Fashion fuels growth of online commerce
With online sales growing by 17% and set to surpass $1.2 trillion globally for the first time this year, the latest E-Commerce Index from Rakuten, one of the world’s largest online marketplaces and owner of Rakuten’s Play.com marketplace in the UK, reveals that a fifth (20%) of Brits now buy more items online than they do in store, while a further 18% buy the same amount on the web as they do offline.
The independent study of global shopping trends, suggests that global e-commerce sales are being driven by consumer demand for clothing and accessories, with two-thirds (66%) of Brits now buying clothes online and one-in-four (26%) recommending items to friends and family via social media.
In the UK the top reason for shopping online is that items are easier to find, while in all countries surveyed the top reason for shopping in-store is the ability to check items more thoroughly, while ease of payment and the ability to ask shop assistants for help is also highly valued. This suggests that online retailers would benefit from offering a wider selection of payment methods and giving shoppers access to ‘virtual’ assistants on the web.
Globally, the top three categories for online shoppers are clothing and accessories, followed by books and magazines, and consumer electronics. In the UK the top three categories are clothing and accessories, CDs and DVDs (including digital downloads and streaming), and books and magazines, while large appliances are least likely to be bought online. Sales of large appliances, while growing remain low in many countries worldwide, suggesting that consumers still like to get a feel for big ticket items in person, before pulling out the credit card.
David Rimmer, Trading Director at Rakuten’s Play.com, said: “Retailers around the world are clamouring for a piece of this $1.2 trillion market, today’s research clearly highlights that the fashion industry is well ahead of the curve when it comes to engaging the online shopping community. That’s no small feat for an industry where the importance of “fit” would seem like a natural obstacle to online sales. However, fashion retailers have become excellent online storytellers, creating interactive and highly visual online stores in combination with social media to fuel customer conversations, setting an example which other industries would do well to follow.”
Online clothes shopping gathers pace worldwide
Clothing and accessories are now the most commonly bought items online worldwide, with Europe leading the trend. Rakuten’s data shows that more than half of all shoppers buy apparel and accessories on the web, and echoing recent research from analyst house Verdict, Rakuten found that Germany is the biggest market for clothing in the EU27 area, with 70% of Germans buying clothes on the web.
Online clothes shopping is also seeing strong growth in the Americas. In the US, online sales of clothing and footwear are set to reach $40 billion in 2013, with Rakuten’s research showing that 60% of shoppers buy clothing on the web. Brazil is leading the charge online in Latin America, with a third (34%) of Brazilians getting their garments online.
Sales across Asia are surging with 74% of shoppers in Indonesia, 60% of people in Malaysia, and 58% in Taiwan purchasing clothing online. Some $388.8 billion isexpected to be spent online in the Asia-Pacific region in 2013, up by nearly a quarter from last year.
Sales surge as social and mobile shopping take off
Social and mobile shopping is adding a new and dynamic facet to shopping online. In many countries, shoppers are now routinely sharing products that they like on social sites, such as Pinterest, Facebook and Twitter.
Social shopping is most established in Asia, where around 55% of people recommend items on social networking sites, compared with 49% in the Americas and 29% in Europe. Indonesia is the biggest market for social shopping worldwide, with 80% of shoppers regularly recommending products on social media, while Spain (52%) is leading the trend in Europe.
With mobile shopping expected to account for $119 billion of all online sales globally by 2015 mobile and tablet shopping is continuing to gather momentum. Mobile is now the primary online shopping channel for 14% of people in the UK. This trend is being led by shoppers in Thailand and the US, where mobile is now the main device for shopping online for 19% of consumers in both countries.