Online Shopping – Christmas Special
Christmas shoppers are still crowding in malls and the high street, but there is also a steadily increasing trend towards online spending that should be seriously considered. A significant piece of the global retail market has already shifted online. In 2017 it is expected to be slightly over 10% meaning that over 2.11 trillion dollars worldwide has been spent online this year. This is expected to be further increased, exceeding 15% by 2021.
Since the operating expenses are high and the profit margin is very low in most popular retail categories, a sales loss of over 10% can be very damaging for a retailer. This means that retailers cannot afford not to offer online shopping options to their customers because if 1/6th of their clients walk away to a competitor, their business might no longer be viable. As there is no evidence to support this switch to online shopping will ever be reversed to offline, retailers need to plan ahead their online shopping and advertising strategies to remain competitive.
For people that do not have the time or do not want to spend their time out in the streets online shopping is very convenient. Many consumers that do their shopping on the high street also use their mobile phone to compare product offerings or just search where to find what they like. Even this combined shopping experience is very common, it does not classify as online shopping because it does not generate any turnover. We know this behaviour exists and we can even study every little detail because all online activity is tracked allowing top marketers to design personalized strategies aiming to bring back those visitors. The possibilities derived by exploiting the digital world are endless but if you are not there to play your role, someone else will probably claim what you thought belonged to you.