For the past few years Christmas has been turning into an online affair in the US. The typical “Black Friday” which saw thousands of shoppers queue to grab deals has been replaced by a plethora of online pre-holiday events such as Cyber Monday. Europe seems to have picked up on the trend – the last couple of years have seen a shift to online Christmas shopping.
This year’s Christmas shopping in Europe will not only be online, but will most likely be mobile. According to recent research by IMRG and Capgemini customers in the UK are expected to spend £4.6bn online over the two weeks commencing 3rd & 10th December – with £920 million alone being spent on mobile devices. This number represents a 15% increase from 2011 figures. The overall growth of the channel and in particular the huge leap in the gift sector (62% month-on-month), supports the earlier forecast from IMRG and Capgemini that Christmas 2012 will see record growth in online shopping.
Chris Webster, head of retail consulting and technology at Capgemini says: “With the economy slowly improving but with a highly uncertain future, online shoppers are spending but only cautiously as they save up prior to Christmas. There is much growth to be tapped in the internet market but knowing your target audience and matching their expectation with your offering is crucial. The explosion in m-commerce suggests that retailers are meeting this expectation and satisfying customer demand.
In France too online Christmas shopping is taking a prime spot with 70% of customers intending to buy their gifts online this year. The French Federation of E-Commerce (Fevad) estimates that end of the year online sales will amount to nine billion euros – an 18% growth compared to the same period last year. According to eBay France 16% of that number will be spent via a mobile. Just in 2012, mobile shopping has grown 150% in France. Other European markets are set to grow too, with Germany, Spain and Italy showing promising m-commerce adoption.
But not all is good in the mobile shopping world. Another Christmas without universal 4G services will cost the UK economy £120m in lost mobile sales, according to new research from eBay, the leading online marketplace. As shoppers stock up on Christmas gifts and supplies over the festive season, slow connection speeds are set to pose a barrier for many consumers wishing to shop via their mobile devices. Clare Gilmartin, vice president of eBay Marketplaces, Europe commented: “Mobile devices have become virtual stores in our pockets, giving us the ability to shop anytime, anywhere. But for consumers, it’s critical that the experience is quick, seamless and simple. Slow browsing speeds and breaking connections are now significant barriers to mobile commerce – and this comes at a high price.” French retailers also emphasized the importance of a swift payments system and adapted mobile sites to avoid customers abandoning their purchase.
Finally, It seems that the online trend is taking its toll on British highstreets where one in ten shops in empty, according to the British Retail Consortium. The economic downturn is one the reasons driving customers out of shops, as many prefer to scour the Internet for the best deals. Customers in the UK are also turning to cashback and daily deals websites for their Christmas shopping to save some money.
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It seems that this years’ European customers will thoroughly research every channel for the best deal they can get.
