How the UK E-Commerce Market is Positioned?
The E-commerce market in UK is currently at its growth stage and has been categorized into seven sub-categories which include online retail, online travel, online advertising, online movie ticket booking, video streaming, music streaming and online gambling. UK has witnessed a rapid shift from offline to online platforms in different segments owing to the high internet penetration, increasing number of smart phone users, convenience and comfort along with better offers & wide variety and well developed digital infrastructure particularly high broadband speed at lower prices in the country. The continuous decline in the revenue of high street shops and increasing digital advertising spent in UK has propelled the growth of digital landscape in the country.
The development in the online payment industry has also encouraged the growth of E-commerce industry by making easy, fast and secure online transaction system. The inclination of people towards online platforms is supported by the growing popularity of social media networks / platforms for status and social symbol. The rising demand for personalization in different sectors coupled with the continuous technological development has fueled the growth of e-commerce industry.
The total number of internet and Smartphone users in UK was observed to increase from ~ million in 2013 to ~ million in the year 2018.
How is the UK Online Retail Market Positioned?
UK online retail industry was observed to grow in the past five years recording a CAGR of ~% in terms of gross merchandise value during the review period 2013-2018 owing to the rising retail websites and apps, availability of wide choice with attractive deals and offers, growing fast and secure online payment services and rise in the number of online shoppers. The market is growing in UK owing to the well-developed digital infrastructure of the country, rise in the youth population with high smart phone penetration, and increasing user traffic on social media networks. The online retail sales for apparel & footwear were approximately ~ GBP million in 2018 and are projected to be ~ GBP million in 2019. The changing consumer behavior for the online shopping in UK is driving greater demand for the online retail market. The country witnessed closure of several offline traditional retail stores with rapid decline in the revenue of high street retailers due to the increasing dependence on online retail platforms.
What are the factors inflecting Online Retail Market in UK?
High Smartphone Penetration: The increasing number of smart phone users in the country has led to the growth of online retail sales via smart phones. The convenience of shopping without time and place constraint is the major reason for the upward growth of the online retail market in UK.
Developed Digital Infrastructure: The availability of high speed broadband services at low prices in UK has contributed towards the growth of online retail market.
Growing Youth Population: The high proportion of youth in the total population of UK has encouraged the trend of online shopping in the country.
Fast and Secure Online Payments: The availability of fast and secure online payment gateway has propelled the growth of online retail market in UK.
Increasing Number of Social Media Users: High traffic on social media platforms has encouraged the online retailers to gauge their presence on social media to attract the targeted segments.
HOW UK Online Retail market is Segmented?
By Major Product Categories
UK online retail market is dominated by apparel and footwear category with the share of ~% in 2018 in terms of gross merchandise value due to high demand for wide variety while traditional toys and games category has least contribution with the share of ~% in 2018 owing to the high shift towards online games.
By Device
Desktop accounted for highest share of ~% in 2018 in terms of gross merchandise value due to the having better appearance and large screen size as compared to mobile while the share of mobile is growing continuously in the market owing to the increasing smart phone penetration, and mobile optimization.
By Gender
UK online retail market is dominated by female with the share of ~% in 2018 as compared to male in terms of gross merchandise value as female always look for variety and low prices while male are comparatively less price conscious.
By Mode of Payment
Debit+ Credit Card accounted for highest share of ~% in 2018 in terms of gross merchandise value due to having fast and secure payments while the share of Net Banking+ M wallets accounted for second highest share of ~% in 2018 owing to the increasing smart phone penetration while cash on delivery contributed the least share due to the growing trend of cashless transactions.
How is The Competitive Landscape of Online Retail Market in UK?
The online retail industry in UK is experiencing high level of competition owing to the increasing number of retail websites and apps with growing demand of personalization in the country. Competition stage was observed to be highly fragmented along with the presence of major players such as Amazon.Com Inc, eBay Inc, Tesco Plc, J Sainsbury Plc, John Lewis Partnership Plc, Shop Direct Group Ltd, Next Plc, Apple Plc, Dixons Carphone Plc, Ocado Group Plc, Walmart Inc, Asos Plc, AO World Plc, Mark & Spencer Plc and other small players. Some of the major parameters on the basis of which the online retail companies compete in UK include number of product categories, unique visitors’ traffic, operating model, logistics and major brands of the company
Future Outlook and Projections for UK Online Retail Market
UK online retail market is anticipated to increase from GBP ~ million in 2018 to GBP ~ million by the year ending 2025 in terms of gross merchandise value at a CAGR of ~ % during the period 2018-2025F under deal and no deal scenario of Brexit with respect to multiple factors that include growing internet and smart phone penetration, increasing youth population, rapid technological development, rising digital advertising spent, increasing number of social media users, growth in the retail websites and applications in UK. Growing demand for personalization coupled with increasing online shoppers will drive the growth of online retail market in the near future in UK.
For More Information on the Research Report, refer to below links: –
UK E-Commerce Market
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