ONLINE RETAILING - EUROPE - JULY 2019

ONLINE RETAILING - EUROPE - JULY 2019

Jul 2019 Mintel RetailN/A Price :
$ 3704

Online is the growth sector in retailing everywhere. But it has reached strikingly different stages of development around Europe. There’s a North-South Split with Northern Europe much further ahead than Southern Europe. It is tempting to say that the South will follow the North in due course and that the patterns established in the North will become the norm. On the whole we think that is so, though shopping habits vary considerably around Europe for a variety of reasons, such as the weather and underlying wealth. It also remains to be seen whether a significant online grocery market will develop outside of the UK and France.

Table of contents
OVERVIEW
Coverage
Consumer research
Market definition
Marketplaces
Market sizes
Methodology
Financial definitions
VAT rates
Figure 1: VAT rates around Europe, 2014-19
Abbreviations
EXECUTIVE SUMMARY – EUROPE – THE MARKET
Online sales
The data
Retail
Continued growth
Pan-European online sales
Figure 2: Europe: total online retail sales (inc VAT), 2014-24
Figure 3: Europe: total online retail sales as % all retail sales (excl. fuel), 2014-24
Online sales by country
Figure 4: Europe: online sales by country, 2014-18
Figure 5: Europe: online sales forecasts by country, 2019-24
Companies and brands
Leading players
Retailers vs marketplaces
Types of retailers
Non-store retailers
Figure 6: Europe: leading online pureplayers, 2016/17-2018/19
Market shares
Figure 7: Europe: leading online pureplayers’ shares of all online sales, 2016/17-2018/19
What we think
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
How many bought online?
Figure 8: Europe: proportion of individuals who have shopped online in the last 12 months, 2018
What did they buy?
Figure 9: Europe: proportion of internet users who have shopped online, June 2019
Figure 10: Europe: products bought online in the last 12 months, by country, June 2019
Where they shop
Figure 11: Europe: retailer type bought from online, by country, June 2019
Does the UK point the way forward?
Leading retailers
Figure 12: Europe: proportion of online shoppers who have shopped at the top two online retailers, by country, June 2019
Amazon and Amazon Prime
Figure 13: Europe: Amazon Prime membership, June 2016
Online shopping behaviours
Figure 14: Europe: online shopping behaviours, June 2019
EXECUTIVE SUMMARY – EUROPE – LAUNCH ACTIVITY AND INNOVATION
Beauty tips on Google Nest Hub
Mobile body-scanning tech start-up wins LVMH Innovation Award
Instagram launches new seamless purchasing method
Amazon ‘live’ TV shopping channel
Extended click-and-collect options
Car boot parcel delivery
FRANCE
Overview
What you need to know
Areas covered in this Report
Executive summary
The market
The economy
Online sales
Figure 15: France: online sales (incl. VAT), 2013-24
Segmentation/what they buy online
Market drivers
Broadband access
Device ownership
Online shopping
Companies and brands
Leading players
Market shares
Figure 16: France: leading online retailers’ estimated shares of all online sales, 2018
The consumer
What they buy online
Figure 17: France: products bought online in the last 12 months, June 2019
Where they shop online
Figure 18: France: retailers shopped online in the last 12 months, by age and affluence, June 2019
Online shopping behaviours
Figure 19: France: consumer behaviours when shopping online, June 2019
Membership of Amazon Prime
Figure 20: France: membership of Amazon Prime, June 2019
What we think
Issues and insights
A unique format - le drive-piéton (pedestrian drive)
The facts
The implications
What are the implications of the Monoprix/Amazon partnership?
The facts
The implications
The market – What you need to know
Economic outlook uncertain
Online grew 13% in 2018
Online spending by category
Broadband access relatively low
Smartphone ownership low in Europe
Market size
The economy
Online sales and forecasts
Figure 21: France: online sales (incl. VAT), 2014-19
Figure 22: France: forecast online sales, 2019-24
More details from FEVAD
Figure 23: France: online sales: selected retail categories, 2015-17
Segmentation/what they buy online
Figure 24: France: products bought online, June 2019
Electricals
Clothing
Food & grocery
DIY
Beauty
Market drivers
Broadband access
Figure 25: France: broadband penetration as % all households, 2009-18
Device ownership
Figure 26: France: technology products personally owned, Q4 2018
Online shopping
Figure 27: France: percentage saying they have bought online in the last year, 2009-18
Companies and brands – What you need to know
Amazon pulling ahead
Casino expanding on several fronts
Retailers diversifying
Leading three retailers capture 39% of online spending
Leading players
Amazon extending its lead
Casino Group with several initiatives
With Amazon
With Cdiscount
With Ocado technology
Diversification at Cdiscount
Veepee – A new name for a diversified business
La Redoute
Fnac Darty
Figure 28: France: leading online retailers, sales (excl. VAT), 2014-18
Market shares
Figure 29: France: leading online retailers’ estimated shares of all online sales, 2018
Website visitors
Figure 30: France: top retail sites by number of unique visitors, Oct-Dec 2018
The consumer – What you need to know
Widespread engagement in online shopping
Clothing bought most
Amazon dominates
Most shoppers look for discounts and good prices
Under 20% are Prime members
What they buy online
Broad engagement
Over half shop for fashion
Figure 31: France: products bought online in the last 12 months, June 2019
Figure 32: France: products bought online in the last 12 months, by age and affluence, June 2019
Where they shop online
Amazon dominates
Figure 33: France: retailers shopped online in the last 12 months, June 2019
Figure 34: France: proportion of internet users who have shopped online in the last 12 months, by major retailer, 2015-19
Broad appeal of Amazon
Figure 35: France: retailers shopped online in the last 12 months, by age and affluence, June 2019
Online competitors
Figure 36: France: leading online retailers – Top five other retailers shopped at in last 12 months, June 2019
The French show lower usage of international retailers
Figure 37: Europe: comparison of usage of selected retailers, June 2019
Where they shop and what they bought
Figure 38: France: Amazon, relative strength by product, June 2019
Figure 39: France: Cdiscount, relative strength by product, June 2019
Figure 40: France: relative strength by product, hypermarkets and department stores, June 2019
Online shopping behaviours
Figure 41: France: online shopping behaviours, June 2019
Figure 42: France: online shopping behaviours by products purchased, deviation from the average, June 2019
Membership of Amazon Prime
Under 20% are Prime members
Figure 43: France: membership of Amazon Prime, June 2019
Figure 44: France: membership of Amazon Prime, June 2019
Figure 45: Europe: membership of Amazon Prime, June 2019
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources
GERMANY
Overview
What you need to know
Areas covered in this Report
Executive summary
The market
The economy
Online sales
Figure 46: Germany: online sales (incl. VAT), 2014-24
Segmentation/what they buy online
Figure 47: Germany: estimated online sales by product category, 2018
Market drivers
Broadband access
Figure 48: Germany: broadband penetration as % of all households, 2011-18
Device ownership
Figure 49: Germany: technology products personally owned, Q4 2018
Online shopping
Figure 50: Germany: percentage saying they have bought products online in the last year, 2009-18
Companies and brands
Leading players
Market shares
Figure 51: Germany: leading online retailers’ estimated shares of all online sales, 2018
The consumer
What they buy online
Figure 52: Germany: products bought online in last 12 months, June 2019
Where they shop online
Figure 53: Germany: retailers purchased from online in the last 12 months, June 2019
Online shopping behaviours
Figure 54: Germany: online shopping behaviours, June 2019
Membership of Amazon Prime
Figure 55: Germany: membership of Amazon Prime, June 2019
What we think
Issues and insights
How can German online retailers boost m-commerce sales?
The facts
The implications
How can Amazon’s rivals increase customer loyalty?
The facts
The implications
The market – What you need to know
German economy is underperforming
Double-digit growth for third successive year in 2018
Clothing still most popular online purchase
German consumers switching from fixed to mobile internet
Germans lag behind with device ownership
Proportion of Germans shopping online grows again
Market size
The economy
Figure 56: Germany: GDP compared with other major European nations, 2018
Figure 57: Germany: GDP annual growth trends, 2014-18
Online sales and forecasts
Figure 58: Germany: online sales (incl. VAT), 2014-19
Figure 59: Germany: forecast online sales, 2019-24
Segmentation/what they buy online
Figure 60: Germany: percentage saying they have bought online in the last year, by product category, 2018
Figure 61: Germany: products bought online in the last 12 months, June 2019
Figure 62: Germany: estimated online sales by product category, 2018
Figure 63: Germany: estimated online share of sales, by selected sector, 2018
Market drivers
Broadband access
Figure 64: Germany: broadband penetration as % all households, 2011-18
Device ownership
Figure 65: Germany: technology products personally owned, Q4 2018
Online shopping
Figure 66: Germany: percentage saying they have bought online in the last year, 2009-18
Companies and brands – What you need to know
Amazon success driven by innovation
Otto is the biggest domestic player
Germany still key for Zalando
Amazon has dominant market share
Leading players
Amazon marches on
eBay continues to grow but competition intensifies
Otto’s growth continues
Germany still at the heart of Zalando’s business
Ceconomy underperforms in Germany but online still growing
Notebooksbilliger announces, then drops, merger plans
Cyberport growth boosted by acquisition
Tchibo
Conrad trials experiential/inspirational store as online complement
Figure 67: Germany: leading online retailers, sales, 2016-18
Market shares
Figure 68: Germany: leading online retailers’ estimated shares of all online sales, 2016-18
The consumer – What you need to know
More than nine in ten have bought online in the past year
Six in ten have bought fashion items online in the past year
Germans twice as likely to buy online from pureplay as store-based retailer
Price still the major motivator for shopping online
Prime membership is still low compared to other countries
Who shops online
Figure 69: Germany: proportion of internet users who have shopped online, 2015-19
What they buy online
Six in ten have bought fashion items online in the past year
Figure 70: Germany: products bought online in last 12 months, June 2019
Where they shop online
Germans twice as likely to buy online from pureplay as store-based retailer
Figure 71: Germany: type of retailer bought from online in past 12 months, store-based vs pureplayers, June 2019
Figure 72: Germany: retailers purchased from online in the last 12 months, June 2019
Figure 73: Germany: proportion of internet users who have shopped online in the last 12 months, by major retailer, 2015-19
Profile of shoppers by retailers used
Figure 74: Germany: profile of shoppers by retailer purchased from online in last 12 months, June 2019
Where they shop and what they bought
Amazon
Figure 75: Germany: Amazon, relative strength by product, June 2019
eBay
Figure 76: Germany: eBay, relative strength by product, June 2019
Otto Group
Figure 77: Germany: Otto/Bonprix/Baur/Heinrich Heine, relative strength by product, June 2019
MediaMarkt/Saturn
Figure 78: Germany: MediaMarkt/Saturn, relative strength by product, June 2019
Online competitors
Figure 79: Germany: leading online retailers – Top five other retailers shopped at in past 12 months, June 2019
Online shopping behaviours
Price still the major motivator for shopping online
Figure 80: Germany: online shopping behaviours, June 2019
Online shopping behaviours by products bought online
Research behaviour
Figure 81: Germany: research carried out when shopping online, by products bought online in last 12 months, June 2019
Search behaviour
Figure 82: Germany: sources used to search for products/inspiration when shopping online, by products bought online in past 12 months, June 2019
Membership of Amazon Prime
Prime membership is still low compared to other countries
Figure 83: Germany: membership of Amazon Prime, June 2019
Trends in Amazon Prime membership
Figure 84: Germany: trends in membership of Amazon Prime, 2017-19
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources
ITALY
Overview
What you need to know
Areas covered in this Report
Executive summary
The market
The economy
Online sales
Figure 85: Italy: online sales (incl. VAT), 2014-24
Segmentation of online sales
Figure 86: Italy: online sales by broad sector, 2018
Market drivers
Broadband access
Figure 87: Italy: broadband penetration as % all households, 2009-18
Device ownership
Online shopping
Figure 88: Italy: percentage saying they have bought online in last 12 months, 2009-18
Companies and brands
Market shares
Leading players
Figure 89: Italy: leading online retailers’ estimated shares of all online sales, 2018
The consumer
Internet users steadily increasing usage of online shopping
Figure 90: Italy: proportion of internet users who have shopped online, 2015-19
Clothing and footwear the most bought sector
Figure 91: Italy: products bought online in the last 12 months, June 2019
Pureplayers bought from twice as much as multichannel
Figure 92: Italy: retailer type bought from online, store-based vs pureplayers, June 2019
Amazon dominant
Figure 93: Italy: retailers bought from online, June 2019
Online shoppers very price aware
Figure 94: Italy: online shopping behaviours, June 2019
Two-fifths of internet users are Prime members
Figure 95: Italy: membership of Amazon prime, June 2019
What we think
Issues and insights
What is inhibiting online growth?
What we’ve seen
What it means
Can Amazon maintain its dominance?
What we’ve seen
What it means
The market – What you need to know
Economy weak
Online share of retailing still low
Electricals the largest sector
Italy lags the EU in online access…
…and purchasing
Smartphone ownership high
Market size
The economy
Online sales and forecasts
Figure 96: Italy: online sales (incl. VAT), 2014-19
Figure 97: Italy: forecast online sales, 2019-24
Segmentation/what they buy online
Figure 98: Italy: products bought online in the last 12 months, June 2019
Figure 99: Italy: online sales by sector, 2017-18
Figure 100: Italy: online sales by broad sector, 2018
Market drivers
Broadband access
Figure 101: Italy: broadband penetration as % all households, 2009-18
Device ownership
Figure 102: Italy: technology products personally owned, Q4 2018
Online shopping
Figure 103: Italy: percentage saying they have bought online in the last year, 2014-18
Figure 104: EU, Italy, percentage saying they have bought online in last 12 months, 2009-18
Companies and brands – What you need to know
Amazon is the clear market leader
But not all online players are performing well
Market fragmented beyond Amazon and eBay
Leading players
Figure 105: Italy: leading online retailers, sales (excl. VAT), 2016-18
Market shares
Figure 106: Italy: leading online retailers’ estimated shares of all online sales, 2018
The consumer – What you need to know
Internet users steadily increasing usage of online shopping
Clothing and footwear the most bought sector
Pureplayers bought from twice as much as multichannel
Amazon dominant
Online shoppers very price aware
A quarter of shoppers are lapsed Prime members
The research
Who shops online
Figure 107: Italy: proportion of internet users who have shopped online, 2015-19
What they buy online
Figure 108: Italy: products bought online in the last 12 months, June 2019
Where they shop online
Figure 109: Italy: type of retailer bought from online in last 12 months, store-based vs pureplayers, June 2019
Figure 110: Italy: retailers purchased from online in the last 12 months, June 2019
Figure 111: Italy: proportion of internet users who have shopped online in the last 12 months, by major retailer, 2015-19
Profile of shoppers by retailers used
Figure 112: Italy: profile of shoppers by retailer purchased from online in last 12 months, June 2019
Online shopping behaviours
Figure 113: Italy: online shopping behaviours, June 2019
Behaviours by retailer used
Search behaviour
Figure 114: Italy: search behaviour by retailer used, June 2019
Research behaviour
Figure 115: Italy: research behaviour by retailer used, June 2019
Service
Figure 116: Italy: service checking by retailer used, June 2019
Online shopping behaviours by products bought online
Search behaviour
Figure 117: Italy: sources used to search for products/inspiration when shopping online, by products bought online in last 12 months, June 2019
Research behaviour
Figure 118: Italy: research carried out when shopping online, by products bought online in last 12 months, June 2019
Service checking
Figure 119: Italy: service checking by product bought online, June 2019
Membership of Amazon Prime
Figure 120: Italy: membership of Amazon prime, June 2019
Figure 121: Italy: profiles by membership status, June 2019
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources
SPAIN
Overview
What you need to know
Areas covered in this Report
Executive summary
The market
The economy
Online sales
Figure 122: Spain: online sales (incl. VAT), 2014-24
Segmentation/what they buy online
Figure 123: Spain: estimated online sales by product category, 2018
Market drivers
Broadband access
Figure 124: Spain: broadband penetration as % of all households, 2011-18
Device ownership
Figure 125: Spain: technology products personally owned, Q4 2018
Online shopping
Figure 126: Spain: percentage saying they have bought online in the last year, 2009-18
Companies and brands
Leading players
Market shares
Figure 127: Spain: leading online retailers’ estimated shares of all online sales, 2018
The consumer
What they buy online
Figure 128: Spain: products bought online in the last 12 months, June 2019
Where they shop online
Figure 129: Spain: retailers bought from online in the last 12 months, June 2019
Online shopping behaviours
Figure 130: Spain: online shopping behaviours, June 2019
Membership of Amazon Prime
Figure 131: Spain: membership of Amazon Prime, June 2019
What we think
Issues and insights
How can m-commerce drive market growth?
The facts
The implications
Can store-based operators leverage their estates to shift focus away from price?
The facts
The implications
The market – What you need to know
Spanish growth fastest of five main economies
Online sales growing fast
Clothing and household goods most popular purchases
Broadband access has grown rapidly
Device ownership, particularly smartphones, high
Just over half of Spaniards have shopped online in the past year
The market
The economy
Figure 132: Spain: GDP compared with other major European nations, 2018
Figure 133: Spain: GDP annual growth, 2014-18
Online sales and forecasts
Figure 134: Spain: Online sales (incl. VAT), 2014-19
Figure 135: Spain: forecast online sales, 2019-24
Segmentation/what they buy online
Figure 136: Spain: percentage saying they have bought online in the last 12 months, by product category, 2018
Figure 137: Spain: products bought online in the last 12 months, June 2019
Figure 138: Spain: estimated online sales by product category, 2018
Figure 139: Spain: estimated online share of sales, by sector, 2018
Market drivers
Broadband access
Figure 140: Spain: broadband penetration as % of all households, 2011-18
Device ownership
Figure 141: Spain: technology products personally owned, Q4 2018
Online shopping
Figure 142: Spain: percentage saying they have bought online in the last year, 2009-18
Companies and brands – What you need to know
Amazon is largest player
El Corte Inglés is the main domestic operator
Vente-privee rebrand to Veepee begins in Spain
Mercadona finally grasps the online nettle
Amazon holds a modest lead
Leading players
Amazon heads the field
El Corte Inglés is leading domestic player, partners with Alibaba
Vente-privee rebrand to Veepee begins in Spain
Mercadona finally grasps the online nettle
Inditex aims for total integration
Zalando goes head-to-head with Veepee
Carrefour expands online specialist presence
Figure 143: Spain: leading online retailers, estimated sales (excluding VAT), 2016-18
Market shares
Figure 144: Spain: leading online retailers’ estimated shares of all online sales, 2018
The consumer – What you need to know
More than nine out of ten have bought online in the past year
Fashion is the most popular online purchase
Pureplay operators are preferred
Online buyers like to do their research
Prime membership continues to grow
Who shops online
Figure 145: Spain: proportion of internet users who have shopped online in the last 12 months, 2015-19
What they buy online
Fashion is the most popular online purchase
Figure 146: Spain: products bought online in the last 12 months, June 2019
Where they shop online
Pureplay operators are preferred
Figure 147: Spain: type of retailer bought from online in the last 12 months, store-based vs pureplayers, June 2019
Figure 148: Spain: retailers purchased from online in the last 12 months, June 2019
Figure 149: Spain: proportion of internet users who have shopped online in the last 12 months, by major retailer, 2015-19
Profile of shoppers by retailers used
Figure 150: Spain: profile of shoppers by retailer purchased from online in last 12 months, June 2019
Where they shop and what they bought
Amazon
Figure 151: Spain: Amazon, relative strength by product, June 2019
AliExpress
Figure 152: Spain: AliExpress, relative strength by product, June 2019
eBay
Figure 153: Spain: eBay, relative strength by product, June 2019
El Corte Inglés
Figure 154: Spain: El Corte Inglés, relative strength by product, June 2019
Online competitors
Figure 155: Spain: leading online retailers – Top five other retailers shopped at in past 12 months, June 2019
Online shopping behaviours
Online buyers like to do their research
Figure 156: Spain: online shopping behaviours, June 2019
Online shopping behaviours by products bought online
Research behaviour
Figure 157: Spain: research carried out when shopping online, by products bought online in last 12 months, June 2019
Search behaviour
Figure 158: Spain: sources used to search for products/inspiration when shopping online, by products bought online in last 12 months, June 2019
Membership of Amazon Prime
Prime membership continues to grow
Figure 159: Spain: membership of Amazon Prime, June 2019
Trends in Amazon Prime membership
Figure 160: Spain: trends in membership of Amazon Prime, 2017-19
Appendix – Data sources, abbreviations and supporting information
Abbreviations
Data sources
UK
Overview
What you need to know
Areas covered in this Report
Executive Summary
The market
Retail sales holding up despite uncertainty in the market
Figure 161: Mintel Financial Confidence Tracker, January 2017-May 2019
The online market grows by 14.4% in 2018…
Figure 162: All online sales and forecast, 2014-24
...meaning online claimed 18.0% of all retail sales
Figure 163: Online sales as a % of all retail sales (including VAT), 2014-24
Store-based retailers account for just under half of all online sales
Figure 164: Online pure players and store-based retailers share of all online sales, 2008-19
Companies and brands
Amazon the dominant market leader…
Figure 165: Leading retailers share of all online sales, 2018
…and its brand is strong
Figure 166: Key metrics for selected brands, September 2018-June 2019
Larger players look to support the high-street
Figure 167: Amazon Clicks and Mortar Manchester, June 2019
The consumer
Vast majority of consumers shop online
Figure 168: Frequency of online shopping, May 2019
Fashion and hard-copy media popular categories
Figure 169: Products purchased online in the past year, May 2019
Smartphone purchasing now more popular among 16-34s
Figure 170: Devices used to shop online, 2017-19
Comparing prices and delivery options key in the pre-purchase journey
Figure 171: What consumers do before shopping online, May 2019
Amazon most popular retailer online
Figure 172: Retailers shopped with online in the last 12 months, May 2019
29% have a delivery pass that isn’t Amazon Prime
Figure 173: Retail delivery service membership, May 2019
29% have used PayPal Credit while 37% have used a cashback site in the past year
Figure 174: Use of credit when shopping with retailers in the past year, May 2019
69% think limiting the ability to return items would make online shopping less appealing
Figure 175: Attitudes towards shopping online, may 2019
What we think
Issues and Insights
Does the UK need an online sales tax?
The facts
The implications
The impact of the mobile-first generation
The facts
The implications
The opportunities for online within an aging population
The facts
The implications
The Market – What You Need to Know
Retail sales holding up despite uncertainty in the market
Online market grows by 14.4% in 2018
Store-based retailers account for just under half of all online sales
Digital download market worth some £3.6 billion in 2018
Market Drivers
95% of UK households now online
Figure 176: UK household internet access, 2011-18
Smartphone ownership hits its highest level to date in 2018
Figure 177: Ownership of mobile phones, January 2012-January 2019
Wage growth outstripping inflation
Figure 178: Real wage growth: average weekly earnings vs inflation, January 2016-May 2019
A new high for Mintel’s financial confidence index
Figure 179: Mintel Financial Confidence Tracker, January 2015-May 2019
Discounting boosts retail sales volume growth year-on-year in 2018, but hits value growth
Figure 180: Annual % change in all UK retail sales (excluding fuel), by value and volume, June 2016-Jun 2019
Market Size and Forecast
Online market grows by 14.4% in 2018
Figure 181: All online sales and forecast, 2014-24
Figure 182: All online sales and forecast, at current and constant prices, 2014-24
Online to account for almost a fifth of all retail in 2019
Figure 183: Online sales as a % of all retail sales (including VAT), 2014-24
Online’s share peaks in November in line with Black Friday
Figure 184: Online retail sales as a % of all retail sales, non-seasonally adjusted, January 2016-April 2019
Figure 185: Average weekly value of all online retail sales, non-seasonally adjusted, January 2016-April 2019
Forecast methodology
Market Segmentation
Breakdown of retail sales by type of retailer
Figure 186: Online sales by type of retailer, 2018
Figure 187: Online sales by type of retailer, 2014-18
Store-based vs online-only retailers
Figure 188: Online pure players and store-based retailers share of all online sales, 2010-19
The longer term view
Figure 189: Total online-only retailer sales, 2014-24
Figure 190: Total online-only retailer sales, at current and constant prices, 2014-24
Figure 191: Total store-based retailers sales, 2014-24
Figure 192: Total store-based retailers sales, at current and constant prices, 2014-24
Sales by product
Figure 193: Online estimated sales by product, 2018
Figure 194: Online retailing: estimated sales by product by store-based and online-only retailers, 2018
Digital Spending
Books – hard copy fighting back
Figure 195: Value of consumer print book and publisher UK sales of consumer digital books (net invoiced value), 2014-19
Music – Streaming taking over
Figure 196: Spending on recorded music 2014-18
Video – streaming now over half of the market
Figure 197: The video market, 2016-18
Games
The total download market
Figure 198: Estimated digital download market, 2018
The Consumer – What You Need to Know
Vast majority of consumers shop online
Fashion and hard-copy media popular categories
Smartphone purchasing now more popular among 16-34s
Comparing prices and delivery options key in the pre-purchase journey
Amazon most popular retailer online
29% have a delivery pass that isn’t Amazon Prime
29% have used PayPal Credit while 37% have used a cashback site in the past year
69% think limiting the ability to return items would make online shopping less appealing
Who Shops Online and How Frequently They Shop
Online shopping ubiquitous across all demographics
Figure 199: Usage of online retailing, by age and gender, May 2019
Over a third (36%) shop online weekly
Figure 200: Frequency of online shopping, May 2019
25-34s most frequent online shoppers
Figure 201: Frequency of online shopping, by age, May 2019
Products Purchased Online
Fashion most popular online purchase
Figure 202: Products purchased online in the past year, May 2019
Products purchased by age
Figure 203: Products purchased online in the past year, by age, May 2019
35-44s have the broadest repertoire online
Figure 204: Repertoire of product categories purchased from online in the past year, by age, May 2019
There is still some hesitancy around buying certain categories online
Devices Used to Purchase Online
Desktop/laptop purchasing still most common but smartphone shopping growing rapidly
Figure 205: Devices used to shop online, 2017-19
Younger consumers now more likely to shop via smartphone
Figure 206: Devices used to shop online, by age, May 2019
More purchase via mobile site than app
Figure 207: How smartphone/tablet shoppers shop online, May 2019
Younger consumers want more features from apps
Figure 208: Attitudes to retail mobile apps, May 2019
The Pre-Purchase Journey
Price and convenience are key in the decision process
Figure 209: What consumers do before shopping online, May 2019
Younger consumers more driven by promotional activity
Figure 210: What consumers do before shopping online, by age, May 2019
Straight to search
Figure 211: Attitudes towards search, May 2019
Retailers Used
More shop with online-only retailers
Figure 212: Types of online retailer shopped with in the past 12 months, May 2019
Amazon and eBay dominant
Figure 213: Store-based and online-only retailers shopped with in the past year, May 2019
Argos most popular store-based player online
Figure 214: Retailers shopped with online in the last 12 months, May 2019
Online customer profiles
Figure 215: Retailers shopped with online in the last 12 months, by age and socio-economic group, May 2019
Consumers have a wider repertoire of store-based retailers they shop with
Figure 216: Repertoire of online-only and store-based retailers shopped with in the past year, May 2019
Subscription Delivery Services and Returns
Away from Prime, grocery delivery passes most popular retail memberships
Figure 217: Retail delivery service membership, May 2019
Fast fashion retailers show highest penetration among their shopping base
Figure 218: Retail delivery service membership, by retailer shopper base, May 2019
The issue of returns
Figure 219: Attitudes to returns, May 2019
Credit and Cashback
65% purchased on credit in the past year
Figure 220: Use of credit when shopping with retailers in the past year, May 2019
Younger consumers more likely to use newer options
Figure 221: Use of credit when shopping with retailers in the past year, May 2019
43% say credit options encourage impulse purchasing
Figure 222: Attitudes to credit options, by age, May 2019
Over a third use cashback sites
Figure 223: Use of cashback sites in the past year, May 2019
Over half of 25-34s have used a cashback site in the past year
Figure 224: Use of cashback sites in the past year, by age, May 2019
Key Players – What You Need to Know
Amazon the dominant player
Four retailers account for 45% of the market
Boots the most trusted brand online
Visual search and AR use on the rise
Leading Online Retailers
Amazon the leading player
Figure 225: UK: top 30 leading online retailers, 2016/17-2018/19
Market Share
Amazon the dominant market leader
Figure 226: Leading retailers share of all online sales, 2018
Figure 227: Leading retailers: share of all online sales, 2016-18
Brand Research
What you need to know
Brand map
Figure 228: Attitudes towards and usage of selected brands, September 2018-June 2019
Key brand metrics
Figure 229: Key metrics for selected brands, September 2018-June 2019
Brand attitudes: Innovative ASOS, trustworthy Boots
Figure 230: Attitudes, by brand, September 2018-June 2019
Brand personality: ASOS and eBay fun brands
Figure 231: Brand personality – macro image, September 2018-June 2019
Headline: Amazon responsive and reliable, John Lewis and Ocado perceived as more expensive
Figure 232: Brand personality – micro image, September 2018-June 2019
Brand analysis
Amazon near-universal brand awareness and highest lifetime usage
ao.com offers a reasonably good online service, but not particularly good value for money
Argos high brand awareness and accessible, but lacks cutting edge and style
John Lewis pricey, but worth paying more for
ASOS innovative and fun
Boots trustworthy, accessible and reliable
Ocado low usage and untrustworthy
eBay innovative, good online service, value for money and highly recommended
JD Williams functional and basic, rather than innovative or cutting edge
Boohoo/Boohoo Man low brand awareness and low lifetime usage
Littlewoods high brand awareness but least recommended
Very accessible and somewhat aspirational
Launch Activity and Innovation
eBay opens high-street concept store
Expanded online delivery options
Augmented reality technology to give shoppers more certainty when purchasing items online
Image-based shopping
Voice-activated beauty shopping
Amazon launches private label skincare brand
‘Try before you buy’ fashion service
New parcel postboxes scheme rolled out to make online retail easier
Geo-targeted delivery-on-demand
Advertising and Marketing Activity
Online retail advertising spend up 20.9% year-on-year in 2018
Figure 233: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, 2015-18
Amazon’s first real brand advertising campaign for Prime Video
eBay highlights hot deals and trending items
Moonpig’s #MerrierTogether Christmas campaign
JD Williams first advertising since recruiting TBWA\Manchester
Shop Direct Very’s location-based digital out of home campaign
Figure 234: Leading UK online retailers: recorded above-the-line, online display and direct mail total advertising expenditure, 2015-18
Digital share grows, TV falls
Figure 235: UK online retail: recorded above-the-line, online display and direct mail total advertising expenditure, by media type, 2015-18
Nielsen Ad Intel coverage
ALIEXPRESS
What we think
As a retailer
Where next?
Company background
Company performance
Figure 236: Alibaba: sales by division, 2017-18
Figure 237: Alibaba: group financial performance, 2015/16-2018/19
Gross merchandise volume (GMV, or total sales at retail prices)
Figure 238: Alibaba: GMV of China marketplaces, 2015/16-2017/18
AliExpress
Retail offering
AMAZON
What we think
Amazon: A Shopper’s Perspective – UK, January 2019
Amazon in Europe
How has it done it?
Marketplace development
Amazon Prime
Dynamism
Stores and online
Food retailing
Where next?
Company background
Company performance
Figure 239: Amazon: consolidated sales by activity, 2018
Mintel estimates
GTV vs consolidated sales
Recent performance
Figure 240: Amazon Group: group financial performance, 2014-18
Figure 241: Amazon International: estimated retail sales performance, 2015-18
Retail offering
Consumer profile
Product mix
Figure 242: Amazon UK: estimated sales by product, 2017
Marketing
AO WORLD
What we think
AR presents products in the home
Rentals service aimed at cash-strapped consumers
Mulling subscription fee initiative
Scaling up existing proposition with complementary services
New dedicated business website
Leveraging logistics expertise to offer third-party deliveries
Last-mile solution to support planned product expansion
Collaborating with digital start-ups to make online shopping faster and easier
Company background
Company performance
Figure 243: AO World Plc: group financial performance, 2014/15-2018/19
Retail offering
ARGOS
What we think
Using voice recognition technology as part of the online ordering process
‘See before you buy’ augmented reality tool
Beefed up fulfilment capabilities
Accelerated technology-led ‘digital store’ concept
Company background
Company performance
Figure 244: Argos: group financial performance, 2014/15-2018/19
Figure 245: Argos: outlet data, 2014/15-2018/19
Retail offering
ASOS
What we think
Getting tough on ‘serial returners’
Bolstering CSR credentials with charity shop initiative
Making shopping online for clothing easier
Tailored experience for specific markets
Becomes the latest fashion retailer to introduce its own homewares collection
Company background
Company performance
Figure 246: ASOS: group financial performance, 2013/14-2017/18
Retail offering
BOOHOO GROUP
What we think
Acquisitions transform Boohoo into a multi-brand online fashion destination
Refreshed website design to aid customers through the decision-making process
Fulfilment refinements to enhance convenience
Celebrity collaborations and influencer network
Tackling fast fashion waste
Company background
Company performance
Figure 247: Boohoo Group plc: group financial performance, 2014/15-2018/19
Retail offering
CDISCOUNT
What we think
Ramping up geographical expansion
Diversification boosts revenues
Loyalty programme continues to drive growth
Fulfilment improvements maintain competitiveness and sharpen efficiency
Payment improvements seek to increase range of options
‘Phygital’ presence grows
Provision for future innovation
Company background
Company performance
Figure 248: Cdiscount: group financial performance, 2014-18
Retail offering
EBAY
What we think
Marketplace
What eBay adds
Is eBay mature?
Where next?
Company background
Company performance
Figure 249: eBay: group financial performance, 2014-18
Figure 250: eBay: Group revenue by stream, 2018
Figure 251: eBay: group Gross Merchandise Volume, 2014-18
Retail offering
FNAC DARTY
What we think
Expanding click-and-collect geographical coverage
Cash register free experience
Optimised online user experience
Voice-activated shopping through Google Assistant
Online sales boosted by rapid growth of "marketplaces"
Product diversification to establish a presence in new product growth categories
Company background
Company performance
Figure 252: Fnac Darty: group financial performance, 2015-18
Figure 253: Fnac Darty: outlet data, 2015-18
Retail offering
MISSGUIDED
What we think
Enhanced payment option with new ‘buy now, pay later’ service
Online to offline with mixed success
Meeting the demand for ‘see now, buy now’
Reimagining the fashion mcommerce experience with Tinder-inspired app
Influencer marketing and celebrity tie-ups amplify the brand’s reach and engagement
Needs to do more to promote sustainable fashion
Targeting the Middle East’s youthful demographic
Company background
Company performance
Figure 254: Missguided: group financial performance, 2013/14-2017/18
Retail offering
N BROWN GROUP
What we think
Management
Where next?
Company background
Company performance
Figure 255: N Brown Group Plc: group financial performance, 2013/14-2018/19
Retail offering
Figure 256: N Brown: sales by product, 2017/18 and 2018/19
NEXT GROUP
What we think
Repurposing loss-making stores into collection shops
Speedy click-and-collect order fulfilment
Positioning itself as a one-stop shop for online fashion and homewares
Website developments aimed at enhancing online user experience
Company background
Company performance
Figure 257: Next Group: group financial performance, 2014/15-2018/19
Figure 258: Next Group: outlet data, 2014/15-2018/19
Figure 259: Next Group: average active customers, 2017/18 and 2018/19
Retail offering
OCADO GROUP
What we think
February 2019 – bad news, good news
Where next?
Company background
Company performance
Figure 260: Ocado Group plc: Group financial performance, 2012/13-2017/18
Retail offering
OTTO GROUP (MULTICHANNEL RETAIL)
What we think
Time-saving and convenient automated shopping experiences
Faster delivery with new instant payment system
Experimental store concept combining the advantages of bricks-and-mortar retailing with those of online shopping
Raising awareness of sustainability and eco-friendly credentials
Company background
Company performance
Figure 261: Otto Group (Multichannel Retail): group sales performance, 2014/15-2018/19
Figure 262: Otto Group: major brands within the Multichannel Retail segment, 2018/19
Retail offering
SHOP DIRECT GROUP
What we think
Cost cutting
Mail order into online
Where next?
Company background
Company performance
Figure 263: Shop Direct Group: group financial performance, 2013/14-2018/19
Retail offering
Figure 264: Shop Direct: group product mix, 2017/18
VEEPEE (FORMERLY VENTE-PRIVÉE)
What we think
Name changes aims for consistency of branding and message
Bizarre UK exit about-turn suggests lack of commitment
Mobile continues to be the focus
Further synergies possible
Delivery pass impact hard to judge
Company background
Company performance
Figure 265: Vente Privée: group sales performance, 2014-18
Retail offering
YNAP GROUP
What we think
YNAP gives a much-needed boost to Richemont’s online presence
Increased co-operation with other brands in the Richemont family
Alibaba deal provides China boost
Customer service enhancements focus on personalisation
Where now?
Company background
Company performance
Figure 266: YNAP group: group financial performance, 2013/14-2018/19
Retail offering
ZALANDO
What we think
Direct delivery of goods through partnered stores
Expansion of loyalty scheme to strengthen relationship with customers
Virtual stylist to aid customers through the decision making process
Charging delivery fees to offset falling average order size and higher fulfilment costs
Combatting ‘wardrobing’
Eyeing growth through beauty
In-home delivery service
Tackling the problem of packaging waste
Company background
Company performance
Figure 267: Zalando: group financial performance, 2014-18
Figure 268: Zalando: key metrics, 2015-Q1 2018
Retail offering

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