In This Issue
Pet industry hits back at raw food fears
Best Place to Work award for pet firm
Pet care firms listed in Top 100 Megabrands
Pet food firm nominated for major franchising awards
OATA supports freshwater fish conservation programme
Vet tech business gets funding for international expansion
Greatest dog show in the world starts today
Thirteen hours of Crufts on TV
Billy + Margot showcases new dog food range at Crufts
The world’s greatest dogs deserve real food
Naturediet to showcase extended Eco-Friendly dog food
50 years of expertise and innovation for EUKANUBA
Paul O’Grady's dog food range on show at Crufts
WHIMZEES helps dogs gain champion clean teeth
Orvis celebrates partnership with Nineteen 87
Benyfit Natural announces exciting guestlist for Crufts
Get your own copy of Pet Trade Xtra
Pet shop owner prosecuted by RSPCA
PIF restructures event portfolio to include new dog grooming contest
School pupils create plastic-free pet products
New floating shape toys from Mighty Mutts brand
Bestpets ‘takes two’ at the Bestway Performance Awards
Skinner’s sponsor Suffolk Dog Day’s first Woofers Winter Walk
New and improved FURminator premium grooming range
Tetra launches Pond FilterStart Bacteria to restore biological balance
Let's use Brexit to ban cruel animal exports, says MEP John Flack
Nine in 10 Brits shop on Amazon, says Mintel
Still time to book for international trade event
The best of the previous Pet Trade Xtra
Leading pet food firm buys rival company
Pet shop owner left 'heartbroken after break-in
Roger Mugford stepping down as CEO of Company of Animals
Change dogs' llves. Stock real food!
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Nine in 10 Brits shop on Amazon, says Mintel

Amazon is the retail phenomenon which started in a garage and now, nearly a quarter of a century later, new research from Mintel reveals that almost nine in ten (86%) Brits are Amazon users/shoppers*. Highlighting the ongoing popularity of the retail giant, according to Mintel, more Amazon shoppers have increased their shopping (21%) with the retailer than decreased it (13%) over the past year. Overall, most (70%) Amazon customers shop with the retailer at least once a month, while just under a fifth (17%) use the retaile on a weekly basis. 

In terms of what’s in the basket, hardcopy media (books, DVDs or video games) (39%) remains Amazon’s most popular purchases. This is followed by electricals (30%), fashion/jewellery (30%), and toys (20%). An impressive 45% of households in the UK have some form of Amazon produced device, with Kindle (23%), Fire TV/TV Stick (16%), Fire Tablet (14%), and Echo (11%) proving the most popular.**

Inherent trust in this retail giant is confirmed by the fact that as many as half (51%) of Amazon users assume that the e-retailer has the cheapest prices, while six in ten (59%) say they are loyal to the company. What is more, 70% of Amazon shoppers say it is the first retailer they go to when shopping online.

Nick Carroll, Mintel Associate Director of Retail, said:

“Amazon is a phenomenon of 21st century retail. In a little over 20 years, it has grown to be a retailer that nearly all consumers use. It has achieved this through a relentless focus on customer-facing investment and innovation. Amazon started selling books, but now holds a significant share in almost all retail categories, helped by the incubation of thousands of independent sellers through its Marketplace scheme. The retail giant has expanded far past the bounds of normal retail operations into media streaming, consumer electronics and cloud computing. Amazon has built a platform that customers are both happy to use, and pay for the privilege of doing so via its various subscription services.” 

The popularity of the subscription-based service Prime is confirmed by the fact that four in ten (39%) consumers have access to Amazon Prime, with just over a quarter (26%) personally being members and a further 13% sharing access through someone else’s account. Scaled to a national level,*** this places Amazon Prime membership in the UK at around the 15 million mark.

 

And it seems that the nation’s younger consumers are the biggest fans of Prime, as a staggering 63% of 16-24s and 52% of 25-34s have access to this premium service. Mintel research goes on to reveal that Prime membership has a major impact on purchasing, with members significantly more likely to purchase across all product ranges.

The main draw, or at least the most used perk of Prime, remains the speedy delivery offered at no extra cost to members; some two thirds (66%) of those with access to Prime say this is a service they regularly use. By contrast, the biggest barrier to Amazon’s recruitment of more members appears to be price, some 44% of those who have never been members put this down to the scheme being too expensive.

“While most consumers already shop with Amazon, the retailer continues to gain market share by increasing the number of Prime members. That’s because Prime members buy significantly more, and across a broader number of categories, than non-members. This is why Amazon continues to add to the list of Prime-exclusive services, with Premier League matches coming in the second half of this year. Regardless of the reasons people join Prime - there is a net benefit for the retail side of the business,” Nick adds.

The impact of Amazon’s reach into the physical retail sector is confirmed by the fact that almost half (45%) of Amazon users believe that the e-tailer is responsible for physical stores closing. Meanwhile, three quarters (75%) of Amazon shoppers say they often check the prices of products they see in-store on Amazon. And physical retailers are probably being used as showrooms, as 70% of Amazon shoppers say they research products elsewhere but then buy via the site.

But while many acknowledge the negative impact of Amazon on the high street, some 40% of Amazon users believe it supports independent retailers and 29% believe that shopping via Amazon Smile is a good way to give to charity.

“Amazon’s growth has no doubt wounded rivals, but it is not the ‘high street’ killer that it is often painted out to be. It has certainly led on, and to a degree enforced, many trends that have come to define 21st century retail, however it is not all conquering at present. Indeed, even if the retailer accounted for roughly 50% of the online market held by online-only retailers, it would only account for around 9% of all UK retail sales. And despite the popularity of online retailing as a whole, the vast majority of all retail sales (82%) in the UK still come through physical stores. This leaves much room for its own growth but equally for rivals to fight back.” Nick concludes. 

 

 

* The year to October 2018

** Mintel Online Retailing – UK, July 2018 Report

*** Adjusting for the non-internet users that were not part of the online survey in Mintel’s research   

 

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