2002
On-line shopping put in its place
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15 May 2002
On-line shopping usage and customer satisfaction continue to grow, but urban professionals understand its place in their shopping 'repertoire'. This challenges the viability of many e-tail models, according to PA Consulting Group's annual e-retail survey.
E-shopping amongst PA's employee sample of over 1,600 respondents has increased from 63% in 1999, to 91% in 2001. Moreover, almost all (93%) who shopped on-line during the 2001 holiday season said their on-line experiences met or exceeded their expectations.
Alastair Charatan, head of PA's e-retail group, comments:
"Our annual survey brings greater clarity to the precise role that e-retail will play in our lives. On-line shopping is increasingly forming a part of our regular purchasing habits throughout the year, due to convenience and the high levels of transaction satisfaction currently achieved. However, major barriers still exist to dampen a greater take-up and the experiential aspect of shopping is perceived to be more important than the proponents of B2C dotcoms would have believed."
The key findings of the survey report are:
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E-retail is still a growing channel and is now part of our shopping habits: Nearly 91% of respondents have made an on-line purchase at some time - up from 63% in 1999 and 88% in 2000, with 75% of these shoppers making purchases during the holiday season (November - December 2001). Digitized or mailbox-friendly items, such as books, CDs and travel products, remain the most popular purchased products
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More 'sophisticated' barriers now inhibit people from on-line shopping: While 'basic' impediments such as access to the internet have declined, credit card/security concerns (67%) continue to be a primary barrier, as well as consumers' preference for seeing/touching the product (59%) and browsing (40%)
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The holiday season is under-represented for on-line shopping: Only 66% trusted purchases to on-line retailers at this time of the year, citing reasons such as desire to browse through shops, the ready availability of products in shops and being able to physically see or touch products. Other responses in the survey on delivery also suggest that consumers are less willing to trust e-tailers to deliver when it is essential to meet a key deadline
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On-line shopping is still not a replacement channel: It remains an alternative or complementary channel for certain purchases. Only 33% asserted that they would purchase a particular type of item exclusively on-line in the coming year. For 50%, the physical presence of an on-line retailer makes a difference to their decision to purchase
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Convenience remains an important incentive for purchasing on-line; Respondents cited ability to shop from office, desk or home (86%), access to shop 24 hours (65%), and direct delivery (48%) as major reasons.
For retailers, these results confirm that buying habits are changing; there is certainly migration from physical to virtual, with over 25% of respondents having changed suppliers completely. However there are only a few outright on-line champions (particularly Amazon), and so this customer churn means that market leadership and customer retention are key to on-line success. 'Clicks and mortar' retailers have a distinct advantage over the pure-play dotcoms in the eyes of the consumer.
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Notes on the survey:
PA Consulting Group carries out this survey annually amongst its consultants worldwide. Conducted during early 2002, PA used an on-line questionnaire, resulting in over 1,600 responses from all major economies around the world.
For more information, please contact:
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| Clare Argent |
| PA Consulting Group |
| 123 Buckingham Palace Road |
| London |
| SW1W 9SR |
| United Kingdom |
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Tel: +44 20 7333 5388 |
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Fax: +44 20 7312 4639 |
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E-mail:
clare.argent@paconsulting.com |
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Notes to editors
PA Consulting Group is a leading management, systems and technology consulting firm, with a unique combination of these capabilities. Established almost 60 years ago, and operating worldwide from over 40 offices in more than 20 countries, PA draws on the knowledge and experience of some 4,000 people, whose skills span the initial generation of ideas and insights all the way through to detailed implementation.
PA builds strategies for the creation and capture of shareholder and customer value, and helps clients accelerate business growth through innovation and the application of technology. PA works with clients to improve performance, mobilize human resources and deliver change effectively, including managing major projects, and designing and implementing enterprise-wide systems and full e-business solutions.
PA focuses on creating benefits for clients rather than merely proposing them, and this focus is supported by an outstanding implementation track record in every major industry and for governments around the world. PA also develops leading-edge technology both for its clients and within its own portfolio of venture companies in areas ranging from software to wireless technology to life sciences.
PA distinguishes itself from its competitors through the range and quality of its people, the depth of its industry insight, its development and use of technology, and also its independence and culture of respect, collaboration and flexibility in working with clients.
We are proud that our clients say 'PA makes it happen'.
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