Ecommerce is Recession Proof
The UK boasts the highest online retail sales of any European country. In 2009, for example, the UK’s total of £38 billion was more than £8 billion higher than that of its nearest rival, Germany.
It has been estimated that online retail accounted for 9.5% of total retail sales in the UK in 2009 a greater proportion than in any other European country sampled
The United Kingdom has emerged from a major recession in 2010. However during some of the worst periods 2008 and 2009, ecommerce had almost uninterrupted growth, as customers with small budgets turned to the web for price comparisons and bargain hunting.
George Osborne announced in June that the government would raise the value-added tax (VAT) from 17.5% to 20% starting in January 2011 and would cut some spending on public services. Many jobs will go, and the threat of a double-dip recession persists. A survey found that 44% of households polled after Osborne’s announcement said they expected their financial situation to get worse in the next year the most pessimistic response since early 2009. However this is good news for ecommerce as it should actually increase UK consumers’ involvement in online shopping and buying.
Many wealthy consumers are attracted to online shopping and buying because it saves time and effort and brings a much wider selection of products and services within their reach. There are also an Increasing number of web users also cite the going green argument for ecommerce.
Summary of UK B2C Ecommerce: Consolidating the Gains by Karin von Abrams