Report : Social Business | FMCG Sector – Retail and Ecommerce
Online shopping is growing inexorably. Maximising the online business potential and optimising the consumer’s online shopping experience are two separate issues, but are both of major importance to any retailer seeking to take advantage of the increased spending by consumers online.
Irish shoppers spent €2.96bn online in 2010, an increase of 39% on 2009; This growth rate has not been seen in the online grocery market, however, which accounts for approximately 1% of this, or some €29.6 million.
The value of the total grocery market in Ireland increased from €6.0bn in 2001 to a peak of €9.3bn in 2008; it fell to €8.8bn in 2010, and has since risen slightly. It is currently valued at just under €8.9bn.
In 2010, the total grocery market in the UK was £150.8bn; the online proportion of which is some 8%. Retailers benefited hugely during the economic boom. However, as a result of the recession, shoppers are making more regular shopping trips for smaller amounts of groceries.
Store loyalty has decreased hugely, consumers now visiting more stores, shopping around for the best deals. Shoppers have a much greater choice of grocery products but are purchasing the same number of products.
Shoppers are much more accepting of non-branded or private label (PL) goods. They are responding to price increases by either purchasing more items on promotion or trading down to cheaper products. Savings, convenience and the opportunity to purchase items which are not available from Irish stores are influencing factors in online purchasing behaviour.
The survey carried out by The Ahain Group, showed a significantly higher number of consumers shopping online for groceries than industry statistics from 2010 would suggest. Half of our respondents said they have bought groceries online. The results suggest that there is a ready market for the service, with 50% of those surveyed saying they had bought groceries online already.
For more information, contact The Ahain Group:
Unit B1 | Fota Point Enterprise Park | Carrigtwohill | Cork
Enter your details to download your copy of the report