According to research by marketing inteligence company Key Note eCommerce will be the key factor driving the growth of the home shopping market, which will account for around one third of all retail sales in the UK by 2012.
It claims that home shopping market will expand at a rapid, albeit decelerating pace over the next five years. The research also predicts that the general mail-order sector will completely converge with internet sales by 2012, while direct sales are likely to begin to decline.
The total market for UK home shopping was valued at an estimated £58bn in 2006, more than double the £28bn spent in 2003. Figures reveal that while the e-commerce sector has exploded, the general mail-order sector has experienced a sharp decline.
Key Note claims that rising broadband penetration in the UK will only drive market growth further, and that the need to invest heavily in e-commerce means that the largest retailers will come to dominate the e-commerce sector.
Key Note finds that the general mail-order sector is increasingly overlapping with the e-commerce sector, while direct selling and direct marketing are also coming under competitive pressure from the growth of internet sales.