UK Home Delivery & Order Fulfilment 2008

Verdict Research: UK Home Delivery & Order Fulfilment 2008 provides in-depth analysis of the home delivery market, including products ordered, retailers visited, media used and channel shares. Combining market level data with a survey of close to 2,000 customers, this new report offers real insight into the dynamics, opportunities and threats in the home delivery market.

Report Highlights
We expect the the home delivery market to continue outperforming total retail, with sales growth forecast at 8.3% in 2008, compared to just 2.4% for total retail. Growth is being driven primarily by the continued surge in online shopping and also TV ordering, which has been buoyed by more people gaining access to digital TV.

The number of shoppers using home delivery for clothing rose sharply in 2007 to 13.1m. Consumers were slow to adopt clothing & footwear at the beginning of the e-retail boom, but as websites have improved and customers have grown comfortable with online shopping, clothing has become a major online category.

Both sexes have become more active in the home delivery market for the second year running, with females extending their lead. 60% of females now use home delivery, up from 54% in 2006, as women become more frequent users of the Internet.
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CHAPTER 1 EXECUTIVE SUMMARY 16
Key Findings 16
Main Conclusions 17
CHAPTER 2 MARKET ANALYSIS 21
Introduction 21
Expenditure Growth 24
Home Delivery Market by Channel 26
Home Delivery Market by Sector 32
CHAPTER 3 CONSUMER RESEARCH SUMMARY 38
Key Findings 38
Introduction 39
Customer Characteristics 39
Newspaper Preferences 47
Delivery Frequency 53
Retailers Used 58
Motivations 63
Ordering Media 66
Satisfaction 71
Barriers to More Frequent Usage 75
Attitudes to Home Delivery Charges 77
Alternative Delivery Preferences 79
CHAPTER 4 SECTOR RESEARCH ANALYSIS 81
Books 81
Clothing & Footwear 91
DIY & Gardening 102
Electricals 113
Food & Grocery 122
Furniture & Floorcoverings 130
Gifts 139
Health & Beauty 149
Homewares 158
Music & Video 168
CHAPTER 5 HOME DELIVERY & FULFILMENT OPERATORS 177
Process 177
Sector Summary 178
Key Issues 179
Issues for Retailers 181
Solutions/Responses 182
Operator Services 186
e-Fulfilment Specialists 187
iForce 187
Metapack 188
Home Delivery Specialists 190
Home Delivery Network 190
Parcelnet 192
Home Shopping e-Fulfiment Hybrid 194
Zendor GSI Commerce 194
Logistics Specialists 196
Christian Salvesen 196
DHL Exel Supply Chain 198
Unipart Logistics 200
General Parcel Delivery 202
Amtrak 202
Business Post Group 204
DPD (Geopost) 206
Royal Mail/Parcelforce 208
LYNX Express 210
TNT Express 212
Unattended Delivery Solutions 213
CHAPTER 6 GLOSSARY 215
Abbreviations 215
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Table 1: Total consumer expenditure on goods sent by home delivery 1998-2008 25
Table 2: Home delivery channels 1998-2008 26
Table 3: Home delivery market spending by sector 2003-2008e 33
Table 4: Year-on-growth rates by sector 2003-08 33
Table 5: Home delivery shares of sector spending 2003-08 34
Table 6: Home delivery shopper base and penetration by sector 2007 46
Table 7: Regular daily newspapers read by home delivery customers 2007 50
Table 8: Regular Sunday newspapers read by home delivery customers 2007 52
Table 9: Reasons for choosing order method 2007 68
Table 10: Popularity of ordering methods for home/work delivery by sector 2007 69
Table 11: Satisfaction with elements of delivery process 2007 on 2006 73
Table 12: Satisfaction by ordering method 2007 74
Table 13: Which of these reasons would make you more likely to use home delivery services? 2007 75
Table 14: Which of these reasons would make you more likely to use home delivery services? 2007 (Cont’d) 76
Table 15: Books – regional profile of home delivery shoppers 2007 83
Table 16: Clothing & footwear – regional profile of home delivery shoppers 2007 93
Table 17: DIY & gardening – regional profile of home delivery shoppers 2007 104
Table 18: Electricals – regional profile of home delivery shoppers 2007 115
Table 19: Food & grocery – regional profile of home delivery shoppers 2007 124
Table 20: Furniture & floorcoverings – regional profile of home delivery shoppers 2007 132
Table 21: Gifts – regional profile of home delivery shoppers 2007 141
Table 22: Health & beauty – regional profile of home delivery shoppers 2007 151
Table 23: Homewares – regional profile of home delivery shoppers 2007 160
Table 24: Music & video – regional profile of home delivery shoppers 2007 170
Table 25: Summary of purchase motivator, method and main user by sector 2007 178
Table 26: Issues, solutions and implications for retailers operating in the home delivery market 2008 184
Table 27: Fulfilment operator service proposition summary 2008 186
Table 28: iForce company overview 2008 187
Table 29: Metapack company overview 2008 188
Table 30: Home Delivery Network company overview 2008 190
Table 31: Parcelnet company overview 2008 192
Table 32: Zendor GSI Commerce company overview 2008 194
Table 33: Christian Salvesen company overview 2008 196
Table 34: DHL Exel Supply Chain company overview 2008 198
Table 35: Unipart Logistics company overview 2008 200
Table 36: Amtrak company overview 2007 202
Table 37: Business Post Group company overview 2008 204
Table 38: DPD (Geopost) company overview 2008 206
Table 39: Royal Mail/Parcelforce company overview 2008 208
Table 40: LYNX Express company overview 2008 210
Table 41: TNT Express company overview 2008 212
Table 42: Unattended delivery solutions 2008 213
Figure 1: Home delivery report structure 2008 21
Figure 2: Home delivery purchase process 2008 22
Figure 3: Home delivery process 2008 23
Figure 4: Home delivery market growth 2003-2008e 24
Figure 5: Home delivery channels sales breakdown % 1998-2008 28
Figure 6: Home delivery market growth by channel 2008e on 2007 29
Figure 7: Reconciliation of mail order, e-retail, TV shopping and home delivery markets 2007 30
Figure 8: Sector shares of home delivery market 2003 and 2008 32
Figure 9: Percentage of each demographic group using home delivery in the past 12 months 2004-2007 40
Figure 10: Demographic profile of home delivery customer 2007 41
Figure 11: Home delivery household penetration % by working status and income group 2007 42
Figure 12: Home delivery household penetration % by ACORN group 2006 43
Figure 13: Users of home delivery – penetration by size of household 2005-2007 44
Figure 14: Users of home delivery – penetration by type of household 2005-2007 45
Figure 15: Percentage of daily newspaper readers using home delivery 2007 49
Figure 16: Percentage of Sunday newspaper readers using home delivery 2007 51
Figure 17: Average number of home deliveries per year by sector 2005-2007 53
Figure 18: Frequency of home deliveries by sector 2007 54
Figure 19: Top 20 retailers used for home delivery – % of shoppers mentioning 2006 & 2007 58
Figure 20: Retailers used for home delivery – percentage point change 2007 on 2006 59
Figure 21: Top reasons for home delivery 2005-2007 63
Figure 22: Ranking by importance of motivation for delivery by sector 2007 65
Figure 23: Ordering media for home delivery 2004-2007 66
Figure 24: Level of consumer satisfaction/dissatisfaction across all delivery criteria 2004-2007 71
Figure 25: Attitudes towards pricing and delivery 2007 77
Figure 26: If delivery could not be made to your home, where would you like it to go? 2004-2007 79
Figure 27: Books – home delivery shopper base 2005-2007 81
Figure 28: Books – socio-demographic profile of home delivery customer base 2007 82
Figure 29: Books – home delivery household penetration % by working status and income group 2007 84
Figure 30: Books – home delivery household penetration % by ACORN group 2007 85
Figure 31: Books – home delivery household profile % by lifestage 2007 86
Figure 32: Books – ordering media used for home delivery 2007 87
Figure 33: Books – leading reasons for using home delivery 2007 88
Figure 34: Books – leading retailers used for home delivery 2007 89
Figure 35: Clothing & footwear – home delivery shopper base 2004-2007 91
Figure 36: Clothing & footwear – socio-demographic profile of home delivery customer base 2007 92
Figure 37: Clothing & footwear – home delivery household penetration % by working status and income group 2007 94
Figure 38: Clothing & footwear – home delivery household penetration % by ACORN group 2007 95
Figure 39: Clothing & footwear – home delivery household profile % by lifestage 2007 96
Figure 40: Clothing & footwear – ordering media used for home delivery 2007 97
Figure 41: Clothing & footwear – leading reasons for using home delivery 2007 98
Figure 42: Clothing & footwear – leading retailers used for home delivery 2007 100
Figure 43: DIY & gardening– home delivery shopper base 2004-2007 102
Figure 44: DIY & gardening – socio-demographic profile of home delivery customer base 2007 103
Figure 45: DIY & gardening – home delivery household penetration % by working status and income group 2007 105
Figure 46: DIY & gardening – home delivery household penetration % by ACORN group 2007 106
Figure 47: DIY & gardening – home delivery household profile % by lifestage 2007 107
Figure 48: DIY & gardening – ordering media used for home delivery 2007 108
Figure 49: DIY & gardening – leading reasons for using home delivery 2007 110
Figure 50: DIY & gardening – leading retailers used for home delivery 2007 111
Figure 51: Electricals – home delivery shopper base 2004-2007 113
Figure 52: Electricals – socio-demographic profile of home delivery customer base 2007 114
Figure 53: Electricals – home delivery household penetration % by working status and income group 2007 116
Figure 54: Electricals – home delivery household penetration 2007 116
Figure 55: Electricals – home delivery household profile % by lifestage 2007 117
Figure 56: Electricals – ordering media used for home delivery 2007 118
Figure 57: Electricals – leading reasons for using home delivery 2007 119
Figure 58: Electricals – leading retailers used for home delivery 2007 120
Figure 59: Food & grocery – home delivery shopper base 2004-2007 122
Figure 60: Food & grocery – socio-demographic profile of home delivery customer base (% of shoppers) 2007 123
Figure 61: Food & grocery – home delivery household penetration % by working status and income group 2007 125
Figure 62: Food & grocery – home delivery household penetration % by ACORN group 2007 125
Figure 63: Food & grocery – home delivery household profile % by household lifestage 2007 126
Figure 64: Food & grocery – ordering media used for home delivery 2007 127
Figure 65: Food & grocery – leading reasons for using home delivery 2007 128
Figure 66: Food & grocery – leading retailers used for home delivery 2007 129
Figure 67: Furniture & floorcoverings – home delivery shopper base 2004-2007 130
Figure 68: Furniture & floorcoverings – socio-demographic profile of home delivery customer base (% of shoppers) 2007 131
Figure 69: Furniture & floorcoverings – home delivery household penetration % by working status and income group 2007 133
Figure 70: Furniture & floorcoverings – home delivery household penetration % by ACORN group 2007 133
Figure 71: Furniture & floorcoverings – home delivery household profile % by household lifestage 2007 134
Figure 72: Furniture & floorcoverings – ordering media used for home delivery 2007 135
Figure 73: Furniture & floorcoverings – leading reasons for using home delivery 2007 136
Figure 74: Furniture & floorcoverings – leading retailers used for home delivery 2007 137
Figure 75: Gifts – home delivery shopper base 2004-2007 139
Figure 76: Gifts – socio-demographic profile of home delivery customer base (% of shoppers) 2007 140
Figure 77: Gifts – home delivery household penetration % by working status and income group 2007 142
Figure 78: Gifts – home delivery household penetration % by ACORN group 2007 143
Figure 79: Gifts – home delivery household profile % by household lifestage 2007 144
Figure 80: Gifts – ordering media used for home delivery 2007 145
Figure 81: Gifts – leading reasons for using home delivery 2007 146
Figure 82: Gifts – leading retailers used for home delivery 2007 147
Figure 83: Health & beauty – home delivery shopper base 2004-2007 149
Figure 84: Health & beauty – socio-demographic profile of home delivery customer base (% of shoppers) 2007 150
Figure 85: Health & beauty – home delivery household penetration % by working status and income group 2007 152
Figure 86: Health & beauty – home delivery household penetration % by ACORN group 2007 153
Figure 87: Health & beauty – home delivery household profile % by lifestage 2007 154
Figure 88: Health & beauty – ordering media used for home delivery 2007 155
Figure 89: Health & beauty – leading reasons for using home delivery 2007 156
Figure 90: Health & beauty – leading retailers used for home delivery 2007 157
Figure 91: Homewares – home delivery shopper base 2004-2007 158
Figure 92: Homewares – socio-demographic profile of home delivery customer base 2007 159
Figure 93: Homewares – home delivery household penetration % by working status and income group 2007 161
Figure 94: Homewares – home delivery household penetration % by ACORN group 2007 162
Figure 95: Homewares – home delivery household profile % by household lifestage 2007 163
Figure 96: Homewares – ordering media used for home delivery 2007 164
Figure 97: Homewares – leading reasons for using home delivery 2007 165
Figure 98: Homewares – leading retailers used for home delivery 2007 166
Figure 99: Music & video – home delivery shopper base 2005-2007 168
Figure 100: Music & video – socio-demographic profile of home delivery customer base 2007 169
Figure 101: Music & video – home delivery household penetration % by working status and income group 2007 171
Figure 102: Music & video – home delivery household penetration % by ACORN group 2007 172
Figure 103: Music & video – home delivery household profile % by lifestage 2007 173
Figure 104: Music & video – ordering media used for home delivery 2007 174
Figure 105: Music & video – leading reasons for using home delivery 2007 175
Figure 106: Music & video – leading retailers used for home delivery 2007 176
Figure 107: Fulfilment and delivery options in the home delivery process 2008 177
Figure 108: Delivery & fulfilment issues for retailers 2008 181
Figure 109: Delivery & fulfilment solutions for retailers 2008 182
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