Sunday, 29 September 2013

All Online Shopping Growth Coming From Mobile Devices, Says IMRG

Internet shopping from desktop and laptop computers has 'flat-lined' as consumers switch to shopping on their smartphones and tablet computers.

According to the research by internet retailers' association the IMRG and tech consultancy Capgemini, all online growth is now coming from mobile devices after the rapid uptake of gadgets like the iPad and the Kindle Fire over the past two years.

The IMRG said it had stripped out mobile shopping data (see graph below) and found that a 'tipping point' in consumer behaviour was reached in the second quarter this year - measured from May to July.



The research showed that 23 per cent of all online retail came from mobile, double the same period a year earlier. Close examination of the data and a recent acceleration in internet shopping since the end of July has prompted the IMRG and Capgemini to raise its forecast for 2013 from an increase of 12 per cent to 15 per cent.

That means the slowing growth seen in internet shopping over the past three years is set to reverse as online shopping becomes more accessible to more people more of the time.

The IMRG said smartphones have made the internet available to a wider demographic than laptops and desktops, and allowed faster and more convenient browsing. It added that retailers investment in mobile sites and provision of additional payment options have improved the experience.

Tablet sales currently account for 85 per cent of mobile sales in the year to date. But it appears smartphones have seen a greater rate of growth, increasing 210 per cent compared to 130 per cent for tablets in the second quarter. 

But it said the lines between the two are becoming 'increasingly blurred' as tablets become smaller, phones become larger, and the production of laptops that can be converted to tablets.

'The latest findings, together with the continuing trend of triple-digit growth in mobile commerce, provide clear evidence of a culture change in digital shopping. Smartphones and tablets offer the kind of experience the modern consumer wants – quick access, wherever and whenever they want it. Second screening - using devices in front of the TV - has turned online shopping into a leisure activity that is fully compatible with our home entertainment lifestyles,' said Tina Spooner, chief information officer at the IMRG.

Chris Webster head of retail and technology at Capgemini: 'As e-retail becomes ubiquitous, the annual growth in the Index has been slowly declining - 18 per cent in 2010, 16 per cent in 2011 and 14 per cent in 2012. However, similar to the impact the introduction of broadband had on the Index in 2006, the access to new technology and connectivity has supported an increase in the rate of growth once again.'

However, he said retailers are only 'scratching the surface' of the ways in which mobile devices can be used to connect with consumers. He said the introduction of finger print technology on the latest smartphones, for example, will increase trust and personalisation of digital services.

Kate Smyth, director of e-commerce at shoe retailer Dune said: 'The findings from the IMRG study completely agree with what we have been seeing at Dune, mobile and tablets are becoming the dominant devices used to interact with a brand online. Mobile has been our priority for a while and the possibilities are really exciting. We have a mobile version of the site, developed content designed for touch and we use mobile technology in store to help locate stock and reduce queues - but the road map for mobile and tablets is key as the devices become part of every household.'

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