Worldwide Business Information and Market Reports
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Worldwide Business Information and Market Reports
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk
ISBN 1-85765-784-5
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EngineHome shopping in one form or another was rarely
out of the news in 1999. However, the vast majority of interest was in the
Internet. While the Internet is clearly paramount in the minds of UK retailers
-- not least the traditional mail order houses -- it remains a channel of the
future and has yet to impact on the revenues of the traditional players to a
significant extent.
This emphasis on the Internet has meant that the
largely successful reorganisation of the large mail order houses has passed
unnoticed by many people. However, the major players, such as Great Universal
Stores (GUS), have now almost completely changed their strategy from being `big
book' publishers to being publishers of a growing variety of smaller catalogues
which focus on niche sectors of the UK consumer market.
In 1999, the total
UK home shopping market was worth an estimated £12.36bn. The market has
seen growth across all sectors, with the electronic sector enjoying extremely
high rates of growth, although it should be remembered that this sector started
from a small base and has been apparent only since the mid-1990s.
While the
catalogue companies still dominate the industry, direct selling is a buoyant
sector, as is the rejuvenated door-to-door sales market. Growing public
familiarity with door-to-door selling following the campaigns by the utility
companies to `switch' customers, and the change in strategy of the door-to-door
retailers by calling in the evenings and matching consumers' lifestyles, have
combined to boost the sector's sales and image. Another key feature of 1999 was
the rapid spread of the supermarkets into the home shopping market. Virtually
all the grocery multiples are rolling out home shopping services via
catalogues, CD-ROM (compact disc read-only memory) and the Internet. Initial
responses have been positive in urban areas, indicating that grocery home
shopping may become a significant force in UK retailing.
By 2004, it is
forecast that the UK market for home shopping will be worth £24.12bn. The
market is expected to be largely healthy over the next 5 years, with consumers
increasingly coming to accept home shopping as a normal channel of
purchase.
The major drivers of growth are expected to be the launch of new
niche catalogues, the growing penetration of the Internet in the UK, the growth
of home shopping ventures from the major supermarket chains, and the
development of interactive television services such as Open.
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