Children's Online Spending Habits - UK - January 2017

Children's Online Spending Habits - UK - January 2017

Feb 2017 Mintel EducationN/A Price :
$ 2460

Some 61% of children spend more money online on digital goods than anything else, driven largely by boys’ gaming purchases. That said, children still demonstrate a general preference for physical stores compared to making online purchases for physical items.

Table of Content

Overview

What you need to know
Products covered in this Report

Executive Summary

The market
Facebook loses class action suit on unauthorised spending
European Commission report reveals the impact of ‘advergames’ on children
Children’s smartphone ownership nearly on a par with that of adults
Figure 1: Smartphone usage, April 2016
Parents are concerned about access to age inappropriate products and how much children are spending
Innovation and market developments
The consumer
Six in 10 14- and 15-year-olds have parental permission to make online purchases
Figure 2: Parents who allow their child to spend money online, by child’s age, August 2016
Children are most likely to make online purchases with a parent’s bank card, but almost a third have used their own
Figure 3: Method of payment for children’s online purchases, August 2016
Parents know what their children are buying online
Figure 4: Parental attitudes towards children’s online spending, August 2016
Control over children’s online spending appeals to parents most
Figure 5: Parental interest in features of online shopping services for children, December 2016
Girls buy clothes and music, while boys favour video games
Figure 6: Children’s online purchases, August 2016
Six in 10 children buying clothes online buy shoes
Figure 7: Children’s online clothing purchases, August 2016
Physical shops are still the default for most children
Figure 8: Children’s attitudes towards online spending, August 2016
What we think

Issues and Insights
For six in 10 children, the majority of their online spend is on digital goods
The facts
The implications
Parents want control and curation from online retailers
The facts
The implications

The Market – What You Need to Know
Parents are concerned about access to age inappropriate products and how much children are spending
Facebook loses class action suit on unauthorised spending
European Commission report reveals the impact of ‘advergames’ on children
Children’s smartphone ownership nearly on a par with that of adults
Innovation and market developments

Market Drivers
Facebook loses class action suit on unauthorised spending
European Commission report reveals the impact of ‘advergames’ on children
Children just as likely as adults to have their own smartphone
Figure 9: Smartphone usage, April 2016
Parents are concerned about access to age inappropriate products and how much they are spending
High-street banks make debit cards available from age 11
‘Ask to buy’ comes to mobile devices
Innovation and market developments
goHenry secures £4 million on Crowdcube
Thumbzap wants to add ‘just ask’ as a payment option online
Nickel

The Consumer – What You Need to Know
Six in 10 14- and 15-year-olds have parental permission to make online purchases
Children are most likely to make online purchases with a parent’s bank card, but almost a third have used their own
Parents know what their children are buying online
Control over children’s online spending appeals to parents most
Girls buy clothes and music, while boys favour video games
Six in 10 children buying clothes online buy shoes
Physical shops are still the default for most children

Payment Methods for Children’s Online Purchasing
Six in 10 14- and 15-year-olds have parental permission to make online purchases
Figure 10: Parents who allow their child to spend money online, August 2016
Figure 11: Parents who allow their child to spend money online, by child’s age, August 2016
Children are most likely to pay with a parent’s bank card online, but almost a third have used their own
Figure 12: Method of payment for children’s online purchases, August 2016
Those who have their own bank card are more willing to make online purchases
Figure 13: Method of payment for children’s online purchases, by children using their own bank card to make online purchases, August 2016

Parental Attitudes towards Children Spending Money
Parents know what their children are buying online
Figure 14: Parental attitudes towards children’s online spending, August 2016
Girls are encouraged to buy in-store, while boys are more willing to spend online
Figure 15: Parental attitudes towards children’s online spending, by child’s gender, August 2016
Parental perception of financial recklessness impacts children’s online shopping habits
Figure 16: Parental attitudes towards children’s online spending, by children’s attitudes, August 2016

Parents and Online Shopping Services for Children
Control over children’s online spending appeals to parents most
Figure 17: Parental interest in features of online shopping services for children, December 2016
Awareness and usage of online shopping services for children is low
Figure 18: Parents who have heard of online shopping services for children, December 2016
Figure 19: Parents who have used online shopping services for children, December 2016

Children’s Online Purchases
Girls buy clothes, books and music, while boys favour video games
Figure 20: Children’s online purchases, by gender, August 2016
Figure 21: Children’s online spending on video games, August 2016
75% of children have bought at least two types of item online
Figure 22: Repertoire of children’s online clothing purchases, August 2016
Six in 10 children buying clothes online buy shoes
Figure 23: Children’s online clothing purchases, August 2016
Figure 24: Repertoire of children’s online clothing purchases, August 2016

Children’s Attitudes towards Online Spending
Physical shops are still the default for most children
Figure 25: Children’s attitudes towards online spending, August 2016
Girls prefer the experience of real shops, while boys are buying digital goods
Figure 26: Selected attitudes towards online spending, by child’s gender, August 2016

Appendix – Data Sources, Abbreviations and Supporting Information
Abbreviations
Consumer research methodology

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