Study: Mobile Now Accounts For All Online Growth In UK

By Chanel Smith EMEA Editor

New research shows that mobile purchases now account for 100 percent of online sales growth in the UK.

Over a decade ago, studies showed that a large chunk of retail sales was coming from online shopping, and now history is repeating itself as the same can be said for mobile shopping. A new study released by IMRG and Capgemini indicates that almost a quarter (23 percent) of all UK online sales in Q2 2013 were conducted through mobile phones and tablets. The high figures confirm there is a significant shift in British consumer behavior in terms of how they shop online.

UK consumers are progressively trading in old desktops and laptops for smartphones and tablets. The arrival of tablet technology did not bode well for desktop and laptop computer sales in the UK, as figures show that PC sales fell 16 percent in Q1 of 2013 to just 2.5 million sold units, reported Computer Weekly. There is a huge consumer demand for portable technology and simplified online shopping.

“As e-retail becomes ubiquitous, the annual growth in the Index has been slowly declining – 18% in 2010, 16% in 2011 and 14% in 2012,” explained Chris Webster, head of retail and technology at Capgemini. “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.”

The majority of shoppers are using their tablets to shop, as the study reports that tablet devices currently account for 85 percent of mobile sales. However, smartphones showed a greater year-on-year growth rate, jumping 210 percent in the last year, compared to tablets year-on-year growth of 130 percent.

IMRG and Capgemini presented various contributing factors through research: Accessibility, convenience and consumer confidence. In terms of accessibility, the study reports that mobile technology contracts have become more affordable which has in turn encouraged more people to purchase them. Furthermore, increased accessibility has also expanded the demographic of consumers who can afford smartphones and tablets.

Research also discusses the notion of convenience as a contributing factor. Advance mobile devices enhance the online shopping experience for consumers. Instead of having to turn on a computer, load up the website and so on, people can access online sites with just a single click. Consumers enjoy multi-tasking, and tablet shopping allows them to engage in other activities while shopping online, such as watching television or talking with friends. It was reported that visits through a tablet have a higher number of pages per visit because consumers think of tablet use as a leisure activity.

Lastly, the study suggests that online shoppers are becoming more confident in terms of mobile commerce.

“The fact that more people are using mobile devices reflects the huge strides retailers have made in user experience and accessibility in m-retail sites,” said Webster.

Tina Spooner, CEO at IMRG, said, “Online retail is a sector that sometimes receives a strong boost from supporting technology and mobile is certainly providing that at the moment. 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 in front of the TV has turned online shopping into a leisure activity that is fully compatible with our home entertainment lifestyles.”

To read the full report at IMRG click here.