Bricks and Clicks 9/07/2008

It is fair to say that online shopping has exploded across the globe. In 2007 global Internet spending rose to a record £46.6 billion, and IMRG – a leading industry body for global e-retailing – has predicted that 2008 will see the annual UK online spend reach around £42 billion. Though this may seem a radical figure, records of past expansion strongly support the prediction. The online clothing retailer Asos has seen its sales grow by an average of 77 percent per year over the past 5 years, and they show no sign of slowing. However, what does this growth in so-called “sofa shopping” represent? Are we living in an increasingly idle society of sluggish consumers? Is this growth in online sales a good or a bad thing, and why is it happening?

It may surprise many that these figures are more to likely reflect an increasingly active society rather than a lethargic or lazy one. People often choose to shop online as an alternative to frittering away afternoons perusing high street shops, taking obligatory Starbucks breaks and “Pret” lunches. This, however, is also why a number of people resist the online temptations. Living in the “Sex and the City” generation, these casual, social experiences are exactly what some shoppers value, and are probably what virtual retail will never be able to replace.

A further issue of buyers is the impossibility of being able to “try before you buy” when making purchases online. A number of sites are attempting to address this problem by introducing “dummies” to place clothes on, whose features can be manipulated – such as their physical proportions and skin tone – to match your own. However, it is clearly difficult to emulate how clothing will look in the flesh, and the sizing of items can vary from shop to shop. In a similar vein, purchases of items such as furniture can be difficult to describe textually, and may be quite different to how they were imagined when they arrive at your front door. People shopping for food may also miss making a personal selection of the particular fruits they want, or choosing how to pack their bags. This personal interaction with the goods and shops will probably remain important to some people, though clearly according to the figures the percentage of these people continues to dwindle.

The issue of returning unwanted goods is one of the final drawbacks to online purchases, though a number of companies now include optional free return as part of their tender. Even when postage is not included the costs of this and packaging are generally insignificant when compared to the cost of petrol and parking intrinsic to any weekend shopping spree, (not to mention the Starbucks).

When these negative factors are set against the positive it becomes easy to see why e-commerce is sure to continue toward an evergrowing and bright future. The selection of product choice is colossal, and this can be practically extended to anyone and anywhere around the world. Fashionistas living abroad can keep up with shifting trends from back home and those who cannot find products locally can be instantly connected to a global market within a matter of “clicks”. The shops of the virtual world have no closing time and are entirely void of grinning salespeople accosting customers. The Internet is an unrivalled resource for product and price comparison, and when this is coupled with the fact that companies are free from the overhead costs of owning a physical business (employee pay, taxes etc.) the result is consistent competitive pricing.

As more and more retailers are choosing to represent themselves in some way on the web, the appeal of shopping online appears to be undeniable. So take note: companies that resist the world of electronic business are sure to be left behind, whilst those getting involved had better step up, and fast.

Clearsilver have already worked in conjunction with a number of clients to develop their involvement in e-commerce, including Asda, St. George’s Crypt and brand new community interest company Create. We are also in the process of working with Leeds-based designer clothes store Accent.

To find out how Clearsilver can help boost your company’s involvement in e-commerce email Louise or Amy at or alternatively give us a call on 0113 307 5900.

Main Sources:
Design Week journal
http://www.Guardian.co.uk
http://www.timesonline.co.uk
http://www.computing.co.uk http://www.telegraph.co.uk

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