IE Domain Registry t/a .IE Annual Report 2021

It is imperative that government policy makers and stakeholder representative bodies have access to accurate data upon which to base their decisions. Our research and insights reports are useful references to help them design and implement appropriate supports for Irish SMEs to digitise their sales and business processes. In 2021 .IE commissioned and published 3 key reports – two editions of the .IE Domain Profile Report and the .IE Tipping Point Report . 100% <0% % growth in new .ie registrations 2021 v 2019 .IEDomainProfileReport2021 <0% 0 -10% 10 -20% 20 -30% 30 -40% 50 -100% >100% Insights .IE Domain Profile Report The bi-annual .IE Domain Profile Report analyses the key trends and statistics in .ie domain registrations over time. It examines the entire database of .ie domains while also measuring the growth in registrations at regional and county levels. The 2021 edition revealed the impact of the Covid-19 pandemic on new .ie registrations and analysed the counties and countries of registered domain holders. We also examined the broader .ie ecosystem, including domain usage, the breakdown of Content Management System (CMS) usage by .ie domain owners, .ie domain security features, keyword usage in new .ie domain registrations, .ie website categorisation and .ie market share and international growth. These reports provide insights into digital adoption and digital intent at a county level as the findings include an indication of a narrowing of the urban-rural digital divide. The Central Bank also recognises new .ie registrations as a forward indicator of economic health. Findings from the reports have been widely used by media outlets across the country. .IE Tipping Point Report The COVID-19 crisis has been a tipping point for Ireland for many reasons. The .IE Tipping Point Report 2021: Irish e-commerce and digital business in the Covid vaccine era , assessed the attitudes and responses to the Covid-19 pandemic of 1,000 Irish consumers and 500 retail and consumer-facing professional services SMEs. This insightful research, following on from the first in the trilogy in 2020, was extremely useful for policymakers. The report highlighted that Covid was accelerating major trends in e-commerce and digitalisation. Behaviours and ways of working that boost sales, cut costs or increase convenience are likely to become ingrained. A greater number of SMEs accept that their business model will probably be permanently changed as a result of the pandemic. Others have been clearly affected by the shift in the economic status quo and have found it difficult to find their customers online or convince them to use their online store. The pandemic has undoubtedly been a baptism of fire for many SMEs. Local authorities, business groups and national policymakers should continue to help SMEs with digital skills training where possible by addressing knowledge and resource gaps. Future intentions Wit a significant majority of SMEs benefiting from online investment, and considering the current trajectory of the pandemic, it is perhaps unsurprising that most fully intend to continue investing in their online presence in 2021. 61% believe th t heir online presence will be more important to their business this year than last. Less than a quarter intend to scale back th ir online s rvices. However, SMEs appear to be overestimating their overall strength relative to international businesses. 53% believe that Irish consumers prefer to shop online with Irish businesses rather than international retailers (20%), despite almost the opposite being true. However, SMEs are generally now more cognisant of the effects of the pandemic on consumer behaviour: 54% believe that consumers will prefer to buy products online over the next year, up fr m 24% in 2020. Irish SMEs also recognise their unique advantages relative to international businesses. As consumers do, they see themselves as more reliable, trustworthy and with better delivery services. To generate sustainable, near-term wins for Irish e-commerce, it is important that local business accelerators and government agencies focus on helping SMEs consolidate these USPs. The Covid SME [continued] 79% 28% Yes, busier than before pandemic (21%, 2020) 50% Yes, same level of business as beforepandemic (25%, 2020) 13% Yes, although still struggling (19%, 2020) 9% No difference (16%, 2020) 0% Unsure (19%, 2020) Positive results from online investment? Base: 86,SMEs thathave investedsinceCovid .IETippingPoint2021: Irishe-commerceanddigitalbusiness in theCovidvaccineera | 9 of SMEs will continue to invest in their online services in 2021 Base: 500,allSMEs Findings of the report revealed that Irish consumers were eager to support local businesses through the pandemic, but other factors, particularly price and range, remained prominent. They viewed international retailers as more competitive on price, range and online experience, but viewed Irish SMEs as more reliable and trustworthy. We advised Irish SMEs to focus their digital investment in these areas of competitive advantage, and to invest their resources in improvements to online customer experience and service, which consumers explicitly value. The report also demonstrated the changing consumer behaviours, with more spending online. 58% said they would prioritise online spending over in-store in 2021. On a positive note, there was also growing evidence of SMEs’ understanding of Irish consumer needs. A remarkable shift was seen in the number of SMEs that invested in their online presence (up from 21% in 2020 to 55% in 2021), and a growing cohort of business owners see the future of retail in e-commerce. The majority recognise that the future of their business depends on adding some kind of digital offering. For those SMEs who did invest it paid off, 78% of SMEs that have invested in their online services said they were busier than or as busy as before the Covid crisis, up from 46% in 2020. Insights – research and reports .IE is committed to providing relevant and useful research and insights to guide government policymakers and stakeholder representative bodies. Business and Market Review IE Domain Registry CLG t/a .IE / Annual Report & Review 2021 23