Study Says Retailers Must Seize the Mobile Opportunity

ASOS mobsite screenshot July 2015
Todays consumers expect mobile-friendly sites, and they expect them to load quickly

26.6 per cent of all online sales in the UK will be carried out on mobile devices this year as consumers embrace ‘shopping on-the-go’, according to research commissioned by digital offers firm RetailMeNot, parent company of Vouchercodes.co.uk.

The study, carried out in conjunction with the Centre for Retail Research (CRR), found that Brits are the biggest mobile shoppers in Europe, with mCommerce spend in the UK reaching £8.4bn in 2014, and expected to grow by 169 per cent to £22.7bn by 2016.

The surge is being driven by mobile. Sales made on tablet devices have grown by 94 per cent this year in Europe, with sales on smartphones increasing by 70 per cent. Desktop sales, in comparison, will grow by just 5 per cent in 2015.

In the UK, 27 per cent of online sales this year are expected to be carried out on mobile devices (including tablets and smartphones) and this figure is expected to more than double by 2017. With most mobile phone contracts now including data allowance on smartphones, the constantly-connected consumer is driving this growth. In this respect, says RetailMeNot, retailers must consider how the demands of the consumer should shape mobile strategy.

“Doubling down focus and investments in mobile commerce is more important than ever for retailers,” said Giulio Montemagno, SVP & GM international at RetailMeNot. “Research shows that providing a great mobile experience is a highly effective way to generate customer loyalty. The development of mCommerce is not simply a technology development, but a secular change in the consumers’ consumption patterns and therefore should be a change in any retailer’s mindset.

“Mobile devices have become an ever more important part in the discovery phase of shopping and retailers who do not adapt their services risk losing out to more innovative competitors. If the biggest barrier for consumers is the unsatisfactory performance of mobile sites, this presents a huge opportunity for retailers to integrate mobile into their strategy and see mobile sales boom. Consumers already feel more confident with the idea of buying on mobile this year than they did in 2014; we must keep the momentum and continue to adapt in step with consumers, rather than simply following them.”

The study also found, to no-one’s great surprise, that UK consumers like a bargain, with 83 per cent of British mobile users comparing prices on their phone or tablet and 69 per cent using the device to look for offers or deals before purchasing.

They also want personalised offers. 40 per cent of Brits surveyed said they appreciate having relevant and targeted offers sent directly to their mobile device so they can then redeem this in store. In 2015, £230bn worth of vouchers will be issued in Europe, £70 bn of these in the UK. This takes the total value of redeemed vouchers in Europe to £2.1 million, according to the CRR estimates.

The study also revealed that mobile baskets are getting bigger. Although shoppers tend to make smaller purchases and spend less per transaction than those shopping on desktop, the average basket size on mobile now amounts to £49, compared to £58 on desktop in the UK, and mobile shoppers tend to buy more frequently. The most popular purchases on mobile are digital downloads (32 per cent), fashion (27 per cent) and entertainment media such as books or DVDs (23 per cent).

The research found also that the UK mobile consumer is becoming increasingly demanding. 63 per cent of Brits say a slow-loading site on mobile is a barrier to purchase and 48 per cent will be put off a purchase if the screen is not mobile-responsive. Despite this, Vouchercodes said that only 31 per cent of UK retailers claim to have a mobile-friendly website. When it comes to apps, the study found that app users fewer purchases (18.2 per cent of the total), but they do spend on average 68 per cent more than non-app users.

Finally, respondents said that physical stores need to become mobile-friendly, with 43 per cent of UK consumers saying they would spend more in mobile-friendly stores.
The research is based on surveys of a combined total of 1,300 major retailers with combined sales of more than £585bn, and a total of 5,400 consumers in all the countries studied. There were 250 major retailers from a cross section of all vertical markets interviewed in each country, and 150 each in Canada and The Netherlands.

1,000 customers were interviewed in every country, and 400 in The Netherlands. The customer sample was a cross-section of the population aged 16 years and above between 1 April and 8 May 2015. The confidential retailer sample was carried out between 1 April and 15 May drawn from a cross section of verticals, including department stores, supermarkets, convenience, electricals, clothing and footwear and general stores.

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