Christmas online shopping boom 'will slow down' in 2011
Monday, January 24 2011 by Catherine Ferguson
Growth of internet sales may slow down next year, highlighting the need for managed emarketing to ensure that people take the biggest share of the spoils when the end of the year approaches.
Logan Tod & Co released its Annual Online Shopping Index this month, which predicted growth of between 12 and 17 per cent during Christmas 2011. This is markedly down on 2010 figures, which lingered between 15 and 20 per cent.
While it seems that shoppers will not consistently respond to website promotion as well as they have in the past come December, one key group of internet users will spend 36 per cent more online next Christmas: people between the ages of 25 and 34.
That's because this group has grown up with the internet and as a result, it is naturally the way they aim to carry out their business, particularly as most have disposable income and credit cards available to them, Logan Tod & Co continued.
Chief executive at Logan Tod & Co Matthew Tod said that while potential growth is still there to be tapped into during 2011, selecting an audience is "crucial" to the success of managed emarketing. This is because different segments have wildly varying needs and retailers who tailor online experiences will prosper.
He continued:"We all know that multi-channel shopping is becoming more prevalent and important, that's last year's news. What these results demonstrate is that it's the younger generations leading the way in cross channel purchasing habits, and using mobile devices to make their lives easier."
Mr Tod added that when people take into account how the younger group did the most shopping online this Christmas, it "makes it clearer where to focus energies and budgets".
Last week, the importance of appealing to younger internet users through managed emarketing was highlighted in a new survey. eMarketer claimed that US advertising executives will spend in excess of £1.9 billion in advertising on social networking sites.