Abstract
This report is the latest in a series of Mintel Internet Quarterly reports, the aim of which is to monitor changes in:
- Internet penetration and usage levels
- technology usage
- Internet usage experiences
- the extent to which consumers seek information from the Web, intend to buy via the Web and actually do engage in online purchasing in a variety of product categories
- amount spent by key online categories.
Key issues for this quarter:
- online Christmas shopping behaviour
- websites used for online Christmas gift purchasing.
As a result of the constantly changing nature of the e-commerce environment, Mintel believes that it is particularly important that these changes are tracked on an ongoing basis so as to identify key growth areas and highlight the very latest trends. This report therefore represents the very latest data set, which allows for the comparison of data on a quarterly basis over the last six years. This consumer research will continue to be updated on a three-monthly cycle.
Table of Contents
- Introduction
- Definition
- Research methodology
- Abbreviations
- Market in Brief
- Penetration manages slight climb
- Digital divide remains
- Christmas pushes usage levels up
- Digital device usage rises
- Portable music players and Wi-Fi display early adopter profiles -- still
- Christmas makes its presence felt in browsing
- Travel declines but remains top -- but weather unstoppable
- Mixed fortunes for browsing for information
- Actual purchasing strong in certain areas
- Attitudes towards Christmas purchasing improving
- Price-comparison sites' brand evaluation
- Figure 1: Online product purchasing, by category, 2005-07
- Internet Penetration
- Quarterly highlights
- Penetration manages slight climb
- Over 30 million now online
- Digital divide remains
- Pervasive use may mean penetration levels are higher
- First signs of growth in long-term penetration levels for two years
- Figure 2: British Internet penetration at home/work/place of study or elsewhere, 2002-08
- Long-term growth shows twitches of life
- Figure 3: Growth rates, British Internet penetration at home/work/place of study or elsewhere, 2002-08
- Digital divide remains
- Internet Usage Experiences
- Quarterly highlights
- Christmas pushes usage levels up
- Email leads the way
- The Internet saves money
- Figure 4: Types of activity undertaken on the Internet in the last three months, 2003-08
- Young still the driving force behind downloading music as pressure mounts
- Music industry reaction
- Figure 5: Usage of Internet for downloading music, by age, 2005-08
- BBC iPlayer helps streaming video
- Figure 6: Usage of Internet for watching or listening to video or audio, by socio-economic group, 2007-08
- Price-comparison sites showing little growth
- Figure 7: Usage of Internet to visit price-comparison websites, by socio-economic, 2005-08
- Appeal of social networking sites remains with young -- but may have
peaked
- Figure 8: Usage of Internet to visit community sites/messageboards, by age, 2005-08
- Technology Usage
- Quarterly highlights
- Digital device usage rises
- Portable music players and Wi-Fi display early adopter profiles -- still
- Digital device usage dips
- Figure 9: Digital device usage, 2007-08
- HD-ready TV grows as Blu-ray makes significant advances
- Figure 10: Profile of usage of HD-ready TV, by socio-economic group, 2007-08
- Digital radio grows as doubts are voiced
- Figure 11: Profile of usage of digital radio, by socio-economic group, 2007-08
- Podcasting broadens its appeal across ages
- Figure 12: Profile of podcasting usage, by age, 2007-08
- Browsing the Internet for Information Purposes
- Quarterly highlights
- Christmas makes its presence felt in browsing
- Travel declines but remains top -- but weather unstoppable
- Clothing shows impressive long-term growth
- Figure 13: Websites browsed for information purposes in the last three months, 2002-08
- Travel offers opportunities but must be more responsive
- Figure 14: Travel websites browsed for information purposes in the last three months, by socio-economic group, 2002-08
- Weather of most interest to the well off
- Figure 15: Weather websites browsed for information purposes in the last three months, by household income, 2002-08
- Entertainment sites broadening appeal across the ages
- Figure 16: Entertainment websites browsed for information purposes in the last three months, by age, 2002-08
- Clothing sites driven by women and children
- Figure 17: Clothing websites browsed for information purposes in the last three months, by gender and presence of children in household, 2002-08
- Browsing with the Intention of Buying
- Quarterly highlights
- Figure 18: Websites browsed for information purposes with a view to possibly buying in the last three months, 2002-08
- Books show traditional correlation with socio-economic group as Amazon
attempts to get digital
- Figure 19: Profile of book websites browsed with the intention of buying in the last three months, by socio-economic group, 2007-08
- Toys and games show seasonal cheer
- Figure 20: Profile of toys and games websites browsed with the intention of buying in the last three months, by gender and presence of children in household, 2007-08
- Electricals correlate with wealth
- Figure 21: Profile of electrical websites browsed with the intention of buying in the last three months, by socio-economic group, 2005-08
- Supermarkets heavily dependent on women
- Figure 22: Profile of supermarket websites browsed with the intention of buying in the last three months, by gender and presence of children in household, 2007-08
- Actual Purchasing on the Internet
- Quarterly highlights
- Figure 23: Websites actually purchased from in the last three months, 2002-08
- Purchasing recovers as penetration inches ahead
- Figure 24: Internet penetration and purchasing behaviour in the last three months, 2002-08
- Toys, gifts and media products best at converting intentions to purchases
- Figure 25: Websites actually purchased from in the last three months, January 2008
- Christmas hampers travel sites' conversion of browsers to buyers
- Figure 26: Consumer use of travel websites in the last three months, 2002-08
- Entertainment surges ahead in converting browsers
- Figure 27: Consumer use of entertainment websites in the last three months, 2002-08
- ABs drive increase in online book buying
- Figure 28: Actual purchasing from book websites in the last three months, by socio-economic group, 2002-08
- Trends in Online Product Purchasing
- Quarterly highlights
- Online on Christmas Day
- Average expenditure on books, music, entertainment and financial services down...
- ...but clothing, computers, groceries, travel and auctions all up
- Figure 43: Trends in average spend per online buyer in the previous three months -- books, music/DVDs and entertainment tickets, 2002-08
- Figure 44: Trends in average spend per online buyer in the previous three months -- clothing and footwear, computer hardware and auction, 2002-08
- Figure 45: Trends in average spend per online buyer in the previous three months -- travel, groceries and financial services products, 2002-08
- Figure 46: Trends in average spend per online buyer in the previous three months -- all categories, 2002-08
- Christmas Purchasing Experiences
- Quarterly highlights
- Figure 47: Online experiences of buying Christmas presents and shopping during the January sales, 2005-08
- Branded sites of most importance to the better off
- Figure 48: Websites used to buy gifts from over the Christmas period, February 2008
- Figure 49: ' All the Christmas presents I purchased online are from well-known websites and brands that I trust' , by socio-economic group, 2005-08
- DEs only category to have bought less online this year than last
- Figure 50: ' I purchased more Christmas presents online this year than in previous years' , by socio-economic group, 2005-08
- Amazon and eBay attract opposite socio-economic types
- Figure 51: Most popular sites for Christmas present, by socio-economic group, 2007 and 2008
- Internet User Types
- Types of Internet user
- Figure 52: Different Internet user types, by gender, age and socio-economic group, January 2008
- Cyber Viewers (14% of Internet users)
- Heavies (21% of Internet users)
- Mediums (24% of Internet users)
- Minimals (41% of Internet users)
- Figure 53: Online behaviourial groupings, January 2008
- Figure 54: Online typology groups, by gender, socio-economic group and age, January 2008
- Amount Spent on Online Book Purchasing
- Highlights
- Figure 55: Amount spent on books purchased over the Internet in the last three months, 2002-08
- Recent online book developments:
- Borders goes on Internet TV
- Amazon launches electronic book reader
- Asda gets into books
- Amazon to buy Audible
- Amount Spent on Online CDs/Tapes/DVDs/Videos Purchasing
- Highlights
- Figure 56: Amount spent on CDs/tapes/DVDs/videos purchased over the Internet in the last three months, 2002-08
- Recent online music and film developments:
- Pepsi and amazon.com to make music together
- Warner offers unencrypted music
- We7 first ad-supported site to get major backing
- Amazon to commence international rollout of MP3 store
- LOVEFiLM acquires Amazon' s UK and Germany DVD rental business
- Online music sales hit record levels
- Amounts Spent on Online Clothing and Footwear Purchasing
- Highlights
- Figure 57: Amount spent on clothing and footwear purchased over the Internet in the last three months, 2002-08
- Recent online clothing and footwear developments:Adili gets eco-friendly
- Christmas good for Asos
- Huge growth in online clothes shopping
- Koodos looks to expand
- Handbag.com and LK Bennett in designer shoe giveaway
- Amount Spent on Online Computer Hardware and Software Purchasing
- Highlights
- Figure 58: Amount spent on computer hardware and software purchased over the Internet in the last three months, 2002-08
- Recent online computer software and hardware developments:Dell, DSGi agree 12-country retail pact
- Tesco to sell Dell computers off- and online
- End of the retail computer shop?
- Amount Spent on Online Entertainment Ticket Purchasing
- Highlights
- Figure 59: Amount spent on entertainment tickets purchased over the Internet in the last three months, 2002-08
- Recent online entertainment ticket developments:
- Online ticket touts told to clean up act -- but not banned...
- ...but some not impressed
- Ticketmaster moves into UK resales
- Amount Spent on Online Travel Purchasing
- Highlights
- Figure 60: Amount spent on flights/holidays purchased over the Internet in the last three months, 2002-08
- Recent online travel developments:
- Pay for the tube by your telephone
- Virgin Holidays from Tesco
- Holiday shopping through Internet remains intact in 2007 -- S&P
- Carrentals.co.uk investing for the future
- Amount Spent on Online Grocery Purchasing
- Highlights
- Figure 61: Amount spent on grocery shopping purchased over the Internet in the last three months, 2002-08
- Recent online grocery developments:
- Ocado finally delivers the goods
- Sainsbury' s is set to rip out auto picking
- Ocado' s service gives online shoppers a merry Christmas
- Online foods less fresh than in-store
- Amount Spent on Online Auction Site Purchasing
- Highlights
- Figure 62: Amount spent on products from an auction site purchased over the Internet in the last three months, 2002-08
- Recent online auction site developments:
- Play.com offshoot ups ante against Amazon
- EBay CFO says e-commerce growth to slow in 2008
- EBay plans to cut sellers' fees on auction site
- £1.2 billion spent on dud gifts
- Amount Spent on Online Financial Services Purchases
- Highlights
- Figure 63: Amount spent on financial services-related products purchased over the Internet in the last three months, 2002-08
- Recent developments in online financial services:
- First Direct banks on Apple
- Most borrowers found using the Internet for mortgages
- RBS and NatWest issue e-Statements
- Login systems may force bank customers to log out
- Thomson joins the aggregators
- Appendix -- Internet Users by Demographics
- Detailed consumer demographics
- Figure 64: British Internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2001-08
- Figure 65: British Internet usage profile, by gender, socio-economic group, age and working status, January 2008
- Appendix -- Activities Online
- Figure 66: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 67: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 68: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 69: Types of activity undertaken on the Internet in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Appendix -- Technology Usage
- Detailed consumer demographics
- Figure 70: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, January 2008
- Figure 71: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, January 2008
- Figure 72: Technology usage of digital devices, by gender, age, socio-economic group, region, working status and technology usage, January 2008
- Appendix -- Browsing the Internet for Informational Purposes
- Figure 73: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 74: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 75: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 76: Websites browsed for information purposes in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Appendix -- Browsing with the Intention of Buying
- Figure 77: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 78: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 79: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 80: Websites browsed with the intention of buying in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Appendix -- Actual Purchasing on the Internet
- Figure 81: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 82: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 83: Websites actually purchased from in the last three months, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Appendix -- Christmas Purchasing Experiences
- Figure 84: Websites used to buy gifts from over the Christmas period, 2007 and 2008
- Figure 85: Profile of statements agreed with as regards experiences of online Christmas shopping, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 86: Profile of statements agreed with as regards experiences of online Christmas shopping, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
- Figure 87: Profile of websites used to buy gifts from over the Christmas 2007 period, by gender, age, socio-economic group, region, working status, household income and presence of children, January 2008
