Abstract
Introduction
Verdict Research: UK Home Delivery & Fulfilment 2009 provides detailed
analysis of the home delivery market. It includes both market and consumer
data and uses a survey of nearly 2,000 customers to examine the key trends
within nine retail sectors. With the home delivery market becoming
increasingly competitive this report offers real insight into the
opportunities and threats in the market.
Scope of this research
- Detailed analysis of the channels within home delivery including store
based, e-retail, mail order and TV shopping.
- Thorough examination of the key characteristics of home delivery shoppers
including demographic profile and motivation for using home delivery.
- Analysis of nine retail sectors including clothing & footwear,
electricals, food & grocery, furniture & floorcoverings and music & video.
- Overview and competitive assessment of leading logistics and fulfilment
operators.
Research and analysis highlights
We predict that the home delivery market will decline by 2.0% in 2009. This is
largely due to a substantial decline in sales through the store-based channel,
with items in the electricals and furniture & floorcoverings sectors badly
impacted by the recession.
Sales via the internet will overtake store-based sales as the largest
component of home delivery in 2009. While sales growth is slowing, at 12.0% it
will outstrip the only other home delivery channel in positive ground TV
shopping.
Amazon has increased its lead over eBay, as the retailer most used for home
delivery. 24.3% of home delivery shoppers mentioned it compared with 18.6% in
the previous year almost four times that of eBay
Key reasons to purchase this research
- Understand how the home delivery customer is changing and adapt strategies
to reflect this.
- Use consumer data on home delivery usage to identify which sectors offer
the most growth potential.
- Identify the key issues for both retailers and operators within the home
delivery market and develop strategies to overcome these challenges.
Table of Contents
EXECUTIVE SUMMARY
- Key findings
- Main conclusions
MARKET ANALYSIS
- Introduction
- Home delivery channel impacted by decline in big ticket purchases
- Expenditure growth
- Sales trend turns negative
- Home delivery market by channel
- Online overtakes store-based sales
- Home delivery market by sector
- Music & video remains buoyant
CONSUMER RESEARCH SUMMARY
- Key findings
- Introduction
- Customer characteristics
- Convenience of home delivery appeals to families
- Newspaper preferences
- Broadsheet readers dominate home delivery
- Delivery frequency
- Food & Grocery is the key home delivery sector
- Retailers used
- Amazon continues to improve its offering
- Motivations
- Delivery is the only option available for many products
- Ordering media
- Internet continues to dominate
- Satisfaction
- Majority of shoppers very satisfied
- Barriers to more frequent usage
- Price of delivery is a deterrent
- Attitudes to home delivery charges
- Delivery charge is of high importance
- Alternative delivery preferences
- Delivery next door leads alternative delivery preferences
SECTOR RESEARCH ANALYSIS
- Books
- Penetration growth is slowing
- AB customers continue to dominate
- The internet is the main reason for using home delivery
- Clothing & footwear
- Number of users remains level
- Women continue to dominate
- Time saving is increasingly important
- DIY & gardening
- Penetration has dropped back
- Males continue to dominate
- Price is increasingly important
- Electricals
- Recession bites
- Priorities have been reconsidered
- Home delivery often the only option
- Food & grocery
- Penetration continues to rise
- Men realise the convenience of home delivery
- Time saving is the main driver
- Furniture & floorcoverings
- Penetration improves despite difficult trading conditions
- ABs continue to dominate
- Difficulties transporting makes home delivery popular
- Gifts
- Penetration fluctuates as users grow
- Convenience drives men to purchase gifts through home delivery
- Time saving increasingly important
- Health & beauty
- Number of home delivery users declines
- Females continue to dominate the sector
- Price has become more important
- Homewares
- Recession has driven penetration down
- Affluent ABs remain core customer
- Nature of product suits home delivery
- Music & video
- Downloads affect penetration
- ABs dominate the market
- Low prices are now expected
HOME DELIVERY & FULFILMENT OPERATORS
- Process
- Sector summary
- Key issues
- Delivery service is crucial as competition intensifies
- Retailer perspective
- Solutions/Responses
- Operator services
- e-Fulfilment specialists
- GSI Commerce (formerly Zendor)
- iForce
- MetaPack
- General parcel delivery
- Business Post Group
- DPD (formerly Parceline)
- LYNX Express
- Nightfreight
- Royal Mail/Parcelforce
- TNT Express
- Home delivery specialists
- Hermes (formerly Parcelnet)
- Home Delivery Network
- Logistics specialists
- DHL Exel Supply Chain
- Groupe Norbert Dentressangle (formerly Christian Salvesen)
- Unipart Logistics
- Unattended delivery solutions
GLOSSARY
TABLES
- Table: Consumer spend on goods sent by home delivery 1999-2009e
- Table: Home delivery channels 1999-2009
- Table: Home delivery market spending by sector 2004-2009e
- Table: Year-on-growth rates by sector 2004-2009e
- Table: Home delivery shares of sector spending 2004-2009e
- Table: Home delivery shopper base and penetration by sector 2008
- Table: Daily newspapers read by home delivery customers 2008
- Table: Sunday newspapers read by home delivery customers 2008
- Table: Reasons for choosing order method 2008
- Table: Popularity of ordering methods for home/work delivery by sector 2008
- Table: Satisfaction with elements of delivery process 2008 on 2007
- Table: Satisfaction by ordering method 2008
- Table: What would make you more likely to use home delivery? 2008
- Table: What would make you more likely to use home delivery? (Continued)
2008
- Table: Books - regional profile of home delivery shoppers 2008
- Table: Clothing & footwear - regional profile vs population 2008
- Table: DIY & gardening - regional profile vs population 2008
- Table: Electricals - regional profile of home delivery shoppers 2008
- Table: Food & grocery - regional profile vs population 2008
- Table: Furniture & floorcoverings - regional profile vs population 2008
- Table: Gifts - regional profile of home delivery shoppers 2008
- Table: Health & beauty - regional profile vs population 2008
- Table: Homewares - regional profile of home delivery shoppers 2008
- Table: Music & video - regional profile vs population 2008
- Table: Reason, order method and main user (m/f) by sector 2008
- Table: Fulfilment issues, solutions and implications 2009
- Table: Fulfilment operator service proposition summary 2009
- Table: GSI Commerce company overview 2009
- Table: iForce company overview 2009
- Table: MetaPack company overview 2009
- Table: Business Post Group company overview 2009
- Table: DPD (Geopost) company overview 2009
- Table: LYNX Express company overview 2009
- Table: Nightfreight company overview 2009
- Table: Royal Mail/Parcelforce company overview 2009
- Table: TNT Express company overview 2009
- Table: Hermes company overview 2009
- Table: Home Delivery Network company overview 2009
- Table: DHL Exel Supply Chain company overview 2009
- Table: Norbert Dentressangle company overview 2009
- Table: Unipart Logistics company overview 2009
- Table: Unattended delivery solutions 2009
FIGURES
- Figure: Home delivery report structure 2009
- Figure: Home delivery purchase process 2009
- Figure: Home delivery process 2009
- Figure: Home delivery market change % 2004-2009e
- Figure: Home delivery channels sales breakdown % 1999-2009e
- Figure: Home delivery market growth by channel 2009e on 2008
- Figure: Reconciliation of mail order, e-retail, TV shopping and home
delivery markets 2008
- Figure: Sector shares of home delivery market 2004 and 2009e
- Figure: Percentage of each demographic group using home delivery in the
past 12 months 2005-2008
- Figure: Demographic profile of home delivery customer 2008
- Figure: Home delivery household penetration % by working status and income
group 2008
- Figure: Home delivery household penetration % by ACORN group 2008
- Figure: Users of home delivery - penetration by size of household 2006-2008
- Figure: Users of home delivery - penetration by type of household 2006-2008
- Figure: % of daily newspaper readers using home delivery 2008
- Figure: % of Sunday newspaper readers using home delivery 2008
- Figure: Average number of home deliveries per year by sector 2006-2008
- Figure: Frequency of home deliveries by sector 2008
- Figure: Top 20 retailers used for home delivery - % of shoppers mentioning
2007 & 2008
- Figure: Retailers used for home delivery - percentage point change 2008 on
2007
- Figure: Top reasons for home delivery 2006-2008
- Figure: Ordering media for home delivery 2005-2008
- Figure: Level of consumer satisfaction/dissatisfaction across all delivery
criteria 2005-2008
- Figure: Attitudes towards pricing and delivery 2008
- Figure: If delivery could not be made to your home, where would you like
it to go? 2004-2008
- Figure: Books - home delivery shopper base 2005-2008
- Figure: Books - home delivery penetration % of income groups 2008
- Figure: Books - home delivery penetration % of ACORN groups 2008
- Figure: Books - profile of home delivery customer base 2008
- Figure: Books - home delivery household profile by lifestage 2008
- Figure: Books - leading reasons for using home delivery 2008
- Figure: Books - ordering media used for home delivery 2008
- Figure: Books - leading retailers used for home delivery 2008
- Figure: Clothing & footwear - home delivery shopper base 2005-2008
- Figure: Clothing & footwear - penetration % of income groups 2008
- Figure: Clothing & footwear - penetration % of ACORN groups 2008
- Figure: Clothing & footwear - profile of home delivery base 2008
- Figure: Clothing & footwear - household profile by lifestage 2008
- Figure: Clothing & footwear - reasons for using home delivery 2008
- Figure: Clothing & footwear - ordering media for home delivery 2008
- Figure: Clothing & footwear - retailers used for home delivery 2008
- Figure: DIY & gardening- home delivery shopper base 2005-2008
- Figure: DIY & gardening - penetration % of income groups 2008
- Figure: DIY & gardening - penetration % of ACORN groups 2008
- Figure: DIY & gardening - profile of home delivery customer base 2008
- Figure: DIY & gardening - household profile by lifestage 2008
- Figure: DIY & gardening - reasons for using home delivery 2008
- Figure: DIY & gardening - ordering media used for home delivery 2008
- Figure: DIY & gardening - leading retailers used for home delivery 2008
- Figure: Electricals - home delivery shopper base 2005-2008
- Figure: Electricals home delivery penetration % of income groups 2008
- Figure: Electricals - home delivery penetration of ACORN groups 2008
- Figure: Electricals - profile of home delivery customer base 2008
- Figure: Electricals - home delivery household profile by lifestage 2008
- Figure: Electricals - leading reasons for using home delivery 2008
- Figure: Electricals - ordering media used for home delivery 2008
- Figure: Electricals - leading retailers used for home delivery 2008
- Figure: Food & grocery - home delivery shopper base 2005-2008
- Figure: Food & grocery - penetration % of income groups 2008
- Figure: Food & grocery - penetration % of ACORN groups 2008
- Figure: Food & grocery - profile of home delivery customer base 2008
- Figure: Food & grocery - household profile by lifestage 2008
- Figure: Food & grocery - leading reasons for using home delivery 2008
- Figure: Food & grocery - ordering media used for home delivery 2008
- Figure: Food & grocery - leading retailers used for home delivery 2008
- Figure: Furniture & floorcoverings - home delivery users 2005-2008
- Figure: Furniture & floorcoverings - penetration of income groups 2008
- Figure: Furniture & floorcoverings penetration of ACORN groups 2008
- Figure: Furniture & floorcoverings - profile of home delivery customer
base (% breakdowns by gender, age and class) 2008
- Figure: Furniture & floorcoverings household profile by lifestage 2008
- Figure: Furniture & floorcoverings - reasons for home delivery 2008
- Figure: Furniture & floorcoverings - home delivery ordering media 2008
- Figure: Furniture & floorcoverings - retailers used to home deliver 2008
- Figure: Gifts - home delivery shopper base 2005-2008
- Figure: Gifts - home delivery penetration % of income groups 2008
- Figure: Gifts - home delivery penetration % of ACORN groups 2008
- Figure: Gifts - profile of home delivery customer base 2008
- Figure: Gifts - home delivery household profile by lifestage 2008
- Figure: Gifts - leading reasons for using home delivery 2008
- Figure: Gifts - ordering media used for home delivery 2008
- Figure: Gifts - leading retailers used for home delivery 2008
- Figure: Health & beauty - home delivery shopper base 2005-2008
- Figure: Health & beauty - penetration % of income groups 2008
- Figure: Health & beauty - penetration % of ACORN groups 2008
- Figure: Health & beauty - profile of home delivery customer base 2008
- Figure: Health & beauty - household profile by lifestage 2008
- Figure: Health & beauty - reasons for using home delivery 2008
- Figure: Health & beauty - ordering media used for home delivery 2008
- Figure: Health & beauty - leading retailers used for home delivery 2008
- Figure: Homewares - home delivery shopper base 2005-2008
- Figure: Homewares - home delivery penetration of income groups 2008
- Figure: Homewares home delivery penetration of ACORN groups 2008
- Figure: Homewares - profile of home delivery customer base 2008
- Figure: Homewares home delivery household profile by lifestage 2008
- Figure: Homewares - leading reasons for using home delivery 2008
- Figure: Homewares - ordering media used for home delivery 2008
- Figure: Homewares - leading retailers used for home delivery 2008
- Figure: Music & video - home delivery shopper base 2005-2008
- Figure: Music & video - penetration % of income groups 2008
- Figure: Music & video - penetration % of ACORN groups 2008
- Figure: Music & video - profile of home delivery customer base 2008
- Figure: Music & video - household profile by lifestage 2008
- Figure: Music & video - leading reasons for using home delivery 2008
- Figure: Music & video - ordering media used for home delivery 2008
- Figure: Music & video - leading retailers used for home delivery 2008
- Figure: Fulfilment and delivery options in the home delivery process 2009
- Figure: Delivery & fulfilment issues for retailers 2009
- Figure: Delivery & fulfilment solutions for retailers 2009
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