Market Trends of Ireland E-commerce Industry
This section covers the major market trends shaping the Ireland E-commerce Market according to our research experts:
Rising Adoption of Card Payments and M-commerce
- Market players in the region are optimizing their sites for mobile devices and offer seamless card payments owing to the increase in m-commerce. Consumers in the region are more likely to close a transaction on the go, and card payment is the most popular choice for completing the payment.
- The government's support for card payments drives the region's payment acceptance. The Irish government has implemented a debit card interchange fee cap of 0.1%, a 50% reduction on the standard EU cap of 0.2 percent. The interchange fee cap on credit cards was maintained at the EU level of 0.3%.
- Other payment methods for online shopping, such as bank transfers and cash, are set to shrink in use. Ireland looks set to become a significant e-commerce market driven by rapid growth in card payments, with digital wallets also growing in line with rising m-commerce and smartphone use.
- Mobile commerce is becoming increasingly faster to access and use. 5G mobile access speeds are slowly being rolled out across Ireland, starting in cities and major venues before reaching rural areas. Along with growing smartphone penetration and ease of use, the m-commerce market in the region is expected to grow.
- As per the Central Bank of Ireland, total in-store spending amounted to EUR 3.6 billion in March 2022, 15% higher than February 2022, and represented an increase of 34%, or EUR 905 million, compared to March 2021. Total online expenditure increased by 11% compared to February 2022 to EUR 3.1 billion and 9% compared to March last year. Moreover, Online spending accounted for 47% of overall PoS spending in March, a decrease of 1% compared to February.
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The Fashion and Apparel Segment Accounted for Largest Market Share
- One of the leading trends in the fashion segment is the direct integration of shopping functionality to the content display on social media, enabling high-speed, inspiring, and selling customer conversion. The audience in the region is increasingly shifting from desktop to mobile, and with increasing m-commerce, the trend is expected to grow further over the years.
- According to the Central Statistics Office, Ireland, the turnover percentage generated by online retail sales of clothing, footwear, and textile was 8.1% in September 2021, and it increased to 14.1% in January 2022.
- More consumers flock to e-commerce companies that sell cheap fashionable clothes, referred to as disposable clothes. Despite a drop in discretionary spending, consumers still purchase clothes monthly but opt for disposable items from e-commerce companies, including Dunnes Stores, Tesco Ireland, and discounters.
- Ireland's fashion industry is expanding yearly with the increasing number of fashion bloggers, stylists, and influencers. Social media or social commerce greatly affects sales growth, recognition, brand recognition, and wealth. Moreover, the rising internet and smartphone penetration also boost the e-commerce market in the region.
