The Growth of Home Shopping

The growth of home shopping in 2014 Home shopping covers any purchase delivered to the home, such as: MAIL ORDER TELESALES TV SHOPPING ONLINE SALES The home shopping market is going from strength to strength but this growth is often overlooked as many reports focus solely on online growth... Home shopping in the UK zîÎl 12.0% 10.2% 8.9% Year-on-year growth: 2012 2013 2014 Average Order Value Mailing volumes 2013 £49.04 2014 £49.58 down 8.1% Increase 1.1% year on year in 2014 Revenue and mailing volumes, 2013-14 180 Mailing volume increases in Q3-Q4 contribute to increased revenue in peak season 160 140 129 114 120 100 80 60 91 104 80 87 83 98 89 99 78 89 87 104 80 89 84 93 107 115 119 127141 161 93 102 Jan Mar Apr May Jun Jul Aug Sep Oct Nov Revenue 2013 Revenue 2014 Mailing Volumes 2013 Mailing Volumes 2014 Index "Modern multi-channel retailers are leveraging better targeting and diversifying their promotional efforts across different mediums to achieve more with less." -Abacus Alliance EPSILON Abacus Growth in categories in 2014 Generalist retail Gifts & gadgets Home interiors Clothing Gardening 25 20 15 10 19.6% 11.6% -0.2% 15.1% 0.3% -5 Home interiors and household goods was also a large In the highest growth growth area, with a profile of area, generalist retail, 57.7% 64.5% female consumers 27.6% and. of consumers are female with children under 21 and 49.2% have children under 21 Mailing volumes in this category were up 3.8% "Direct mail continues to be an important part of the marketing mix for us, driving both retail and online sales."- Kay Ingram Bedwomr by feather & black Home shopping in the US 1.94% Year-on-year 6,35% growth* 5.65% 2012 2013 2014 * based on non-store retail figures "Non-store sales grow three times as fast as total retail sales in June 2014" - Abby Callard Internet Retailing Direct mail spend 2012 Year on year decrease $45.2 billion 2013 2012-2013 -0.66% $44.9 billion 2014 2013-2014 -0.89% $44.5 billion Year on year home shopping growth is Could direct mail hold the key to slowing accelerated as direct mail spend reduces growth? "During a survey, 22 percent of respondents stated they were more likely to purchase based on direct mail than on e-mail advertising." - Statista statista The role of direct mail in home shopping The mail order industry has experienced slight contraction over the past five years, largely due to rising competition from online retailers and minimal improvements in disposable income among frequent mail order customers Home shopping has shifted towards the online world but direct mail is still a key growth driver. Mail order models can work in harmony with online retail to offer consumers choice, bridge the gap between the physical and the virtual and appeal to different customer profiles “Mail has always delivered a great return on investment (ROI) – and it still does. But we've learned that mail also has the kind of benefits you might have associated with above the line media, such as creating strong, emotional connections and brand associations." - Royal Mail Royal Mail Mail drives customers online and mobile is making it easier than ever for people to do this As a direct result of receiving mail 92% 87% 86% driven to online or digital activity influenced to make online purchases connected with business 54% 43% engaged in social media download something Source: Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014 Sources: http://www.bls.gov/ http://www.abacusalliance.com/ http://www.statista.com/ CITIPOST MAIL http://www.ibisworld.com/ Smart mail management