.IE Tipping Point Report 2021

SME opinions on consumer habits have changed Base: 500, all SMEs (Q: Which of these statements best describes what you think will happen to consumer shopping habits in 2021?) 54% Consumers will prefer to buy more products online (24%, 2020) 9% Consumers will prefer to buy more products in physical stores (23%, 2020) 37% Consumers will buy some products online and some in physical stores (53%, 2020) Growing investment The number of Irish SMEs that have invested any sum of money in their online presence has grown remarkably: 55% have invested since the beginning of the pandemic, up from just 21% in 2020. Almost half (48%) made the majority of their investment during the initial March–June 2020 lockdown, while 20% invested from October to December, during the second national lockdown and the Christmas ‘easing’ period. Most SMEs have focused on launching or improving their website (52%), investing in online advertising or marketing (33%), and launching or improving their online voucher service (28%). Because of this investment, 78% of SMEs say they have been able to sustain pre-Covid levels of business or are busier than before, up from 46% in the summer of 2020. The bottleneck For a majority of online SMEs, maintaining a digital presence has been a straightforward experience. However, a small number have found it difficult. Some have struggled to update their websites and social media profiles, while others have found it difficult advertising and marketing their online services. Other issues have stemmed from the macro pandemic environment, such as difficulties with remote working and Covid restrictions. Expectations were mixed among this struggling cohort: 44% anticipated that maintaining an online presence or selling online would be difficult, while 43% did not. Lack of time was by far the most prominent obstacle (31%), followed by a lack of personal or internal expertise (21%) and a lack of equipment or other resources (19%). The Covid SME [continued] 53% 76% have found maintaining an online presence or selling online straightforward Base: 381, SMEs with an online presence of SMEs believe that Irish consumers prefer to spend with Irish businesses However, 52% of Irish consumers currently do the majority of their online shopping with international retailers Base: 500, all SMEs .IE Tipping Point 2021: Irish e-commerce and digital business in the Covid vaccine era | 8