IMRG Capgemini e-Retail Sales Index: Tipping point reached in e-retail, as mobile now accounts for all online growth

For the first time, IMRG and Capgemini have been able to strip out all mobile data from overall online retail sales, revealing that since Q1 2011, whilst total online retail has averaged around 15% growth, figures excluding mobile have seen a steady decline, flat-lining in Q2 2013**. It also reveals that 23% of all online retail sales in Q2 2013 came from mobile devices.

In January, IMRG and Capgemini predicted the Index would record annual growth of 12% in 2013, however, driven by the strength of m-retail and its penetration of the UK online retail sector, they have reforecast their prediction upward to 15%.

The findings represent a significant change in consumer behaviour, as UK online shoppers migrate from desktops and laptop computers to smartphones and tablet devices. During a roundtable session on Thursday, IMRG and Capgemini presented their findings to a host of leading UK retailers and discussed possible contributing factors to the emerging trend. Those include:  

• Accessibility:  with increasingly affordable contracts, more people and a wider demographic of consumers have access to smartphone technology than laptops.
• Convenience:  fast and easy to shop online – one click of the button and shoppers are online and browsing. The ease of using a tablet device means that shoppers can casually browse online whilst engaged in other activity, such as watching television – typically, visits via a tablet result in a higher number of pages per visit due to the leisurely nature of the interaction.
• Confidence:  shoppers are becoming increasingly confident in m-retail, particularly as retailers improve their mobile sites and user experience.

Interestingly, whilst tablet devices account for 85% of mobile sales year-to-date, smartphones have seen a greater rate of growth, year on year increasing 210% compared with 130% for tablets during Q2 2013 over Q2 2012. The retailers reported that in terms of defining mobile technology, the lines are becoming increasingly blurred as tablets become smaller, smartphones are getting larger and laptops can be converted to tablet devices.

Tina Spooner, Chief Information Officer, IMRG: “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.”

Chris Webster, VP of Consumer Products and Retail at Capgemini, commented: “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. 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 fact that more people are using mobile devices reflects the huge strides retailers have made in user experience and accessibility in m-retail sites.  However, we are still only scratching the surface of the ways we will use mobile devices to interact with digital services in our daily lives.  Finger print identification available on the latest smartphones will increase trust and personalisation of these digital services.”

Industry View:

Neil Sansom, E-commerce Director at Moss Bros, comments: “The growth figures emphasise the important of mobile commerce now and going forward. The days of just optimising full version sites are over and retailers are now going to have find new levels of skill to optimise mobile as part of the customer journey. Tracking journeys across multiple devices and giving customers relevant content will be a new exciting challenge for Ecommerce and it is sure to be the next frontier for retailers to embrace.”

Kate Smyth, Director of E-commerce at Dune, comments: “The findings from the IMRG study completely agree with what we have been seeing at Dune, mobile and tablets are becoming the dominant devices used to interact with a brand online. Mobile has been our priority for a while and the possibilities are really exciting. We have a mobile version of the site, developed content designed for touch and we use mobile technology in store to help locate stock and reduce queues – but the roadmap for mobile and tablets is key as the devices become part of every household.”

– ENDS –

 Notes:
* Worked out using KPIs from the IMRG Capgemini e-Retail Sales Index and the IMRG Capgemini Quarterly Benchmarking Index  
** Retail quarter, Q2 period is May to July
About the ‘IMRG Capgemini e-Retail Sales Index’
The IMRG Capgemini Index, which was started in April 2000, tracks ‘online sales’, which we define as ‘transactions completed fully, including payment, via interactive channels’ from any location, including in-store.  
Over one hundred e-retailers now regularly contribute data to the IMRG Capgemini Index, including A. Hume Country Clothing, Addict, Airport Parking & Hotels Ltd, Amara, Arcadia Group (Burton, Top Man, Top Shop, Dorothy Perkins, Evans, Wallis, Miss Selfridge), Ask Direct, ASOS.com, B&Q, Bank, Berry Bros & Rudd,  Binends.com, Blacks, Boden.co.uk, Boohoo.com, Boots Direct, Boutique to You, Brora, Buyagift.com, Carphone Warehouse, Charles Tyrwhitt,  Clarks, Cocosa, Crocus.co.uk, Dabs.com, Damart, Debenhams, Dune, Dunelm Mill, Effortless Skin, Ethical Superstore, Firebox, First Choice, Freemans Grattan Holdings (Freemans, Grattan, Look Again, Kaleidoscope, Curvissa, Swimear365, Witt International UK), Game, Gamestation, Get The Label, Getting Personal.co.uk, Greenfingers.com, Home & Cook, House of Fraser, JD Sports, J D Williams, John Lewis Partnership, Ladderstore.com, Lastminute.com, LK Bennett, Lookfantastic.com, M and M Direct, Majestic Wine, Marks & Spencer, Matalan, Millets, Moss Bros, Naked Wines, NaturalCollection.com, New Look, Next, Perfect Handbags Perricone MD, PetPlanet.co.uk, Philip Kingsley, PIXmania, Prezzybox.com, Purely Gadgets, QVC, Redfoot Revolution, Richer Sounds, Sainsbury’s, Scales Express, Schuh, Scotlight Direct, Scott, Shoe-Shop.com, Shop Direct Home Shopping (Brand Quarter, Kays, Littlewoods, Very, Isme, Woolworths), Serenata Flowers, Size, Sofa and Home, Sparkling Strawberry, Sunshine.co.uk, SuperGA, Tesco.com, The Body Shop,  The Mat Factory, The Natural Skincare Co, The Natural Store, The White Company, This is Pulp, ToxicFox, TUI UK, Turton Wines, Waitrose, Wilkinson Hardware & Wynsors World of Shoes.
About IMRG
IMRG (Interactive Media in Retail Group) is the UK’s industry association for e-retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-retail standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. The strength of IMRG is the collective and cooperative power of its members. For more information please visit http://www.imrg.org/ or email membership@imrg.org  
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience^TM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.uk.capgemini.com.
Rightshore® is a trademark belonging to Capgemini