In the past few months, we have all become increasingly dependent on eCommerce to meet our daily needs as a result of COVID19. This has led to the acceleration of eCommerce overall. In our previous blogs, we discussed the changing consumer habits and the re-imagined retail landscape as we navigate through the new normal. We are now looking at insights from various countries and verticals to consider the more localised impact COVID-19 has had on eCommerce. In this blog, we discuss the surge of consumer electronics in the UK coupled with the impact COVID-19 has had on the industry so far this year.
eCommerce in the UK Market
In the United Kingdom, high-street retail has been dying as online has grown increasingly popular. With the current scenario, the consumer electronics category has experienced substantial growth online.
Overall, the UK is a fast-growing eCommerce market, and the COVID19 pandemic has further accelerated this growth. Not only does the market have numerous international players such as Amazon, Ali Express and eBay but it is also home to some of the leading marketplaces such as Asos. Shoppers in the UK majorly prefer to purchase through marketplaces rather than directly from brands. This is integral to providing an enhanced customer experience and brands giving consumers the choice to purchase through preferred channels.
In 2018 it was reported that 97% of users had made a purchase online in the last 12 months. Further, eCommerce accounts for more than 7.9% of the country’s GDP with online sales reaching 200 billion euros at the end of 2019. The eCommerce market is expected to grow even more in the coming years.
Insights from ChannelSight Data
The increase in the use of digital devices in our daily lives has led to continuous growth in the consumer electronics industry worldwide. The demand for consumer electronics increased tremendously this year as millions adjusted to working from home and had to set up home offices. Similarly, the COVID19 pandemic has halted the lives of students across the world, leaving many to purchase essential electronics to attend their classes online.
At ChannelSight, we are equipped with data from over 65 countries and over 1000 retailers that allow us to draw meaningful insights. In the graph below we consider the growth in the leads and the sales from 2019 to 2020 for the United Kingdom.
The year started off fairly weak with negative growth in both leads and sales, however, this quickly changed in March at the same time when the countrywide lockdown was implemented. While the leads were still negative, sales were up by 93% in comparison with March 2019.
The sales and leads both peaked in April 2020, with an increase of 691% and 538% respectively in comparison with 2019. While the pace of growth slowed down, the growth has been positively reflecting a strong year for consumer electronics in the U.K.
ChannelSight’s data also showed that the average basket value for the vertical was 48EUR with email marketing followed by display advertising driving the highest conversions. In addition, we extrapolated from the data that the eCommerce sales will continue to level off at a higher rate than 2019.
As we navigate through the new normal, consumer behaviour, inherently, has changed. The pandemic has increased dependency on eCommerce, limited outings and added caution to our daily lives.
Subsequently, brands too have to cater to new consumer behaviour and needs. In particular, there are a few things consumer electronic brands can do to meet consumer needs. Here are our 3 tips to help you navigate through this:
1. Optimize Product Pages
The importance of product pages has only increased with the growth of eCommerce. Approach the product detail page as you would the offline shelf because, essentially, that’s what it is. The key piece is content. Ensure that the essential product information is presented clearly, with strong supporting imagery. Using multiple product shots and even 360-degree view images of the products can add a lot of value. Remember that consumers can’t ‘try things on for size’ in the online store, so content needs to compensate.
2. Multi-Channel Marketing and Touchpoints
Think about all of the marketing touchpoints as your customer’s journey unfolds. Identify the channels that are driving the highest leads and conversions, and double down on the tactics that are working. Ensure that your brand’s presence on multiple channels including social media channels and relevant marketplaces.
Give consumers the liberty to consume the information that they want at the right time. Perhaps after they have interacted with your brand or a product is the right time to target them with either retargeting ads or email marketing campaigns. Learn more about the modern consumer journey here.
3. Give Consumers Choice
Shopping online today is all about convenience. It’s vital to keep this in mind when selling your products online and driving conversions. As we mentioned above, UK consumers prefer to shop through marketplaces hence it’s vital to give them the choice to purchase through their preferred channels. Our Where to Buy solution enables brands to give consumers the choice of shopping from their preferred channels.
Based on our data, 75% traffic and sales for the U.K. for consumer electronics came from these retailers.
- LittleWoods UK
- Audio Visual Online
- John Lewis
So if you are a consumer electronics brand, you should consider having your brand present on these key marketplaces.
Want to optimize your eCommerce strategy?
ChannelSight has a team of experts that can help you understand your customer’s needs better and implement solutions that can optimize your eCommerce strategy. Contact us today to book a demo with our team of experts.