Online spending via mobile phones and tablets has risen by 4,000% in the past four years, from less than 1% in 2010 to 37% in 2014, concludes the Quarterly Benchmarking report released by consulting firm Capgemini and the association for e-retail IMRG. In the retail sector, the penetration of m-commerce is even higher. According to Capgemini, these numbers result from the convenience and speed that mobile devices bring to online shopping.
For almost fifteen years, consulting firm Capgemini and the IMRG (Interactive Media in Retail Group) have been publishing the IMRG Capgemini e-Retail Sales Index*. This index tracks ‘online sales’, defined as “transactions completed fully, including payment, via interactive channels” from any location, including in-store. The IMRG Capgemini Quarterly Benchmarking is an additional reporting tool of the Index, which tracks over 40 key performance indicators across 7 categories, leading to unique insights into the performance of the UK e-retail sector.
The latest edition of the IMRG Capgemini Quarterly Benchmarking report shows that in the third quarter (Q3 = August to October) an estimated £25.1 billion was spent online, of which £9.3 billion was spent via smartphones and tablet devices. In the past four years, UK online sales via smartphones and tablet devices (m-commerce) has increased by 4,000%, from less than 1% in 2010 to 37% in 2014. M-commerce in the retail sector is even higher, 43% of online sales and 50% of all online traffic on retail websites were done via mobile devices. The Click & Collect services for high street and multichannel retailers grew from 16% in Q2 to 18% in Q3.
“The results leave very little doubt that the value advancements in mobile technology have brought benefits to the retail sector and we can see just how much influence smartphones and tablets now have on our shopping behaviour. It’s convenient, it’s quicker and with the ability to easily browse between retailers, it can also be cheaper,” comments Adgild Hop, Head of Retail at Capgemini Consulting UK. “I look forward to comparing these results with Q4 2014 when we’ll be able to track the role mobile played during the busy Black Friday and Christmas shopping period.”**
* The latest edition of the IMRG Capgemini e-Retail Sales Index shows that spending in October was back on track, with double digit growth of 14%, after a disappointing September. According to the researchers, the rise in spending indicated the start of the Christmas season.
** Several consulting firms, as well as the IMRG, predicted a boost in UK spending as a result of Black Friday and Cyber Monday, and consulting firm Accenture released research in which it states that UK consumers will spend more this year on Christmas compared to 2013.