Contents
Issues in the Market
Main themes
Sector definitions
Mail order
Direct response
Direct selling
E-commerce
Television shopping
Abbreviations
Market in Brief
Brits among keenest home shoppers
E-commerce takes over
Figure 1: UK: Mail order and e-commerce sectors – sales performance, 2002-06
A mixed bunch online
Stores the biggest e-tailers
Figure 2: UK: E-commerce sector – estimated breakdown, 2006
Catalogues go online
A fragmented sector
Figure 3: UK: Leading non-store retailers: market shares, 2005
Littlewoods in safe lead
Home shopping specialists underperform
And will continue to do so
Internal Market Environment
Demand for home shopping
Littlewoods Shop Direct Group
Increasing Internet penetration
Figure 4: British Internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age and working status, 2001-06
Figure 5: Internet access by type, November 2002-October 2006
Competition from store-based retailers
Broader Market Environment
Ageing, urban population
Figure 6: UK: Population trends, 2001-05
Figure 7: UK population, by age band, 2001 and 2011
Figure 8: UK population density, by region 2004
Becoming more affluent
Figure 9: UK population, by socio-economic group, 2001 and 2011
Unshakeably confident
Figure 10: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
Inflation
Figure 11: UK: Consumer prices, 1998-2006
The Home Shopping Market
Key Points
The mail order, direct selling & e-commerce markets
Market size
Figure 12: UK: Home shopping market, and estimated breakdown by sub-sector, 2005 and 2006
Figure 13: UK: Home shopping market, share by sub-sector, 2005 and 2006
Mail order and e-commerce
Figure 14: UK: Mail order and e-commerce sector and estimated breakdown, 2002-06
Figure 15: UK: Mail order and e-commerce sectors – sales performance, 2002-06
Figure 16: UK: E-commerce sector – estimated breakdown, 2006
Direct selling
Figure 17: UK: Direct selling sales, 2002-06
The market in context
The consumer boom…
Figure 18: UK: Retail sales volume growth, 1987-2006
…is coming to an end?
The bigger picture and inflation
Attitudes changed during the boom
Key product markets of mail order retailers have performed well
Figure 19: UK: Consumer spending on key home shopping markets, 2002-05
Strengths and Weaknesses in the Market
Market Size and Forecast
The future
Economic outlook
Big books still falling
E-commerce prospects look good
Bricks & mortar retailers set to grow further
Non-store retailers forecasts
Figure 20: UK: Non-store specialists retail sales, 2002-12
Figure 21: UK: Mail order and other non-store sector as % all retail sales, 2002-12
The past
Mail order and other non-store retailers lose market share
Big book slump
Figure 22: UK: Mail order and other non-store retailers’ sales, 2002-06
Figure 23: UK: Relative sales performance of mail order and other non-store retailers, 2002-06
Sector drivers and trends
European Consumer Context
Mail order – Key consumer research findings
Figure 24: Mail order use in GB, France, Germany, and Spain, 2006
Agency mail order
Figure 25: Are you acurrently an agent, GB, France, Germany & Spain, 2006
Home shopping technology
Figure 26: Internet usage in GB, Germany, France and Spain, 2006
Figure 27: Agreement with statements relating to new technology and shopping, GB, Germany, France and Spain, 2006
Usage of Home Shopping Channels
Key findings
Home shopping patterns
Trend data
Figure 28: Mail order catalogue vs online shopping in the last 12 months, 2000-06
Figure 29: Use of home shopping channel, UK, 2000-06
2006 home shopping patterns
Figure 30: Type of home shopping channel consumers have bought from in the last 12 months, December 2006
Figure 31: Mail order catalogue vs online shopping in the last 12 months, by age, December 2006
Figure 32: Mail order catalogues vs. online shopping in the last 12 months, by socio-economic group, December 2006
Figure 33: Which types of mail order catalogues consumers have bought from in the last 12 months, by socio-economic group, December 2006
Figure 34: Which types of mail order catalogues consumers have bought from in the last 12 months, by age, December 2006
Figure 35: Which types of home shopping channels consumers have bought from in the last 12 months, by age, December 2006
Figure 36: Which types of home shopping channel consumers have bought from in the last 12 months, by gender, age and socio-economic group, December 2006
Figure 37: Which types of online shopping channel consumers have bought from in the last 12 months, by age, December 2006
Figure 38: Which types of online shopping channel consumers have bought from in the last 12 months, by socio-economic group, December 2006
Figure 39: Which types of home shopping channel consumers have bought from in the last 12 months, by gender, age and socio-economic group, December 2006
Who orders how
Home shopping specialists
Figure 40: Methods of shopping from a home shopping specialist in the last 12 months, by gender, December 2006
Figure 41: Methods of shopping from a home shopping specialist in the last 12 months, by age, December 2006
Figure 42: Methods of shopping from a home shopping specialist in the last 12 months, by socio-economic group, December 2006
Store-based retailers
Figure 43: Methods of shopping from a high street/superstore retailer in the last 12 months, by gender, December 2006
Figure 44: Methods of shopping from a high street/superstore retailer in the last 12 months, by age, December 2006
Figure 45: Methods of shopping from a high street/superstore retailer in the last 12 months, by socio-economic group, December 2006
Figure 46: Methods of shopping used in the last 12 months, by gender, age and socio-economic group, December 2006
Usage of Home Shopping Channels – Detailed Consumer Demographics
Figure 47: Which types of home shopping channel consumers have bought from in the last 12 months, by lifestage, presence of children, Mintel’s Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, December 2006
Figure 48: Which types of home shopping channel consumers have bought from in the last 12 months, by lifestage, presence of children, Mintel’s Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, December 2006
Figure 49: Methods of shopping used in the last 12 months, by lifestage, presence of children, Mintel’s Special Groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, December 2006
Retail Competitor Analysis
Share of the market
Technicalities
Leading retailers
Figure 88: Leading home shopping retailers, 2005/06
Market shares
Figure 89: UK: Leading non-store retailers: market shares, 2005
Evaluation
Figure 90: Mail order retailers, evaluation, 2006/07
Retail Advertising and Promotion
Mail order advertising spend by company
Figure 91: Mail order advertising expenditure, by top 25 advertisers, 12 months to end November 2002-06
Figure 92: Online retail advertising expenditure, by top 16 advertisers, 12 months to end November 2002-06
Major Company Profiles
Bertelsmann DirectGroup
Figure 102: Bertelsmann DirectGroup: Sales as share of non-store retailers’ sales in Germany and Europe, 2001-05
Strategic evaluation
Background
Financial performance
Figure 103: Bertelsmann DirectGroup: Group financial performance, 2001-05
Figure 104: Bertelsmann Group: % of revenues by region, 2005
Figure 105: Bertelsmann Group: % of revenues by category, 2005
Figure 106: Bertelsmann Group: % of revenues by business division, 2004 and 2005
Figure 107: Bertelsmann DirectGroup: % of revenues by category, 2005
Figure 108: Bertelsmann DirectGroup: % of revenues by region, 2005
Retail offering
Market positioning
Brands
Figure 109: Bertelsmann: DirectGroup clubs and businesses, 2005
Operational issues and product development
Damartex
Figure 110: Damartex Europe: Sales as share of non-store retailers’ sales in Europe, 2002-06
Figure 111: Damartex France: Sales as share of non-store retailers’ sales in France, 2002-06
Figure 112: Damartex UK: Sales as share of non-store retailers’ sales in UK, 2002-06
Strategic evaluation
Background
Financial performance
Figure 113: Damartex: Financial performance, 2001/02-2005/06
2005/06 results
Store portfolio
Figure 114: Damartex: Retail outlets, 2002, 2004 and 2006
Retail offering
Market positioning
Product offer
Brands
Pricing
Operational issues and product development
Advertising & marketing
e-commerce & home shopping
Littlewoods Shop Direct
Figure 115: LWSDG: Sales as share of all non-store retailers’ sales in UK, 2001-05
Strategic evaluation
Background
GUS Home Shopping
Financial performance
Figure 116: Littlewoods Shop Direct Group: Financial performance, 2001/02-2005/06
Store portfolio
Catalogues
Figure 117: Littlewoods Shop Direct Group: Catalogues and websites, 2006/07
Figure 118: Littlewoods Shop Direct Group: Online sales as % of total sales of brands, Autumn 2006
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational issues
Advertising & marketing
KarstadtQuelle Mail Order
Figure 119: KarstadtQuelle Mail Order: German sales as share of non-store retailers’ sales in Germany, 2001-05
Strategic evaluation
Background
Karstadt + Quelle = KarstadtQuelle AG
Financial performance
Figure 120: KarstadtQuelle Mail order: Sales by region, 2001-06
Rising importance of foreign businesses
Figure 121: KarstadtQuelle Mail Order: Sales by region, 2005 and projected
Figure 122: KarstadtQuelle Mail Order: Group financial performance, 2001-05
First Choice not Neckermann?
Figure 123: KarstadtQuelle Mail Order: Neckermann, sales performance, 2001-05
Store portfolio
Figure 124: KarstadtQuelle Mail Order: Stores, as at end 2006
Retail offering
Market positioning
Figure 125: KarstadtQuelle Mail Order: Speciality catalogues, 2006
Co-operation with PPR’s Redcats
Brands
Figure 126: KarstadtQuelle Mail Order: Own brands, 2006
Product offer
e-commerce & home shopping
Figure 127: KarstadtQuelle Mail Order: E-commerce as % of all sales, 2005 and projected
Next Directory
Figure 128: Next Directory: Sales as share of all non-store retailers’ (a) sales in UK, 2001-05
Strategic evaluation
Background
Financial performance
Figure 129: Next: Financial performance, 2001/02-2005/06
Figure 130: Next directory: Growth in sales and in number of active customers, 2001/02-2005/06
Figure 131: Next: Financial performance, H1 2006/07 and 2005/06
Figure 132: Next: Financial performance, July to December 2006
Store portfolio
Figure 133: Next Retail: UK outlet data, 2002-06
Next Directory
Figure 134: Next Directory: Number of pages by product area, 2000/01-2004/05
Figure 135: Next Directory: Share of total pages by product type, 2000/01-2004/05
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational issues
Advertising & marketing
Otto Group
Strategic evaluation
Background
Financial performance
Figure 136: Otto Group: Sales by division, 2005/06
Figure 137: Otto Group: Sales by region, 2005/06
Figure 138: Otto Group: Group financial performance, 2001/02-2005/06
Figure 139: Otto UK: Share of all non-store retailers’ sales, 2002-06
Retail offering
Market positioning
Brands
Product offer
Figure 140: Otto: Multi-channel retail operations, 2006
Operational issues
E-commerce & home shopping
Redcats
Figure 141: Redcats: Sales as share of non-store retailers’ sales in Europe, 2002-06
Strategic evaluation
Background
Financial performance
Figure 142: Redcats: Group financial performance, 2002-06
Figure 143: Redcats: Sales by division, 2006
Figure 144: Redcats: Specialist catalogues, 2007
Retail offering
Brands
Product offer
Figure 145: Redcats: Sales by major product category, 2005
e-commerce & home shopping
Figure 146: Redcats: Websites by market, 2007
M-commerce development
Amway
Strategic evaluation
Background
Financial performance
Figure 147: Alticor: Financial performance, 2000/01-2004/05
Figure 148: Alticor: Estimated sales by region, 2004/05
Figure 149: Amway UK: Financial performance, 2001-05
Store portfolio
Figure 150: Amway: European operations, dates of entry
Retail offering
Market positioning
Product offer/brands
Figure 151: Alticor: Exclusive brands, 2006
Operational issues
Advertising & marketing
e-commerce
Figure 152: Amway: European websites, 2006
Avon
Figure 153: Avon: Sales as share of non-store retailers’ sales in Europe, 2001-05
Strategic evaluation
Background
Financial performance
Figure 154: Avon: Group financial performance, 2001-05
The European division
Around the world
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational issues
Advertising & marketing
e-commerce & home shopping
Tupperware
Strategic evaluation
Background
Financial performance
Figure 155: Tupperware Group: Financial performance, 2001-05
Figure 156: Tupperware Group: Sales by geographic region, 2001 and 2005
Figure 157: Tupperware Group: European sales & profit as share of group sales & profit, 2001-05
Figure 158: Tupperware: Sales in Germany, 2001-05
Figure 159: Tupperware: UK & Republic of Ireland, financial performance, 2001-05
Store portfolio
Figure 160: Tupperware: Websites, 2006/07
Retail offering
Market positioning
Brands/product offer
Figure 161: Tupperware Group: Brands, 2006
Operational issues
Advertising & marketing
Vorwerk
Strategic evaluation
Background
Figure 162: Vorwerk: Group divisions, 2006/07
Figure 163: Vorwerk: Geographical presence through Vorwerk companies, 2006/07
Financial performance
Figure 164: Vorwerk: Financial performance, 2001-05
Figure 165: Vorwerk: Group sales by geographic region, 2001-05
Figure 166: Vorwerk: Europe’s share of group sales, 2001-05
Figure 167: Vorwerk: Direct sales by operation, 2001-05
Figure 168: Vorwerk: Share of direct sales by operation, 2001 and 2005
Distribution channels
Figure 169: Vorwerk: Sales advisers, 2001-05
Online activity
Retail offering
Market positioning
Figure 170: Vorwerk: Brands, 2006/07
Operational issues
Advertising & marketing
Amazon.com Inc
Strategic evaluation
Background
Financial performance
Figure 171: Amazon.com Inc: Group financial performance, 2002-06
Figure 172: Amazon.com: Segment reporting, 2005 and 2006
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational issues
Advertising & marketing
eBay Inc
Strategic evaluation
Background
Financial performance
Figure 173: eBay Inc: Group financial performance, 2002-06
Figure 174: eBay.com: Financial performance, 2002-06
Other revenue streams
Figure 175: eBay.com: Revenue stream segmental breakdown, 2006
International division continues to outperform the US
Figure 176: eBay.com: Net revenue by geography, 2001-05
Figure 177: eBay: Growth in net revenues by region, 2001-05
Europe driving sales
Figure 178: eBay: Share of net revenue by region, 2001-05
eBay and retail sales
How eBay auction platform operates
Feedback
Product offer
QVC
Figure 179: QVC UK: As share of non-store retailers sales in UK, 2001-05
Figure 180: QVC Germany: As share of non-store retailers sales in Germany, 2001-05
Strategic evaluation
Background
Financial performance
Figure 181: QVC: Group financial performance, 2001-05
Store portfolio
Retail offering
Market positioning and customer profile
Product offer
Brands
Operational issues
e-commerce & home shopping
Mini Company Profiles
Ann Summers Ltd
Strategic evaluation
Background
Financial performance
Figure 182: Ann Summers Ltd: Group financial performance, 2000/01-2005/06
Store portfolio
Figure 183: Ann Summers Ltd: Outlet data, 1999/2000-2003/2004
Latest store design
Retail offering
Market positioning
Brands & product offer
Advertising & marketing
e-commerce & home shopping
Cotton Traders
Figure 184: Cotton Traders: Sales as share of non-store retailers’ sales in UK, 2001-05
Background
Financial performance
Figure 185: Cotton Traders Ltd: Group financial performance, 2001/02-2005/06
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational issues
Stores
Advertising & marketing
Direct Wines Ltd
Figure 186: Direct Wines Ltd: Sales as share of non-store retailers' sales in UK, 2001-05
Strategic evaluation
Background
Financial performance
Figure 187: Direct Wines Ltd: Group financial performance, 2001/02-2005/06
Store portfolio
Retail offering
Market positioning
Pricing
Operational issues
Advertising & marketing
e-commerce & home shopping
Farepak
Figure 188: Farepak: Sales as share of non-store retailers’ sales in UK, 2000-04
Background
Financial performance
Figure 189: Farepak Ltd: Group financial performance, 2000/01-2004/05
Retail offering
Market positioning
Product offer
Operational issues
Findel
Figure 190: Findel: Sales as share of non-store retailers’ sales in UK, 2001-05
Background
Financial performance
Figure 191: Findel: Group financial performance, 2001-05
Retail offering
Market positioning
Brands
Product offer
Figure 192: Findel: Product ranges by business, 2006
Pricing
Operational issues
Advertising & marketing
e-commerce & home shopping
JP Boden & Co
Figure 193: Boden UK: Sales as share of non-store retailers’ sales in UK, 2001-05
Background
Financial performance
Figure 194: JP Boden & Co Ltd: Group financial performance, 2001-05
Retail offering
Market positioning
Brands
Product offer
Pricing
Operational Issues
Stores
Advertising & marketing
Lands’ End Direct Merchants UK
Figure 195: Lands' End UK: Sales as share of non-store retailers’ sales in UK, 2001-05
Background
Financial performance
Figure 196: Lands' End Europe: Group financial performance, 2001-05/06
Retail offering
Market positioning
Product offer
Pricing
Stores
Advertising & marketing
N Brown Group Plc
Figure 197: N Brown Group Plc: Sales as share of non-store retailers in UK, 2001-05
Strategic evaluation
Background
Financial performance
Figure 198: N Brown Group Plc: Group financial performance, 2001/02-2005/06
First half 2006/07
Christmas trading update
Retail offering
Brands
Product offer
Pricing
Operational issues
Advertising & marketing
e-commerce & home shopping
Park Group plc
Figure 199: Park Group plc: Sales as share of non-store retailers' sales in UK, 2001-05
Background
Financial performance
Figure 200: Park Group plc: Group financial performance, 2001/02-2005/06
Interim results
Retail offering
