Can you imagine a life without the internet? A life where you had to adhere to store opening times, stressful Saturday shopping and strict Sunday hours? The growth of the online market over the last ten years has been an unprecedented phenomenon. Yet this rapid growth is not surprising when the advantages of e-retailing are considered: access to a wider audience, cost savings, direct communication, increased personalisation with the consumer and websites available to consumers on a 24-hour basis seven days a week (Jones and Biasiotto, 1999; Goldsmith, 1999; Hunter, 1999; McBride, 1997; Rowley, 1996). Therefore enabling people to purchase from shops that are not nearby, or to save money via online promotional codes, all from their bedroom. This type of email appears in my inbox on a weekly basis:
This is a powerful tool, making the recipient feel like a VIP customer, knowing that access to this is exclusive, but also appealing to that inherent “everyone loves a bargain” nature. Or similarly,
Having a “web only” product encourages people to shop online as they, again, will feel like they have purchased something exclusive.
Continued online growth?
Despite the recession, in general people have not cut back on their online spending- 42% of consumers say they have bought more than last year against 16% who bought less (Mintel, 2010). This is understandable in a world surrounded by cut-backs, as a much-needed “treat” is buying a nice outfit for the weekend, spending week nights at home searching for it.
The Verdict
HOWEVER... online fashion growth is forecast to slow to 8% in 2010, taking the market to £4.27 billion (Mintel, 2010). Verdict (2010) predicts that growth will become more difficult as the channel is maturing, so retailers will need to think more strategically about maximising revenue online. This is supported by figures of internet users beginning to stall at around 71% of adults (Mintel, 2010). One way of maximising revenue would be encouraging consumers to purchase whole outfits, or, team clothing pieces with accessories online, as opposed to having scarves or necklaces hidden in a tab where, let’s face it, no one visits unless looking for a gift.
Credit where credit(card) is due?
How many times do we see an item we like and click that handy little “Add to Basket” button, only to then leave the site after a sufficient browse, or ruthlessly remove the item at the checkout? Verdict (2010) predicts that the issue of Basket Abandonment is here to stay. The reality is that when there are no charming sales assistants earnestly telling you that if you do not buy that top AND cardigan it would be a crime, your sensible and practical self does not allow you that indulgence too far. So, until the time comes where websites enable consumers to have their own virtual personal style assistant, e-retailers must concentrate on ways to defeat basket-abandonment through online incentives. This could be “x% off when buying the top and jacket”, or ensuring delivery costs are clearly stated, abolishing the “sneaky and dishonest” persona gained when adding £3.95 to a shopping bag.
Rosy this is an excellent piece and a joy to read. Great use of academic and industry references and a clear analyse and commentary throughout. I think your recommendations for basket abandonment are really strong, therefore this is something you could expand upon in your dissertation. Really good piece, great use of visuals to back up your content. Well done, keep up the good work!
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