Online retail has so far reported significant growth in 2008; with online spend up 38% on the first half of 2007 and now accounting for 17% of every pound spent in the UK. Brands that fail to embrace and engage the online consumer are set to be among those most severely affected by an economic downturn, according to research conducted in the UK by E-consultancy, Logan Tod and immediate future.

Some 64% of UK respondents surveyed said they would reduce their spending (overall) in view of the deteriorating economic climate. However, 56% said that their online spending would not be affected – or would actually increase. Consumers are turning online to find the best available prices and advice.

The study found that when comparing the different age groups, it is the “silver surfers” (age 55+), many of whom have paid off mortgages or enjoy higher disposable income, which are the least concerned about the economic situation: 43% said the economy would not affect their spending.

69% of all consumers search by product name when looking to purchase online, with brand names the next most searched for (43%):
To download the report please visit: Online Shopping and Credit Crunch Survey Report