Online spend to rise despite downturn

Consumers are planning to spend more money online than ever before despite the credit crunch, according to online consultancy business Logan Tod. It claims shoppers are turning to the internet in an attempt to save money.

According to the company’s third annual Online Shopping Index, 65% of consumers are planning to increase their shopping online over the next 12 months. It found that the growth in online shopping will be driven by consumers aged 45 and above, who plan to increase their online spend by 10%.

Shoppers outside London are also purchasing more online, with the Southwest region planning to spend 20% more, compared to last year’s Online Shopping Index. Logan Ted said that the increase can be attributed to the rise in broadband usage nationwide.

By focusing on these groups, the consultancy said e-tailers can ensure they continue to grow steadily in 2009. According to the Online Shopping Index, the factors most likely to affect consumer behaviour are low-cost delivery, increased money-saving offers and improved description of goods and services.

Logan Tod chief executive Matthew Tod said: “We have already started to see signs of this predicted growth emerging in the recent online shopping results from Christmas 2008. With more and more people becoming accustomed to shopping online, it is no longer good enough to simply let the strength of your products drive your sales and traffic; you need to consider whether you are delivering a great experience for visitors to your site, or risk losing them to rivals.”

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