.IE Tipping Point Report 2021

However, consumer behaviour still implies competitive advantages for Irish SMEs. Solidarity and patriotism aside, many consumers think Irish businesses are faster and more reliable, more trustworthy (which jumped to 48%, up from 41%) and have better order tracking and delivery. While consumers are most heavily influenced by price, our survey finds that reliability and speed are still valued, and it is here that Irish SMEs can focus their resources and gain advantage. International retailers by no means have a monopoly on better storefronts or websites. With investment in a modern, e-commerce website, Irish SMEs can win over consumers who are simply seeking a straightforward and convenient online experience. Industries and services In some product categories, Irish SMEs have a clear advantage over international businesses. Since the Covid crisis, consumers have been buying more furniture and hardware, as well as toiletries, medicines and beauty products, from Irish businesses rather than from international retailers. Where Irish SMEs are not outright leaders, they are at least competitive. Electronics and appliances have been bought from Irish businesses and international retailers in equal proportions (43%) during the pandemic. 55% say they have purchased clothes and shoes from international businesses since the pandemic, while 51% have purchased from Irish SMEs. Irish SMEs that provide services have a clear advantage over international businesses, but consumer uptake remains relatively low. 36% say they have purchased a service from an Irish SME since the pandemic began, compared to 24% from an international business. 19% have purchased a physical health consultation from an Irish SME (vs 9% from an international business) and 15% an online skills training class (vs 14% from international). While some services, particularly health examinations, will likely be better provided in person, consumers will respond well to SMEs that fully utilise new technologies to provide a seamless virtual experience. This could include video conferencing, e-billing, e-prescriptions, or an instant messaging service, particularly if it saves them queuing/inconvenience. The Covid consumer [continued] Why consumers have shopped mostly with Irish businesses since the pandemic Base: 362, consumers who shopped mostly with Irish businesses 74% Want to support them during crisis (67%, 2020) 48% Faster/ more reliable (48%, 2020) 48% More trustworthy (41%, 2020) 31% Better order tracking/ delivery service (30%, 2020) 17% Cheaper (11%, 2020) 16% Better product range (13%, 2020) 10% Better websites/ online storefronts (11%, 2020) Why consumers have shopped mostly with international businesses since the pandemic Base: 423, consumers who shopped mostly with international businesses 72% Cheaper (71%, 2020) 67% Better product range (69%, 2020) 35% Better websites/ online storefronts (34%, 2020) 23% Better order tracking/ delivery service (25%, 2020) 26% Faster/ more reliable (24%, 2020) 9% More trustworthy (12%, 2020) .IE Tipping Point 2021: Irish e-commerce and digital business in the Covid vaccine era | 6

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