Ireland’s Digital Economics
After 5 years of recession, Irish consumers are going digital, the result of which is that a growing share of consumer spending has become ‘invisible’ in the wider economy.
61% of consumers bought Christmas gifts online last year with an average spend of €219 = €385 million …75% of our online sales go overseas.
Source: Amárach Omnibus, January 2014 survey of 1,000 adults.
The value of online spending has risen from €3.7bn in 2012 to €4bn in 2013 which is expected to rise to €4.5bn by the end of this year with an eventual expected spend estimate of €5.7bn in 2016.
Shoppers are now becoming what’s known as ‘smart shoppers’ doing their product research online to find the most suitable product for their needs via product videos and customer reviews, and of course researching the best price to pay.
49% have used smartphones to check for lower prices while still in a shop, while 59% have checked out a product in a shop before buying it online.
Source: Amárach survey of smartphone owners November 2013.
More and more we are seeing retail ‘showrooms’ moving away from the traditional static shop front to a more economical web based environment. Businesses are offering ‘online exclusive’ offers to entice shoppers to move online. More social interaction is involved with shoppers reviewing goods and services establishing a sense of trust and transparency online.
Now it's more important than ever to have a good online presence, the traditional idea of an office space or shop front is becoming a thing of the past. Location, Location, Location in the geographical sense is no longer the mantra of the retailer but rather Location, Location, Location, in terms of Google ranking and social media interaction.