The summer, sadly, is over. Now its time to crack on with making the last quarter a success AND lay the foundations for 2012. So we’ve found three surveys that we think you’ll find useful for your planning for next year. Read on…
First, we report on the IMRG:CapGemini online tracking report showing the fist decline in online sales for 18 months – what’s going on in e-commerce? Gartner, meanwhile has been chatting to organizations about privacy and discovers over half need to modify their privacy policies so we take a closer look. And we have a report on green brands – only 22% of consumers are willing to pay more to “go green” despite nearly 9 out of ten consumers saying that sustainability is an important issue.
Online sales growth slows to lowest level for 18 months
The latest figures from the IMRG Capgemini e-Retail Sales Index have revealed a slowdown in the performance of the online sales market, with year-on-year growth at its lowest level since January 2010. British shoppers spent £5.58bn online in July; 5% up on the previous month – a modest growth which has been hampered by poor online sales in the travel sector.
- e-Retail sales up just 11.5% in July 2011, the lowest year-on-year growth since Jan 2010
- £5.58bn spent online in July 2011; 5% up month-on-month
- Travel sector falls back 1% on 2010 levels
The slowing growth comes as better weather saw more shoppers hitting retail parks and the high street rather than staying indoors to do their shopping. The negative growth in the travel sector is consistent with the industry at large, with many travel companies seeing bookings decline this year. And the electricals sector declined 3% compared with the previous year.
Online, certain sectors did perform strongly such as Home & Garden, which increased 27% year-on-year – this is compared with slow growth last year of only 8%. The clothing sector continues to expand rapidly, seeing a 25% year-on-year rise as shoppers update their wardrobes for the summer season and take advantage of the sales.
So, what’s happened? Well IMRG say its been caused by better weather encouraging shoppers to go out to retail parks. Our view is that it is more to do with people being more careful with their cash and resisting the allure of offers online. This is borne out by the 30% drop in the take up of Groupon offers in the last quarter.
To read the report, click here
Gartner: Corporate privacy policy requirements demand urgent review
Changes in technology and legislation are exposing weaknesses in the way organisations manage sensitive personal data, and as a result, many of them are now carrying out urgent reviews of their privacy policies according to Gartner.
50% of all enterprises will revise their corporate privacy policy requirements before the end of 2012 in order to reflect changes in business practices, such as the use of cloud computing and location-based services available on smartphones. Changes to laws on privacy and mandatory breach disclosure are also forcing companies in the UK and around the globe to review their security policies.
“We are seeing new privacy laws around the world in places like South Africa, Mexico and Asia-Pacific,” said Gartner’s Carsten Casper. “There is general pressure on organisations to look at the existing approaches to privacy, not just in the UK, Germany and the rest of Europe, but also the rest of the world.”
It used to be enough for companies to tell customers their information was protected, but now the general public is much more aware of data breaches and the importance of privacy, and in turn require greater reassurance and information about how their data is managed. But now corporate privacy policies alone are not the answer. Companies must be clear about who is responsible for data privacy, and senior management needs to understand why privacy is important and communicate that to their staff.
Gartner identified five key issues of concern for privacy officers over the next two years:
Data breaches: They are easy to control if organisations compartmentalise personal information, restrict access, encrypt data going across public networks, encrypt data on portable devices, and encrypt data in storage.
Location-based services: Some organisations collect vast amounts of location information, often without a clear plan of what to do with it, thus violating a fundamental privacy principle, namely to collect information only for the purpose for it is needed.
Cloud computing: The problem is privacy laws apply to one country, while the public cloud straddles national boundaries. Privacy officers should insist on knowing where data will be kept..
Assessing the value of privacy: Organisations will struggle to find a balance between “not enough” and “too much” protection, and striking this balance needs to be an ongoing process. Interpreting the law: The laws are written vaguely and don’t really take technology into account properly – as can be seen in relation the recent cookie laws. On that topic, you can download our latest update to our guide on the UK and EU Cookie Laws now by clicking here: http://atriumgroup.com/law-cookies-download-report
Consumer views mixed on green brands
Consumers around the world hold mixed opinions regarding climate change and their willingness to pay a premium for products with strong eco-friendly credentials, a new Nielsen study has found.
Nielsen polled 25,000 web users in 51 countries, 69% of which said they were “concerned” about climate change and global warming, up from 66% in 2009. In all, 83% of the panel agreed companies should pursue sustainability initiatives, although just 22% of people surveyed were prepared to pay more for products boasting impressive attributes in this area.
48% of North Americans typically acquired the cheapest offerings available, standing at 36% in the Middle East and Africa, 35% in Europe, 33% in Asia Pacific and 27% in Latin America.
Corporate Social Responsibility holds up well
In rating specific CSR schemes undertaken by companies, 83% of respondents suggested using recycled packaging and making energy efficient products was beneficial for the environment. Another 64% held similar views of organic goods, hitting 80% in Latin America, 72% regarding Asia Pacific, 58% in Europe, 57% in the Middle East and Africa and only 49% in North America. Local products registered 59% on this metric, reaching 65% in North America, while Fairtrade lines recorded 51%, and not conducting tests on animals logged 44%.
Todd Hale, SVP, consumer and shopper insights, at Nielsen US, said: “With financial concerns still on the minds of many, they’re indicating less and less concern about climate change and other environmental issues.” In fact European totals here fell by ten points to 68%, Asia Pacific was off by three points to 72%, North America saw a two point dip to 50%, Latin America improved by five points to 90% and the Middle East witnessed an 11-point lift to 80%.
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