Digital trends for... Retail

Based on our digital trend watch and experience with clients in the retail industry, here are eight key trends we're observing:

1. Consumers are increasingly doing research online about high-value, mass-produced goods such as electronics - including reviewing user comments (e.g. Reevoo), price comparison (e.g. Pricerunner) and voucher codes (e.g. My Voucher Codes). Online retailers, typically offering cheaper prices, corner a significant and increasing share of such sales.
   
2. Despite falling sales on the high street, online sales continue to rise - forecasts by IMRG expect 15% year-on-year growth for the foreseeable future.
3. However, retailers should note that online is still a small part of overall spend. Only 4% of total Christmas spend for 2008 was online.
   
4. Online shopfronts of traditional retailers such as Littlewoods (66% rise in Christmas sales in 2008 compared to 2007, according new Nielson Online figures) are growing faster than internet retailers such as Amazon (18% rise for the same period) as they increase investment in powerful e-commerce and digital marketing.
   
5. Home and fashion sectors have had the highest recent growth online, demonstrating that consumers are looking to buy more of those goods historically needing that "see before you buy" reassurance.
   
6. Retailers are leveraging their strong consumer brands to expand into new industries, such as Aldi's Travel website and Tesco's finance products.
   
7. Effective digital marketing has significant impact in driving online sales, including the use of affiliates, regular personalised email, SEO, social networks and reputation management. Ask Aqueduct about conducting a review of your "digital spread".
   
8. A growing trend, certainly in media and entertainment is moving away from physical product distribution, combining the benefits of online shopping with instant delivery (e.g. music and video downloads, software, e-books, e-tickets and even stamps).