British e-tailers are the most confident in Europe, despite the
current climate of high-tech job losses and profit warnings,
according to a report commissioned by telecoms and e-business
solutions provider Energis and conducted by the Industrial Research
Bureau. Over 86% of British e-tailers expect on-line sales to
increase over the next six months, while 42% expect to expand
employment over the same period. Across Europe the figures were 75
and 37% respectively.
The results, from a poll of e-commerce strategists at 250
companies across Europe that sell goods and services on-line,
demonstrate the resilience of the e-tail sector, claims the report,
despite the current volatility in internet stocks. Just 2.8% of
European companies expected employment opportunities to fall, and
only 4% expected sales to decline.
None of the British e-tailers interviewed for the e-confidence
survey expected on-line sales to fall over the next half-year and
only 6% thought that employment opportunities within the industry
would fall. The results come in a month with an unprecedented
number of high-tech job cuts in the UK– 42,000 so far, according to
ZDNet.co.uk.
Companies cited investment in recruitment and training (46%) as
their top priority over the next six months, followed by software
(14%) and web site re-design (8%).
Nick Sharples from Energis commented:
“Confidence among e-tailers is particularly
buoyant in Britain, but the outlook for the next six months is also
positive across Europe. E-tailers are focusing on investment in
staff and systems as the key ingredients to grow their
businesses.”
British e-tailers believe their ability to be competitive will
have the biggest positive effect on sales (28%) over the next six
months. However, it emerged that the cost of technology is the
biggest fear for British e-tailers, with 26% of them citing it as
the most likely factor to negatively affect sales performance over
the coming half-year. Like the rest of Europe, British e-tailers
also fear fluctuating exchange rates (18%) and security issues
(12%).
When asked which sector of the market represented the biggest
on-line opportunity for e-tailing in Europe, the UK's e-tailers
agreed with the rest of Europe in choosing the travel sector (36%).
Books and CDs (28%), and music distribution (24%) were cited as the
next most promising areas of growth.
In terms of specific brands, UK e-tailers overwhelmingly voted
for Amazon (80%) as the most successful European on-line brand,
with Lastminute.com second (12%) and eBay third (6%).
E-tail strategists across the continent selected London as the
e-business capital of Europe (40%) - ahead of Amsterdam (8%), Paris
and Munich (6%). The results back up the British e-tailers
confidence of expansion.
