This survey showed that Ecommerce was the only part of industry to show considerable growth compared to last year’s figures. Many other areas of the market experienced large losses in sales despite the lucrative January sales period. 44% of retailers reported that their sales figures were down compared to January 2011 and 22% claimed that they had experienced some growth from last year, giving a balance of -22%.

Internet Orders up 50%

However, internet and mail-order retailers experienced a large rise in sales of 50%. This part of the market is nearly always showing exceptional growth; the incredible January sales figures pale in comparison to the 91% growth seen in December of this year. December was a good month for retail market growth this year compared to 2010. Grocers saw a growth of 52% compared to only 6% of growth this month.

The chief economic advisor of CBI, Ian McCafferty, said “Shoppers have reined in spending across the board” and he goes on to suggest a few reasons why this might be the case including a large number of consumers who took advantage of the early discounts before the New Year. He said that families in particular are “under continuing pressure with inflation still high and wage increases modest”.

The goods that performed the worst this January were durable household goods (-100%) and hardware and DIY (-81%). According to McCafferty “consumers are still holding off particularly from buying big ticket items like washing machines and fridges.”

E-Commerce stores have strong start to 2012

It has not been a particularly strong start of the year for any form of retail other than ecommerce. This fall was disappointing for high-street retailers but only marginally worse than expected (-18%) and firms expect annual sales volumes to continue to fall next month as well (-10%).

In recent years, 200million people annually discovered the internet for the first time. With the massively decreased price of smart phones it seems apparent that the era of the desktop PC is coming to an end when it comes to internet access. The study predicts that by 2016 80% of all internet users will be getting access through their phones.

Numbers that end with the word trillion become unimaginable and difficult to contextualise. So it is important to think that this whilst figure for the internet economy is larger than that of Italy’s total, it is only a fraction of the global total. In 2010 the internet was said to be responsible for $2.3 trillion dollars being pumped into the economies of the leading nations of the world, the G20, but this figure is only 4.1% of their collective economies.

But this is the fastest growing modern industry, particularly if these predictions turn out to be correct. It is because of the revolutionary way that the internet has affected society that BCG have outlined how we are entering a different era of ‘new internet’:

• Web access is no longer a luxury (the UN actually already declared it a human right)
• There will be shift to a larger number of web users in emerging markets and developing economies like China
• A consumer-retailer dialogue will be established and improved through social media

Everything in our lives is becoming more reliant on an internet connection as our lives adapt to be more ‘digital’. There has been a huge technological revolution that is still going on as many of the things around us such as cars, TVs and sensors become internet enabled; even to the extent that we have coined a new moniker – ‘smart houses’.

However, the managing director of BCG, David Dean said “During the research we discovered quickly that there is no approved way of measuring the internet economy.” This is a challenge when trying to estimate the value of the internet economy because there are many broad effects of the online revolution that are much harder to take figures for. It is fairly straight forward to acquire data about the revenue generated by purely internet based companies, or what online retail options have done for the sales of existing products. But it is extremely difficult to accurately measure the impact of the internet because of broader factors such as increased brand awareness through social media, or the efficient benefit of managers that are able to direct workforces remotely with smart phones.

This absolutely necessary but immeasurable tool for the economy has undeniably become an essential part of personal and professional life. David Dean sums it up best when he implied that discussing a movement into a “web economy” is just as ludicrous as talking about an “electricity economy”.

Revenues of €15.3bn

On a wider scale, the report also estimates that the revenue generated by Facebook for the 27 countries of the European Union is close to €15.3bn. Across the continent, Deloitte estimates that this work supports around 232,000 jobs making the careers available to those who work with Facebook almost a legitimate industry in itself.

The economic impact of Facebook can be separated into two different channels for generating revenue. There is the narrow impact of the company, involving such things as: Facebook’s taxes on its profit and the wages of their employees. This narrow impact equates for €210 million across the EU and approximately 3,200 jobs. However, this pales in comparison to the economic impact of the broad effect of the company which is responsible for a huge €15.1 billion of the total impact on the EU economy. This massive amount of revenue has been generated by the businesses that can increase their awareness with fan pages and adverts, the direct impact of increased sales of electronic devices to access the site, such as smart-phones, as well as revenue generated by products that exist solely on Facebook’s platform such as successful Apps like Farmville.

Investing in Small Business

Facebook’s chief operating officer Sheryl Sandberg said “[social media is] a bright spot in challenging times”. This reputation as a bright spot looks set to continue as Facebook shows its willingness to help small businesses grow by investing 4.2 million pounds of advertising credits to help 50,000 small businesses across Europe.

Director of Operations for British Chambers of Commerce, David Richards said “Small businesses are keen to learn how they can use Facebook to maximise growth, even in these difficult times”. With so much revenue and consumer interest being generated through social media, more companies are changing their business to have a more active online presence in the today’s market.

Not all aspects of online retail are performing equally well. Different product categories have achieved very varied levels of growth. The most significant jump in sales came from the health and beauty, accessories and home and garden categories receiving 63%, 46% and 45% respectively for their rate of growth compared to last year. Sales related to Travel only grew 4% from last year and in the month of December they were down 11% compared to November sales. Perhaps this year’s relatively warm festive season encouraged UK travellers to stay at home.

January Sales Benefit Online Retailers

But the January sales have done a lot to benefit online retailers this year according to PayPoint.net. The amount spent by online consumers during the first two weeks of January was up 24% compared to last year. The bargain deals and consumer rush of the high street during the January sales is being felt online more and more in recent years as the way that consumers shop is dramatically changing. The volume of stock sold in January of this year was also up 21% compared to last year’s figures.

Michael Norton, managing director of PayPoint.net said:

“As new types of e-commerce emerge and consumer purse strings are tightened, we’re seeing more and more evidence of savvy British consumers trawling the web for the best prices”

Online Market is Changing Rapidly

It is relevant to note that many innovations in technology and online purchasing is changing the online market at a very rapid rate. Purchasing direct downloads to video game consoles or e-books are a growing trend among consumers and a clear sign of a market that is moving towards ever more convenient methods of online distribution.

When polled by consumer research company Intersperience, 51% of respondents expressed concerns with delivery problems or unexpected delays in their Christmas shopping. Lending credence to Michael Norton’s claim that some of the increased online growth can be attributed to this year’s mild winter because customers feel more confident that their orders will arrive on time.

E-commerce is Growing in the economic Downturn

In a time of economic downturn, online commerce is continuing to grow at a very healthy rate. Michael Norton went on to say “It’s very encouraging to see e-commerce hold up so strongly” and if the predictions of IMRG prove to be correct, 2012 will be another year of steady growth for the online retail market.

Is Your Business E-Commerce Ready?

Are you and your business ready for increased online spending? Is your website developed in an e-commerce system which is easy to use by your customer? Is your website visible on the search engines, ensuring you receive sales when consumers search for the products you sell online?

Do not hesitate to give SearchQuest, one of the UKs first SEO and Internet Marketing companies, a call today on 01524 382102 or use our contact form to get in touch.  We will be more than happy to discuss your requirements or ideas regarding your business’ online presence and the way your e-commerce store is performing.

1 in 3 Use Mobiles To Check Competitor Prices

Of those surveyed “One in three used their mobile phones to check competitor prices, look for reviews of products, search ratings and check specifications” It seems that the ability to use the internet on the move has allowed savvy consumers to use their Smartphones like price scanners to find the best deal. Some consumers even admitted to going on to purchase those products online with their mobiles whilst still standing in the shop.

38% of those surveyed used discount coupons or bought their Christmas gifts early in order to save money by purchasing off-season. It is not surprising that consumers are taking more steps to try to save this year as the economic downturn is having a larger effect on people’s spending habits. 65% said that the economic situation affected their Christmas shopping compared to only 48% last year.

Money Spent Online Outweighs Money Spent On The High Street

The balance of online to high-street sales made a significant shift this year as the average amount spent by each shopper online overtook high-street sales with £188 spent on average compared to £166 in the high-street. This is a huge change from last year with internet sales up £25 and high-street retailers suffering a £13 drop in the average amount spent by each consumer.

Intersperience Chief Executive Paul Hudson said “The number of transactions per shopper has increased and the value of goods bought online has also risen” This shows that there is an increased trust in online delivery as people are confident that even high end goods can be paid for and delivered securely and safely.

The presumption that it is the young demographic that is using their tech savvy skills to purchase online is incorrect. Over 25s actually spent more online this Christmas with many in the 18-24 age range reluctant to order over the internet, and when asked they expressed worries about security and delivery complications.

Retailers Facing New Challenges

The market today is more competitive for high-street retailers and now they face a new challenge because even customers standing in their store are busy sourcing a wide variety of different offers and prices online whilst they shop.

Of course, what is important is that your website displays correctly on a smartphone. A lot of websites still do not have mobile versions and, as such, can display poorly on phones. There has never been a better time to get yourself a mobile version of your website. For more information give SearchQuest a call today on 01524 382102 or use our contact form.

Shop Your Way

Several measures were taken by the company to help last minute shoppers this season with 242 stores open until 10pm or later on the week leading up to Christmas. A remarkable effort has been put into trying to make shopping online easier for M&S customers with the introduction of the ‘shop your way’ service that focuses on flexibility and convenience. Shoppers can order to their address or to pick up in-store as well as having the opportunity to order online, in the store or even on their mobile. Director of Retail, Mark Rowe said:
“We know that Christmas can be a hectic time for our customers, so we’re aiming to make things as stress free as possible”

Increased Online Presence Helps Growth

Their increased online presence has helped M&S to grow this quarter, but not all companies online sold as well as they might have expected over the Christmas period. The online store of GAME the video game retailer, rose by 3.9% but this small rise was not enough to cover the 17.6% loss they suffered in their UK stores. Whilst still the market leader in their field, GAME are losing a significant portion of their market share, possibly to the increasingly popular online services such as ‘Xbox live’ or ‘Steam’ that offer consumers the chance to download games directly from developers. These services can provide convenience, immediacy and discounted products by cutting out the retailer and even the physical production and distribution of discs. The chief executive of Game Group said:

“We are adapting to the changing market and are well prepared for the next hardware cycle”

The market is rapidly changing as the consumer base increasingly moves over to more convenient online services. Companies such as Game Group and Marks and Spencers appreciate that they need to make bold changes to stay on top of this new retail market.

Once again, we can see the uttermost importance of a user friendly ecommerce system for businesses of all sizes. There has been numerous statements released already this year stating that it has indeed been online sales which has kept companies from making a loss at the end of 2011 and this trend is certainly set to continue.

Online Sales Boom Whilst High Street Disappoints

Last week saw announcements by both Next and John Lewis, revealling that their online sales were booming, despite disappointing sales in a lot of their high-street stores. Online sales in both instances ensured that total sales were up from the same period last year.

Theo Paphitis, owner of Ryman and celebrity of BBC’s Dragons Den series, has this week issued a statement saying, ‘Ecommerce is taking more of the market and less is going through the doors of shopkeepers. This is about rebalancing your business and everyone who hasn’t realised that will get hurt.’

Have You Rebalanced Your Business?

Have you rebalanced your business to ensure you benefit from the increasing number of Brits taking their shopping online as opposed to the high street? You need to make sure you have a website which is both functional and visible. Through a well designed website, which appeals to and works for your visitors, converting them to sales, as well as a strategic SEO campaign, which maximises visibility, ensuring an increasing number of potential customers land on your website, you can be sure to make the most of ecommerce.

Let One Of The UK’s 1st SEO Companies Help Your Business

SearchQuest, as one of the UK’s first SEO companies, has helped a whole host of companies to rebalance their business, increasing the number of online sales and helping them to ensure they make the most of sales being taken away from the high street and onto the internet.

If you would like to discuss your business, website and internet marketing with ourselves, please do not hesitate to give us a call on 01524 382102 or fill in our contact form and one of the team will get in touch.

Mobile Sales Account for 12.6% of All Online Orders

The statement released by the company reads, ‘Online sales now frequently top the £1m mark in a single day. Online sales through mobile devices have also grown rapidly and now account for 12.6% of all online orders.’

By taking a look at Domino’s recent statement release, we can truly see the importance ecommerce has in the business world. With ecommerce accounting for 44.3% of Domino’s UK deliveries, it is certainly a major revenue point for the business.

Does Your Ecommerce Store Convert Visitors?

Does your business currently have a functional, user-friendly ecommerce store to sell your products through? If you do, is it visible on the search engines and bringing through a strong conversion rate? Is it mobile friendly for those customers who wish to browse and purchase on their phones or tablets?

There is certainly a lot to consider and take in when launching, or improving, your business’ ecommerce store. As a result, why not contact SearchQuest today. We will be more than happy to chat through your needs and requirements, as well as giving our expert advice on what we feel would work best for you and your business.

Please do not hesitate to give us a call today on 01524 382102 or fill in our contact form and we’ll be in touch!

Over half of the 1.2 billion app downloads came from the USA (509 million), followed by 99 million downloads in China and 81 million downloads in the UK. It is expected, stated Flurry, that this level of app download activity will become the standard level over the next couple of months, as more and more devices being purchased.

7 million Android & iPhones Activated Over Christmas

Looking at the figures relating to devices themselves, it is believed that almost 7 million Android and iPhone devices were activated on Christmas Day alone. Whilst Apple will not disclose exact figures, Google have confirmed that over 3.7 million Android devices were activated over the Christmas weekend.

With this level of app downloading set to become the norm, it is becoming vital for businesses to have their app on Apple’s App Store, the Android Market and other such digital marketplaces. Whether you are wanting to sell your products through your app, offer information and discounts, or have other ideas for how to utilise apps for your business, there is no better time than the present to get onboard and launch your own, personalised app.

Have you got your own app yet?

If you are looking to have an app created for you and your business, please do not hesitate to contact SearchQuest for more information and to discuss your needs on either 01524 382102 or by using our contact form.

Poor High-Street Store Performances

Next have issued a statement regarding the poor performance of their stores, citing the possibility of their policy to not discount items in the pre-Christmas period being partly attibutable for the fall, with the company stating, “The fact that the company did not discount its products in the approach to Christmas may have been a factor, whilst the more general consumer malaise has yet to be corroborated by updates from its rivals.” It must also be taken into account that last year’s pre-Christmas sales were hurt by exceptionally cold and poor weather conditions, however with a mild winter so far, the figure would have thought to have risen.

Highlighting The Importance of E-Commerce

However, despite this fall in high-street sales, the sales and revenues from Next’s online store have resulted in the overall rise of 3.1% across the period. Looking at it from this angle, we can see the uttermost importance of e-commerce for businesses. Without the popularity of online shopping, and the fact that many consumers are now choosing to shop in the comfort of their own homes, eliminating the stress of busy high-streets and the like, Next could well have experienced an overall fall. This goes to show how important it is to have a user-friendly e-commerce store for any retail business, as consumers are certainly opting for the web over the high street.