There’s an interesting report in The Times today; if you have a Times subscription, I urge you to take a look behind the paywall. The purpose of the story is track sales growth online, and there is much additional data regarding online research, different online trends across luxury/premium/mass market products, and so on.
The data has been provided by Bain & Company, and I’ve reproduced the gist of two of the graphs below. Please note:
- the graphs merely mimic graphics from today’s Times
- copyright rests with Bain & Co
Just treat these charts as trend indicators:
1. Internet retail as a percentage of total retail:
No doubt about it, we are leading the world in Britain, which makes the repurposing of our high streets and an intelligent repsonse to the Portas Report all the more vital. The flatter growth in the US is surprising; the sudden take-off in China is no surprise at all.
And it looks as though we’ll be maintaining our UK lead in the future:
2. Online sales forecast as a percentage of total sales, by category:
Music and video close the decade with 95% of sales online, and books are at 75%; within these percentages a large (but unspecified) proportion of the whole will be digital downloads.
In physical products, electricals soar to just under 60%, and clothing/footwear and homewares grow significantly. Travel and food are more stable, but still likely to see growth.
Both charts show a percentage of spend, and are therefore not suggesting that total spending by category could rise. They simply illustrate channel shift, and spending might just as likely fall.
As the sector returns to work, we brace ourselves for the Christmas trading statements (which we’ll be following closely on this blog) and, of course, the progress of the administrations and restructurings that were being signalled in the run-up to Christmas. Consumers are making the most of clearance sales now, but the medium-term future for most retail categories is very challenging. Watch this space…