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Table of Contents

Executive Summary

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TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

MARKET POSITION

MARKET SECTORS

MARKET TRENDS

Table 1: Retail Value of Home Shopping as a percentage of Total Retail Sales (£bn and percent), 1992-1997

Table 2: UK Home Shopping Market by Sector (£bn and percent), 1997

Market Size

THE TOTAL MARKET

MARKET SECTORS

GLOBAL PERSPECTIVE

Table 3: The UK Home Shopping Market at Current Prices (£bn and index 1992=100), 1992-1997

Table 4: Sales Through General Mail Order Houses (£bn), 1992-1997

Table 5: Sales Through Direct Marketing (£m), 1992-1997

Table 6: Sales Through Direct Selling (£m), 1992-1997

Industry Background

HISTORICAL BACKGROUND

INDUSTRY CONCENTRATION

TRADE ASSOCIATIONS

Competitor Analysis

THE MARKETPLACE

GENERAL MAIL ORDER COMPANIES

DIRECT SELLING/DIRECT MARKETING COMPANIES

MARKET SECTORS

ELECTRONIC RETAILERS

ADVERTISING AND PROMOTION

Table 7: Market Shares of the General Catalogue Mail Order Companies by Value ( percent), 1997

Table 8: Analysis of Home Shopping Companies/Divisions by Turnover (£m), 1996/1997

Table 9: Main Media Advertising Expenditure on Mail Order by Sector (£000), Year Ending September 1996 and 1997

Table 10: Main Media Advertising Expenditure by Leading Home Shopping Organisations (£000), Year Ending September 1997

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

CONSUMER PENETRATION

Table 11: Usage of Mail Order Catalogues in the Last 12 Months ( percent of adults), 1997

Table 12: Penetration of Mail Order Catalogue Purchasers by Sex, Age, Social Grade and Region ( percent of adults), 1997

Table 13: Penetration of Magazine Mail Order Purchasers by Sex, Age, Social Grade and Region ( percent of adults), 1997

Table 14: Penetration of CDs Purchased by Post by Sex, Age, Social Grade and Region ( percent of adults), 1997

Table 15: Consumer Response to Offers or Appeals Made on Television or in Newspapers ( percent of adults), 1997

Table 16: Method of Response to Offers or Appeals Made on Television or in Newspapers ( percent of adults), 1997

Outside Suppliers to the Industry

DELIVERY COMPANIES

PRINTERS

CALL CENTRES

Current Issues

CLASS AND HOME SHOPPING

GREAT UNIVERSAL STORES/ARGOS

FOREIGN CATALOGUES

SUPERMARKETS AND LARGE MIXED RETAILERS

THE LACK OF AGENTS

MAIL ORDER FINANCIAL SERVICES

DESIGNERS BY POST

INTRANET OPPORTUNITIES

TAX AND THE GROWTH OF ELECTRONIC SHOPPING

Forecasts

INTRODUCTION

FORECASTS 1998 TO 2002

FUTURE TRENDS

SECTOR FORECASTS

Table 17: Forecasts for the UK Home Shopping Market (£bn), 1998-2002

Table 18: Forecast Sales Through General Mail Order Houses (£bn), 1998-2002

Table 19: Forecast Sales Through Direct Marketing (£m) 1998-2002

Table 20: Forecast Sales via Direct Selling (£m), 1998-2002

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

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EXECUTIVE SUMMARY

Since its origins as a means of extending the reach of retailers to customers in distant locations, or to those unable to access credit easily, home shopping has become a significant sector of the UK retail industry. It represents a shifting point-of-sale in UK retailing, as a growing number of retailers adopt this method of selling. Together, the falling price of phone calls, near universal access to television (TV), widespread use of credit cards and, increasingly, the Internet (which already has in excess of 40 million retail outlets in cyberspace), have opened up the market to retailers and customers.

Between 1992 and 1997, sales increased by 42.9 percent, from £5.6bn to £8bn. However, while this growth reflects a greater trend towards home shopping generally, it hides the fact that the long-term market leaders are losing share. The traditional catalogue companies face increasing competition from the newer and highly targeted niche catalogues; from US and European catalogue operations establishing trading units in the UK; and from the major grocery multiples and large mixed retailers now offering home shopping services.

At the same time, their traditional strengths are being weakened by changing consumer habits and retail trends. In particular, agents are becoming hard to find, while the interest-free credit facility is no longer so attractive. The sector now has to compete with widespread availability of interest-free credit on the High Street, as well as credit cards, store cards and consumer loans.

As greater emphasis is placed on strategic database marketing and customer support services, the major home shopping companies have invested heavily in call centre technology and improving delivery times, to compete with smaller operations. Advances in database marketing and direct marketing have meant that specific client groups can be targeted in more detail than ever before, while the broad range of media outlets provides additional platforms for off-the-page and insert promotions.

Between 1998 and 2002, Key Note forecasts that the market for home shopping will grow by 48.9 percent to £13.1bn. Much of this growth will come from direct marketing, which is a sector of major expansion. However, the arrival of a growing number of niche catalogues, as well as the growing acceptance of the Internet and TV shopping, will boost revenues.

Text © 1998 Key Note

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