What credit crunch? What economic downturn?
In June, according to the IMRG Capgemini e-Retail Sales Index, online sales in the UK rose by a monster 20%. This is on top of the 22% rise it witnessed in May. This means that the last 2 months has been the biggest leap in online sales since summer 2008. In the first half of this year alone, the UK has spent a healthy £26.2 billion online, with June experiencing a record of £4.4 billion online sales. This is a 15% increase in sales when compared to the same time last year. And it’s not even Christmas!
Why?
Well putting the growth of online sales in general to one side for now. The weather and the summer of sport have been big motivations for the jump in online sales. Alcohol being one of the biggest growing categories seeing a 23% jump when compared to June 2009. Now this may not be a sign that we are all turning into booze hounds and it might just be a sign of sporting inspired excess, however it is definitely a sign of the times when it comes to online retailing.
With figures like this, especially for products like alcohol, when there are off licences, supermarkets and pubs on every corner of every street, one must consider that shopping online is becoming the simple, cheap and easy way to shop that every online retailer hoped it would be. (Online sales currently account for just over 8% of UK retail sales.)
According to Chris Webster, Vice President, Head of Retail Consulting and Technology, Capgemini, it is the consumer who is catching up with what is now so readily available:
“Consumers are more savvy than ever and continue to look towards online shopping to find the best deals that the high street and the Internet can offer.”
One factor which must be considered for a growth in online sales, is the growth in the use of Smartphones and the advancing mobile retail market place. Before these had advanced, customers who saw an advert on a billboard or heard an advert on the radio would have to wait to get home before making a purchase. In this time a significant number of potential customers will have dropped their interest. While with a smartphone in many consumers’ hands, a purchase is just a few clicks away. An interesting stat to see would be: What percentage of the 20% rise in sales last month came from mobile transactions?
What does it mean for SEO?
With these types of numbers available to potential online retailers, there is surely no time like the present for retailers to set up a website, and/or mobile website and get it ranking in the search engines. SEO will have a big part to play in the future of online retailing, and eventually when the online sales figures overtake high street sales figures, there really will be no more important sales tool.
So…what products will we be buying in the future?
Well, how about this latest concept product from Sony which will be on display at SIGGRAPH 2010 at the Los Angeles Convention Center July 25-29. It could just be the future of a certain range of consumer products…
[youtube]http://www.youtube.com/watch?v=6BFKC-NKRFw[/youtube]
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