Online Shopping Lack of Confidence

The number of people shopping online for Christmas in the UK has grown steadily from 1.5 million in 1999, to 2.1 million in 2000, to 3 million in 2001, to its current level of 4.4 million in 2002 according to Continental Research's Winter 2003 Internet Report.

But with 77% of usual Internet users not making a purchase online at Christmas, the report shows that shoppers still lack confidence in spending money online, mainly due to lack of familiarity with the online shopping experience. For many, the Internet is quite new and usage confidence still needs to be built. 48% of respondents cited the reason of not being familiar with shopping online as the major barrier to making virtual purchases.

Colin Shaddick, director at Continental Research, said: 'A big barrier to online shopping is the need for consumers physically to see the items before purchasing. The full perspective of an item cannot be gained online and this is restricting purchasing. This may explain why items such as CDs, DVDs and books are more popular with online shoppers as their appearance is of less importance and shoppers are already familiar with the look of the item. Interestingly, security, which is often mentioned as a reason for why people do not shop online is nowhere near as high as a lack of familiarity - just 16% are worried about giving personal financial details online.'

Continental Research has been monitoring Internet access and usage for the past eight years through bi-annual winter and summer reports published in February and August of each year. In addition to detailing online Christmas shopping habits, the Winter 2003 report continues to track Internet access and usage from both home and the work place.

Whilst home Internet access has grown considerably over the past four years, with four in ten UK homes having online access via a PC. High access amongst younger homes with children and white collar households is now slowing growth, and older consumers and blue collar homes need to be encouraged to go online and stimulate take up.

Of the 11 million UK homes connected to the Internet two thirds (65%) are white collar (ABC1), clearly demonstrating the class divide of Internet and non Internet connected homes.

Colin Shaddick added 'Considerable barriers exist preventing the Internet from taking a firm hold in C2DE households. People in this socio-economic grouping tend to be older and/ or work in blue-collar occupations, two demographic groups that have less exposure to PC's and the Internet. To sustain growth uptake will have to come from this reluctant sector. Some radically different marketing and advertising is now needed to boost interest and confidence amongst the blue collar population.'

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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