Online growth spurt


Stories of growth always seem surprising in times of economic uncertainty, but strong ecommerce figures in Google’s research are less of a shock (UK internet economy worth £100bn, says Google,, October 28).

Online shopping has proved a huge contributor to the UK internet industry’s value, but isn’t this natural in a climate where interest rates are at an all time low and people have no incentive to save?

A dramatic shift in shopping habits has also played a role. Increasingly, versatile mobile devices have blurred the boundaries between online and offline stores and shoppers differentiate between the two less than ever before.

While Google’s predictions for the online channel represent a current trend, we’re yet to see the full impact of the Chancellor’s cuts and the rise in VAT due in January. Brands now have a window of opportunity to build a good relationship with the spending consumer and ensure their survival when disposable incomes contract.

Paul Anderson
Strategic consultant

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