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BizReport : Ecommerce archives : November 11, 2013


IMRG/Capgemini predict record December spending as Amazon gears up for busy Cyber Monday

Predictions for UK Cyber Monday spending behavior from IMRG/Capgemini and Amazon reveal the enormous impact of mobile technology on this year's consumer spending, with more than £10billion being shelled out in December alone.

by Helen Leggatt

I have returned to the newswires after two weeks leave, only to find that Christmas is everywhere - and it's only the start of November. Television ads, shop displays, online advertising and even malls are all getting into the festive spirit.

And so, too, are the studies and industry predictions as the number of shopping days left decrease at a seemingly alarming rate.

One particular set of figures that stuck out were those from IMRG and Capgemini. The report forecasts that, for the first time ever, Brits will spend more than £10billion (US $16billion) online in one month and that the festive shopping frenzy will be most evident on Cyber Monday - December 2. In fact, December 2013 will be the first month ever that spending has broken the 10 billion milestone, marking a 15% increase in spending over December last year.

"Already we are seeing a number of retailers ramping up their online offering in the run-up to Christmas," said Tina Spooner, chief information officer at IMRG. "Click and collect, next-day delivery and even one-hour delivery slots are just a few of the options on offer to attract the lucrative festive shopper at this highly competitive time of year."

So, what is driving this hike in spend? According to IMRG/Capgemini, a key factor is the "overwhelming growth" in sales via smartphones and tablets over the last few years along with new and improved mobile technology offered by retailers such as digital wallets, mobile coupons, in-store Wi-Fi and location-based services. Furthermore, optimized mobile sites have made shopping on-the-go much easier and more attractive to consumers.

Amazon.co.uk has gone one step further and predicted the time on Cyber Monday during which online shopping will peak. They believe, based on their experiences last year, that 6pm, when people knock off work, will trigger a sales peak.

"The expected peak in sales at 6pm on Cyber Monday is interesting as traditionally sales have spiked later in the evening. In fact, in 2011, sales peaked at 9.20pm," says Xavier Garambois, Vice President of EU Retail at Amazon. "The earlier rush indicates that people will be using their commute to get a head start on their shopping or logging on as soon as they get home, so they can relax in the knowledge that their Christmas shopping is done."

Last year, Amazon.co.uk saw more than 3.5 million items sold on Cyber Monday at a rate of about 41 items per second.






Image via Shutterstock

Tags: Christmas, Cyber Monday, ecommerce, mcommerce, mobile








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