Infographic: The majority of consumers conducted the bulk of their festive shopping online for the first time in 2014, finds research by Wipro Digital

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By Michael Feeley, Founder and chief exec

January 28, 2015 | 3 min read

Recent research by Wipro Digital, the digital transformation business of Wipro, has revealed that 71 per cent of surveyed consumers in UK and 61 per cent in US reported doing the majority of their 2014 festive shopping online.

This represents a significant increase on the 45 per cent in UK and 36 per cent in US reported who reported doing the majority of their shopping online in 2013.

The research suggests that the trend is set to continue with half of the surveyed consumers in US and UK saying that they plan to do more shopping online in the 2015 holiday season, as compared to just six per cent in UK and four per cent in US who plan to increase their in-store shopping.

Avinash Rao, global head of Wipro Digital, said: “Consumers continue their steady march online, finding few reasons to shop in-store rather than online for their holiday shopping. Even online, though, omnichannel retailers are losing customers to internet pure-plays. Bricks and mortar retailers are having difficulty delivering on the benefits of omnichannel retailing.”

The research also found that consumers are spending more online than in-store when it comes to shopping over the holiday season. UK consumers spent an average of £292 online compared to £179 in-store, while, in the US, online purchases averaged $400 and in-store $302.

Online pure play retailers were the big winners of this shift, with 44 per cent of UK and 47 per cent of US shoppers reporting carrying out more than half their online shopping on such sites.

However, shipping costs associated with online shopping are a concern for consumers, according to the research. Nearly half of the consumers hope not to pay shipping charges next year. In addition, 16% of UK and 11% of US online shoppers did not receive their purchases in time for the holiday.

“Shipping is the Achilles’ heel of online shopping,” said Rao. “If online pure plays are unable to offer free shipping on every order and consumers worry that they will not receive their purchases in-time, bricks and mortar retailers may be able to regain some of their lost customers next year.”

Even when consumers browse both online and in a store, many choose to go back online to make their purchase (34 per cent of UK consumers and 33 per cent of US consumers).

Rao said: “There is no doubt consumers are interacting with brands across both the online and in-store channels, but omnichannel retailers are missing a big opportunity to capture the third of consumers who say they are researching in store but leave to buy online.”

Wipro Digital’s Post Holiday Consumer Survey is based on 2,023 online respondents in the US (1,006) and UK (1,017) of ages 18-50 polled from January 5-8, 2015.

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