Digital Shopping Takes Over Christmas

by | Nov 26, 2014

Digital will play a significant role in Christmas shopping this year, according to Warc, with two thirds of shoppers in the UK planning to spend 50% or more of their gifts budget online and ecommerce predicted to account for half of all sales growth according to two new reports.

The first finding came from a survey of 500 UK consumers by Accenture, the consulting firm, which also revealed that a similar proportion (67%) would do most of their Christmas shopping at online-only retailers.

Mobile is increasingly important, with one third of consumers surveyed (34%) believing that shopping with a mobile device will lead to better discounts and will help them compare prices while in a physical store.

And price is the major factor for shoppers: 93% said discounts were the primary driver of purchasing decisions related to their holiday shopping and 32% planned to set aside cash to take advantage of special offers.

Further, Britons appear to be becoming more comfortable with digital retail tactics, with 82% saying they were already using, or would definitely use, or are willing to try, mobile services that offer them real-time promotions and offers as they shopped in store.

"Mobility is having a dramatic impact on shopping in the UK," said Fiona O'Hara, managing director/Retail, Accenture UK & Ireland. "It is critical for retailers to make it seamless for consumers to trade on mobile applications by incorporating social media and mobile technologies into their stores and multichannel environments."

A separate report from rival consulting firm Deloitte predicted that ecommerce would take 13% of retail sales, up from 12% last year, and half of the seasonal sales growth. Overall it anticipates that digital technology will affect some £15bn in sales, whether directly through purchases or indirectly via price comparison and product information.

Ian Geddes, Deloitte's head of retail, told Marketing Week that omnichannel was the way ahead. "Those retailers that have invested in developing apps may now find that if these are only optimised for use as a separate channel, rather than an integrated part of the shopping experience, they will not be fit for purpose," he said.

"Just as physical retailers have benefited from the growth of click and collect, " he added, "technology investment in-store will increase the number of shop visitors who buy and how much they spend, as well as help join the online and offline worlds.

No doubt these trends are not far from those in Australia with six in 10 online Australians now using a combination of both online and traditional retail stores as part of their product research or purchase process according to Nielson. And, more than one in 10 online Australian shoppers are now using their smartphone to make a purchase and the same proportion purchase via a tablet (13%).

Data sourced from Accenture, Marketing Week; additional content by Warc staff and Nielson

Jeffrey Tobias

About Jeffrey Tobias

Dr Tobias is an accomplished innovation consultant and entrepreneurship strategist, drawing expertise from the academic, entrepreneurial and corporate worlds. Jeffrey’s commercial and business experience is particularly focussed on lean startup, design thinking and leadership. Prior to The Strategy Group, Jeffrey was Cisco’s Global Lead for Innovation in the Internet Business Solutions Group helping Fortune Global 500 companies improve customer experience and grow revenue by transforming how they do business.
Jeffrey is a professor of innovation and entrepreneurship teaching MBA students at the Australian Graduate School of Business at the University of New South Wales. An active angel investor, Jeffrey is on the board of various well-known startups.

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Managing Director, The Strategy Group

Dr Tobias is an accomplished innovation consultant and entrepreneurship strategist, drawing expertise from the academic, entrepreneurial and corporate worlds. Jeffrey’s commercial and business experience is particularly focussed on lean startup, design thinking and leadership. Prior to The Strategy Group, Jeffrey was Cisco’s Global Lead for Innovation in the Internet Business Solutions Group helping Fortune Global 500 companies improve customer experience and grow revenue by transforming how they do business.
Jeffrey is a professor of innovation and entrepreneurship teaching MBA students at the Australian Graduate School of Business at the University of New South Wales. An active angel investor, Jeffrey is on the board of various well known startups. Jeffrey’s corporate background includes leading global innovation strategy at Cisco, working with large corporates such as Adobe, Westpac, Telstra, Woolworths, and Perpetual.

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