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The Exploration of Latest Trends in E-Commerce
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Page 3.......................................................................................................................Page 3.......................................................................................................................Page 3.......................................................................................................................Page 3............................................................................................................................................Meet The Team.........Meet The Team.........Meet The Team.........Meet The Team
Page4................................................................................................................Online BPage4................................................................................................................Online BPage4................................................................................................................Online BPage4................................................................................................................Online Buyiuyiuyiuying An Overviewng An Overviewng An Overviewng An Overview
Page 5.................................................................................................................The ShPage 5.................................................................................................................The ShPage 5.................................................................................................................The ShPage 5.................................................................................................................The Shoppoppoppopping Experienceing Experienceing Experienceing Experience
Page 6.........................................................................................................The shopping EPage 6.........................................................................................................The shopping EPage 6.........................................................................................................The shopping EPage 6.........................................................................................................The shopping Expexpexpexperience Cont.rience Cont.rience Cont.rience Cont.
Page 7...........................................................................................How can our website help my Page 7...........................................................................................How can our website help my Page 7...........................................................................................How can our website help my Page 7...........................................................................................How can our website help my cuscuscuscustomer?tomer?tomer?tomer?
Page 8..........................................................................ASOS Page 8..........................................................................ASOS Page 8..........................................................................ASOS Page 8..........................................................................ASOS –––– Leading pure play online fashion retailerLeading pure play online fashion retailerLeading pure play online fashion retailerLeading pure play online fashion retailer????
Page 9.......................................................................................................................Page 9.......................................................................................................................Page 9.......................................................................................................................Page 9....................................................................................................................................................ASOS cont..................ASOS cont..................ASOS cont..................ASOS cont.
Page 10......................................................................................................................Page 10......................................................................................................................Page 10......................................................................................................................Page 10...........................................................................................................................................Easy Navigation.........Easy Navigation.........Easy Navigation.........Easy Navigation
Page 11......................................................................................................................Page 11......................................................................................................................Page 11......................................................................................................................Page 11........................................................................................................................E..E..E..Easy Navigation Cont.asy Navigation Cont.asy Navigation Cont.asy Navigation Cont.
Page 12......................................................................................................................Page 12......................................................................................................................Page 12......................................................................................................................Page 12........................................................................................................................C..C..C..Consumer Interactiononsumer Interactiononsumer Interactiononsumer Interaction
Page 13...............................................................................................................ConsumePage 13...............................................................................................................ConsumePage 13...............................................................................................................ConsumePage 13...............................................................................................................Consumer Ir Ir Ir Interaction cont. nteraction cont. nteraction cont. nteraction cont.
Page 14...................................................................................................................YOUPage 14...................................................................................................................YOUPage 14...................................................................................................................YOUPage 14...................................................................................................................YOUR hR hR hR habits abits abits abits –––– ResearchResearchResearchResearch
Page 15......................................................................................................................Page 15......................................................................................................................Page 15......................................................................................................................Page 15........................................................................................................................................Analysis of Survey......Analysis of Survey......Analysis of Survey......Analysis of Survey
Page 16......................................................................................................................Page 16......................................................................................................................Page 16......................................................................................................................Page 16...............................................................................................................................................Market Value.............Market Value.............Market Value.............Market Value
Page 17......................................................................................................................Page 17......................................................................................................................Page 17......................................................................................................................Page 17.......................................................................................................................Gr.Gr.Gr.Grocery Market Shareocery Market Shareocery Market Shareocery Market Share
Page 18......................................................................................................................Page 18......................................................................................................................Page 18......................................................................................................................Page 18................................................................................................................................................Site Revenue..............Site Revenue..............Site Revenue..............Site Revenue
Page 19..........................................................................................Does Online Retailing EffectPage 19..........................................................................................Does Online Retailing EffectPage 19..........................................................................................Does Online Retailing EffectPage 19..........................................................................................Does Online Retailing Effect BuBuBuBusiness?siness?siness?siness?
Page 20......................................................................................................................Page 20......................................................................................................................Page 20......................................................................................................................Page 20...........................................................................................................................................Clicks V Bricks.........Clicks V Bricks.........Clicks V Bricks.........Clicks V Bricks
Page 21......................................................................................................................Page 21......................................................................................................................Page 21......................................................................................................................Page 21...................................................................................................................................The Online Process.The Online Process.The Online Process.The Online Process
Page 22............................................................................................................Scared of Page 22............................................................................................................Scared of Page 22............................................................................................................Scared of Page 22............................................................................................................Scared of HomHomHomHomeware Sites??eware Sites??eware Sites??eware Sites??
Page 23......................................................................................................................Page 23......................................................................................................................Page 23......................................................................................................................Page 23............................................................................................................................................Gender Divide..........Gender Divide..........Gender Divide..........Gender Divide
Page 24......................................................................................................................Page 24......................................................................................................................Page 24......................................................................................................................Page 24................................................................................................................................................Typical Guy..............Typical Guy..............Typical Guy..............Typical Guy
Page 25......................................................................................................................Page 25......................................................................................................................Page 25......................................................................................................................Page 25.............................................................................................................................................Seasonal Sites...........Seasonal Sites...........Seasonal Sites...........Seasonal Sites
Page 26......................................................................................................................Page 26......................................................................................................................Page 26......................................................................................................................Page 26...........................................................................................................................................M .........M .........M .........M ---- CommerceCommerceCommerceCommerce
Page 27......................................................................................................................Page 27......................................................................................................................Page 27......................................................................................................................Page 27............................................................................................................................................Cost Effective?..........Cost Effective?..........Cost Effective?..........Cost Effective?
Page 28............................................................................................MPage 28............................................................................................MPage 28............................................................................................MPage 28............................................................................................M––––Commerce Commerce Commerce Commerce –––– Where are We NowWhere are We NowWhere are We NowWhere are We Now
Page 29......................................................................................................................Page 29......................................................................................................................Page 29......................................................................................................................Page 29..........................................................................................................................................Pure Play Sites........Pure Play Sites........Pure Play Sites........Pure Play Sites
Page 30......................................................................................................................Page 30......................................................................................................................Page 30......................................................................................................................Page 30..................................................................................................................................................Love Film................Love Film................Love Film................Love Film
Page 31..............................................................................................................Amazon MPage 31..............................................................................................................Amazon MPage 31..............................................................................................................Amazon MPage 31..............................................................................................................Amazon Markarkarkarket Hound?et Hound?et Hound?et Hound?
Page 32.............................................................................................................So What'sPage 32.............................................................................................................So What'sPage 32.............................................................................................................So What'sPage 32.............................................................................................................So What's NeNeNeNext xt xt xt –––– FindingsFindingsFindingsFindings
MANAGING DIRECTOR
MONIQUE ANDERSON
CREATIVE DIRECTOR
ALICIA RAY
FINANCIAL DIRECTOR
SADIYA RIYAZ
MARKETING DIRECTOR
DAMI ODUMOSU
3
Exploration of latest trends in ecommerce Exploration of latest trends in ecommerce Exploration of latest trends in ecommerce Exploration of latest trends in ecommerce –––– Online Online Online Online ShoppingShoppingShoppingShopping Online buying has become
increasingly popular in the last 10 years. The introduction of faster internet speeds has allowed easier and faster access for consumers. The internet was dominantly used for research and development in the 1960’s,
Online retailing has become dominant in the online buying market and therefore has upheld certain trends. Such as retail sites having personalisation features, to which you can find clothes to fit your size and taste through
Issue No. 1
21ST January 2011
“The
marketers
that give you
MORR “
and development in the 1960’s, and has come a vey long way since then. Now 70% of the population now has easy access to the internet (Mintel 2011).With the internet offering a solid form of information through email and social medias. To processors that allows us to upload documents at immense speed. It as only a matter of time before business's started to use this form of communication to entice their customers into buying their products.
fit your size and taste through refining your search, also the introduction of personalised emails adds a level of personification because it makes the customer feel as though someone has actually sat down and wrote them this email.
In order to establish the most popular and successful trends a variety of sites had to be analysed in order to gain a clear understanding
21ST January 2011
4
THE Shopping Experience...THE Shopping Experience...
The site enables you to refine
what you are searching for, from
the size, to the colour and cut
ofthe item you wish to view
Most people view shopping as a form or retail
therapy others view it is a necessity. The weekly
shop. To truly have an understanding of peoples
buying behaviours research was undertaken to
determine how often they shop and what they shop
for most. Due to the vast increase in online
shopping behaviours, it has become more poplar
for people to do their purchasing online.
Online clothing stores such as Dorothy Perkins,
New Look and Topshop have introduced This
creates a different experience because it enables the
consumer to browse and define what they are
looking for at customised value. 5
The shopping bag icon indicates where all the
products you have clicked to purchase have stored, this allows for any
last alterations to your order
Like that of a department store, retail
sites such as these have categorised their
products for easy navigation. This has
become a popular trend in online buying
as it adds a level of personification to the
search. This is due to the buyer feeling as
though the company has taken the time
to break down there needs into categories6
Online retailers want to make the
experience of shopping g online as high-
quality as possible, they have taken allot
of time and effort to ensure that their
customers find their sites easy to use and
a growing trend in the market is to do
just that.
HHHHow can our ow can our ow can our ow can our website help my website help my website help my website help my consumer???consumer???consumer???consumer???The purpose of a website is to help
the customer and generally ask
themselves ‘how can our website
Trends in E-Commerce
• Online shopping is the process
whereby consumers directly buy themselves ‘how can our website
help my consumer’. It is important
to make sure the consumer or
stakeholder is to be able to find
information easily and help them
enjoy a better web experience.
whereby consumers directly buy
goods or services from a seller in
real-time, without an intermediary
service, over the Internet.
• If an intermediary service is present
the process is called electronic
commerce or e-commerce.
• Online shopping has become
popular; however, it still caters to the
middle and upper class. In order to
shop online, one must be able to
have access to a computer, a bank
account and a debit card. 7
ASOS is the leading pure play online fashion
retailer in the UK. Having started with a branded
offer geared to the young market, it has
expanded and developed own brand lines as
well. ASOS main success rests on having both
responded to and having led developments in
online retailing.
Search engine optimisation involves
achieving the highest position or
ranking in the natural listings on the
search engine results page after
specific combination of keywords
has been typed in. (Chaffey)
When you type in a few buzz words,
for example, ‘ASOS, online
shopping’, ASOS are in the highest
position in the search engine
optimisation which proves that
although there are no charges for
these listings, ASOS are prepared to
spend what is required for
optimisation work that make sure
Wireframes also consider special offers and
promotions which can be effective if they occupy
a consistent position on the screen. On the
homepage ASOS display this trait particularly
well. On the F Frame it displays their special offer
of 20% off if you have an NUS Card and also on
the home page in clear bold writing it displays
that there is a sale of up to 70% off selected
items, without it being over bearing.
optimisation work that make sure
their web pages are the highest in
the rankings.
8
Website is on first page
of the search engine
optimisation.
9
Clear, concise
tabs: easy
access/ usage
Use of the
wireframes make
the site easy to
navigate
10
It is commonly perceived that the first place our eyes are drawn too is the top left hand side of the screen.hence why most businesses if not hence why most businesses if not all tend to place their large logos there seeing as you would like the stakeholders to know what site they are viewing.
11
Consumer interaction
12
It is very important to show some sort of consumer interaction. The majority of retail companies realise that we as a public have become more accustomed to social have become more accustomed to social networking. On the ASOS homepage there are links which allow you to follow them on social networking sites, Twitter and Facebook.
The impact of social networks on online retailing has been the most dramatic trend since the growth of the web itself. Having looked at the snapshot of the worldwide usage and growth of social network sites in 2007 by an audience panel Comscore which can be found in ‘Chaffey’s
EMarketing Excellence book page 114’ it shows the staggering audience size and growth rates of the top networks.
13
YOUR Habits YOUR Habits -- Site analysis Survey Site analysis Survey
In order to have a full grasp on the concept of e-commerce it was clear that further insight had to be found. This was do through two stages, the first to
actively watch the buying behaviours of people around Christmas time. As this is the most popular time that
online buying is done. Although many that were observes showed an active care as to whether or not their ordered products would reach them in time.
“I would prefer to go in store, I love trying on the clothes I just don't have the time” C2 Female - 27
“I don't really mind when it comes if I'm honest, if Ineeded it urgently I would have gone and got it” C1 Male -20
their ordered products would reach them in time. However all continued with their orders. Should sites offer a delivery guarantee and subsidise the order if
not delivered in time?
As a vice to get well rounded results 10 people were observes, 5 men and 5 women. All participant where between the ages of 18-45 and ranged from a b,c1,c2,d
backgrounds.
The second path of research was to do an online survey of 50 people between the ages of 18-24 o see if it was actually this age gap that dominated the market for online buying. This survey in particular turned up
some very interesting result....“I pay up to £5 for delivery sometimes, if I’m paying for a service I expect the company to carry it out” BC Female 42
“ I like shopping online because I find there are better deals, and actually a wider range” AB Male - 30
14
When doing the online survey, the assumed trend had changed quite drastically. When the observation took place it became
apparent that EVERYONE purchased online at least once. It was the head running g trend, however when doing an online survey of 50 participants it found that this was not the case. It could be argues that due to the age range surveyed were of an age were they do
not an exposable income like that of older generations.
Unsurprisingly the most bought product online amongst the 18-24s was clothing, a clear connotation of the online retailers success in
the market. Although it had been established that older generations used the internet to purchase their grocery shopping online it was surprising to see 18-24s also taking advantage of the home delivery service that most grocery stores now offer. This suggests a growing trend in the market as more younger people suggests a growing trend in the market as more younger people are using online retailing sectors for more than just fashion and
music.
The Last result ( which I can only describe as scientific anomalies) shows that the census surveyed preferred to go in store. Which
completly contradicts previous suggestion of their online behaviour. Has a new trend been set. Or is this a portrayal of we cant always get what we want.?? When combining the survey with information from the observation it was clear that although they would prefer to go in store they do not always have the time and resources to do so, where as that
new top they really wanted could be theirs at the click of a button.Trend or Fad?
15
Online retail sales were around £17.8 billion in the UK in 2009,
6.6% of all retail sales. The market has become bigger by 150%
since 2005, 25& per annum.
“Online now accounts for almost 40% of all “Online now accounts for almost 40% of all “Online now accounts for almost 40% of all “Online now accounts for almost 40% of all
nonnonnonnon----store retailers’ sales”store retailers’ sales”store retailers’ sales”store retailers’ sales”
(i.e. all mail order, pure-play internet retailers and markets). That is
because mail order retailers have actively embraced the internet and
encouraged their customers to order online and so allow them to
close down expensive call centres. (Mintel 2010)
According to Mintel online sales will be £27 billion, excluding VAT
in 2014, 9.1% of all retail sales (adjusted to include offshore retailers
Online shopping is very popular with the 25 – 44
year olds, for the younger generations shopping
is a socialising activity, but for the 22+ age group
its a different matter. They have commitments in 2014, 9.1% of all retail sales (adjusted to include offshore retailers
which are not included in the UK retail sales data).its a different matter. They have commitments
and responsibilities such as children and
mortgages, budgeting for them is very important.
The most frequently bought products online are
books, CDs and DVDs, next is fashion, 9% of
fashion is sold online, and then its Computers
and electronics. Customer satisfaction with
products bought online is very high, even with
deliveries there no problems. Smart phone
ownership is quite low but it is expected to rise in
the coming years, according to Mintel half of
owners already use them for shopping and they
show considerable enthusiasm for doing so.
(Mintel 2010)
16
Examples of market share for online retailers are demonstrated here. With this knowledge, it can demonstrate the effects and differences between an online and
offline consumer. M&SM&SM&SM&S -General merchandise - £4.1bn sales (+4.0%) market share value 11.0% and the market share volume is 11.2%. Food - £4.3bn sales (+1.8%) market share 3.8%.M&S Direct £413m sales (+27%) M&S Direct are on target to achieve £500m in sales by 2010/11.Sainsbury'sSainsbury'sSainsbury'sSainsbury's - A 16.1% market share in Sainsbury'sSainsbury'sSainsbury'sSainsbury's - A 16.1% market share in the UK, up by 0.2% on last year. Groceries online business is growing rapidly with sales up just under 20%, within the reach of nearly 90% of UK households.WaitroseWaitroseWaitroseWaitrose ---- has a 4.3% share of the market. Gross sales up £375.9m, 9.0% to £4.5bn.Tesco Tesco Tesco Tesco ---- has a 30.7% share of the market, online sales £13.1bn this means sales have gone up by 6.2%. ArgosArgosArgosArgos - has a share of 10% in the market.AsdaAsdaAsdaAsda -has a share of 17.1 in the market. 17
Sainsbury's – Sainsbury's online turnover is around £500million annually, it is rising fast at 15%. In the first half of 2009/10, there was further solid sales growth, with a rise of 5.0% in turnover excluding VAT to £10,433 million. Online grocery sales grew 20%. The company said that there had been a “very successful launch” for non-foods online.
Waitrose – Waitrose deliver sales went up by 45% in December 2010.
Argos – Argos generates 28% of sales from online. In the last financial year, Argos online sales have grown 8% to £4.2bn. The Argos online site is the second most by 45% in December 2010.
Tesco – Tesco is the largest UK food retailing market and the worlds largest online grocery retailer. It claims to be the most profitable of all retailers in the market. 6.7% of Tesco's grocery sales are online,
“UK grocery accounts for some £1.5billion of Tesco online sales and Tesco direct for around £300million.”
Tesco have an impressive 3.4 million visitors to the site a year.
Argos online site is the second most visited internet retail site in the UK. Growth of 250% over the past five years highlights the potential for online operations.
Asda – According to Mintel 2010, Asda does not publish its online sales, but in January 2008 Asda indicated that their online sales of 2007/08 were around £200million, sales rose by some 40% in 2008/09. No figures are available for 2010.
18
Online shopping has been growing
phenomenally during the last few
years every year the figures for
online sales are increasing in June
according to IMRG online sales in
the UK rose 20%, this means that
there has been a major leap since
summer 2008. In the first of 2010
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. The increase in online
sales is said to be because of
Online shopping has been growing
phenomenally during the last few
years every year the figures for
online sales are increasing in June
according to IMRG online sales in
the UK rose 20%, this means that
there has been a major leap since
summer 2008. In the first of 2010
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. The increase in online
sales is said to be because of
Impact on the businesses online retailing Impact on the businesses online retailing Impact on the businesses online retailing Impact on the businesses online retailing
Online retailing is having a brilliant
affect on the UK economy a study
from the IMRG shows that online
Online retailing is having a brilliant
affect on the UK economy a study
from the IMRG shows that online sales is said to be because of
weather and summer of sport.
Consumers were shopping online for
alcohol and summer sports clothing.
Online retail again became very
popular during the weeks up to
Christmas 2010, because of the
freezing conditions and the snow,
consumers made the most out of
online shopping, Shoppers spent a
record £7.66bn online in the ten
weeks running up to Christmas – a
rise of 54% on the same period in
2005.
sales is said to be because of
weather and summer of sport.
Consumers were shopping online for
alcohol and summer sports clothing.
Online retail again became very
popular during the weeks up to
Christmas 2010, because of the
freezing conditions and the snow,
consumers made the most out of
online shopping, Shoppers spent a
record £7.66bn online in the ten
weeks running up to Christmas – a
rise of 54% on the same period in
2005.
from the IMRG shows that online
businesses are a growing force in the
UK job market, generating wealth for
the nations economy. More than
600,000 British jobs are now either
directly created in or support the UK’s
estimated 150,000 online retail
businesses.
Internet retail has been significantly
impacted by the recession — costing
internet retailers an estimated £1.6bn
in lost revenues that would otherwise
have been gained had the economy
not fallen.
from the IMRG shows that online
businesses are a growing force in the
UK job market, generating wealth for
the nations economy. More than
600,000 British jobs are now either
directly created in or support the UK’s
estimated 150,000 online retail
businesses.
Internet retail has been significantly
impacted by the recession — costing
internet retailers an estimated £1.6bn
in lost revenues that would otherwise
have been gained had the economy
not fallen. 19
CLICKS VS BRICKSCLICKS VS BRICKS
Need Recognition & Problem Awareness
The initial step of the model involves consumer
realisation of a need to purchase the high risk item.
“Although the quality of Daniel’s TV had not
changed, for example his standard comparison was
altered, and he was confronted with a desire he did
not have prior to watching his friend’s TV.
Information Search
This part of the process involves searching online
for specifications, full listings of nearby stores,
consumer reviews etc. This can be done offline but
is increasingly becoming an online option due to the
To fully appreciate the online shopping market,
understanding the purchase decision model is
key. Whether its a high risk purchase of a car or
low risk buying a bar of chocolate, consumers
conform to the model and ultimately make a
marketers job a whole lot easier. However, when
it comes to online purchasing, it is necessary to
question if this differs in any way from offline
and how this will develop as technology
continues evolve. The basic model for a high risk
purchase such as a car or holiday is shown here. here. here. here.
Offline We all know how easy it is to
get distracted and start surfing
the net for pointless buys and
its all there at the click of a
button. It is for this reason
that sites have to work hard in
this area.
For example, a consumer
may have already test driven a
car but then decides to buy
online. Maintaining their
interest and attention is key.
“We don’t want to is increasingly becoming an online option due to the
amount of access and time consumption.
Evaluation of Alternatives
Comparison websites play a vital role here and
continue to evolve as the need is ever increasing.
Again, customers will read others reviews of their
options and compare from this.
Purchase
Purchase is made after considerable research.
Post-Purchase Evaluation
Even after all the research made prior to the
purchase, consumers will most likely consider
whether they made the right choice over
alternatives. Even though the model regards a high
risk purchase, the process of a low risk buy can still
involve this stage. Again, regarding a high risk buy,
online the model is similar to the traits of the offline
process. However, the differences are highlighted
concerning the engagement of the consumer to
your site, a tricky thing to do.
purchase such as a car or holiday is shown here. here. here. here. “We don’t want to
lose the customer at
this point so make
purchasing slick and
simple”
backed up by a phone
number is they have an
anxieties. (e-Marketing
excellence, 2008).
This may be one way of
retaining consumers in the
buying process. However,
there are other difficulties that
effect online buying in a
substantial way. 20
The online buying process is much
more complex than an offline purchase
as there is a considerable amount more
to contemplate. Security of personal
details is one of many main concerns
when buying online. “Almost daily we
hear of hackers getting into a business or
even a government website and causing
havoc” (Consumer Behaviour, 2006.)
Businesses spend a significant amount of
money maintaining security online and
conduct regular audits to ensure the
integrity of their sites. Another
inconvenience of buying online is the
effect of hedonic consumption.
“Hedonic consumption is the data that
we receive from our sensory systems and
determines how we respond to
Online Process
Other limitations include delivery and
return prices. Mintel report “Buying for
the home online, 2009” suggests
“51% think that it is not worth
paying delivery charges for
small items.”
This may then cause consumers to wait
for a need of other and buy a number of
items in bulk or simply add more items
not necessarily for ‘need’ but ‘want’ and determines how we respond to
products” (Consumer Behaviour, 2006).
Whilst purchasing books or a computer
online may be more of a simpler task,
shopping for clothing or fragrances is a
different matter altogether. Their main
selling point, sight, touch and/or smell is
distorted or non-excitant through the
web. Some websites such as New Look
for a limited time experimented with a
virtual wardrobe where it was possible to
choose items to make an outfit and
demonstrate in as much detail as
possible to look desired. H&M have
most recently caught on to this idea and
offer suggestions for options that will suit
with a particular item. This then enabled
consumers to recreate in a restricted way
the act of high street shopping, online.
not necessarily for ‘need’ but ‘want’ and
ultimately benefit businesses.
On the other hand, positives include a
wide range of available services to help
promote online buying. Wedding dress
designing is becoming increasingly
popular on the web and will most likely
to continue to develop in the next few
years. A service that is bound to attract
the female consumer!
References References References References
Chaffey, D. (2008). E-Marketing
Excellence. 3rd ed. Oxford. Butterworth-
Heinemann. Pg153.
M , Solomon. (2006). Consumer
Behaviour. 3rd ed. Essex: Pearson
Education. 315.
21
Scared of Homeware Sites?Despite the downturn in the economy, buying for
the home online continues to thrive in the market.
As every market, e-commerce in the sector of
homeward online has its weaknesses. With a mass
decline in house sales due to the reduction of
house prices and unsecure jobs, customers are
becoming ever more cautious on spending of large
and expensive purchases such as sofas, cookers etc.
On the other hand, deceptive as a negative issue,
the falling of house prices also has its advantage.
Consumers that were looking to move house may Consumers that were looking to move house may
instead build extensions and refurbish. This then
has a positive input and could even balance out
the negativity of consumer’s cautious minds.
There will always remain this issue of hedonic
consumption, and sites are constantly trying to
develop this area to gain traffic to their website.
Delivery prices and service are also a battle
businesses have to face and
as we all know, at Christmas things
can get out of hand...literally!
22
Websites are often criticised for being too
gender orientated and inevitably adapt in
order to appeal to both male and female
consumers. Mintel report ‘Buying for the
Home Online’ 2009 reveals that regarding
homeware buys, women’s most popular buys
online are; furniture, china, glass, decorative
items and textiles. Whereas men’s most
common buys are lighting and DIY, a typical
behaviour of offline shopping some might say.
Online purchasing however, are able to offer
an extra range of services to charm the gender
that are less common to be shopping on a
Although in these examples of House of Fraser,
Debenhams and John Lewis the colours, fonts and
layout is very generalised with regards to gender,
the actual products on show are oriented towards that are less common to be shopping on a
certain site. For example, B&Q is generally a
male dominated store due to its ‘boys toys’
reputation, a refreshing approach to attract
women to the buy on the site would include
instruction videos on how to use the products
and develop more of an understanding that in
store does not offer.
the actual products on show are oriented towards
the female consumer. Displaying fashion items,
sales promotion and glasses as proven by Mintel
to be a popular female buy, the sites conform to
their offline reputation and overall appearance.
However, with the undemanding work of
adapting displays online, home pages can be
changed often to appeal to a different audience
potentially each day.
This is also convenient for seasonal or event
changes including Valentines Day, Easter and
most significantly, Christmas. It’s no secret that
Britain has such unpredictable weather and
where are those wellies when you need them?
They were thrown away 10 years ago when it
didn’t snow heavily twice a year and you grew
out of Thomas the Tank Engine. Just one click
away could be your answer to saving you falling
head over heals in the high street...if they’re
digital savvy that is.23
Research has proved that designs by female
generally tend to attract female consumers
and male designs appeal to the male
consumer. This is generally due to personal
preference between genders being
stereotypically more similar than to that of
the opposite sex. For example, the B&Q site,
male dominated and House of Fraser,
appealing largely towards females shows
that their design were most likely designed that their design were most likely designed
by the gender they are aimed at.
The B&Q site is very typical of the male
attraction. The layout is linear and simple with
no distractions, complications or excitement.
Men don’t generally need excitement for this
type of website though. The need is already
there as these are essential items and lets face
it...men get excited over gadgets they buy
anyway.
Whereas the House of Fraser page has a lot
more colour and involvement in the layout.
Layers demonstrate an attractive development
and depth.
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It’s not just the products displayed on the site
that gives appeal to the consumer, the overall
appearance effects how the site is viewed and
more important a massive giveaway as to how
often the site is updated. Consumers become
wary of un-updated sites as it can be a sign of
company going bust!
Sites do this in order to attend to consumers
needs as much as possible. Consumers can
then feel at ease and rely on the sites to cater then feel at ease and rely on the sites to cater
to their needs and desires.
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A new and growing trend in the market is the use of m-commerce, the use of browsing the internet on a mobile phone. The use of applications and mobile site web pages makes it increasingly easier to purchase online.
...M – Commerce...
Due to the use of applications on mobile phones and tables such as the I-Pad, online retailers can also create customised apps. Allowing the customer full control from the touch of a button with a device to which is kept with them most of the time.
Retail sites such as boohoo have further enhanced the
way in which they communicate to their customers
whilst promoting their own products 26
...Cost Effective?Mobile retailing is becoming a
popular means of shopping, With the rise of the Smartphone,
buying via mobile has become truly viable. Marks & Spencer
received 1.2m unique visitors to its m-commerce site within four months of launch in May 2010,
this shows that people are warming to the idea of mobile
retailing. purchase and compare prices. Consumers are using this m-
commerce for many reasons not commerce for many reasons not only just to make a purchase,
consumers use their mobiles to search for competitive brands to find the best deals. Tesco has already launched iPhone and
BlackBerry apps for such services as its Club card loyalty scheme.
Two-thirds of UK retailers haven’t yet optimised their websites for mobile. Businesses also have a
worry that not all consumers have smart phones or not as of yet, this is a worry to some online retailers out there. 17% of all UK mobile users
expressed an interest in using their mobile to research a purchase and
compare prices.
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eBay is the world’s biggest auction house, offering a wide array of goods and services
for sale from small businesses and individuals. It is not a retailer as such, acting merely as a conduit between the parties involved. It is a well respected and trusted trading medium
for a wide selection of customers from across the globe. The success of the company is
largely based on its vast network of members the more available buyers that exist, the more the potential
selling price of products increases.
The eBay name is universally known, and The eBay name is universally known, and clearly opportunities exist for the company
to expand its presence further as e-commerce develops around the globe.
PayPal provides the company with a safe, well-respected and secure payment method
for buyers to ease any expansion even further
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There are over a dozen companies offering DVD/video/game rentals
via postal delivery, of which LoveFilm is the undisputed
market leader. In fact, data show that LoveFilm has overtaken
Blockbuster as the UK’s largest (in terms of volume) rental provider.
Like all well known brands, LoveFilm is recognised for its
colours and overall appearance. This appeals to consumers as it is
easily visible whilst surfing the web and therefore help to build
traffic to the site. traffic to the site.
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Amazon is the largest pure play internet retailer in the world and is
also the largest just in Europe. Starting with books and then music,
its range now encompasses such diverse businesses as electronics and
Amazon wants to cash in on rising customer demand for
click and collect services where shoppers buy online
and then pick up their goods from a nearby store.
Consumers who are fed up with waiting at home for deliveries are increasingly
choosing to buy online and collecting goods at a time that
suits them.Amazon being as commercially
huge as they are, plans for expansion shouldn't be far off. diverse businesses as electronics and
jewellery. Amazon also provides virtual outlets for independent retailers through its own site.
The great strength of Amazon is that from the start it established very high standards of service. It realised that if
e-commerce was to have a future then it would be founded on service and convenience. From the start it
established a very high quality operation, understanding that it needed to achieve high levels of
service if it was to woo consumers away from shops
expansion shouldn't be far off. Interaction with the consumer can be improved. Reacting to the competition and setting up social networking feeds
allowing the consumer to have more insight into future plans or product releases can only
be beneficial for the business.
High street outlets is another plan that could increase
revenue and increase the brand awareness.
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This report has been an exploration of the latest trends in E-Commerce however it is clear to see that the industry is changing and developing daily. With the introduction of personalised login it makes it increasingly easier for companies to track their customers, and for customers to track their products.
Could this be the changing times for in store buying?
The rate of purchasing that is done online suggest The rate of purchasing that is done online suggest that there will soon be more people purchasing online that in store. Especially with the increase of older generations also using online buying as a more productive value.
The use of pure play sites have also made a huge increase in usage, becoming a very popular trend with the 18-24s. Although there is no one to directly contact or physically speak to the quality of service is enough for customers to return.
The report also defined that the running trends in e-commerce change through the generations, the line were teenagers were the dominant online buyers has become blurred as their are so many sites that offer a range of differed products.
A very in demand and somewhat surprising trend that was found throughout the report was that people are now preferring to do their grocery shopping online rather that in store. As consumers are becoming more carer driven and times are becoming busier, it becomes much easier to things on the go and with the increased development of phone applications which allow you to do so it sufficiently less time consuming.
Many franchise stores have came about from major conglomerate companies, what does the increase of online shopping do to them?
Will we soon become a nation or virtual buyers..........Read Next Months Issue to find out!
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“The marketers that give you
MORR”
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