLEWIS.COM
What we think
Company background
Company performance
Figure 116: John Lewis Partnership: Group financial performance, 2009/10-2013/14
Retail offering
NEXT DIRECTORY
What we think
Company background
Company performance
Figure 117: Next PLC: Group and selected divisions financial performance (excl. VAT), 2009-10 and 2013-14
Retail offering
OCADO
What we think
Company background
Company performance
Figure 118: Ocado Group Plc: Group financial performance, 2008-09 and 2012-13
Figure 119: Ocado Group Plc: Key customer metrics, 2008-09 and 2012-13
Retail offering
OTTO GROUP (MULTICHANNEL RETAIL)
What we think
Company background
Company performance
Figure 120: Otto Group (Multichannel Retail): Group financial performance, 2009-10 and 2013-14
Retail offering
Figure 121: Otto group: main European brands, June 2014
RAKUTEN ICHIBA
What we think
Company background
Company performance
Figure 122: Rakuten: Gross merchandise sales, 2009-13
Figure 123: Rakuten: Consolidated operating results by division, 2012-13
SHOP DIRECT
What we think
Company background
Company performance
Figure 124: Shop Direct: group financial performance, 2008-09 and 2012-13
Retail offering
TESCO DIRECT
What we think
Company background
Company performance
Figure 126: Tesco Plc: Group financial performance, 2009-10 and 2013-14
Figure 127: Tesco Plc: Estimated net internet revenues, 2011/12 – 2013/14
Retail offering
ZALANDO
What we think
Company background
Company performance
Figure 128: Zalando: Group financial performance, 2010-13
Retail offering
APPENDIX – BRAND RESEARCH
Figure 129: Brand usage, May 2014
Figure 130: Brand commitment, May 2014
Figure 131: Brand momentum, May 2014
Figure 132: Brand diversity, May 2014
Figure 133: Brand satisfaction, May 2014
Figure 134: Brand recommendation, May 2014
Figure 135: Brand attitude, May 2014
Figure 136: Brand image – macro image, May 2014
Figure 137: Brand image – micro image, May 2014
APPENDIX – THE CONSUMER – DEVICES USED
Figure 138: Devices used to buy products online in the last 12 months – any bought, by demographics, May 2014
Figure 139: Devices used to buy products online in the last 12 months – mobile total, by demographics, May 2014
Figure 140: Devices used to buy products online in the last 12 months – smartphone, by demographics, May 2014
Figure 141: Devices used to buy products online in the last 12 months – tablet, by demographics, May 2014
Figure 142: Devices used to buy products online in the last 12 months – laptop/desktop computer, by demographics, May 2014
APPENDIX – THE CONSUMER – WHO BUYS WHAT
Figure 143: Most popular items bought online in the last 12 months, by demographics, May 2014
Figure 144: Next most popular items bought online in the last 12 months, by demographics, May 2014
Figure 145: Other items bought online in the last 12 months, by demographics, May 2014
Figure 146: Most popular items bought online using laptop/desktop computer in the last 12 months, by demographics, May 2014
Figure 147: Next most popular items bought online using laptop/desktop computer in the last 12 months, by demographics, May 2014
Figure 148: Other items bought online using laptop/desktop computer in the last 12 months, by demographics, May 2014
Figure 149: Most popular items bought online using smartphone device in the last 12 months, by demographics, May 2014
Figure 150: Next most popular items bought online using smartphone device in the last 12 months, by demographics, May 2014
Figure 151: Other items bought online using smartphone device in the last 12 months, by demographics, May 2014
Figure 152: Most popular items bought online using a tablet device in the last 12 months, by demographics, May 2014
Figure 153: Next most popular items bought online using a tablet device in the last 12 months, by demographics, May 2014
Figure 154: Other items bought online using a tablet device in the last 12 months, by demographics, May 2014
APPENDIX – THE CONSUMER – WHO SHOPS WHERE
Figure 155: Most popular retailers used for food/drink purchases online, by demographics, May 2014
Figure 156: Next most popular retailers used for food/drink purchases online, by demographics, May 2014
Figure 157: Most popular retailers used for non-food purchases online, by demographics, May 2014
Figure 158: Next most popular retailers used for non-food purchases online, by demographics, May 2014
Figure 159: Other retailers used for non-food purchases online, by demographics, May 2014
Figure 160: Least popular retailers used for non-food purchases online, by demographics, May 2014
APPENDIX – THE CONSUMER – SERVICE AND DELIVERY
Figure 161: Online delivery/return services and customer services used – delivery/returns, by demographics, May 2014
Figure 162: Online delivery/return services and customer services used – Customer service, by demographics, May 2014
Figure 163: Online delivery/return services and customer services used, by retailers used for food/drink purchases online, May 2014
Figure 164: Online delivery/return services and customer services used, by most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 165: Online delivery/return services and customer services used, by next most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 166: Online delivery/return services and customer services used, by retailers used for non-food purchases online – Home goods retailers online, May 2014
Figure 167: Online delivery/return services and customer services used, by most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 168: Online delivery/return services and customer services used, by next most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 169: Online delivery/return services and customer services used, by most popular items bought online in the last 12 months, by demographics, May 2014
Figure 170: Online delivery/return services and customer services used, by next most popular items bought online in the last 12 months, by demographics, May 2014
Figure 171: Most popular likelihood of using online delivery/return services or customer services again – Collected in-store from the retailer I bought from, by demographics, May 2014
Figure 172: Next most popular likelihood of using online delivery/return services or customer services again – Collected in-store from the retailer I bought from, by demographics, May 2014
Figure 173: Most popular likelihood of using online delivery/return services or customer services again – Home delivery service, by demographics, May 2014
Figure 174: Next most popular likelihood of using online delivery/return services or customer services again – Home delivery service, by demographics, May 2014
Figure 175: Most popular likelihood of using online delivery/return services or customer services again – Returned an online purchase by post, by demographics, May 2014
Figure 176: Next most popular likelihood of using online delivery/return services or customer services again – Returned an online purchase by post, by demographics, May 2014
Figure 177: Most popular likelihood of using online delivery/return services or customer services again – Email customer service, by demographics, May 2014
Figure 178: Next most popular likelihood of using online delivery/return services or customer services again – Email customer service, by demographics, May 2014
Figure 179: Most popular likelihood of using online delivery/return services or customer services again – Telephone customer service, by demographics, May 2014
Figure 180: Next most popular likelihood of using online delivery/return services or customer services again – Telephone customer service, by demographics, May 2014
Figure 181: Likelihood of using online delivery/return services or customer services again, May 2014
Figure 182: Likelihood of using online delivery/return services or customer services again, May 2014
Figure 183: Likelihood of using online delivery/return services or customer services again – Home delivery service, by retailers used for food/drink purchases online, May 2014
Figure 184: Likelihood of using online delivery/return services or customer services again – Email customer service, by retailers used for food/drink purchases online, May 2014
Figure 185: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 186: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – home goods retailers online, May 2014
Figure 187: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – other online retailers, May 2014
Figure 188: Likelihood of using online delivery/return services or customer services again, by most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 189: Likelihood of using online delivery/return services or customer services again, by next most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 190: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – home goods retailers online, May 2014
Figure 191: Likelihood of using online delivery/return services or customer services again, by most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 192: Likelihood of using online delivery/return services or customer services again, by next most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 193: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 194: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – other online retailers, May 2014
Figure 195: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 196: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – home goods retailers online, May 2014
Figure 197: Likelihood of using online delivery/return services or customer services again, by most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 198: Likelihood of using online delivery/return services or customer services again, by next most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 199: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 200: Likelihood of using online delivery/return services or customer services again, by retailers used for non-food purchases online – other online retailers, May 2014
APPENDIX – THE CONSUMER – ATTITUDES – WHAT THEY WOULD LIKE
Figure 201: Most popular factors likely to improve the online shopping experience, by demographics, May 2014
Figure 202: Next most popular factors likely to improve the online shopping experience, by demographics, May 2014
Figure 203: Other factors likely to improve the online shopping experience, by demographics, May 2014
Figure 204: Factors likely to improve the online shopping experience, by retailers used for food/drink purchases online, May 2014
Figure 205: Factors likely to improve the online shopping experience, by most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 206: Factors likely to improve the online shopping experience, by next most popular retailers used for non-food purchases online – clothing/department stores online, May 2014
Figure 207: Factors likely to improve the online shopping experience, by retailers used for non-food purchases online – Home goods retailers online, May 2014
Figure 208: Factors likely to improve the online shopping experience, by most popular retailers used for non-food purchases online – other online retailers, May 2014
Figure 209: Factors likely to improve the online shopping experience, by next most popular retailers used for non-food purchases online – other online retailers, May 2014
APPENDIX – THE CONSUMER – FURTHER ANALYSIS
Figure 210: Repertoire of items bought online using laptop/desktop computer in the last 12 months, by demographics, May 2014
Figure 211: Repertoire of items bought online using smartphone device in the last 12 months, by demographics, May 2014
Figure 212: Repertoire of items bought online using a tablet device in the last 12 months, by demographics, May 2014