The fallout from the recession doesn't appear to have damaged the etail sector, with good prospects for 2011. Indeed, 35% of people interviewed for the most recent nma Online Shopping Survey said they'll spend more online and less on the high street in 2011 (nma 16 December 2010).
Unsurprisingly, price comparison sites, value supermarkets and auction sites topped the places that most consumers are most likely to turn to next year, with the best price being the key factor influencing people's online shopping behaviour.
The survey also revealed that two-thirds of people (69%) said they shop around for the best price and low delivery cost online, while 37% said they buy several items from one site to qualify for free delivery. Over a quarter said they only buy from sites where delivery is included in the price.
Shoppers will be able to buy in more places online in 2011, with mobile commerce likely to become a mainstream channel. Last year saw Marks & Spencer, Lyle & Scott and John Lewis launch m-commerce sites. They were joined by grocery giant Tesco, which launched its first transactional mobile site as part of a drive to make all its sites compatible with smartphones, after finding 7% of its total web users were mobile (nma 11 November 2010).
The importance of a multi-channel strategy was shown by Deloitte, which at the end of 2010 said shoppers who use more than one channel before buying spend 82% more per transaction than those who only shop in stores. Likewise, 38% (by value) of all retail transactions across the clothing, electrical and home sectors are influenced by the internet (nma.co.uk 10 December 2010).
The growth of the tablet market is sure to have an influence, with apps that unite the etail and retail experience becoming important aspects of a marketing plan.
Brent Hoberman Chairman, Made.com and Mydeco; co-founder, Profounders Capital
One key trend in ecommerce is disintermediation, combined with crowdsourcing. It's about getting products directly from wholesalers, and now directly from the manufacturer in far off countries, based on what consumers want. We're very excited by where this is going.
A broader trend is the shift to better image quality on ecommerce platforms, and the next step is 3D. It's doing well in the cinema and starting on TVs, and we'll see it in ecommerce too, particularly for more expensive items.
We'll also see the evolution of social ecommerce and the social shopping experience, as exemplified by the Facebook like button and the retailers that have started to integrate it. This will go one step further to enable customers to find out through search what their friends have liked and to use that as part of a buyer sync algorithm.
With regards to discovery, another key area is user-curated commerce, where people put products in folders and you can see what a celebrity or your friends have selected. Linked to this, micro-affiliates is another trend which sees people being rewarded for curating products that their friends buy. Location check-in, with the likes of Foursquare, Facebook Places and Groupon, is another interesting phenomenon. It's about rewarding, and concealing the product from Google in a sense, which is why the private sale and the Groupon model has done so well. It avoids the cannibalisation of your loyal customers and introduces you to potential new consumers, while rewarding those customers for buying from you at a certain point in time or at a certain location.
We'll also see a lot more brands launching their own marketplaces. Both Tesco and ASOS have done so recently, as has Mydeco with Mydeco Boutique.
Finally, one of the obvious things to look to in 2011 is improvements in delivery. The fulfilment side is really important for ecommerce and seeing rapid innovation.
Phillip Rinn Director of advertising partnerships, Ebay Advertising UK
Last year, the masses hit the virtual high streets in droves. The latest IMRG Capgemini Index showed online shoppers spent an incredible #5.2bn in October 2010. This comes as the British Retail Consortium reports that traditional high street spend declined in December for the fourth month in a row.
Online shoppers are becoming increasingly sophisticated, using a variety of online media to research, compare, discuss and purchase products. To be successful in 2011, brands will need to keep pace with this by recognising and creating campaigns around the different stages and influence points in the shopping cycle.
For example, we know consumers shop differently depending on the product they want to purchase. Research shows they prefer to stick with a brand they trust when shopping for products which inspire a more emotional relationship, such as clothing. For major purchases like household goods or high-spec electronics, most online shoppers will take the time to shop around, engaging with a multitude of brands and influencers. We also know that they value online communities where they can share thoughts and opinions about brands and products before they commit to the purchase.
This presents exciting opportunities for brands in 2011, and those that are successful will be the ones which have a strong visibility on platforms that reach consumers across the different stages of the shopping cycle. It will become increasingly important to use a variety of media, such as search, display and social, because consumers are no longer limiting their shopping to one channel.
Success for ad platforms next year will depend on how prepared they are to adapt to meet changing shopper needs. In doing so, they'll also be rewarded with more loyal customers who will engage more strongly with their brand.
Copyright: Centaur Communications Ltd. and licensors
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