In this report we’ve taken a look at the typical online sectors purchased in prior to Father’s Day, this year held on Sunday 19th June. Father’s Day is typically smaller than Mother’s Day, especially for online purchases, with consumers choosing clothing products (36%) as the most popular gift, 15% choosing alcoholic beverages and 12% experience days according to a 2015 Hermes survey (Retail Week). Father’s Day is on the rise though, with a 3% increase in 2015, raising participation in the event to 57% in the UK, compared to 65% for Mother’s Day (Forbes 2015). Customers also spend more online for Father’s Day than they do in store, up by nearly £6, according to Mintel research conducted two years ago (The Drum 2015).
The US Apparel sector has seen substantial growth in the past few years, with annual growth at 3% in 2014 and 4.6% into 2015 according to MarketLine . The same research suggests the sector will reach a collective value of $1,650bn by 2019. With a strong US Dollar, and big brands such as Zara and Uniqlo investing in the region, brands are continuing to export more apparel goods to the US, helping sector growth (Business of Fashion).
The UK cycling sector has gone from strength to strength in the past five years, with increasing demand across the country. According to figures from the ONS cited in the Guardian, the UK sale of bicycles grew from £35m to £60m from 2013 to 2014 alone.
Historically the Foreign Exchange sector has been characterised by major banks and a few money transfer companies, owning a majority share. However following on from the 2008 financial crisis and drops in consumer confidence, we’ve seen a shift in this sector, with several tech start-ups and smaller firms taking a slice of the market. In particular, we’ve seen mobile play a proprietary role in stimulating this growth, with mobile-to-mobile money transfers on the rise, and an estimated 100 million users worldwide according to the BBC.
The UK Jewellery sector was valued at £5 billion last year, comprising of real jewellery, watches and costume jewellery (Keynote 2014). Globally the jewellery industry has struggled over the past five years, with declines in the price of gold and diamonds against the dollar, reducing margins for producers and lowering the overall cost of jewellery.
The UK Online Lingerie sector has enjoyed considerable growth over the past few years, with the industry seeing growth of 265%, compared to 116% for the online retailer sector between 2009 and 2014 (Lingerie Insights). Where typical retailers suffered in sales from post-recessionary customers, the Lingerie sector came out unscathed, with Analysts from Global Online Lingerie Market now predicting further growth of 18.18% between 2014 and 2019.
The UK Flower industry is characterised by high competition with 15,000 online florists now active according to The British Florist Association. From an affiliate perspective the sector has seen consistent growth over the past few years, with highest sales figures recorded in seasonal peaks around Valentine’s, Mother’s Day and typically the lead up to Christmas.
The UK Travel Sector has enjoyed excellent growth in Q2 2015 at the third highest rate the industry has seen in six years according to the latest IMRG Capgemini e-Retail Index. This is coupled with Barclaycard spend reports showing travel expenditure was up 8.4% for Q2 against 2014, with hotels growing by 6.9% and flights improving 4.1% for the same period. Travellers are also staying for longer with stays rising by 10.8% for January to March 2015 versus last year and on holiday expenditure increasing to £6.8 billion according to the ONS.
The UK Cottages Online market follows similar trends to the overall travel industry with strong performance in Q1, peaking in January with a further smaller peak around June/ July. The Cottage sector has gone from strength to strength over the past few years, and as a network we have seen 25% annual growth in revenue from 2013 to 2014 and a 23% increase in bookings for the same period.
The UK ticketing and attractions sector has seen strong growth this year, with inbound tourism from overseas up 8% for January – March versus 2015 (Travel Daily Media 2016), which is ahead of VisitBritain’s prediction of a 3.8% annual rise from last year. With tourism on the rise, London claims the top spot for all events not just in the UK but also in Europe, including both consumer and corporate events (Eventbrite 2016).
2016 has so far been a bumper year for sporting events with the Euro 2016, Rio Olympics and Six Nations Rugby all spanning February to August 2016. Whilst affecting predominantly outbound events, it is interesting to see how sectors perform seasonally by comparison and how events can drive performance for relating sectors such as travel. Ahead of the Russia vs. England Euro 2016 game, Marseille flights saw a 439% increase in internet searches (Sojern 2016). Focusing on just ticketing and tourism & attractions, we’ve compared January to August 2016 click and transaction shares by month in the below graphic against the Hotel & accommodation sector.