2015 UK eCommerce Lessons from three Christmas Ghosts

C l a v i s I n s i g h t ’s e C o m m e r c e I n t e l l i g e n c e f o r a C h a n g i n g M a r k e t

Online spend is booming, bah humbug!S c r o o ge wo u l d b e d i s p l e a s e d w i t h t h e d i g i t a l s h o p p i n g r e v o l u ti o n w e ’ r e w i t n e s s i n g , p a r ti c u l a r l y a t C h r i s t m a s ti m e .

A q u a r t e r o f a l l U K r e t a i l s p e n d t a k e s p l a c e o n l i n e . T h e r e s t h a s a h e a v y d o s e o f d i g i t a l i n fl u e n c e , w i t h

c o n s u m e r s r e s e a r c h i n g i n - s t o r e p u r c h a s e s a c r o s s d e v i c e s .

O f t h e £ 1 0 4 b i l l i o n o n l i n e s a l e s i n 2 0 1 4 , a fi ft h w a s s p e n t i n t h e e i g h t w e e k s l e a d i n g t o C h r i s t m a s . * B l a c k F r i d a y o n l i n e s p e n d a l o n e w a s £ 8 1 0 m i l l i o n ,

C y b e r M o n d a y n o t f a r b e h i n d a t £ 7 2 0 m i l l i o n . * *

W i t h o n l i n e C h r i s t m a s s a l e s p o i s e d fo r c o n ti n u e d g r o w t h , h e r e a r e ke y e C o m m e r c e l e s s o n s f r o m t h r e e C h r i s t m a s g h o s t s .

2015 online sales projected to grow another 12% to hit £116 billion* – online Christmas spend could hit £25 billion this year

S o u r c e : * I M R G / C a p g e m i n i , * * I n t e r n e t R e t a i l e r

The Ghost of Christmas Past:

“We weren’t ready in 2014”

We weren’t ready B l a c k F r i d a y & C y b e r M o n d a y a r e fi r m l y

e n t r e n c h e d , i m p o r t e d s a l e s e v e n t s , b u t t h e i r p o p u l a r i t y s ti l l c a u g h t U K b r a n d s a n d r e t a i l e r s o ff g u a r d i n 2 0 1 4 .

O n l i n e B l a c k F r i d a y d e m a n d e x c e e d e d e x p e c t a ti o n s b y 3 0 % , s w a m p i n g r e t a i l e r s i n a d e m a n d “ t s u n a m i ” t o t a l i n g i n £ 8 1 0 m i l l i o n i n s a l e s – r e p l a c i n g B o x i n g D a y a s t h e b i g g e s t E V E R o n l i n e s p e n d i n g d a y e v e r i n t h e U K . *

U n p r e p a r e d r e t a i l e r s h a d w e b s i t e o u t a g e s a n d l o g i s ti c s d e l a y s – p u tti n g s a l e s a n d s h o p p e r s a ti s f a c ti o n a t r i s k .Crush in stores looks increasingly ghastly.

Who wouldn’t want to take advantage of sales from the comfort of their sofas?

S o u r c e : * I M R G / C a p g e m i n i , i m a g e f r o m t h e I n d e p e n d e n t

The Ghost of Christmas Present:

“This time will be different!”

Brands are building their inventory and digital shelf to prepare for the Christmas shopping season… B u i l d i n g p i p e l i n e a n d m o n i t o r i n g i n v e n t o r y

c o n s i s t e n t l y t o a d d r e s s a v a i l a b i l i t y o u t a g e s q u i c k l y .

C r e a ti n g s p e c i a l o ff e r s f o r k e y o n l i n e r e t a i l e r s .

E n s u r i n g t h a t t h e y ’ r e ‘ o n s h e l f ’ f o r c o n s u m e r s w h o d o o n l i n e C h r i s t m a s s h o p p i n g v i a s e a r c h & v i a m e n u .

W i n n i n g o n s e a r c h a g a i n s t k e y c a t e g o r y t e r m s .

M o b i l e s e a r c h g o a l s n e e d t o b e h i g h e r t h a n d e s k t o p – s h o p p e r s m a y o n l y l o o k a t t h e fi r s t f e w s e a r c h r e s u l t s o n t h e i r s m a r t p h o n e v s t w e n t y o n d e s k t o p .

B e i n g a v a i l a b l e i n m u l ti p l e m e n u l o c a ti o n s .

14% of 2014 UK digital Christmas sales were on smartphones and 26% on

tablets– make sure your product is ‘on shelf’ and complete across devices

S o u r c e : * e M a r k e t e r

…and creating the perfect page

I n c l u d i n g a s m a n y i m a g e s a s r e t a i l e r s a l l o w … a n d a v i d e o !

C r e a ti n g e n g a g i n g p r o d u c t c o n t e n t t h a t e n c o u r a g e s s h o p p e r s t o d w e l l o n p r o d u c t p a g e s a n d m a k e s u r e c o n t e n t i s o p ti m i z e d a c r o s s d e v i c e s .

Wo r k i n g t o w a r d s a h i g h q u a l i t y a n d q u a n ti t y o f r a ti n g s & r e v i e w s , a k e y i n f o r m a ti o n s o u r c e f o r s h o p p e r s .

PP

P

P

40% of online sales are mobile, how do you look on the small screen?

60%

26%

14%

Percent of online UK sales across devices*

S o u r c e : * e M a r k e t e r

Retailers are preparing for a bigger Black Friday…

I m p ro v i n g l o g i sti c s . A r g o s l a u n c h e d F a s t Tr a c k s a m e - d a y h o m e

d e l i v e r y s e r v i c e a n d h i r e d 1 , 0 0 0 a d d i ti o n a l d e l i v e r y d r i v e r s f o r t h e C h r i s t m a s s e a s o n a l o n e .

S e tti n g ex p e c t a ti o n s w i t h c o n s u m e rs i f s h i p ti m e s w i l l b e l o n ge r. e B a y w a r n s U K c o n s u m e r s t o p l a c e o r d e r s

o n o r b e f o r e n o o n o n t h e 1 7 t h o f D e c e m b e r t o r e c e i v e i t e m s b e f o r e C h r i s t m a s D a y a n d “ a v o i d d i s a p p o i n t m e n t ”.

…upping the ante on promotions…

R e t a i l e r s a r e s p r e a d i n g p r o m o ti o n s o u t i n s t e a d o f c o n c e n t r a ti n g o n B l a c k F r i d a y. I n e a r l y N o v e m b e r Te s c o i s s e l l i n g N i n t e n d o ' s 2 D S

h a n d h e l d c o n s o l e w i t h M a r i o K a r t 7 f o r o n l y £ 4 . 9

R G B d i r e c t i s s e l l i n g a S a m s u n g C u r v e d T V f o r o n l y £ 4 9 9 , a s a v i n g s o f £ 4 0 0 , f o u r w e e k s i n a d v a n c e o f B l a c k F r i d a y.

A m a z o n i s o ff e r i n g fl a s h d e a l s t h r o u g h o u t N o v e m b e r.

T h i s t r e n d o f d i s c o u n ti n g e a r l i e r e a c h y e a r w i l l p u t c o n ti n u e d p r e s s u r e o n r e t a i l e r m a r g i n s . R e t a i l e r s s h o u l d o ff e r t a r g e t e d d i s c o u n t s a n d p r o m o ti o n s t o s ti l l a c h i e v e p r o fi t a b i l i t y o n m o s t o f t h e C h r i s t m a s s h o p p i n g b a s k e t .

…and improving the shopper experience

4 0 % o f 2 0 1 4 o n l i n e C h r i s t m a s s p e n d w a s m o b i l e , s o r e t a i l e r s a r e o p ti m i z i n g t h e i r s i t e s a c r o s s d e v i c e s :

A s d a ’s a p p s f o r i O S a n d A n d r i o d g e t t o p m a r k s f o r m a k i n g n a v i g a ti n g w i t h b o t h m e n u a n d s e a r c h e a s y f r o m m o b i l e d e v i c e s .

H o u s e o f F r a s e r ’s ‘ S c a n a n d E x p l o r e b y H o F ’ a p p f e a t u r e s e n g a g i n g c o n t e n t t h a t e n c o u r a g e s l o n g e r d w e l l ti m e , s u c h a s v i d e o s , 3 D p r o d u c t p r e v i e w s a n d s h o p p a b l e l o o k b o o k s .

The Ghost of Christmas Yet to Come:

“I foresee digital abundance in 2015”

Scrooge will shower the Cratchits with gifts bought online, as often as not on his mobile device. O n l i n e C h r i s t m a s s a l e s w i l l h i t £ 2 5 b i l l i o n t h i s y e a r * a s m o r e

c o n s u m e r s s h o p f r o m t h e c o m f o r t o f t h e i r h o m e s a n d o ffi c e s .

O n l i n e B l a c k F r i d a y s a l e s w i l l b e b i g i n 2 0 1 5 , o v e r £ 1 b i l l i o n * * , b u t l o o k f o r i t t o l o s e i m p o r t a n c e g o i n g f o r w a r d a s r e t a i l e r s s p r e a d o u t p r o m o ti o n s t o a v o i d t h e s i n g l e - d a y c r u s h .

I n t h e U S , h o m e o f B l a c k F r i d a y a n d C y b e r M o n d a y , a r e r e l y i n g l e s s o n t h e s e h o l i d a y s f o r t h e i r s h o p p i n g . * * *

H e r e i n t h e U K , w e ’ r e a l r e a d y s e e i n g p r o m o ti o n s s t a r t b e f o r e B l a c k F r i d a y a s r e t a i l e r s r a c e t o c a p t u r e o u r C h r i s t m a s s p e n d , w h i c h c o u l d p u t r e t a i l e r p r o fi t a b i l i t y a t r i s k .

A s d a , i n s t r u m e n t a l i n i n t r o d u c i n g B l a c k F r i d a y t o t h e U K , i s a g a i n l e a d i n g t h e w a y , t h i s ti m e b y c u tti n g b a c k o n B l a c k F r i d a y d e a l s a n d i n s t e a d c u tti n g p r i c e s i n t h e w e e k s l e a d i n g u p t o C h r i s t m a s

M o b i l e w i l l a c c o u n t f o r h a l f o f a l l o n l i n e s a l e s a s b r a n d s a n d r e t a i l e r s c o n ti n u e t o o p ti m i z e t h e t a b l e t a n d s m a r t p h o n e s h o p p i n g e x p e r i e n c e .

S o u r c e : * I M R G / C a p g e m i n i , * * S a l m o n , * * * D e l o i tt e

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