Online baskets in the UK are on average 5x the size of offline carts, and online shoppers are more loyal than online ones. The graph above shows that 47% of Tesco’s online shoppers are loyal to the brand vs. just 29% of the Tesco shoppers. Therefore, brands have every incentive to make online shopping a convenient option.
Yet, most brands shy away from e-commerce and opt to hand off to retailers. The following graph from the Digital IQ Index: Personal Care | UK finds that Boots dominates; 40% of brands that link to e-tailers choose Boots.
Retailers have won the loyalty and large shopping carts of online consumers with substantial investments in site functionality and user experience. Four of the nine retailers host dedicated brand pages. All offer click-and-collect with the exception of Morrisons, who is expected to launch the service at the end of 2014. And all but two offer free shipping with minimum spend.
So far, brands have not taken advantage of these retailer investments. Only 43% hand off to a third-party retailer at check out, and just one in nine e-tailers in the Personal Care Study had videos and multiple images on product pages. It’s imperative that UK Personal Care brands strengthen their partnerships with e-tailers and leverage the omnichannel structure they have built.
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